In this article, we discuss 10 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)
5. Meta Platforms, Inc. (NASDAQ:FB)
Winton Capital Management’s Stake Value: $7,845,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 248
Mark Zuckerberg’s Meta Platforms, Inc. (NASDAQ:FB) is one of the best tech stocks to buy according to David Harding, with the billionaire elevating his stake in the tech giant by 24% in the third quarter. Winton Capital Management owns 23,115 Meta Platforms, Inc. (NASDAQ:FB) shares as of Q3 2021, worth $7.8 million, accounting for 0.43% of the firm’s total 13F securities.
On October 25, Meta Platforms, Inc. (NASDAQ:FB) announced earnings for the third quarter, posting an EPS of $3.22, exceeding estimates by $0.04. Meta Platforms, Inc. (NASDAQ:FB)is planning on integrating blockchain and cryptocurrency technologies into its platforms in the near future.
Loop Capital analyst Alan Gould on December 20 lowered the price target on Meta Platforms, Inc. (NASDAQ:FB) to $380 from $420 but kept a Buy rating on the shares.
Among the hedge funds being tracked by Insider Monkey, 248 funds were long Meta Platforms, Inc. (NASDAQ:FB), down from 266 funds in the prior quarter. One of the biggest Meta Platforms, Inc. (NASDAQ:FB) stakeholders is Eagle Capital Management, with 7.1 million shares worth $2.4 billion.
Here is what Canterbury Tollgate has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-at large, but that it is of Facebook’s doing…” (Click here to see the full text)
4. Alphabet Inc. (NASDAQ:GOOG)
Winton Capital Management’s Stake Value: $8,617,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 156
On December 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,540 from $3,185 and reiterated a Strong Buy rating on the shares. Alphabet Inc. (NASDAQ:GOOG)’s increasing artificial intelligence-first focus is driving greater product functionality and “significant” growth opportunities, according to the analyst.
TCI Fund Management is the biggest Alphabet Inc. (NASDAQ:GOOG) stakeholder, out of the 156 hedge funds that were bullish on the stock in the third quarter.
Alphabet Inc. (NASDAQ:GOOG) and Verizon Communications Inc. (NYSE:VZ) announced on December 16 that they are collaborating to “bring the power of the cloud closer to mobile and connected devices at the edge of Verizon’s network”.
Here is what Saturna Capital Amana Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”
3. International Business Machines Corporation (NYSE:IBM)
Winton Capital Management’s Stake Value: $8,716,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 41
International Business Machines Corporation (NYSE:IBM) is a multinational technology corporation offering cloud services, computer hardware and software, nanotechnology, hosting, and IT consulting services. David Harding boosted his stake in International Business Machines Corporation (NYSE:IBM) by 17% in the third quarter, holding a total of 62,736 shares of the company worth $8.71 billion. The stock accounts for 0.48% of the billionaire’s total Q3 investments.
In the third quarter earnings reported on October 20, International Business Machines Corporation (NYSE:IBM) posted an EPS of $2.52, exceeding estimates by $0.01.
On December 7, Credit Suisse analyst Sami Badri assumed coverage of International Business Machines Corporation (NYSE:IBM) with an Outperform rating and an unchanged price target of $164.29.
Arrowstreet Capital is one of the leading International Business Machines Corporation (NYSE:IBM) stakeholders, with 2.8 million shares worth $398.1 million. Overall, 41 hedge funds were bullish on the stock as of September 2021.
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Winton Capital Management’s Stake Value: $10,394,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders: 63
Winton Capital Management increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 18% in Q3 2021.
On November 17, Cisco Systems, Inc. (NASDAQ:CSCO) posted its Q3 results, announcing earnings per share of $0.82, exceeding estimates by $0.02. The $12.90 billion revenue missed estimates by $81.63 million.
Citi analyst Jim Suva raised the price target on Cisco Systems, Inc. (NASDAQ:CSCO) on December 22 to $65 from $55 and kept a Neutral rating on the shares. The analyst stated that he was less confident about Cisco Systems, Inc. (NASDAQ:CSCO)’s ability to gain market share and return to prior growth rates with the company’s sales “on the decline.”
Of the 63 hedge funds that were long Cisco Systems, Inc. (NASDAQ:CSCO) as of September 2021, billionaire Ken Fisher’s Fisher Asset Management is the largest company stakeholder, holding 22.8 million shares worth $1.24 billion.
Here is what ClearBridge Investments has to say about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q1 2021 investor letter:
“Also in IT, we added Cisco Systems, which provides IT and networking services in the form of network security, software development and cloud computing. Cisco continues to derive over 50% of its sales from on-premise deployments of its products of enterprise and small and midsize customers, while recurring revenues from software are becoming a larger part of the mix. Return-to-office enterprise spending should offer upside to its core campus business. Cisco was an early technology leader in sustainability over two decades ago, through its Internet-connecting capabilities which supported live concerts in partnership with the United Nations Development Program to raise awareness and funds to fight poverty. Cisco has very strong environmental standards (including driving lower energy consumption in IT departments through new product innovations and a longstanding goal to reduce emissions and reliance on non-renewable energy sources). Its data privacy and supply chain management policies are best in class.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Winton Capital Management’s Stake Value: $15,034,000
Percentage of Winton Capital Management’s 13F Portfolio: 0.84%
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) is the top tech stock in David Harding’s third quarter portfolio, with the billionaire elevating his stake in the company by 310%, holding 72,572 shares worth over $15 million. NVIDIA Corporation (NASDAQ:NVDA) is a multinational tech company specializing in graphics processing units, central processing units, chipsets, drivers, and other related technology products.
In the third quarter earnings report published on November 17 by NVIDIA Corporation (NASDAQ:NVDA), the company posted an EPS of $1.17, exceeding estimates by $0.06. Revenue over the period jumped 50.30% year-over-year to $7.10 billion, outperforming estimates by approximately $290 million.
GQG Partners, the largest NVIDIA Corporation (NASDAQ:NVDA) stakeholder, extended its position in the company by 308% in the third quarter, holding over 15 million shares worth $3.1 billion. Overall, 83 hedge funds tracked by Insider Monkey were long NVIDIA Corporation (NASDAQ:NVDA) in Q3 2021, down from 86 funds in the preceding quarter.
Here is what Harding Loevner Global Equity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2021 investor letter:
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer well known for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
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Disclosure: None. 10 Tech Stocks to Buy According to Billionaire David Harding is originally published on Insider Monkey.
