At Insider Monkey, we track more than 700 elite hedge funds and use their combined wisdom to identify 15 exceptional small-cap stocks every quarter, which our backtesting and ongoing results show as having great potential to outperform the market. In the three years since our small-cap strategy went live, it has returned 118% and easily outpaced the market, by more than 60 percentage points over that 36 month period (read the details here).
Among the ranks of those 700+ funds are approximately 63 which are managed or were founded by billionaires. We share their specific brand of collective wisdom with our readers as well, as there is great interest in where these renowned and wealthy money managers are putting the bulk of their considerable riches. While we don’t necessarily recommend investors jump into many of these stocks, as the needs of billionaires are far different than those of the average investor, we do believe there is always value in tracking the investing sentiment of the true Wolves of Wall Street (no offense to Jordan Belfort).
In this article we’ll run through the ten stocks that have the greatest number of billionaires with noteworthy positions in them (positions valued at a minimum of $10 million) as of June 30. Note that we exclude stocks which are merger-arbitrage plays like Time Warner Cable Inc (NYSE:TWC) currently is, from lists like this, as ownership in those stocks tends to spike because of the various funds with a focus on special situations. These stocks no longer make for very interesting investments as they count down the days until their mergers are completed with limited movement in share value in most cases. Hostile takeovers on the other hand are a different beast altogether, as you’ll see on the forthcoming list.
Now then, let’s check out the list of the top ten stocks held by the billionaire investors tracked by Insider Monkey.