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12 Best New Stocks to Buy According to Hedge Funds

In this article, we discuss 12 best new stocks to buy according to hedge funds. If you want to read about some more new stocks, go directly to 5 Best New Stocks to Buy According to Hedge Funds.

Initial public offerings (IPOs) have faced mounting challenges this year in a macroeconomic environment filled with market uncertainties, increasing volatility, and falling global equity prices. According to a report by professional services firm EY, as of the end of September 2022, there have been 992 IPOs that have raised $146 billion. This represents a 44% and 57% decrease year-over-year respectively. Per the report, the United States market is on track to register the lowest proceeds from IPOs since 2003. 

The average deal size for new offerings is also falling. In 2022 so far, the average deal size was $123 million, down from $261 million in the previous year. However, like 2020 and 2021, the technology sector continues to be the trend-setter in the IPO space, registering the highest proceeds from market debuts in the past few months. The energy sector is also a surprise entrant in this regard as global energy outlook improves on the back of a worsening geopolitical situation and production cuts across the world.

There have also been fewer market debuts through the use of Special Purpose Acquisition Companies (SPACs). In the third quarter of 2022, the proceeds from the SPAC-linked IPOs were the lowest since the third quarter of 2016. As a record number of SPACs search for merger targets, in light of the stellar performance made by these deals last year, there have only been 17 such deals between June and September 2022, raising just $900 million. A number of SPACs face expiration dates in the coming months. 

IPO Activity Registers Sharp Decline in the US

In the US in particular, IPO activity has declined sharply this year as the Federal Reserve embarks on an aggressive rate hike policy. Data from EY indicates that as of the end of September, there were 116 IPO deals in the US that raised nearly $7.5 billion, representing declines of an astonishing 94% in proceeds and 72% in volume year-on-year respectively. The decline is all the more shocking since 2021 was record-breaking for IPOs. In 2022 so far, IPO activity is the lowest it has been in the US in over two decades. 

Compared to these numbers, the declines in Europe, the Middle East, and other regions of the world seem less pronounced. Year-on-year, IPO activity the Middle East, and Africa fell by 50% and 52% by number and proceeds, respectively. In Europe, it dropped 76% in proceeds. However, in contrast to the rest of the globe, the Middle East registered a 209% increase in proceeds, despite a 51% decrease in the number of deals. The IPO activity in the Asia-Pacific region was also encouraging, with five of the top ten IPOs in 2022 coming from the region. 

Paul Go, a top IPO expert at EY, has forecast that companies and investors will continue to wait for a more stable and positive stock market sentiment before any sustained appetite for IPO activity re-emerges. In the coming months, rising rates, inflation, and geopolitical tensions will continue to haunt the IPO marketplace. Some of the top IPO stocks to monitor in this context include R1 RCM Inc. (NASDAQ:RCM), Global Business Travel Group, Inc. (NYSE:GBTG), and ESAB Corporation (NYSE:ESAB). 

Our Methodology

These companies that recently debuted on the stock market and have seen a flurry of hedge fund activity were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. A database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to quantify the popularity of each stock in the hedge fund universe. 

Best New Stocks to Buy According to Hedge Funds

12. Woodside Energy Group Ltd (NYSE:WDS)

Number of Hedge Fund Holders: 12     

Woodside Energy Group Ltd (NYSE:WDS) engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons. It is one of the best IPO stocks to invest in. On September 5, the company announced that it would supply liquefied natural gas worth $1 billion cubic centimeter per year to Uniper in Europe to help cut the reliance of the region on Russian supplies. The LNG deliveries will start in January 2023 and may run until 2039. 

On September 12, Citi analyst Paul McTaggart upgraded Woodside Energy Group Ltd  (NYSE:WDS) stock to Buy from Neutral with an A$36.50 price target, noting that ongoing geopolitical instability had led the firm to benefit through LNG sales on the spot market. 

At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $156.7 million in Woodside Energy Group Ltd (NYSE:WDS). 

Just like R1 RCM Inc. (NASDAQ:RCM), Global Business Travel Group, Inc. (NYSE:GBTG), and ESAB Corporation (NYSE:ESAB), Woodside Energy Group Ltd (NYSE:WDS) is one of the best IPO stocks to buy now according to hedge funds. 

11. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)

Number of Hedge Fund Holders: 12   

Polestar Automotive Holdings UK PLC (NASDAQ:PSNY) manufactures and sells premium electric vehicles. It is one of the top IPO stocks to invest in. On August 9, Autonomy, an electric vehicle subscription startup, revealed that it had placed an order for 23,000 electric vehicles to 17 global automakers, including Polestar Automotive, to expand and diversify its subscription fleet beyond Tesla vehicles. The fleet order is worth $1 billion. 

On August 1, Deutsche Bank analyst Emmanuel Rosner initiated coverage of Polestar Automotive Holding UK PLC (NASDAQ:PSNY) stock with a Hold rating and a $10 price target, noting that company’s intimate partnership with Geely and Volvo had created an asset-light business model and ultimately allowed focus on design and brand building.

At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $91.9 million in Polestar Automotive Holdings UK PLC (NASDAQ:PSNY).

10. Ivanhoe Electric Inc. (NYSE:IE)

Number of Hedge Fund Holders: 12 

Ivanhoe Electric Inc. (NYSE:IE) operates as a mineral exploration and development company in the United States. It is one of the premier IPO stocks to invest in. Some of the top projects the firm is involved in include the Tintic copper-gold project, covering an area of 65 square kilometers located in Utah and the Santa Cruz copper project, covering an area of 77.59 square kilometers located in Arizona. 

On September 28, Raymond James analyst Farooq Hamed initiated coverage of Ivanhoe Electric Inc. (NYSE:IE) stock with an Outperform rating and a $12 price target, noting that mining jurisdictions in the US with proprietary geophysics exploration drilling are more cost-effective. 

At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $54.4 million in Ivanhoe Electric Inc. (NYSE:IE).

9. Gogoro Inc. (NASDAQ:GGR)

Number of Hedge Fund Holders: 14  

Gogoro Inc. (NASDAQ:GGR) manufactures two-wheeled electric vehicles. It is one of the elite IPO stocks to invest in. On August 24, the company announced that it had surpassed 500,000 monthly subscribers in Taiwan. On September 28, the firm also revealed it had signed a $345 million five-year credit facility agreement with a two year extension option with a group of ten banks. 

At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $38.5 million in Gogoro Inc. (NASDAQ:GGR).

8. Alvotech (NASDAQ:ALVO)

Number of Hedge Fund Holders: 14    

Alvotech (NASDAQ:ALVO) develops and manufactures biosimilar medicines for patients worldwide. It is one of the major IPO stocks to invest in. On September 22, STADA Arzneimittel, a Germany-based generic drugmaker, and Alvotech announced that they had launched Hukyndra, the biosimilar to AbbVie’s blockbuster Humira drug, in Switzerland. 

On September 7, Morgan Stanley analyst Thibault Boutherin initiated coverage of Alvotech (NASDAQ:ALVO) stock with an Equal Weight rating and a $10 price target, noting that the company’s focus on biosimilars will generate strong and sustainable operating returns. 

At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $134 million in Alvotech (NASDAQ:ALVO).

7. Pagaya Technologies Ltd. (NASDAQ:PGY)

Number of Hedge Fund Holders: 15    

Pagaya Technologies Ltd. (NASDAQ:PGY) operates as a financial technology company in Israel, the United States, and the Cayman Islands. 

On September 12, MoffettNathanson analyst Eugene Simuni initiated coverage of Pagaya Technologies Ltd. (NASDAQ:PGY) stock with a Market Perform rating and a $12 price target, noting that the company is disrupting the US consumer lending market through the application of advanced data analytics in credit underwriting. 

At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $127.8 million in Pagaya Technologies Ltd. (NASDAQ:PGY).

6. SpringBig Holdings, Inc. (NASDAQ:SBIG)

Number of Hedge Fund Holders: 16  

SpringBig Holdings, Inc. (NASDAQ:SBIG) operates a software platform that provides customer loyalty and marketing automation solutions to cannabis retailers and brands. On June 15, the company announced that it had completed the announced business combination with Tuatara Capital. After this business combination, Springbig has become the largest publicly traded loyalty and marketing automation platform. 

At the end of the second quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $1 million in SpringBig Holdings, Inc. (NASDAQ:SBIG).

In addition to R1 RCM Inc. (NASDAQ:RCM), Global Business Travel Group, Inc. (NYSE:GBTG), and ESAB Corporation (NYSE:ESAB), SpringBig Holdings, Inc. (NASDAQ:SBIG) is one of the best IPO stocks to buy now according to hedge funds. 

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Disclosure. None. 12 Best New Stocks to Buy According to Hedge Funds is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…