In this article, we discuss 10 tech stocks to buy according to billionaire David Harding. If you want to skip our detailed analysis of these stocks, go directly to 5 Tech Stocks to Buy According to Billionaire David Harding.
David Winton Harding is a British billionaire financier who founded Winton Capital Management in 1997, which is a London-based investment management firm. Winton’s hedge fund follows a differentiated investment strategy, employing data analysis and algorithms to trade in the global futures markets, placing bets on underlying assets such as commodities and bonds.
After graduating from the University of Cambridge in 1982, Winton worked across a few firms as a futures trader, before founding his first investment management firm in 1987 with his partners Michael Adam and Martin Lueck, namely Adam, Harding & Lueck. When his firm was acquired by the Man Group in 1989, Harding became the head of the quantitative research division at Man Group.
His background in quantitative research led Harding to hire a team of statisticians and scientists who analyze market data for well informed investment decisions at Winton Capital Management. Harding’s hedge fund invests mainly in the information technology, industrials, healthcare, finance, and consumer discretionary sectors, with a top ten holdings concentration of 11.94% as of September 2021.
The most notable stocks in the Q3 portfolio of British billionaire David Harding include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Netflix, Inc. (NASDAQ:NFLX).
David Harding of Winton Capital Management
Our Methodology
We used the third quarter portfolio of David Harding to pick the billionaire’s top 10 technology stocks, ranking the companies according to his stake value in each holding.
Tech Stocks to Buy According to Billionaire David Harding
10. Infosys Limited (NYSE:INFY)
Winton Capital Management’s Stake Value: $4,673,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 29
Infosys Limited (NYSE:INFY) is a multinational information technology company from India offering software development, technical maintenance, IT consultancy, and universal digital banking solutions. David Harding owns 210,035 Infosys Limited (NYSE:INFY) shares as of September 2021, worth $4.6 million, representing 0.26% of the billionaire’s Q3 portfolio.
BMO Capital analyst Keith Bachman on October 14 raised the price target on Infosys Limited (NYSE:INFY) to $25 from $23 but kept a Market Perform rating on the shares.
A total of 29 hedge funds were bullish on Infosys Limited (NYSE:INFY) in the third quarter, up from 22 funds in the preceding quarter. Rajiv Jain’s GQG Partners is the largest Infosys Limited (NYSE:INFY) stakeholder, with 57.75 million shares worth $1.28 billion.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Netflix, Inc. (NASDAQ:NFLX), Infosys Limited (NYSE:INFY) is a notable stock in billionaire David Harding’s Q3 portfolio.
9. Adobe Inc. (NASDAQ:ADBE)
Winton Capital Management’s Stake Value: $4,711,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 95
Adobe Inc. (NASDAQ:ADBE) is a multinational computer software company offering applications like Adobe Photoshop, Adobe Illustrator, Adobe Acrobat Reader, Adobe Creative Suite, and Adobe Creative Cloud, in addition to other related products and services. David Harding’s Winton Capital Management elevated its position in Adobe Inc. (NASDAQ:ADBE) by 90% in the third quarter, holding a total of 8,183 shares worth $4.71 million.
Among the hedge funds being tracked by Insider Monkey, 95 funds reported owning stakes in Adobe Inc. (NASDAQ:ADBE) at the end of September, worth $12.6 billion, as compared to 89 funds holding stakes worth $13.1 billion in Adobe Inc. (NASDAQ:ADBE) in the preceding quarter.
For the fourth quarter of 2021, Adobe Inc. (NASDAQ:ADBE) posted its financial results on December 16, announcing earnings per share of $3.20, in line with analysts’ consensus estimates. Revenue over the period jumped 20% from the prior-year quarter to $4.11 billion, exceeding estimates by $21.20 million.
On December 20, Citi analyst Tyler Radke lowered the price target on Adobe Inc. (NASDAQ:ADBE) to $611 from $678 and kept a Neutral rating on the shares. The analyst noted that the company’s headline growth metrics for Q4 missed expectations and it was the second consecutive quarter of softer than expected performance owing to seasonality issues.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Netflix, Inc. (NASDAQ:NFLX), Adobe Inc. (NASDAQ:ADBE) is a notable stock in billionaire David Harding’s Q3 portfolio.
Here is what Richie Capital Group has to say about Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
8. Accenture plc (NYSE:ACN)
Winton Capital Management’s Stake Value: $6,171,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 56
Accenture plc (NYSE:ACN), a multinational IT company providing professional consultancy services, is one of the best tech stocks to buy according to billionaire David Harding. Winton Capital Management holds 19,288 Accenture plc (NYSE:ACN) shares as of the third quarter, worth $6.1 million, representing 0.34% of the fund’s total investments.
Publishing its financial results for the quarter ending November 2021, Accenture plc (NYSE:ACN) announced earnings per share of $2.78 on December 16, beating estimates by $0.15. The company reported a $14.97 billion revenue for the period, up 27.23% from the prior-year quarter, outperforming estimates by $746.51 million.
Accenture plc (NYSE:ACN) announced on December 28 that it has been awarded a seven-year, $87 million contract by the U.S. Patent and Trademark Office, the federal agency responsible for authorizing patents and registering trademarks in America. Accenture plc (NYSE:ACN) will modernize advanced applications and deliver a DevSecOps infrastructure to the federal organization, while incorporating cloud, cyber, and automation capabilities.
Barclays analyst Ramsey El-Assal raised the price target on Accenture plc (NYSE:ACN) to $455 from $384 and kept an Overweight rating on the shares on December 20, following the earnings report.
According to the hedge funds tracked by Insider Monkey in Q3 2021, 56 funds were long Accenture plc (NYSE:ACN), and Nicolai Tangen’s Ako Capital is the largest company stakeholder, with 2.24 million shares worth $718.7 million.
Here is what Polen Global Growth has to say about Accenture plc (NYSE:ACN) in its Q3 2021 investor letter:
“Accenture continues to perform well as the business has grown through the pandemic. Accenture has benefited as businesses around the world have sought a trusted partner to enable their digital transformation. Those leading in the new world are accelerating investment, while those lagging are investing to close the gap. These are two great examples of the pandemic accelerating trends that were already in motion, making leaders more resilient.”
7. Oracle Corporation (NYSE:ORCL)
Winton Capital Management’s Stake Value: $6,445,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 56
David Harding owns 72,248 Oracle Corporation (NYSE:ORCL) shares as of the third quarter of 2021, worth $6.44 million, representing 0.36% of the billionaire’s total investments. Oracle Corporation (NYSE:ORCL) is a Texas-based multinational tech corporation offering solutions for enterprise resource planning, database software, cloud computing, customer relationship management, and products for related enterprise needs.
Deutsche Bank analyst Brad Zelnick observed that investors were shocked when Oracle Corporation (NYSE:ORCL) acquired its largest deal in history at a time when its organic prospects seem so promising, but the acquisition of Cerner, an American health technology and equipment company, will eventually be appreciated by stakeholders. Zelnick kept a Buy rating on Oracle Corporation (NYSE:ORCL) with a $120 price target on December 21.
Reporting its Q4 results on December 9, Oracle Corporation (NYSE:ORCL) posted an EPS of $1.21, beating estimates by $0.10. Revenue over the period totaled $10.36 billion, exceeding estimates by roughly $150 million.
Jean-Marie Eveillard’s First Eagle Investment Management is the largest Oracle Corporation (NYSE:ORCL) stakeholder, with 26.2 million shares worth $2.28 billion. Overall, 56 hedge funds in Q3 were bullish on Oracle Corporation (NYSE:ORCL), with stakes valued at $3.47 billion.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Netflix, Inc. (NASDAQ:NFLX), Oracle Corporation (NYSE:ORCL) is one of billionaire David Harding’s top stock picks.
Here is what Saturna Capital Sextant Funds has to say about Oracle Corporation (NYSE:ORCL) in its Q3 2021 investor letter:
“Technology companies provided the greatest contribution to Fund returns. The contribution was generated over July and August, as each of the companies declined in value in September. Oracle couldn’t buck the September sell-off, but it was more resilient, shedding just over 1%, which likely has much to do with its modest valuation.”
6. Netflix, Inc. (NASDAQ:NFLX)
Winton Capital Management’s Stake Value: $7,031,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.39%
Number of Hedge Fund Holders: 106
Netflix, Inc. (NASDAQ:NFLX), a digital subscription streaming and original production company, is one of the top tech stock picks of British billionaire David Harding. Winton Capital Management owns 11,520 shares of Netflix, Inc. (NASDAQ:NFLX), valued at approximately $7 million, representing 0.39% of the fund’s total 13F portfolio.
At the end of July, Netflix, Inc. (NASDAQ:NFLX) had 209 million paid global subscribers. The Q3 financial results of Netflix, Inc. (NASDAQ:NFLX) were published on October 19, and the company reported an EPS of $3.19, exceeding estimates by $0.63.
In addition to major tech companies like Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT), Netflix has been on the radar of investors. On December 6, JPMorgan analyst Doug Anmuth was “incrementally positive” on Netflix, Inc. (NASDAQ:NFLX), stating that the company’s Q4 content slate strengthened in December and that subscriber growth should follow. He reiterated an Overweight rating on Netflix, Inc. (NASDAQ:NFLX) shares with a $750 price target.
A total of 106 hedge funds were bullish on Netflix, Inc. (NASDAQ:NFLX) in the third quarter, down from 113 funds in the prior quarter. One of the leading Netflix, Inc. (NASDAQ:NFLX) stakeholders is Fisher Asset Management, with 4.1 million shares worth $2.5 billion.
Here is what FPA U.S. Core Equity Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2021 investor letter:
“Among the Fund’s biggest winners was Netflix (NASDAQ: NFLX), which appreciated 15.5% during the third quarter. I continue to be very bullish on NFLX’s long-term potential. The market can often take a short-term view and I believe such is the case with how it trades NFLX from quarter to quarter, typically based on how many paid net subscriptions it garners.
I believe the market may define NFLX’s total addressable market too narrowly by focusing on the approximate 74 million of pay TV households in the U.S. and one billion pay TV households across the globe or about 700 million ex-China. Based on those denominators, NFLX’s paid memberships of approximately 74 million in North America and 135 million throughout the rest of the world (as of 6/30/21) would point to a business that is much more mature (at around 30% penetrated) than it likely is…” (Click here to see the full text)
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Disclosure: None. 10 Tech Stocks to Buy According to Billionaire David Harding is originally published on Insider Monkey.
