Hedge Funds Like These Wide-Moat Stocks

#3 Exxon Mobil Corporation (NYSE:XOM)

– Number of Hedge Fund Holders (as of March 31): 60
– Total Value of Hedge Fund Holdings (as of March 31): $2.5 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 0.70%

Exxon Mobil Corporation (NYSE:XOM) is the largest oil company in the world and is still profitable at a time when other oil companies are losing money due to the company’s scale and diversity. Although the S&P downgraded the company’s credit rating to ‘AA+’ from ‘AAA’, Exxon Mobil proved the critics wrong by raising its dividend even while peers cut their payouts. Helping the dividend payouts is Exxon Mobil’s large chemical division, which benefits from the low crude prices and can offset some of the weakness in the company’s other divisions. The company’s stock currently has an attractive 3.33% dividend yield.

#2 Time Warner Inc (NYSE:TWX)

– Number of Hedge Fund Holders (as of March 31): 68
– Total Value of Hedge Fund Holdings (as of March 31): $3.94 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 6.90%

Time Warner Inc (NYSE:TWX) is better positioned for the upcoming Internet TV revolution than most. Because the company has a portfolio of hit shows such as Game of Thrones, Silicon Valley, and various Warner Brothers movies, the company can ensure that the transition to internet/virtual reality won’t affect earnings per share as much as it will for other companies. Time Warner’s content is so compelling that Apple executive Eddy Cue reportedly broached Apple potentially acquiring Time Warner at one point. Although the talks never went past the preliminary stage, they indicate Time Warner’s enviable content position. David Einhorn’s Greenlight Capital owned almost 5.8 million shares at the end of March.

#1 Alphabet Inc (NASDAQ:GOOGL)

– Number of Hedge Fund Holders (as of March 31): 155
– Total Value of Hedge Fund Holdings (as of March 31): $14.98 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 2.90%

Alphabet Inc (NASDAQ:GOOGL) is so ubiquitous and dominant that even governments are afraid of its power. The European Union recently made life difficult for the company by launching an antitrust probe against the company for its anti competitive practices. If Google loses the lawsuit, it could potentially face billions of dollars in fines. Although Europe’s government can impose it with fines, Europe will still be a key profit driver for Alphabet given the company’s product’s stickiness. Alphabet will still be a profit machine and is a good bet to be one of the leading companies in Artificial intelligence and virtual reality.

Disclosure: none