1. Bitcoin
Bitcoin is the most expensive and widely used cryptocurrency globally built on a blockchain-based network. It is placed first on our list of 10 best cryptocurrencies to invest in according to hedge fund billionaires. The currency leads the other digital currencies in terms of market capitalization, user base, and popularity, as well as ease of use since many companies around the world accept Bitcoin as payment for sales. The price of Bitcoin has fallen in recent weeks amid speculation around the energy-intensive coin mining methods it is reliant on.
On May 24, Ray Dalio, the billionaire founder of Bridgewater Associates, told news publication CoinDesk that he owned some Bitcoin and had started leaning towards the cryptocurrency as a shield against inflation instead of bonds. However, Dalio has also cautioned that the nature of the new technology and the speed at which it is growing means that a government crackdown against it is all but inevitable in the near future, something that investors should consider before buying into the new trend.
Bitcoin also has a strong backer in American software giant Microsoft Corporation (NASDAQ: MSFT) that was one of the first tech firms to allow users to use cryptocurrencies for payments on internet stores owned by the company. Microsoft Corporation (NASDAQ: MSFT) markets products like Windows software that generate a lot of revenue through sales on online stores.
At the end of the first quarter of 2021, 251 hedge funds in the database of Insider Monkey held stakes worth $58.9 billion in Microsoft Corporation (NASDAQ: MSFT), down from 258 the preceding quarter worth $52.8 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.
