In this article, we discuss the 13 Best Diversified Stocks to Buy According to Hedge Funds.
For investors seeking stability and growth across multiple industries, diversified and conglomerate stocks have become a key focus. When asked by Forbes about the global landscape and its impact on investment strategies, experts, including Onuekwusi, Kasim Zafar, and EQ Investors, highlighted how geopolitical tensions, including U.S.-China rivalry and unrest in the Middle East, continue to instill uncertainty in the market. Accordingly, diversification has become increasingly relevant within portfolio creation, as it allows investors to reduce the effect of market volatility and unexpected events on their portfolios.
For achieving broad diversification at low cost, Exchange-traded funds (ETFs) have emerged as a practical tool. For instance, Vanguard’s S&P 500 ETF replicates the performance of the entire S&P 500 with minimal fees. As of the close of day on September 23, 2025, the S&P 500 stood at 6,693.75, the Nasdaq Composite rested at 22,788.98, and the Dow Jones Industrial Average hit 46,381.54, all reaching record highs.
A real-life example of a successful diversification strategy is Berkshire Hathaway Inc., which now commands a market value of $1.07 trillion and demonstrates the potential strength of multi-industry portfolios. Going forward, investors may be pushed toward creating resilient portfolios by blending ETFs, individual diversified stocks, and alternative asset classes that balance growth, security, and long-term wealth creation.
Against this backdrop, let’s jump to our list of the 13 Best Diversified Stocks to Buy According to Hedge Funds.
Our Methodology
To curate our list of the 13 Best Diversified Stocks to Buy According to Hedge Funds, we used the Finviz screener to extract a list of companies with multiple product lines and revenue streams. Next, we ranked these stocks according to their hedge fund sentiment data, which was taken from Insider Monkey’s hedge fund database that tracks nearly 1,000 hedge funds. Our list of the 13 Best Diversified Stocks to Buy According to Hedge Funds is presented in ascending order based on the number of hedge funds holding stakes in each stock as of Q2 2025.
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).
13. DMC Global Inc. (NASDAQ:BOOM)
Number of Hedge Fund Holders: 14
DMC Global Inc. (NASDAQ:BOOM) is one of the 13 Best Diversified Stocks to Buy According to Hedge Funds.
On September 16, 2025, Stifel reiterated its ‘Hold’ rating on DMC Global Inc. (NASDAQ:BOOM) with a $8.50 price target. The investment firm cited the company’s strong second-quarter performance and solid liquidity despite ongoing constraints in U.S. land activity.
Furthermore, Stifel highlighted the Arcadia segment’s cost-reduction initiatives and focus on core commercial markets as key growth drivers for the company’s strong earnings. Additionally, the investment firm sees better-than-expected results from DynaEnergetics as another key contributor to the company’s earnings beat.
Looking ahead, Stifel believes that DMC Global Inc. (NASDAQ:BOOM)’s performance in the upcoming quarters may be on the lower end due to commodity prices. Still, the company’s ability to consistently exceed forecasts supports its valuation and the maintained price target.
With its Arcadia, DynaEnergetics, and NobelClad segments, DMC Global Inc. (NASDAQ:BOOM) offers engineered products and solutions across construction, energy, industrial processing, and transportation markets globally. It is one of the Best Diversified Stocks.
12. Deluxe Corporation (NYSE:DLX)
Number of Hedge Fund Holders: 17
With significant upside potential, Deluxe Corporation (NYSE:DLX) secures a spot on our list of the 13 Best Diversified Stocks to Buy According to Hedge Funds.
On September 12, 2025, Deluxe Corporation (NYSE:DLX)’s William Zint, who is the Chief Financial Officer, purchased 175 shares of the company’s stock at $19.13 per share. The purchase totals $3,347 under a pre-arranged trading plan.
This insider purchase reflects confidence in Deluxe Corporation (NYSE:DLX)’s ongoing operations and strategic initiatives. It is one of the Best Diversified Stocks.
Deluxe Corporation (NYSE:DLX) delivers technology-enabled solutions across Merchant Services, B2B Payments, Data Solutions, and Print segments. It serves small- and medium-sized businesses and financial institutions.
11. TETRA Technologies, Inc. (NYSE:TTI)
Number of Hedge Fund Holders: 25
TETRA Technologies, Inc. (NYSE:TTI) is one of the 13 Best Diversified Stocks to Buy According to Hedge Funds.
On September 19, 2025, Stifel reiterated its ‘Buy’ rating on TETRA Technologies, Inc. (NYSE:TTI). The investment firm cited the company’s growth potential in completion fluids, water management, and related energy services. Furthermore, TTI’s strong sales prospects for the PureFlow product line were also cited.
The investment firm also noted that the upcoming Analyst Day in New York could provide updates on TETRA Technologies, Inc. (NYSE:TTI)’s desalination projects, bromine and lithium opportunities, and deepwater fluid initiatives. Moreover, the bullish stance follows the company’s strong second-quarter 2025 earnings, which surpassed expectations with EPS of $0.09 versus $0.08 and revenue of $174 million against forecasts of $173.65 million.
With its Completion Fluids & Products and Water & Flowback Services segments, TETRA Technologies, Inc. (NYSE:TTI) provides energy services and solutions. It serves the oil and gas industry across the U.S., Latin America, Europe, Asia, the Middle East, and Africa. It is one of the Best Diversified Stocks.
