Markets

Insider Trading

Hedge Funds

Retirement

Opinion

13 Most Promising Future Stocks To Buy According To Hedge Funds

In this piece, we will take a look at the 13 most promising stocks to buy according to hedge funds. If you want to skip our overview of the latest stock market news, then you can take a look at the 5 Most Promising Future Stocks To Buy.

Investing, for the most part, is all about the future. Each day thousands of investors flock to the stock market to try their hand at fate and become rich. At the same time, investing comes in all flavors which are geared to low and high risk appetites as well as short, medium, or long term horizons. For investors seeking to cash out on the short term, technical trading, and share price movements are their friends. Others who are focused on a longer horizon often look at the fundamentals of a particular stock and/or the broader economic environment and trends to try and see which way the market will head.

Speaking of which, 2023 has been all about the future as well. Investors entered the year worrying about the future and they’ll leave it worrying about the future as well. At the start of 2023, the only future that anyone could think about was one that involved a recession. 2022’s tail end had seen analysts far and wide warn about a recession in the wake of rapid interest rate hikes by the Federal Reserve. Then, investors caught wind of the advanced nature of large language models (LLM) based artificial intelligence (A.I.) software shown off by the San Francisco, California based ChatGPT. Worried that they would miss out on future growth in the A.I. industry, investors piled billions into the technology sector – a decision that sent the shares of graphics processing unit (GPU) designer NVIDIA Corporation (NASDAQ:NVDA) soaring by a whopping 244% year to date.

Now, as 2023 is behind us, investors are still worried about the future. This future involves the Federal Reserve and its decisions to reduce interest rates. These future decisions are based on future data, and the only thing anyone can do is to see what the tea leaves in the present are saying. The leaves are all for the bulls right now, as multiple economic indicators in America are pointing towards a better future. Inflation is coming down after more than a year of devastation and the economy is ticking along – in a perfect mix of circumstances to achieve the Fed’s hallowed ‘soft economic landing’ where the economy simply slows down instead of contracting in response to rapid interest rate hikes.

The latest bit on the inflationary front came in the form of the Commerce Department’s Personal Consumption Expenditures (PCE) price index. The PCE, particularly core PCE, is the Fed’s preferred inflation indicator, and core and non core PCE readings for November 2023 showed that 3.2% and 2.6% on an annualized basis. Investors were joyous as this showed that prices fell for the first time in more than two years, which cemented their conviction that interest rate cuts are on the horizon – in the future of course.

Speaking of the future, the present is great for the stock market too. The flagship U.S. stock index, the S&P 500, is up by 4.5% in December as the euphoria about the future translates into present market value. This is giving rise to further optimism about a Santa Claus rally, according to data compiled by Reuters. Reuters compiled data from the Stock Trader’s Almanac since 1969 to show that on average, the S&P 500 has gained 1.3% during the last five days of December and the first two days of January.

So, amidst an optimistic end to 2023, what stocks should one take a look at when it comes to the future? We’ve compiled some today, and the top picks are Lantheus Holdings, Inc. (NASDAQ:LNTH), JD.com, Inc. (NASDAQ:JD), and Alibaba Group Holding Limited (NYSE:BABA).

A senior executive at Sprott Asset Management USA Inc. contemplating market changes and his future investments.

Our Methodology

To make our list of the most promising future stocks to buy according to hedge funds, we made a list of 40 stocks with market capitalization greater than $300 million, significant average analyst share price percentage upside, and an average rating of Buy or better. They were then ranked according to their number of hedge fund investors as of Q3 2023 and the most promising future stocks are as follows.

For these stocks we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

13 Most Promising Future Stocks To Buy According To Hedge Funds

13. R1 RCM Inc. (NASDAQ:RCM)

Number of Hedge Fund Investors During Q3 2023: 26

R1 RCM Inc. (NASDAQ:RCM) is a large American technology company headquartered in Murray, Utah. The firm provides hospitals and medical establishments with the ability to manage their financial operations. December 2023 shaped up to be a crucial month for the firm as it diversified its operational portfolio by acquiring a hospital operations technology provider for a $678 million price tag.

As 2023’s Q3 ended, 26 out of the 910 hedge funds part of Insider Monkey’s database had bought and owned R1 RCM Inc. (NASDAQ:RCM)’s shares. It joins JD.com, Inc. (NASDAQ:JD), Lantheus Holdings, Inc. (NASDAQ:LNTH), and Alibaba Group Holding Limited (NYSE:BABA) in our list of the most promising future stocks to buy according to hedge funds.

12. Intellia Therapeutics, Inc. (NASDAQ:NTLA)

Number of Hedge Fund Investors During Q3 2023: 27

Intellia Therapeutics, Inc. (NASDAQ:NTLA) is an American biotechnology company that develops treatments for cancer, eye diseases, and other ailments. Its stock has been on an upward rise these past couple of weeks after Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s treatment for a skin disease moved forward with European regulators.

By the end of 2023’s September quarter, 27 out of the 910 hedge funds covered by Insider Monkey’s research were the firm’s shareholders. Catherine D. Wood’s ARK Investment Management was Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s biggest hedge fund investor in our database as it owned 9.9 million shares that are worth $314 million.

11. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)

Number of Hedge Fund Investors During Q3 2023: 27

Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a California based biotechnology company focusing on developing treatments for genetic diseases. The firm’s shares have been posting double digit returns as of late, despite the fact that it has agreed to pay $6 million after action from the Justice Department.

For their third quarter of 2023 shareholdings, 27 out of the 910 hedge funds surveyed by Insider Monkey had bought and owned Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) ‘s shares. The firm’s largest hedge fund shareholder as of the same quarter was Panayotis Takis Sparaggis’s Alkeon Capital Management since it held a $69.2 million stake.

10. H World Group Limited (NASDAQ:HTHT)

Number of Hedge Fund Investors During Q3 2023: 28

H World Group Limited (NASDAQ:HTHT) is a Chinese hospitality that manages more than a dozen properties. Turmoil in China’s real estate sector coupled with a slowing economy has led Benchmark Company to issue multiple Buy recommendations for the shares in 2023. Overall, the firm has missed analyst EPS estimates in just one out of its four latest quarters, and the latest quarter saw it tout strong RevPAR growth despite economic troubles.

After scanning 910 hedge fund portfolios covering their shareholdings during the previous quarter, Insider Monkey discovered that 28 were H World Group Limited (NASDAQ:HTHT)’s shareholders.

9. Li Auto Inc. (NASDAQ:LI)

Number of Hedge Fund Investors During Q3 2023: 28

Li Auto Inc. (NASDAQ:LI) is a Chinese electric vehicle manufacturer headquartered in Beijing, China. It is one of several firms that are part of the Asian economic giant’s highly competitive and colorful electric vehicle industry which stands as one of the most advanced in the world.

As September 2023 ended, 28 hedge funds out of the 910 surveyed by Insider Monkey had invested money into the company. Li Auto Inc. (NASDAQ:LI)’s biggest investor among these is Jim Simons’ Renaissance Technologies courtesy of its $324 million investment.

8. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Investors During Q3 2023: 31

Royalty Pharma plc (NASDAQ:RPRX) is a New York based biotechnology firm with a diverse portfolio of therapies and treatments that target a variety of rare and often deadly diseases. Despite a timid year for high growth industries such as biotechnology, the firm has managed to keep on track with analyst estimates. Additionally, Morgan Stanley appears to be quite confident about the stock market, as it has reiterated an Overweight rating for the shares six times since April 2023.

By the end of this year’s third quarter 31 out of the 910 hedge funds part of Insider Monkey’s database were the firm’s shareholders. Royalty Pharma plc (NASDAQ:RPRX)’s biggest stakeholder among these is Phill Gross and Robert Atchinson’s Adage Capital Management due to its $267 million investment.

7. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)

Number of Hedge Fund Investors During Q3 2023: 33

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a contract oil and gas drilling services provider. Barclays, RBC Capital, Piper Sandler, and Raymond James all maintained Strong Buy, Overweight, or Outperform ratings on the shares during November 2023.

Insider Monkey scoured through 910 hedge fund portfolios for their Q3 2023 shareholdings and discovered 33 Patterson-UTI Energy, Inc. (NASDAQ:PTEN) stakeholders. Stephen Feinberg’s Cerberus Capital Management owned the largest stake which was worth $188 million

6. Liberty Live Group (NASDAQ:LLYVA)

Number of Hedge Fund Investors During Q3 2023: 34

Liberty Live Group (NASDAQ:LLYVA) is a sizeable holding company with stakes in crucial firms operating in sports, entertainment, clean energy, investment, and other industries. It’s one of the freshest mega listings on the NASDAQ stock exchange, with the shares commencing trading after a reclassification of Liberty Media Corporation in three tracking stocks in August 2023.

Lantheus Holdings, Inc. (NASDAQ:LNTH), JD.com, Inc. (NASDAQ:JD), Alibaba Group Holding Limited (NYSE:BABA), and Liberty Live Group (NASDAQ:LLYVA) are some future stocks that hedge funds are piling into.

Click here to continue reading and check out 5 Most Promising Future Stocks To Buy.

Suggested articles:

Disclosure: None. 13 Most Promising Future 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.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

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…