5 Best Momentum Stocks to Buy Now

4. Alphabet, Inc. Class C (NYSE:GOOG)

No of HFs: 150

Total Value of HF Holdings: $15.2 Billion

One of the biggest hedge fund savings stakes in the company is Ken Griffin’s Citadel Investment Group which had $2.96 billion invested in the stock at the end of September. The stock was mentioned as one of Malelane’s Top 5 Stock Holdings. Giverny Capital mentioned the stock in its 4Q 2020 investor letter:

“Alphabet is our largest holding. We’re biased, but we’d argue that Alphabet is reasonably priced. It earns significant profit from travel related searches, which are way down this year. Travel spending figures to roar back at some point, possibly soon. Alphabet also spends extravagant amounts on R&D and capital spending as it finances younger ventures. Those other businesses, which include YouTube, Waymo selfdriving cars and cloud computing centers, plus research in artificial intelligence, should eventually generate meaningful returns for shareholders. Or at worst, they will consume less investment over time. If Alphabet simply exercises discipline over investment spending for a few years as travel advertising rebounds and the core search business grows, the resulting free cash flow should generate satisfactory returns for owners.”