10 Best Australian Stocks To Buy According to Hedge Funds

4. BHP Group (NYSE:BHP)  

Number of Hedge Fund Holders: 22  

Market Capitalization as of August 30: $139.76 Billion

BHP Group (NYSE:BHP) is a multinational mining, metals, and petroleum company. It is one of the world’s largest resource companies, with operations spanning various sectors, including iron ore, copper, coal, and oil.

Despite subdued iron ore prices and rising costs, BHP Group (NYSE:BHP) has maintained solid production performance. For the year ended 30 June, BHP Group (NYSE:BHP) achieved several production records, including record copper output at the Spence mine and strong iron ore production. The company’s copper production increased 9% year over year with an EBITDA margin of 51% and Iron ore production totaled 259.7 Mt. The company’s potash projects are also progressing well, with Jansen Stage 1 ahead of schedule at 52% completion and Jansen Stage 2 just beginning at 2% completion. For the year 2025, BHP Group (NYSE:BHP) expects a further 4% increase in copper production.

On August 30, BHP Group (NYSE:BHP) announced its plan to expand its smelter and refinery operations at Olympic Dam in South Australia. The South Australian Government has initiated an application and assessment process for this expansion. BHP Group (NYSE:BHP) aims to increase its copper production in South Australia from approximately 322,000 tonnes last financial year to 500,000 tonnes of refined copper cathode by the early 2030s, with potential growth to 650,000 tonnes by the mid-2030s. Additionally, BHP Group (NYSE:BHP) has announced an Inferred Mineral Resource at Oak Dam of 1.34 billion tonnes at 0.66% copper grade and 0.33 grams per tonne gold grade, within which is an area that contains 220 million tonnes at 1.96% copper grade and 0.68 grams per tonne gold.

The company’s diversified commodity portfolio provides a balanced exposure to different markets and reduces reliance on any single commodity. Copper, which contributed significantly to the company’s EBITDA, continues to show potential for more growth.  According to a report by the World Bank, copper prices are forecasted to increase by 4% next year. According to Forbes, the demand for Copper is forecasted to increase by 75% by 2050. BHP Group’s (NYSE:BHP) strategic initiatives, market positioning, and growth in copper production support its long-term growth prospects.

In the second quarter, BHP Group’s (NYSE:BHP) stock was held by 22 hedge funds with stakes worth $1.25 billion. Fisher Asset Management is the largest shareholder in the company with a stake worth $1.21 billion as of June 30. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $61.38, which represents a 10.7% upside potential from its current level.