Billionaire DE Shaw’s Latest Portfolio: Top 10 Stock Picks

Published September 12, 2022 at 9:24 am EDT Updated September 7, 2026 at 2:26 pm EDT

In this article, we will be taking a look at billionaire DE Shaw’s latest portfolio: top 10 stock picks.

David E. Shaw is the founder of the New York-based investment management firm, DE Shaw, currently holding a portfolio valued at over $85 billion. The billionaire’s own net worth as of this September stands at $7.9 billion. The bulk of his personal wealth has been accumulated by Shaw by way of investing and managing his stellar hedge fund over the past years. DE Shaw primarily invests in stocks in the technology and services industries, and his latest 13F holdings mainly include major blue chip companies offering stable gains over sustained time periods.

Some of the most renowned names found in Shaw’s investment portfolio include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Microsoft Corporation (NASDAQ:MSFT). All of these companies have been amassing profits for years. Amazon.com, Inc. (NASDAQ:AMZN) brought in revenue of $121.2 billion in just this second quarter, representing a growth of 7.2% year over year, and beating estimates by $2.1 billion. The company holds an EPS growth rate of 40.2%, expected to be achieved over the next three to five years. As for Apple Inc. (NASDAQ:AAPL), the company’s third quarter results show an EPS of $1.2, beating estimates by $0.04, and revenue of $82.9 billion, up 1.9% year over year. Microsoft Corporation also shows great growth potential, having a year-over-year revenue growth rate of 17.9%, a 13.2% expected increase in its EPS over the next three to five years, and a one-year dividend growth rate of 10.7%. The positive performance of stocks like these in Shaw’s portfolio has certainly added to his wealth and success in the investment world.

Shaw’s two largest funds, the Composite and Oculus, generated net returns of about 18.5% and 15% in 2021 and 2020, respectively. The Composite fund is the largest fund held by DE Shaw, and since its launch in 2001, it has generated an annualized net return of 12%. As for the Oculus fund launched in 2004, the annualized net return it has generated since its inception stands at 12.5%. The Oculus fund has performed exceptionally well in its tenure, never having even a single year of negative returns since it was created.

Shaw has recently increased his stakes in Amazon.com, Inc., Alphabet Inc. (NASDAQ:GOOG), and Paypal Holdings, Inc. (NASDAQ:PYPL). At present, these stocks make up about 1.4%, 0.7%, and 0.7% of his portfolio, respectively. Shaw’s hedge fund uses quantitative methods and proprietary computational technology for its investments, allowing the billionaire to have earned nearly $7 billion from his firm alone, since 2005. At present, he owns about 63% of his hedge fund company, according to estimates cited by Bloomberg. Investors looking for major gains in the big tech and consumer discretionary sectors have a lot to gain from following Shaw’s investment patterns and current holdings, which is why we have compiled this list of the top 10 holdings in Shaw’s portfolio at present.

David E. Shaw of D.E. Shaw

Let’s now take a look at billionaire DE Shaw’s latest portfolio: top 10 stock picks.

Our Methodology

We have selected the top 10 holdings from DE Shaw’s latest 13F holdings. These stocks are also popular among many hedge funds this year, based on Insider Monkey’s second quarter 2022 hedge fund data, when we tracked 895 funds.

Billionaire DE Shaw’s Latest Portfolio: Top 10 Stock Picks

10. Tesla, Inc. (NASDAQ:TSLA)

DE Shaw’s Stake Value: $514,910,000

Percentage of DE Shaw’s 13F Portfolio: 0.6%

Number of Hedge Fund Holders: 72

Tesla, Inc. (NASDAQ:TSLA) is an automobile manufacturer focusing on the development of electric vehicles. The company provides sedans and sport utility vehicles, among more.

On September 6, Wolfe Research analyst Rod Lache upgraded shares of Tesla, Inc. from Peer Perform to Outperform. The analyst also placed a $360 price target on the stock.

This August, Tesla, Inc. almost tripled its sales compared to July sales. Chinese-made vehicle sales went up by 172.7%. This also represents a 73.8% increase from the company’s vehicle sales a year ago.

Tesla, Inc. was found in the 13F holdings of 72 hedge funds in the second quarter. Their total stake value was $7.2 billion. Citadel Investment Group was the largest stakeholder in the company, holding 20.8 million shares worth over $14 billion.

9. Bank of America Corporation (NYSE:BAC)

DE Shaw’s Stake Value: $516,070,000

Percentage of DE Shaw’s 13F Portfolio: 0.6%

Number of Hedge Fund Holders: 99

Bank of America Corporation (NYSE:BAC) is a diversified banking company offering banking and financial products and services. The company works to serve individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments across the globe.

An Overweight rating was reiterated on shares of Bank of America Corporation by analyst Jason Goldberg on July 19. The analyst also placed a $51 price target on the stock.

This July, Bank of America Corporation increased its quarterly dividend by nearly 5% to bring it up to $0.22 per share. The company has a one-year dividend growth rate of 16.7%. Over the next three to five years, Bank of America Corporation’s (NYSE:BAC) EPS is expected to rise by about 8.1%.

There were 99 hedge funds long Bank of America Corporation in the second quarter, with a total stake value of $35.9 billion. In comparison, 99 hedge funds were long in the stock in the previous quarter as well, with a total stake value of $45.4 billion.

ClearBridge Investments, an investment management firm, mentioned Bank of America Corporation in its second quarter 2022 investor letter. Here’s what the firm said:

“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”

Just like Amazon.com, Inc., Apple Inc., and Microsoft Corporation, Bank of America Corporation is among Shaw’s top holdings in his latest 13F portfolio.

8. The Procter & Gamble Company (NYSE:PG)

DE Shaw’s Stake Value: $530,392,000

Percentage of DE Shaw’s 13F Portfolio: 0.62%

Number of Hedge Fund Holders: 71

The Procter & Gamble Company is a consumer staples company offering branded consumer packaged goods. The company operates globally. Some of its major brands include Olay, Old Spice, Safeguard, and Secret.

Lauren Lieberman, an analyst at Barclays, holds an Overweight rating on The Procter & Gamble Company shares as of August 2. The analyst also placed a $154 price target on the stock.

In the second quarter, The Procter & Gamble Company brought in revenue of $19.5 billion, up 3% year over year, beating estimates by $104.1 million. Over the next three to five years, The Procter & Gamble Company’s (NYSE:PG) EPS is expected to grow by 4.7%, and it currently also has a one-year dividend growth rate of 8.7%.

Out of 895 hedge funds, 71 funds were long The Procter & Gamble Company in the second quarter. Their total stake value was $5.5 billion. Of these funds, Bridgewater Associates was the largest stakeholder in the company, holding 6.7 million shares worth $970 million.

7. iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF)

DE Shaw’s Stake Value: $543,567,000

Percentage of DE Shaw’s 13F Portfolio: 0.63%

Number of Hedge Fund Holders: 13

iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF), an exchange-traded fund, was launched by BlackRock, Inc. in 2002. The ETF is managed by BlackRock Fund Advisors. It aims to track the performance of the ICE US Treasury 7-10 Year Bond Index, using the representative sampling technique.

This September, iShares 7-10 Year Treasury Bond ETF was named as one of the top ten ETF inflow leaders. The ETF was one of 10 such funds that together amassed over $25 billion in inflows.

6. Meta Platforms, Inc. (NASDAQ:META)

DE Shaw’s Stake Value: $568,195,000

Percentage of DE Shaw’s 13F Portfolio: 0.66%

Number of Hedge Fund Holders: 184

Meta Platforms, Inc. (NASDAQ:META) is a communication services company developing products that enable users to connect and share with their friends and family. The company offers mobile applications such as Facebook and Instagram, among more.

Piper Sandler’s Thomas Champion holds a Neutral rating on Meta Platforms, Inc. as of June 8. The analyst also placed a $220 price target on the stock.

Meta Platforms, Inc.’s (NASDAQ:META) EPS is expected to grow by 7.1% over the next three to five years, while its operating cash flow growth stands at 13.4% at present. The company’s revenue growth year over year stands at 13.9%.

Citadel Investment Group was the largest stakeholder in Meta Platforms, Inc. in the second quarter, out of 184 hedge funds long the stock. Ken Griffin’s fund held 20.8 million shares in the company, worth $3.4 billion.

Alger Capital, an investment management company, mentioned Meta Platforms, Inc. in its second quarter investor letter. Here’s what they said:

“Meta Platforms, Inc. (NASDAQ:META) operates Facebook, the world’s largest social network. The digital advertising industry is taking market share of advertising dollars from print, radio, and tv media. However, concerns about brand risk, or having advertisements appear alongside of controversial content, caused brands and agencies to move budgets away from meta, resulting in disappointing revenue. Diminished ad tracking capability relative to consumer opt-out also weighed upon sentiment for meta shares. Meta’s share performance responded favorably, however, to first quarter results that that while not strong fundamentally, were positive against extremely low expectations among some investors. The positive contribution to portfolio performance was due to a sequential quarterly increase in customer utilization and management lowering its expense guidance $3 billion in order to protect earnings. In a market environment that is rewarding companies with relatively high current earnings, we believe Meta’s spending discipline resonated with investors.”

Meta Platforms, Inc., like Amazon.com, Inc., Apple Inc., and Microsoft Corporation, is a popular investment option among many elite hedge funds today.

5. Paypal Holdings, Inc. (NASDAQ:PYPL)

DE Shaw’s Stake Value: $595,598,000

Percentage of DE Shaw’s 13F Portfolio: 0.69%

Number of Hedge Fund Holders: 97

Paypal Holdings, Inc. is an information technology company operating a platform enabling digital payments. The company offers payment solutions under various names, like PayPal, PayPal Credit, and Braintree.

On August 31, Jason Kupferberg at BofA upgraded shares of Paypal Holdings, Inc. from Neutral to Buy. The analyst also raised his price target on the stock from $94 to $114.

Paypal Holdings, Inc. gained by 2.8% in light of BofA’s upgrade. Kupferberg noted that the move came in light of cost savings and the potential for share buybacks undertaken by the company.

Paypal Holdings, Inc. was found in the 13F holdings of 97 hedge funds in the second quarter. Their total stake value in the company was $5.2 billion.

Mayar Capital, an asset management firm, mentioned Paypal Holdings, Inc. in its second quarter 2022 investor letter. Here’s what they said:

“This quarter, we bought shares in PayPal, the payments platform. PayPal has been one of the more high-profile victims of the market’s brutal ruthlessness over the past few months, and the stock fell by over two thirds between its peak in July to the beginning of March this year. As we progressed PayPal through the Mayar Checklist Process, we identified a business with a leadership position in a structurally growing market.

The company benefits from certain network effects, and faces several competitive threats at the same time. As the business profited from the move to online retail during the pandemic, as well as from the stimulus cheques handed out in the US, the stock price soared to absurd levels. As so often happens, however, the market had overcorrected by February and this quarter was offering prospective shareholders prices that assumed essentially zero growth in the business. When life gives you irrational sellers, make lemonade!”

4. Alphabet Inc. (NASDAQ:GOOG)

DE Shaw’s Stake Value: $612,254,000

Percentage of DE Shaw’s 13F Portfolio: 0.71%

Number of Hedge Fund Holders: 153

Alphabet Inc., a communication services company, offers a range of products and platforms across the globe. The company operates through the Google Services, Google Cloud, and Other Bets segments, to offer products and services like ads, Android, Chrome, and Gmail.

Ivan Feinseth, an analyst at Tigress Financial, holds a Strong Buy rating on Alphabet Inc. shares as of August 3. The analyst also raised his price target on the stock from $183 to $186.

In the second quarter, Alphabet Inc. saw a revenue increase of 12.6%, bringing the company’s revenue up to $69.7 billion. The stock rose by 3.9% as a result, this July.

Our hedge fund data shows 153 hedge funds long Alphabet Inc. in the second quarter, with a total stake value of $22.2 billion. In comparison, there were 160 hedge funds long the company in the previous quarter, with a total stake value of $29.7 billion.

L1 Capital International, an investment management company, mentioned Alphabet Inc. in its second quarter 2022 investor letter. Here’s what they said:

“Alphabet Inc. (NASDAQ:GOOG) is by far the largest online advertising business globally, dominating Search outside of China and other protected markets. Online advertising is driven by eCommerce – not just buying online, but also omnichannel (for example, searching for a product online and then buying it instore).

Retail sales have consistently shifted online. Historically, eCommerce has increased its penetration of adjusted total U.S. retail sales by around 1% per annum. However, due to COVID-19 and associated lockdowns, eCommerce penetration stepped up by 5% in 2020 and now accounts for over 20% of adjusted retail sales (excluding food services, automotive and gas stations), up from 6% in 2010 (see Figure 6).

Alphabet has been a major beneficiary of COVID-19, with its advertising revenue increasing 43% to nearly US$210 billion in 2021. Naturally this level of growth is unsustainable particularly in a worsening macroeconomic environment and some retail activity is shifting back offline as people are less restricted by COVID-19. However, the established trend of increasing eCommerce penetration will not reverse, and we expect Alphabet’s advertising revenue to continue to increase, albeit after a period of muted growth in 2022 and 2023. There are also bright spots for Alphabet such as travel advertising, which is recovering strongly post COVID-19…” (Click here to read the full text)

3. Microsoft Corporation (NASDAQ:MSFT)

DE Shaw’s Stake Value: $1,041,996,000

Percentage of DE Shaw’s 13F Portfolio: 1.22%

Number of Hedge Fund Holders: 258

Microsoft Corporation, a big tech company, develops software, services, devices, and solutions across the globe. The company is based in Redmond, Washington.

On July 27, Wedbush analyst Daniel Ives reiterated an Outperform rating on Microsoft Corporation shares. The analyst also placed a $320 price target on the stock.

This August, Ives also mentioned that Microsoft Corporation was among his firm’s top three tech stock picks going to the end of 2022. The analyst commented that the company’s Azure cloud computing platform was strong and remained so going into 2023. The platform can be a continuing source of profit for Microsoft Corporation in the coming years.

Out of 895 hedge funds tracked in the second quarter, 258 hedge funds held stakes in Microsoft Corporation. Their total stake value was $56 billion.

L1 Capital International, an investment management company, mentioned Microsoft Corporation in its second quarter 2022 investor letter. Here’s what they said:

“Saving the best for last, Microsoft Corporation (NASDAQ:MSFT) is the most advantageously positioned business globally for long term success. Powered by sustained growth drivers including cloud computing, security, data analytics, collaboration, artificial intelligence, automation, business productivity, low-code programming and gaming, amongst others.

No company is ‘macro immune’ as Microsoft’s management has recently explicitly noted, but the business is defensive.

Despite its immense size, Microsoft has more than doubled revenue over the past 5 years and will approach US$200 billion in financial year 2022, while EPS will have compounded at over 20% over this period. To be clear we do not expect this rate of growth to continue, but we do expect Microsoft to deliver healthy growth in revenue, earnings and cashflow despite challenging economic conditions. Meanwhile Microsoft retains a AAA-rated balance sheet, one of only two companies globally to hold the highest credit rating. We expect dividends and buybacks to consistently increase as Microsoft has limited other sensible ways to deploy its excess cashflow, particularly in an environment where proposed acquisitions will be under intense regulatory scrutiny…” (Click here to read the full text)

2. Apple Inc. (NASDAQ:AAPL)

DE Shaw’s Stake Value: $1,159,739,000

Percentage of DE Shaw’s 13F Portfolio: 1.3%

Number of Hedge Fund Holders: 128

Apple Inc. is another big tech IT company. It designs and manufactures smartphones, computers, tablets, wearables, and accessories.

An Outperform rating was reiterated on Apple Inc. shares on September 8 by Martin Yang, an analyst at Oppenheimer. The analyst also has a $190 price target on the shares.

This September, Loup Ventures commented that Apple Inc.’s (NASDAQ:AAPL) decision to hold its iPhone pricing steady will help the company increase its market share in the smartphone space. The firm mentioned that the iPhone currently holds a global market share of 18%, which is set to increase based on Apple Inc.’s (NASDAQ:AAPL) pricing decision.

Apple Inc. had 128 hedge funds holding stakes in it in the second quarter, with a total stake value of $143 billion. In the previous quarter, 131 hedge funds were long the stock, with a total stake value of $182 billion.

Alger Capital, an investment management company, mentioned Apple Inc. in its second quarter 2022 investor letter. Here’s what the firm said:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

DE Shaw’s Stake Value: $1,159,739,000

Percentage of DE Shaw’s 13F Portfolio: 1.35%

Number of Hedge Fund Holders: 252

Amazon.com, Inc. is a consumer discretionary company working in the retail space for the sale of consumer products and subscriptions. The company operates in North America and internationally.

On August 24, Bernstein’s Mark Shmulik reiterated an Outperform rating on Amazon.com, Inc. shares. The analyst also has a $160 price target on the stock.

This August, Bank of America noted that Amazon.com, Inc. saw a marked increase in its e-commerce growth rates in the third quarter. The company’s growth increased to about 17% from 5% in the previous quarter.

There were 252 hedge funds long Amazon.com, Inc. in the second quarter, with a total stake value of $30.1 billion.

L1 Capital International, an investment management company, mentioned Amazon.com, Inc. in its second quarter 2022 investor letter. Here’s what they said:

“Amazon.com, Inc. (NASDAQ:AMZN) was the largest negative contributor to the Fund during the quarter. Q1 2022 results and Q2 2022 profit guidance were below market expectations. Amazon has been operating in an extraordinary environment since the start of the COVID-19 pandemic. Lockdowns led to an exceptionally rapid shift in retail activity online and Amazon benefitted from a dramatic increase in revenue. Management responded by doubling fulfilment and logistics capacities over a 2-year period – a response which has proven to be somewhat excessive.

Too much capacity, combined with elevated shipping and logistics costs, employee inefficiencies and a resetting of higher share-based compensation have pressured near-term profitability of Amazon’s retail (non-Amazon Web Services) operations. Management changes have exacerbated market uncertainty. We consider these issues to be real and negative to valuation, but somewhat transitory and more than reflected in Amazon’s current share price. Meanwhile Amazon Web Services (AWS) continues to deliver strong, profitable growth, ahead of our base case.

To describe our perspectives on Amazon we are reminded of the opening line in A Tale of Two Cities by Charles Dickens – “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…”. In our tale, one city is Amazon Web Services (AWS), while the other is everything else, which we will refer to as Retail and Other…” (Click here to read the full text)

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