We recently published a list of Arrowstreet Capital Stock Portfolio: Top 10 Stocks to Buy. In this article, we are going to take a look at where Booking Holdings Inc. (NASDAQ:BKNG) stands against other top stocks to buy from Arrowstreet Capital’s portfolio.
Arrowstreet Capital is a Boston-based independent investment management firm known for its quantitative investment strategies and discreet market presence despite overseeing substantial assets. Founded in 1999 by Bruce Clarke, former CEO of PanAgora Asset Management, along with John Y. Campbell and Peter Rathjens, the firm was created to manage institutional investments, focusing on international and emerging market equities. Its client base includes major institutions such as the Oregon Public Employees Retirement System, CalPERS, and Macquarie Group.
In terms of investment philosophy, Arrowstreet Capital operates as a unified team to manage client portfolios through a global, quantitative approach, leveraging data-driven insights to identify market inefficiencies and generate sustainable, risk-adjusted returns. Its strategy is based on research and technology, using quantitative models to uncover investment opportunities that may not be immediately apparent to the broader market. With a focus on global equities across both developed and emerging markets, the fund constructs diversified portfolios aimed at delivering long-term value.
Moreover, Arrowstreet Capital prioritizes continuous improvement in response to shifting market conditions, integrating new data sources and employing advanced data science tools to refine its investment insights and enhance portfolio performance. While Arrowstreet does not assume that ESG-focused stocks will consistently outperform, it acknowledges the impact of environmental, social, and corporate governance factors on profitability and risk, incorporating them into its models. The firm’s collaborative team structure ensures active portfolio management, with a strong emphasis on long-term investment strategies and talent development.
Peter Rathjens is the Chief Investment Officer at Arrowstreet Capital in Boston, Massachusetts. He holds a BA from Oberlin College and an MA from Princeton University. Bruce Clarke, Co-Founder and Chairman of Arrowstreet Capital, leads an institutional asset management firm overseeing a portfolio exceeding $140 billion. Previously, he served as CEO of PanAgora Asset Management and gained international experience working in Canada, the UK, Italy, and the US. Clarke earned an MBA from London Business School and a Bachelor’s degree from the University of British Columbia. John Young Campbell, a Partner and Co-Head of Research at Arrowstreet, has an extensive background in finance, having served as President of the American Finance Association, Director of Research at PanAgora Asset Management, a professor at Princeton University, and President of the International Atlantic Economic Society. He holds a doctorate from Yale University and an undergraduate degree from the University of Oxford.
Arrowstreet Capital’s latest 13F filing for Q4 2024 reported $124.94 billion in managed 13F securities, with a top 10 holdings concentration of 28.9%. This reflects the firm’s strategic focus on high-value investments while maintaining a diversified portfolio.
Our Methodology
The stocks discussed below were picked from Arrowstreet Capital’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1,000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A fast-paced travel agent making a bookings for a family vacation package.
Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders as of Q4: 99
Arrowstreet Capital’s Equity Stake: $1.39 Billion
Booking Holdings Inc. (NASDAQ:BKNG) is an American travel technology company. On February 20, 2025, the company reported revenue of $5.47 billion for the final quarter of 2024, reflecting a 14% increase from the previous year and exceeding analysts’ expectations of $5.19 billion. The company also posted adjusted earnings of $41.55 per share, surpassing the consensus estimate of $36.70 compiled by analysts. Gross bookings for the quarter reached $37.2 billion, outperforming analysts’ projections of $34.5 billion. Both revenue and adjusted earnings per share showed significant year-over-year growth, highlighting the company’s strong performance in the travel and dining sector.
In addition to its earnings results, Booking Holdings Inc. (NASDAQ:BKNG) announced that its board had approved a new $20 billion stock buyback program, complementing the $7.7 billion remaining from the previous program at the end of 2024. Looking ahead, Booking expects revenue to grow between 2% and 4% year-over-year in the first quarter, with gross bookings projected to rise by 5% to 7%. For the full year, revenue and gross bookings are expected to increase in the mid-single-digit percentage range, while adjusted earnings per share are expected to see low double-digit growth. Following these results, analysts at Jefferies and JPMorgan raised their price targets for Booking stock to $5,400 and $5,750, respectively, citing strong travel demand and the company’s plans to increase social media advertising.
Booking Holdings Inc. (NASDAQ:BKNG)’s Board of Directors has approved a cash dividend of $9.60 per share, representing a 10% increase from the previous year’s quarterly dividend of $8.75. The dividend is scheduled for payment on March 31, 2025, to stockholders who are recorded as of the close of business on March 7, 2025.
Insider Monkey’s database revealed that 99 hedge funds had stakes in Booking Holdings at the end of Q4, with a combined value of nearly $10.14 billion, compared to 93 funds in the previous quarter. The growing hedge fund interest underscores strong institutional confidence in the stock, positioning Booking Holdings Inc. (NASDAQ:BKNG) as a top stock to buy.
Overall, BKNG ranks 7th on our list of top stocks to buy from Arrowstreet Capital’s portfolio. While we acknowledge the potential for BKNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BKNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.