In this article, we discuss the 12 best global stocks to buy according to hedge funds.
The United States has long been a magnet for global businesses seeking to tap into its robust economy and dynamic financial markets. Several key economic policies and initiatives have been instrumental in encouraging these enterprises to remain active participants in US stock markets. The US offers the world’s largest consumer market, with a Gross Domestic Product (GDP) of $25 trillion and a population of 335 million. Household spending accounts for nearly a third of global consumption, making it an attractive destination for businesses aiming to expand their market reach. The regulatory environment is conducive to starting and operating a business, ensuring that companies, regardless of origin, compete on an even playing field. This transparency and predictability in the legal system bolster investor confidence and encourage sustained engagement in US stock markets.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
To further promote foreign direct investment (FDI), the US Department of Commerce launched the SelectUSA program. Since its inception, SelectUSA has facilitated more than $250 billion in investments, leading to the creation or retention of over 230,000 jobs. By providing actionable information and serving as a liaison between investors and economic development organizations, SelectUSA plays a pivotal role in attracting and retaining global businesses in the US market. The US has also implemented tax reforms aimed at creating a more business-friendly environment. The country continues to invest in infrastructure and technological innovation, providing businesses with the necessary tools and resources to thrive.
Access to cutting-edge technology, a skilled workforce, and a culture of innovation fosters an environment where companies can grow and remain competitive. Despite these advantages, global businesses must navigate challenges such as economic and political uncertainties. Recent reports indicate a shift in investment preferences, with some investors reconsidering their concentrated investments in US markets due to factors like stretched valuations and geopolitical tensions. For instance, a significant reduction in US stock holdings has been observed, with nearly 90% of investors viewing US equities as overvalued, per a recent Reuters report. This trend underscores the importance of continuous policy evaluation to maintain the attractiveness of US stock markets.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The companies that have large businesses and are primarily based outside the United States were shortlisted. They were then ranked according to hedge fund sentiment. The top twelve were selected for this list. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Stocks chart
Best Global Stocks to Buy According to Hedge Funds
12. Scorpio Tankers Inc. (NYSE:STNG)
Number of Hedge Fund Holders: 32
Scorpio Tankers Inc. (NYSE:STNG) is a provider of marine transportation of petroleum products worldwide. In the third quarter of 2024, the company reported adjusted net income of $87.7 million, with basic earnings per share of $1.83 and diluted earnings per share of $1.75. As per the third quarter of 2024, the company paid a quarterly dividend of $0.40 per share. The firm has a strong history of dividend performance, with 2 consecutive years of dividend growth—71.32% higher than the sector average of 1.2 years. It has maintained 11 consecutive years of dividend payments, outperforming the sector by 208.23%, compared to the sector average of 3.6 years. For the fourth quarter of 2024, the company had a net income of $68.6 million, or $1.48 basic and $1.43 diluted earnings per share.
Hedge Fund Resource Center