Microsoft regained its status as the most popular stock among hedge funds.
The cloud computing giant replaced Amazon for the top spot as of the end of the third quarter. It had been No. 1 every quarter for more than two years before Amazon temporarily claimed the honor in the second quarter.
Microsoft counted at least 411 hedge fund investors as of the end of September after gaining a net 13 new investors in the three-month period, according to SEI, which has one of the largest database of hedge funds’ U.S. stock holdings. New investors last quarter included Point72 Asset Management, MKP Capital Management, and Brevan Howard Capital Management, according to third-quarter 13F filings made public last week.
Amazon slipped back to second place in the third quarter with 388 hedge fund investors after the e-commerce giant saw 47 hedge funds fully exit the stock and just 24 initiate positions, for a net loss of 23. Most significantly: Point72 Asset Management liquidated its position of more than 3.16 million shares of Amazon.
Microsoft and Amazon, however, still enjoy far more support than the third-most-popular stock: Facebook parent Meta Platforms, which had 328 hedge fund investors.
Although the 15 most widely held stocks are the same as in the second quarter, the order of popularity has changed a bit.
For example, Meta moved up from fifth to third place after attracting a net 21 new investors in the third quarter. Those new investors include Tiger Grandcub D1 Capital Partners and activist ValueAct Holdings. Chip juggernaut Nvidia now ranks fourth, with 317 hedge fund investors after adding a net 22 new investors in the quarter, more than any other company among the top 15. It was No. 7 at the end of the second quarter. New investors include macro giants Brevan Howard and Element Capital Management.
On the other hand, the “A” shares of Google parent Alphabet slipped from third to fifth place, and iPhone and iPad maker Apple dropped from fourth to sixth.
Of the 50 most widely held stocks among hedge funds, the one that received the largest bump in new investors was retailing giant TJX Cos. It cracked the top-50 ranking with 136 investors.
Adobe, Netflix, and Chinese e-commerce giant Alibaba Group Holding each saw net increases of 25 new hedge fund investors in the third quarter; 24 new hedge funds invested in Tesla.
Here are the 20 stocks with the most hedge fund investors as of the end of the third quarter, according to SEI:
Microsoft 411
Amazon 388
Meta Platforms 328
Nvidia 317
Alphabet “A” 315
Apple 279
Visa 254
Alphabet “C” 245
Mastercard 213
Berkshire Hathaway 210
Taiwan Semiconductor Manufacturing 210
Eli Lilly 202
JPMorgan Chase 200
Broadcom 198
UnitedHealth Group 197
Adobe 197
Netflix 184
Uber Technologies 183
Merck 179
Bank of America 176
Source: SEI
