We recently published a list of Top 10 Stocks to Buy According to Marshall Wace LLP. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other top stocks to buy according to Marshall Wace LLP.
Marshall Wace LLP is a prominent British hedge fund established in 1997 by Paul Marshall and Ian Wace. Headquartered in London, the firm has grown to become one of the world’s leading hedge funds. The firm operates as a unified global team, dedicated to fostering long-term client relationships built on trust and integrity, with a culture centered on continuous innovation and improvement.
Sir Paul Roderick Clucas Marshall, known simply as Paul Marshall, serves as the chairman and chief investment officer of Marshall Wace. Born in London, England, he studied history and modern languages at St John’s College, Oxford before earning an MBA from INSEAD Business School in Fontainebleau, France. Prior to co-founding Marshall Wace, Marshall was the Head of European Equities at Mercury Asset Management.
Beyond finance, Marshall is best known as a philanthropist and media baron. He expanded his influence into media by owning UnHerd and The Spectator and co-owning GB News. His philanthropic efforts are equally notable; he was named the top donor on The Sunday Times Giving List in 2024 after donating a hefty sum to various causes including the London School of Economics to establish the Marshall Institute. He was knighted in the 2016 Birthday Honours for his contributions to education and philanthropy.
Politically, Marshall was initially a member and donor of the Liberal Democrats, co-editing the influential Orange Book in 2004 alongside key party figures. However, his stance shifted in 2015 when he left the party due to his support for Brexit. He later became a major donor to the Brexit campaign and the Conservative Party. His ownership of UnHerd and GB News has positioned him as a significant right-wing media figure in the UK.
Ian Gerald Patrick Wace serves as the firm’s chief executive officer and chief risk officer. Despite not holding a college degree, he has achieved exceptional success in the finance industry, earning recognition as “perhaps the only person without a college degree to ever qualify” for Institutional Investor’s Rich List. Wace began his career at S.G. Warburg & Co., where he spent 11 years and became the firm’s youngest director at the age of 25. His rapid ascent continued as he was appointed head of European equity sales in 1988, head of proprietary trading in 1993, and head of international trading in 1994. In 1995, he joined Deutsche Morgan Grenfell as head of equity and derivative trading, further establishing his expertise in the financial sector before co-founding Marshall Wace in 1997.
Marshall Wace LLP manages quantitative, systematic, and fundamental investment strategies, with a primary focus on long/short equity. These strategies are implemented on a global scale, utilizing proprietary systems and processes to optimize performance. For over two decades, technology and data have been central to the firm’s operations. In 2002, Marshall Wace introduced MW TOPS, its Trade Optimized Portfolio System and the world’s first ‘Alpha Capture’ application. This revolutionized the way investment insights were harnessed and contributed largely to its prominence in the hedge fund industry. Today, the firm remains committed to innovation and excellence, continuously refining its methodologies to maintain a competitive edge in the financial markets. Despite its success, Marshall Wace has faced recent challenges; in the fiscal year ending February 2024, the firm’s revenues declined substantially, leading to a nearly 64% drop in profits.
Marshall Wace LLP’s Q4 2024 13F filing reported over $83 billion in managed 13F securities, with its top 10 holdings accounting for 34.5% of the total portfolio.
Our Methodology
The stocks discussed below were picked from Marshall Wace LLP’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1,000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Paul Marshall of Marshall Wace
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Marshall Wace LLP’s Equity Stake: $3.40 Billion
Apple Inc. (NASDAQ:AAPL), founded in 1976, continues to dominate the global technology sector and is first on the list of top stocks to buy according to Marshall Wace LLP. In Q4 2024, the company reported revenue of $124.3 billion, reflecting a 3.95% year-over-year increase, while earnings per share climbed to $2.40, surpassing analyst expectations. Apple’s Board of Directors announced a quarterly dividend of $0.25 per share, reinforcing investor confidence. Hedge fund interest in the company also increased, with 166 funds holding positions worth nearly $118.6 billion by the end of the quarter. However, despite these strong financial results, the company faces growing uncertainty as the Trump administration enforces higher tariffs on Chinese imports, which could disrupt its supply chain and impact profit margins. Since China accounts for roughly 90% of iPhone production, these tariffs could force Apple to absorb higher costs, raise consumer prices, or negotiate carrier subsidies, all of which pose financial risks.
In response to these challenges, Apple Inc. (NASDAQ:AAPL) is making a significant push to expand its U.S. presence, committing $500 billion over the next four years to domestic manufacturing and technological development. This includes doubling its Advanced Manufacturing Fund to $10 billion, hiring 20,000 employees in key sectors such as R&D, silicon engineering, and AI, and beginning server production in Houston. Additionally, Apple plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with the Trump administration’s push for reshoring production. While these efforts may help mitigate some of the supply chain risks posed by tariffs, they will take years to materialize, leaving Apple vulnerable to short-term economic and geopolitical uncertainties.
Beyond trade concerns, broader macroeconomic risks including inflation, geopolitical instability, and weakening consumer spending add further pressure. The ongoing Ukraine-Russia conflict and trade uncertainties could lead to higher import costs, reduced disposable income, and lower consumer demand, particularly for high-end electronics. As smartphone innovation slows and economic conditions remain fragile, consumers may delay device upgrades, potentially impacting Apple’s revenue growth. While Apple Inc. (NASDAQ:AAPL) remains a strong long-term investment due to its brand strength, innovation, and expanding services segment, near-term volatility could challenge its stock performance.
Overall, AAPL ranks 1st on our list of top stocks to buy according to Marshall Wace LLP. While we acknowledge the potential for AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.