Hedge Funds Are Betting on These Five Capital Goods Stocks

#3 Illumina, Inc. (NASDAQ:ILMN)

– Number of Hedge Fund Holders (as of September 30): 62
– Total Value of Hedge Fund Holdings (as of September 30): $2.25 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 8.90%

Illumina, Inc. (NASDAQ:ILMN) recently announced that it has entered into an agreement with Chinese firm Novogene to jointly develop a diagnostic system based on next-generation sequencing technology for clinical oncology testing and prenatal DNA in the China. Although the financial terms weren’t disclosed, the agreement further improves Illumina’s growth prospects, which are sky-high given the impending breakthroughs in biotech over the next two decades. A total of 62 funds owned $2.25 billion of Illumina shares at the end of the third quarter. Among them is Stephen Mandel’s Lone Pine Capital, which had a position of 3.61 million shares.

#2 Comcast Corporation (NASDAQ:CMCSA)

– Number of Hedge Fund Holders (as of September 30): 80
– Total Value of Hedge Fund Holdings (as of September 30): $8.57 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 6.00%

Although cable is unquestionably in secular decline, Comcast Corporation (NASDAQ:CMCSA) has hedged itself well, given its ownership of NBC universal, and its fast growing high speed internet division. With only 75% of U.S. households having high speed internet, there is plenty of growth ahead for that unit. Meanwhile, Comcast shares trade at a modest 15.89 times forward earnings and pay a 1.7% dividend. The hedge fund sentiment towards the stock has been stable, with 80 funds owning shares of Comcast at the end of the third quarter, up from 76 funds that were long the stock at the end of June.