Harvard University Stock Portfolio: Top 5 Picks

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

Harvard Management Company’s Stake Value: $183,166,000

Number of Hedge Fund Holders: 184

The Harvard University stock portfolio had 1.13 million shares of Meta Platforms, Inc. (NASDAQ:META) in the second quarter of 2022, worth over $183 million and representing 21.2% of the total 13F securities. The hedge fund trimmed its Meta stake by 8% during the June quarter. 

The company disclosed a mixed third-quarter earnings report, with the revenue topping market expectations, whereas profits lagged amid warnings of short-term sales challenges. CEO Mark Zuckerberg, however, assured investors that the company will focus on efficiency in 2023 to return to stronger revenue growth. 

On October 28, Edward Jones analyst David Heger downgraded Meta Platforms, Inc. (NASDAQ:META) to Hold from Buy following the Q3 earnings report. While the company is executing relatively well in the tough macroeconomic backdrop and continues to steadily grow users across its platforms, the analyst is worried about how long the steep metaverse investment will take to deliver a significant return. 

According to Insider Monkey’s data, 184 funds were long Meta Platforms, Inc. (NASDAQ:META) at the end of June 2022, down from 200 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management owned a prominent position in the company, consisting of 11.5 million shares worth $1.86 billion. 

Here is what Weitz Investment specifically said about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2022 investor letter:

“Facebook parent Meta Platforms, Inc. (NASDAQ:META) was the portfolio’s top year-to-date detractor. Fears of a recession and a resultant pullback in ad spending have added insult to injury as Meta attempts to gain traction with its short-form video product called Reels. Meta’s progress in monetizing Reels and the heavyweight bout with video-sharing app TikTok for consumers’ attention are clearly the main event, but we are also encouraged that, behind the scenes, management is taking a more disciplined approach to investing and expense management. Investors looking for greater detail on Meta are encouraged to read equity analyst Jon Baker’s Analyst Corner feature from earlier this year.”