Hedge Funds Were Right About These 5 Stocks in 2021

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1. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156 

Year-to-Date Gain in Share Price: 70%

Alphabet Inc. (NASDAQ:GOOG) stock has been one of the best performers of the year so far, certainly among the five big tech firms that dominate the S&P 500. The shares have climbed nearly $3,000 from $1,100 compared to March 2020. The forays of Alphabet Inc. (NASDAQ:GOOG) into cloud computing have put it on track to register higher margins on sales and expansion of business by 20% annually for several years. Alphabet Inc. (NASDAQ:GOOG) remains a hedge fund favorite heading into 2022. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.8 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”

You can also take a peek at 10 Best Stocks to Buy According to Billionaire Ken Fisher and 10 Best Stocks to Buy for the Next Ten Years.

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