5 Best New Stocks to Invest In According to Hedge Funds

3. Robinhood Markets Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 83

Robinhood Markets Inc. (NASDAQ:HOOD) is one of the best new stocks to invest in according to hedge funds. On April 22, Robinhood Ventures Fund I/RVI announced a $75 million investment in OpenAI, marking one of the fund’s largest acquisitions to date. The transaction, which closed on April 17, involved the purchase of OpenAI common stock. This move aligns with Robinhood’s broader mission to provide retail investors with access to private, transformative companies that are typically reserved for institutional or accredited investors.

The fund, which began trading on the NYSE in March, is a closed-end vehicle designed to democratize access to the private sector. Sarah Pinto, President of RVI, noted that the investment underscores the fund’s commitment to giving everyday investors exposure to frontier AI. OpenAI joins a concentrated portfolio of other high-profile private firms, including Stripe, SpaceX, and Databricks, within the RVI holdings.

This investment comes at a time when the number of publicly traded companies in the US has significantly declined, while private firms continue to grow in value and remain private for longer periods. RVI is structured to eliminate traditional barriers to entry, such as investment minimums and accreditation requirements. By adding OpenAI, the fund aims to help retail investors capture the potential growth of the AI-native economy through a transparent, exchange-listed platform.

Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform. The company’s platform enables users to invest in exchange-traded funds/ETFs, options, cryptocurrencies, American Depository Receipts/ADRs, stocks, and gold. It also operates and owns a digital currency marketplace.