10 Largest Hedge Funds in The World And Their Favorite Stock Picks

8. Millennium Management (AUM: $34 billion) ranks eighth amongst the top hedge fund companies by AUM globally in 2016. It was founded by the legendary investor Israel Englander. The fund posted a compounded annual return of 12.8% between 2012 and 2015, at a time when most of the other hedge funds had been under performing. Millennium is a multi strategy hedge fund. Some of the investment strategies employed by the fund are event driven strategies and merger and statistical arbitrage.

The world’s largest consumer goods maker Procter & Gamble Co. (NYSE:PG) is a big favorite amongst the world’s largest hedge funds. This company was the biggest position of Millennium Management during the third quarter and also the third largest position of AQR Capital Management. Millennium had $6.5 billion invested in PG’s shares and $2.5 billion equivalent in PG put options to hedge some of the risk. This is an enormous bet even for a $34 billion fund. Procter & Gamble Co. (NYSE:PG) has successfully implemented a complex restructuring and cost cutting exercise recently which has helped it gain margins.

Millennium Management doubled its Apple Inc. (AAPL) position and also became extremely bullish on the Danish healthcare company Novo Nordisk A/S (ADR) (NYSE:NVO) and bought 1.36 million shares taking its overall holding to $63.8 million.