10 Most Successful Hedge Fund Managers and Their Stock Picks

#6. Amazon.com Inc. (NASDAQ:AMZN)

– Number of “Successful” Hedge Fund Shareholders (as of June 30): 2

– Total Value of Hedge Funds’ Holdings (as of June 30): $262.28 Million

Two out of the ten successful asset managers had long positions in Amazon.com Inc. (NASDAQ:AMZN) at the end of June, with those positions being worth $262.28 million on June 30. Just recently, analysts at Guggenheim Securities initiated coverage on Amazon.com Inc. (NASDAQ:AMZN) with a ‘Buy’ rating and a price target of $950, saying that the company’s Amazon Web Services will “remain a key driver for profitability and the share price.” Moreover, Guggenheim analysis anticipate the e-commerce giant to claim around 25% of the domestic e-commerce market by 2017, but only 3% of the total retail market based on their North America revenue estimate of around $100 billion. Going back to Amazon’s Amazon Web Services (AWS), Guggenheim analysts said that the AWS segment “is benefiting meaningfully from the increasing IT acceptance of public cloud infrastructure and reacceleration of data spending in 2016.” Amazon.com has seen its market capitalization jump by 23% since the beginning of the year. Tybourne Capital Management owned 361,303 shares of Amazon.com Inc. (NASDAQ:AMZN) at the end of the June quarter.

#5. AvalonBay Communities Inc. (NYSE:AVB)

– Number of “Successful” Hedge Fund Shareholders (as of June 30): 2

– Total Value of Hedge Funds’ Holdings (as of June 30): $307.77 Million

AvalonBay Communities Inc. (NYSE:AVB)’s shares resided the portfolios of two of the ten most successful hedge fund managers at the end of the second quarter. The two asset managers had equity investments in the company amounting to $307.77 million on the last day of June. The shares of the equity real estate investment trust that owns multifamily apartment communities across the United States are 1% in the red this year. The company owned and held a direct or indirect ownership interest in 283 apartment communities at the end of June, containing 82,984 apartments. 23 of those communities were under construction and seven were under reconstruction. In mid-September, AvalonBay declared a cash dividend of $1.35 per share for the third quarter, a dividend that yields 3.04% annually. During the June quarter, the company completed the construction of three communities containing 607 apartment homes. Jeffrey Furber’s AEW Capital Management was the equity holder of 1.50 million shares of AvalonBay Communities Inc. (NYSE:AVB) on June 30.

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#4. Automatic Data Processing (NASDAQ:ADP)

– Number of “Successful” Hedge Fund Shareholders (as of June 30): 2

– Total Value of Hedge Funds’ Holdings (as of June 30): $386.29 Million

Greg Poole’s Echo Street Capital Management and Andy Brown’s Cedar Rock Capital, two of the ten most successful hedge fund managers discussed on the first page, had equity stakes in Automatic Data Processing (NASDAQ:ADP) at the end of June. These asset managers’ equity stakes in ADP were worth $386.29 million on June 30. The well-known provider of cloud-based Human Capital Management (HCM) solutions reported revenue of $11.67 billion for its fiscal 2016 that ended June 30, marking an increase of 7% year-over-year despite two percentage points of combined pressure from foreign currency headwinds and the disposition of the AdvancedMD business. Meanwhile, the company’s diluted earnings per share from continuing operations rose to $3.25 from $2.89 per share reported for the previous fiscal year. The payroll processing firm has seen the value of its shares increase by 6% this year. Cedar Rock Capital reported ownership of 4.18 million shares of Automatic Data Processing (NASDAQ:ADP) through the June round of 13F filings.