Jim Cramer is a former hedge fund manager and one of the famous TV personalities regularly appearing on CNBC’s “Mad Money” stock show. Jim Cramer, unlike many other TV finance personalities, actually manages a stock portfolio known as “Action Alerts PLUS (AAP)”. This portfolio was started with around $3 million in 2001 and is available for subscription through TheStreet.com. A recent Wharton School paper analyzed the performance of the AAP portfolio and found that since inception Jim Cramer’s portfolio has under performed the S&P 500 total return index and a basket of S&P 500 stocks that does not reinvest dividends. In the article below, we look at some of the top picks of the Action Alerts PLUS (AAP), which are also popular amongst other top billionaire hedge fund managers.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.
Alphabet Inc. (NASDAQ:GOOGL) is the world’s second most valuable technology company with a dominant share in mobile operating systems and Internet search segments. It is also a favorite of Jim Cramer being a part of his AAP portfolio. Billionaire Ken Fisher’s Fisher Asset Management also held 1.0 million shares with a value of $812 million and bought an additional 14,723 shares during the third quarter. Billionaire Andreas Halvorsen’s Viking Global also bought 168,202 shares taking his total position to 1.96 million shares worth $1.57 billion at the end of September. Alphabet Inc. (NASDAQ:GOOGL) recently launched its Waymo unit, which will spearhead the company’s self-driving car project. Alphabet Inc. (NASDAQ:GOOGL) will focus only on the technology of autonomous vehicles and not manufacture the cars itself. According to our database, the number of other billionaires long on Alphabet Inc. (NASDAQ:GOOGL) moved up to 18 from 13 during the third quarter and the value of their holdings also increased by 59% to $6.39 billion.