10 Long-Term Stocks to Buy

Published November 23, 2023 at 11:00 am EST Updated August 19, 2026 at 11:06 am EDT

In this article, we will take a look at the top 10 stock picks of GuardCap Asset Management, which is a long-only fund that takes a long-term view while making investment decisions.

GuardCap Asset Management is a specialist investment company based in London and solely focused on managing concentrated, bottom-up, strategies for institutional investors. The investment manager is a wholly owned subsidiary of Toronto-based financial services firm, Guardian Capital Group Limited. GuardCap Asset Management had $11.71 billion in assets under management (AUM), as of December 31, 2022.

GuardCap Asset Management’s primary strategies are Global Equities and Global Emerging Market Equities. The strategies are long-only equity strategies, targeting long term absolute investment returns and investing primarily in shares and related instruments of shares, with typical portfolios holding 20-25 stock positions, seeking returns which exhibit lower volatility than their benchmark over the long-term.

GuardCap Asset Management’s GuardCap Global Equity Fund USD I, which was launched in December 2014, has generated an annualized return of 10.59% since its inception, compared to 7.55% for MSCI World Index, as of October 31, 2023. On the other hand, its emerging market equities fund has underperformed the benchmark and has produced an annualized return of 26% compared to 30% for the benchmark, between December 19, 2016, to December 31, 2022.

GuardCap Asset Management typically focuses on the long-term with an investment horizon of 5 to 10 years. The 13F portfolio of the investment manager contains some of the leading companies and is comprised of 26 large cap stocks across different industries. The top 10 stocks, based on portfolio weight, accounted for 81.15% of the aggregate portfolio weight. The list includes companies such as CME Group Inc. (NASDAQ:CME), Mastercard Incorporated (NYSE:MA), Alphabet Inc. (NASDAQ:GOOG), and Booking Holdings Inc. (NASDAQ:BKNG), among others.

In his quarterly Reflections & Insights outlook for Q4 2023, Steve Bates, the Chief Investment Officer of GuardCap Asset Management, made the following comments about the recent developments in the artificial intelligence arena and the market speculation related to them:

“The enthusiasm in the Information Technology sector for AI is still present, and the industry giants are all positioning themselves to benefit from how they foresee the technology developing. As is often the case with any new development, it is not the technology itself which is the barrier to entry but the ownership of vast datasets. These exist in the tech giants themselves, of course – the old adage that ‘if you don’t know what the product is, you’re the product’ holds true. They can also be found in institutions with data protection concerns, who don’t know how to monetise assets or suffer from institutional inertia – for example, Britain’s NHS, which probably has the largest comprehensive health data anywhere, but cannot agree about what to do with it. The point is that it is too early to back a single horse in this race, but the investing herd doesn’t want to explain to its clients that it doesn’t know what’s going on, so it sprinkles fairy dust on a few supposed beneficiaries. This means that the enthusiasm probably has further to run.”

A close-up of a stock exchange board, displaying the active trading of the company’s securities.

Methodology

Since GuardCap Asset Management is a long-only fund that takes a long-term investment approach in investing, we picked top 10 stock picks of the fund as of the end of the third quarter of 2023 to see some promising stocks to buy according to the fund.

The stocks have been ranked based on the weightage of each company in GuardCap Asset Management’s 13 Portfolio.

Long-Term Stocks to Buy According to GuardCap Asset Management

10. MarketAxess Holdings Inc. (NASDAQ:MKTX)

GuardCap Asset Management’s Stake Value: $404,890,314

Percentage of GuardCap Asset Management’s 13F Portfolio: 5.62%

Number of Hedge Fund Holders: 28

New York-based MarketAxess Holdings Inc. (NASDAQ:MKTX) operates a leading, institutional electronic trading platform focused on global fixed-income markets. Its network comprises over 2,000 firms, including the world’s leading asset managers and institutional broker-dealers.

On October 25, MarketAxess Holdings Inc. reported the financial results for Q3 2023. Its revenue remained nearly constant y-o-y at $172 million, while it generated a net income of $55 million which translated to an EPS of $1.46. Both the top and bottom line were nearly in line with the consensus estimates.

Following the earnings release, Citigroup analyst Christopher Allen lowered the price target for MarketAxess Holdings Inc. shares to $270 from $330 and maintained a ‘Buy’ rating. He target price represents a potential upside of 18% based on the share price on November 20.

According to the Insider Monkey data on 910 leading hedge funds, 28 hedge funds were long MarketAxess Holdings Inc. shares as of Q2 2023, with the total shares held by hedge funds valued at $791 million. GuardCap Asset Management was the largest shareholder on record with ownership of 2.0 million shares.

9. Automatic Data Processing, Inc. (NASDAQ:ADP)

GuardCap Asset Management’s Stake Value: $426,954,198

Percentage of GuardCap Asset Management’s 13F Portfolio: 5.93%

Number of Hedge Fund Holders: 50

Automatic Data Processing, Inc. (NASDAQ:ADP), is a Roseland, New Jersey-based global technology company providing comprehensive cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration. It serves nearly 1 million clients across 140 countries and territories.

Automatic Data Processing, Inc. posted solid financial results for the latest quarter. Its revenue increased by 7% y-o-y to $4.5 billion, while net earnings increased by 10% y-o-y to $859 million. It reported a normalized EPS of $2.08, which surpassed the consensus by $0.06.

On November 8, the board of directors of Automatic Data Processing, Inc. approved a 12% increase in quarterly cash dividend to an annual rate of $5.60 per share. The increase marks 49^th consecutive year of dividend increases for the company.

As of Q2 2023, 50 of the hedge funds tracked by Insider Monkey held shares of Automatic Data Processing, Inc., valued at $3.5 billion. Its largest shareholder was Fundsmith LLP with ownership of 5.5 million shares valued at $1.2 billion.

8. Colgate-Palmolive Company (NYSE:CL)

GuardCap Asset Management’s Stake Value: $470,935,433

Percentage of GuardCap Asset Management’s 13F Portfolio: 6.54%

Number of Hedge Fund Holders: 58

Colgate-Palmolive Company (NYSE:CL) is a leading global consumer products company focused on Oral Care, Personal Care, Home Care and Pet Nutrition products sold across more than 200 countries and territories.

Colgate-Palmolive Company generated an EPS of $0.86 and a revenue of $4.92 billion in Q3 2023. Both the figures narrowly exceeded consensus estimates by $0.07 and $100 million, respectively. Following the earnings release, Morgan Stanley analyst Dara Mohsenian lowered the price target on the consumer company’s shares to $85 from $89 but maintained an ‘Overweight’ rating.

Colgate-Palmolive Company has paid uninterrupted dividends on its common stock since 1895. On September 13, the board of directors of the company declared a cash dividend of $0.48 per share for the quarter.

As of Q2 2023, 58 of the 910 hedge funds tracked by Insider Monkey were long Colgate-Palmolive Company and owned shares valued at $2.7 billion. Jean-Marie Eveillard’s First Eagle Investment Management was the largest shareholder on record with ownership of 11.1 million shares valued at $855 million.

7. Yum China Holdings, Inc. (NYSE:YUMC)

GuardCap Asset Management’s Stake Value: $480,623,503

Percentage of GuardCap Asset Management’s 13F Portfolio: 6.67%

Number of Hedge Fund Holders: 37

Shanghai-based Yum China Holdings, Inc. (NYSE:YUMC) is China’s largest restaurant company with more than 14,000 restaurants across more than 1,900 cities spread throughout mainland China. The company was formed through separation from Yum! Brands, Inc. (NYSE:YUM) in November 2016 and its shares have been listed on the NYSE since then. On October 24, 2022, its shares also started trading on the Hong Kong Stock Exchange.

As of Q2 2023, 37 hedge funds out of the more than 900 hedge funds tracked by Insider Monkey held shares of Yum China Holdings, Inc., valued at $984 million. GuardCap Asset Management was the largest shareholder in the company with ownership of 9.1 million shares.

In its “Cooper Investors Global Equities Fund” Q3 2023 investor letter, Cooper Investors, an investment management firm, made the following comments about Yum China Holdings, Inc.:

“We are accustomed to consumer rollout stories in Asia trading at eye-watering valuations, yet with the negativity swirling around China today there is material Value Latency with Yum China trading on an enterprise value of ~US$20bn and a multiple of earnings ~20 times. The business operates around 13,500 stores and incremental unit economics on new stores are among the best we’ve seen globally in the QSR space, with payback periods on small formats even quicker. Management did a good job navigating the brutal COVID period. With that behind them, the future looks bright and underappreciated by the market. With buybacks of around US$3bn by 2026 the organic growth, combined with reduced share count, should translate to earnings per share growth in the high-teens or even low twenties percent. If that still doesn’t whet the appetite for fried chicken, add a 1% dividend on top.”

6. UnitedHealth Group Inc. (NYSE:UNH)

GuardCap Asset Management’s Stake Value: $488,524,313

Percentage of GuardCap Asset Management’s 13F Portfolio: 6.78%

Number of Hedge Fund Holders: 111

UnitedHealth Group Inc. (NYSE:UNH) provides health coverage, software, data, and consultancy services. Its health insurance business utilizes technology and data capabilities to help coordinate patient care, improve affordability, analyze cost trends, manage pharmacy benefits, and create a simpler consumer experience.

On October 13, UnitedHealth Group Inc. released its financial results for the third quarter of 2023. It generated a strong performance during the quarter with total revenue and net income both exceeding Q3 2022 figures by more than 10% at $92.4 billion and $6.0 billion, respectively.

Following the earnings release, RBC Capital raised the firm’s price target on UnitedHealth Group Inc. shares to $596 from $572 and maintained an ‘Outperform’ rating.

As of Q2 2023, 111 of the 910 hedge funds tracked by Insider Monkey owned shares of UnitedHealth Group Inc., valued at $10.1 billion. Its largest shareholder was GQG Partners with ownership of 3.1 million shares valued at $1.6 billion.

5. Accenture Plc (NYSE:ACN)

GuardCap Asset Management’s Stake Value: $544,697,974

Percentage of GuardCap Asset Management’s 13F Portfolio: 7.56%

Number of Hedge Fund Holders: 56

Based in Dublin, Ireland, Accenture Plc (NYSE:ACN) is a global professional services company with leadership positions in providing digital, cloud and security. It employs more than 733,000 people and serves clients across more than 40 industries in more than 120 countries.

On June 13, Accenture Plc announced a $3 billion investment over three years in its Data & AI practice to accelerate adoption and implementation of AI services. The investment includes doubling of AI talent at the company to 80,000 people through hiring, acquisitions, and training.

So far in November, Accenture Plc has announced agreements to acquire Solnet, a New Zealand-based IT services provider; The Shelby Group, a leading provider of digital procurement and optimization services; Innotec Security, a Spanish cybersecurity company; and completed the acquisition of ConcentricLife, healthcare marketing agency and a subsidiary of Stagwell (NASDAQ:STGW).

As of Q2 2023, Accenture Plc shares were owned by 56 of the 910 hedge funds tracked by Insider Monkey, for a total value of $2.1 billion. GuardCap Asset Management was the largest shareholder with ownership of 1.9 million shares valued at $576 million.

4. Mastercard Inc (NYSE:MA)

GuardCap Asset Management’s Stake Value: $607,860,023

Percentage of GuardCap Asset Management’s 13F Portfolio: 8.44%

Number of Hedge Fund Holders: 139

Mastercard Inc is a global technology company focused on the payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks.

On October 26, Mastercard Inc released its financial results for Q2 2023. Its net revenue increased by 14% y-o-y to $6.5 billion, while its net earnings increased by 28% y-o-y to $3.2 billion. It reported an EPS of $3.39 which surpassed the consensus by $0.16.

Following the earnings release, BMO Capital analyst James Fotheringham lowered the price target to $472 from $488 and maintained an ‘Outperform’ rating.

Mastercard Inc is among the stocks most widely held by hedge funds according to Insider Monkey data on 910 hedge funds. As of Q2 2023, 139 hedge funds held shares in Mastercard Inc, valued at $14.7 billion. Charles Akre’s Akre Capital Management was the largest shareholder on record with ownership of 5.9 million shares valued at $2.3 billion.

3. Alphabet Inc. (NASDAQ:GOOG)

GuardCap Asset Management’s Stake Value: $688,912,470

Percentage of GuardCap Asset Management’s 13F Portfolio: 9.56%

Number of Hedge Fund Holders: 152

Alphabet Inc., based in Mountain View, California, is the parent company of several companies including Google, Verily Life Sciences, GV (formerly Google Ventures), Calico, and X-the moonshot factory. Majority of its revenue is generated by Google Services which comprises of ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.

Alphabet Inc. is ranked #2 on the list of GuardCap Asset Management’s holdings based on its 13F portfolio weight of 9.56% with the investment manager owning 5.3 shares. Its stake decreased by 5% in Q3 2023, compared to the previous quarter.

On October 24, Alphabet Inc. (NASDAQ:GOOGL) released financial results for the three months ended September 30. Its revenues increased by 11% y-o-y to $76.7 billion while net income surged by 42% y-o-y to $19.7 billion.

Following the earnings release, Oppenheimer analyst Jason Helfstein reiterated an ‘Outperform’ rating for Alphabet Inc. shares with a price target of $160 per share.

Alphabet Inc. is the most owned stock among the 910 hedge funds tracked by Insider Monkey on our list. As of Q2 2023, 152 hedge funds owned shares of Alphabet Inc., valued at $18.9 billion. Ken Fisher’s Fisher Asset Management was the largest shareholder on record with ownership of 42.7 million shares valued at $5.1 billion.

2. CME Group Inc. (NASDAQ:CME)

GuardCap Asset Management’s Stake Value: $808,365,625

Percentage of GuardCap Asset Management’s 13F Portfolio: 11.22%

Number of Hedge Fund Holders: 55

Based in Chicago, Illinois, CME Group Inc. is the world’s leading derivatives marketplace. Through its trading facilities in New York and Chicago, and its CME Globex® electronic trading platform, the company provides access to products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate.

On October 25, CME Group Inc. released its financial results for Q3 2023. Its revenue increased by 9% y-o-y to $1.3 billion, while net income increased by 10% y-o-y to $750 million. It reported an EPS of $2.06 which missed the consensus estimates by $0.04. The company also declared a fourth-quarter dividend of $1.10 per share.

Following the earnings release, Barclays analyst Jeremy Campbell lowered the target price for CME Group Inc. shares to $244 from $247 and maintained an ‘Overweight’ rating for the shares.

1. Booking Holdings Inc. (NASDAQ:BKNG)

GuardCap Asset Management’s Stake Value: $923,923,664

Percentage of GuardCap Asset Management’s 13F Portfolio: 12.83%

Number of Hedge Fund Holders: 78

Based in Norwalk, Connecticut, Booking Holdings Inc. is a leading provider of online travel and related services with a presence in more than 220 countries and territories across the world. The company provides its services primarily through six online platforms: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. It boasts more than 28 million listings of hotels, homes, apartments, and other unique places to stay across its platforms.

Booking Holdings Inc. is the #1 stock in GuardCap Asset Management’s 13F portfolio based on its portfolio weightage. The investment manager owns 0.3 million shares worth $924 million, making up 12.83% of the 13F portfolio.

As of Q2 2023, 78 of the 910 hedge funds tracked by Insider Monkey held shares of Booking Holdings Inc., worth $6.6 billion. Its largest shareholder was Arrowstreet Capital with ownership of 0.5 million shares valued at $1.4 billion.

RiverPark Advisors, an investment advisory firm, made the following comments about Booking Holdings Inc. in its Q3 2023 investor letter:

“Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high-margin business model that requires limited capital expenditures, typically less than 3% of revenue, producing $6.2 billion of free cash flow for 2022 and $7.2 billion expected for 2024. The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations.”