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12 Best ESG Stocks to Buy Now According to Hedge Funds

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In this article, we will examine the 12 Best ESG stocks to Buy Now According to Hedge Funds.

Does ESG deliver real value, or is it just a marketing ploy? That question has haunted Environmental, Social, and Governance (ESG) investing since the acronym first entered Wall Street’s vocabulary. Once promoted as the future of capital markets, ESG investing has been praised as a driver of corporate change and criticized as a public relations exercise.

Despite the political backlash and constant debate, the concept of aligning capital with broader values has endured and continues to shape how investors think about risk and return.

Capital flows tell their own story. Reviewing Morningstar’s Q2 2025 Global Sustainable Fund Flow Report, it appears that investor appetite for sustainability remains intact despite political headwinds and regulatory scrutiny.

According to the report, global sustainable funds posted $4.9 billion in net inflows, reversing the heavy outflows of the previous quarter. Total assets in Global sustainable funds reached $3.5 trillion, with rising equity markets providing additional support.

READ ALSO: 15 Best Multibagger Stocks to Invest in Right Now and Best Stocks For Day Trading: 12 Stock Picks.

Regionally, Europe led the recovery in Q2 with $8.6 billion of net new money, while the U.S. recorded its 11th consecutive quarter of outflows at $5.7 billion, reflecting a more cautious investor base.

As per the Morningstar report, a key reason why U.S. investors are showing less interest in sustainable funds is the growing political pushback against ESG. The Trump administration has amplified this trend, rolling out measures since January that scale back or challenge climate and ESG-related policies.

Even so, the stock market remains on the upswing, offering investors a broad set of opportunities. Reinforcing this view, on September 11, Rich Saperstein, CIO and founding principal of Treasury Partners, told CNBC that the current backdrop continues to support the equity market. He pointed to moderating inflation, accommodative Fed policy, solid GDP growth, and healthy earnings as reasons why stocks remain appealing at record levels.

He believes deregulation, tax policy, and permitting reforms further strengthen the investment climate, which justifies keeping clients fully invested. Saperstein acknowledged that valuations are somewhat stretched, with market gains slightly outpacing earnings growth over the past five years, but said equities remain the best asset class to own.

With ESG investing now more established, the focus has moved away from broad themes toward companies that can show measurable benefits from incorporating ESG into their business models. The 12 stocks highlighted below fit that description, offering exposure to sustainability without losing focus on financial performance.

Given this backdrop, let’s turn to our selection of the 12 best ESG stocks to buy now, according to hedge funds.

Photo by Christian Lue on Unsplash

Our Methodology

To identify the best ESG stocks according to hedge funds, we first reviewed holdings of prominent ESG-focused ETFs managed by BlackRock and Vanguard. From these funds, we shortlisted 20 stocks with the highest weightings. We then used Q2 2025 data from Insider Monkey’s database to determine hedge fund ownership and narrowed the list to the 12 most widely held names. Finally, the stocks are ranked in ascending order based on the number of hedge funds holding a position.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Note: All pricing data is as of market close on September 11, 2025.

12 Best ESG Stocks to Buy Now According to Hedge Funds

12. Tesla Inc. (NASDAQ:TSLA)

Market Cap: $1.2 Trillion

Number of Hedge Fund Holders: 115

Tesla Inc. (NASDAQ:TSLA) is one of the best ESG stocks to buy now according to hedge funds. On September 9, Adam Jonas, an analyst at Morgan Stanley, reaffirmed a Buy rating on Tesla with an unchanged price target of $410. The analyst believes that Tesla Inc. (NASDAQ:TSLA) has pioneered innovations in the electric vehicle industry, spurring the global shift to sustainable energy. These innovations have enabled the company to maintain its leadership in this transition and the industry.

Jonas emphasized Tesla Inc.’s (NASDAQ:TSLA) progress in battery technology and autonomous driving, noting these capabilities as competitive advantages that could support long-term growth. He also highlighted the company’s global expansion and its efficiency in scaling production, which together strengthen the case for greater market share.

Tesla Inc.’s (NASDAQ:TSLA) strong brand identity and loyal customer base add further weight to the positive outlook. In Jonas’s view, the combination of innovation, operational execution, and favorable market conditions for EV adoption continues to justify a bullish stance on the stock.

Tesla Inc. (NASDAQ:TSLA) is an EV manufacturer and clean energy company known for its innovative solutions to sustainable transportation and energy solutions.

11. Eli Lilly and Co. (NYSE:LLY)

Market Cap: $680 Billion

Number of Hedge Fund Holders: 119

Eli Lilly and Co. (NYSE:LLY) is one of the best ESG stocks to buy now according to hedge funds. On September 9, Bank of America’s Tim Anderson reiterated a Buy rating on Eli Lilly & Co. (NYSE:LLY) and a $900 price target. The analyst highlighted the company’s strong market position in the obesity drug market as a key driver of future growth.

Anderson made a case for Eli Lilly and Co.’s (NYSE:LLY) portfolio after the recent update from the Institute for Clinical and Economic Review. The institute now believes that GLP-1 therapies, including those developed by Eli Lilly, are cost-effective for treating obesity. This marks a notable change from earlier views and strengthens the case that these therapies deliver meaningful clinical and economic benefits.

By broadening its assessment to include obesity-related outcomes and quality-of-life improvements, the ICER report further supports the value proposition of Eli Lilly and Co.’s (NYSE:LLY) drugs.

Although reimbursement challenges persist, the ICER findings may help expand coverage and payer acceptance over time. Anderson added that Eli Lilly’s strong pipeline, above-peer revenue growth forecasts, and leadership in obesity treatments underpin his positive outlook and continue to justify the Buy rating.

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on the development, manufacture, and marketing of medicines for diabetes, oncology, immunology, and neuroscience.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

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If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!