5 Best Roth IRA Stocks Hedge Funds are Buying

3. Alphabet Inc. (NASDAQ: GOOG)

Number of Hedge Fund Holders: 159   

Alphabet Inc. (NASDAQ: GOOG) is a California-based technology company that owns the internet search engine Google. It is placed third on our list of 10 best Roth IRA stocks hedge funds are buying. The company’s shares have returned 64% to investors over the past year. On July 15, money manager Wedgewood Partners identified the stock as one of the few firms that had long-term revenue and profitability drivers. The fund told investors in a letter that the firm had the ability to enhance returns by returning net cash to shareholders.

On June 24, investment advisory Stifel maintained a Buy rating on Alphabet Inc. (NASDAQ: GOOG) stock with a price target of $2,700, highlighting that a decision by the tech firm to phase out third party cookies would push out near-term headwinds for ad-tech companies. 

Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $6.1 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”