Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Thermo Fisher Scientific, Ingersoll-Rand plc: Billionaires Are Piling Into These 5 Capital Goods Stocks

As hedge fund managers become billionaires and their funds grow to encompass billions of dollars in capital, they are forced to invest differently to utilize all of it, sinking more money into lower margin large-cap stocks, rather than having larger chunks of their portfolios dedicated to promising small-cap equities. This makes it a lot harder for billionaire hedge funds to beat the market by a wide margin. Furthermore, the high fees charged by these institutional investors often do not justify the returns they offer. Nevertheless, it is always worth knowing what stocks billionaire hedge fund managers are bullish on, especially regarding equities of small-cap companies. In addition, our research indicates that the 30 top picks made by hedge funds were able to outperform the market by around 2% between 1999 and 2009. So while allowing a hedge fund to manage your money might not be the smartest move, taking a closer look at their stock picks is still worth the effort.Hedge Fund Managers

In this article we will be taking a look at the five most popular capital goods stocks amongst billionaire hedge fund managers. The holdings of 59 billionaires are taken into account in order to establish a ranking of equities, according to the amount of backing each receives from these noteworthy billionaire investors.

Last quarter, General Motors Company (NYSE:GM) was held by a total of 15 billionaire hedge fund managers, including Warren Buffett. His holding company Berkshire Hathaway increased its exposure to the company by 3% last quarter and now has a stake of 41.0 million shares in the automobile manufacturer. Steve Cohen’s Point72 Asset Management is also betting on General Motors Company (NYSE:GM) with a holding of 4.42 million shares. Like Warren Buffett, who has been backing the company for years, Mr. Cohen has also held this stock in his funds’ equity portfolios for years, carrying over from his former fund SAC Capital Advisors into its current iteration as the family office Point72. At the end of the last quarter, Point72 revealed an increase of 3.75 million shares to its position, in a significant display of optimism towards the stock. General Motors Company (NYSE:GM) has been performing well so far, with its stock gaining around 8% year-to-date, after losing more than 14% last year. In addition to the billionaire bulls who recognize the stock’s huge upside potential, such as George Soros, the company is viewed as undervalued by numerous analysts.

With the backing of 12 billionaires, Thermo Fisher Scientific Inc. (NYSE:TMO) ranks as the second most popular capital goods stock amongst this group of select hedge fund managers. Larry Robbins holds the largest stake and is the company’s biggest institutional investor amongst the funds we track, with a position of 11.39 million shares. In fact, Mr. Robbins’ Glenview Capital has around 7% of its entire equity portfolio placed locked up in this stock. Andreas Halvorsen was also betting on Thermo Fisher last quarter, as his fund Viking Global disclosed a stake of 5.78 million shares of the company’s outstanding stock. So far, billionaire hedge fund managers were not wrong to invest in Thermo Fisher Scientific Inc. (NYSE:TMO), as the stock has gained more than 5% year-to-date, after growing by approximately 13% in 2014.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.