5 Hedge Funds that Profited from Reddit’s Meme Stock Craze

4. Ensign Peak Advisors

Estimated Gain From Meme Stock Craze: $7.6 Million

Ensign Peak Advisors is an investment firm run from Utah. It is placed fourth on our list of 10 hedge funds that profited from Reddit’s meme stock craze. The firm has a portfolio value of over $46 billion with investments in technology, healthcare, and industrial goods. In May, news publication Business Insider reported that the fund bought 46,000 shares in GameStop Corp. (NYSE: GME) at the end of the fourth quarter of 2020 that was worth $900,000. In the weeks ahead, this stake became worth more than $8.5 million. 

One of the top investments of Ensign Peak Advisors is Microsoft Corporation (NASDAQ: MSFT), the software company that owns the popular operating platform Windows. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT)  with 23.9 million shares worth more than $5.6 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.”