Hedge Fund Manager Louis Bacon’s Top 5 Stock Picks

In this article, we discuss hedge fund manager Louis Bacon’s top 5 stock picks. You can read our detailed analysis of Bacon’s hedge fund and its performance over the years, and go directly to read Hedge Fund Manager Louis Bacon’s Top 12 Stock Picks. 

5. CRH PLC  (NYSE:CRH)

Moore Capital Management Q2 2023 Holdings: $82.76 Million
Number of Hedge Fund Holders: 20

CRH PLC (NYSE:CRH), headquartered in Dublin, Ireland, operates in three segments: Americas Materials, Europe Materials, and Building Products. They produce and provide materials such as cement, lime aggregates, precast, and ready-mixed concrete.

CRH PLC (NYSE:CRH) is up by more than 30% for the year, a rally on solid demand for building materials that has strengthened the company’s sentiments in the market. Strong demand for houses is the catalyst boosting its prospects.

In addition, CRH PLC (NYSE:CRH) is one of the stocks to buy, according to billionaire Louis Bacon, for anyone looking to generate some passive income. The company has a 29-year track record of consecutive dividend payments, with dividend payouts increasing by 11% over the last three years.

Insider Monkey’s second quarter of 2023 survey covering 910 hedge funds revealed that 20 had held a stake in CRH PLC (NYSE:CRH). Out of these, the firm’s largest hedge fund shareholder is Edgar Wachenheim’s Greenhaven Associates, which owns 2.09 million shares that are worth $116.50 million.

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

Moore Capital Management Q2 2023 Holdings: $209.39 Million
Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) is one of hedge fund manager Louis Bacon’s top stock picks as technology benefits from the increased popularity of artificial intelligence and cooling inflation. The company has made a name for itself by offering apps connecting friends with family through mobile devices, personal computers, virtual reality headsets, and wearable worldwide.

After a year to forget, Meta Platforms, Inc. (NASDAQ:META) has bounced back, rallying by more than 140%, affirming its status as hedge fund manager Louis Bacon’s top stock pick. The rally comes on the company’s fortunes improving after top-line growth stagnated and earnings declined in 2022.

Meta Platforms, Inc. (NASDAQ:META) has delivered better-than-expected results in 2023, with revenues increasing 3% in Q1 to $28.6 billion and 11% in Q2 as earnings shot up 21%. The increase came from increased spending on advertising, a key area where the company generates its revenues. Management expects Q3 revenues to grow 20%, affirming underlying growth.

According to Insider Monkey, 225 hedge funds owned shares of Meta Platforms, Inc. (NASDAQ:META) as of Q2 2023, after analyzing 910 hedge funds’ holdings. The company’s largest hedge fund owner in our database was Tiger Global Management LLC, managed by Chase Coleman and Feroz Dewan, with a stake of 8.57 million shares valued at $2.46 billion.

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

Moore Capital Management Q2 2023 Holdings: $217.25 Million
Number of Hedge Fund Holders: 278

Amazon.com, Inc. (NASDAQ:AMZN) remains hedge fund manager Louis Bacon’s top stock pick as it is in the process of unlocking a new $100 billion business opportunity. Amazon plans to open up its logistics network to third parties that will see it become a freight and shipping juggernaut, according to Bloomberg. The stock is already up by over 50% for the year, benefiting from the artificial intelligence boom and improving fundamentals.

Amazon.com, Inc. (NASDAQ:AMZN) had 278 hedge funds as shareholders in Q2 2023, with a combined stake worth $34.9 billion. The largest stakeholder was Harris Associates, with a stake valued at $2.04 billion.

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2. Microsoft Corporation (NASDAQ:MSFT)

Moore Capital Management Q2 2023 Holdings: $219.62 Million
Number of Hedge Fund Holders: 300

Microsoft Corporation (NASDAQ:MSFT) is arguably the biggest software company in the world, best known for offering a suite of software and applications for use in work environments. The company develops and supports software and services that include SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft Viva, and Microsoft 365 co-pilot.

The tech giant is also a big player in cloud computing, from where it generates a good chunk of its revenues. Microsoft Corporation (NASDAQ:MSFT) has also strengthened its prospects in gaming with the Xbox gaming console. With the stock up by over 40% for the year, it remains one of hedge fund manager Louis Bacon’s top stock picks, given its track record in returning shareholder value. Wall Street expects the company’s revenue to grow by 11% in 2024, with earnings increasing by 12%, which justifies its premium valuation of 30 times forward earnings.

Microsoft Corporation (NASDAQ:MSFT) is the top choice among the 910 elite hedge funds that Insider Monkey tracks. By the end of Q2 2023, 300 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT). The largest shareholder was Bill & Melinda Gates Foundation Trust, with 39.2 million shares worth $13.3 billion.

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1. NVIDIA Corporation (NASDAQ:NVDA)

Moore Capital Management Q2 2023 Holdings: $378.67 Million
Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA) is arguably the best play for any investor eyeing exposure in the burgeoning artificial intelligence spectacle. The company remains at the center of the revolution, manufacturing graphics processing units that enable and power AI innovations.

NVIDIA Corporation (NASDAQ:NVDA) chips are in high demand, which explains the 101% increase in revenues in Q2 to $13.51 billion. Net earnings increased nearly tenfold to $6.1 billion. Three-quarters of the company’s revenues come from growing demand for its chips in AI and cloud data centers. With a new computing era starting, NVIDIA Corporation (NASDAQ:NVDA) is in for an impressive year, which makes it one of the stocks to buy, according to billionaire Louis Bacon.

At the end of Q2 2023, NVIDIA Corporation (NASDAQ:NVDA) had 175 hedge funds among its 910 shareholders, according to Insider Monkey. The company’s biggest hedge fund shareholder was GQG Partners, run by Rajiv Jain, with a stake worth $5.8 billion.

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