In this article, we discuss the 5 best defensive stocks to buy today according to billionaire Ken Fisher. If you want to read our detailed analysis of Fisher’s history and hedge fund performance, go directly to the 10 Best Defensive Stocks to Buy Today According to Billionaire Ken Fisher.
5. ASML Holding N.V. (NASDAQ: ASML)
Number of Hedge Fund Holders: 35
The information technology company ASML Holding N.V. (NASDAQ: ASML) is also a member of the 10 best defensive stocks to buy today according to billionaire Ken Fisher. At the end of the first quarter, his firm Fisher Asset Management held 3.96 million shares of ASML valued at $2.44 billion. ASML Holding’s beta is standing around 0.95 and its share price grew more than 90% in the last twelve months.
ClearBridge Investments, an investment management firm, mentioned a few stocks including ASML Holding in the first quarter investor letter. Here is what ClearBridge Investments stated:
“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns and one-off production delays as well as demand resilience in areas like autos and smartphones. Two recent additions (including), semiconductor capital equipment firm ASML were among the portfolio’s leading contributors in the first quarter. ASML, which operates in a virtual monopoly for high-end chipmaking equipment, began to exert pricing power as it works through an order backlog that has stretched to over a year. Both are Dutch-based companies and out-of-benchmark names that provide access to different growth profiles than are available in the U.S.”
4. Tencent Holdings Limited (OTC: TCEHY)
Number of Hedge Fund Holders: N/A
With a beta of 0.51, Tencent Holdings Limited (TCEHY) is considered a defensive stock for investors who don’t want to take extra risk. At the end of the first quarter, Fisher Asset Management held a $2.8 billion worth of stake in Tencent Holdings, accounting for 1.98% of the overall portfolio. Its shares grew 30% in the last twelve months. The company offers online games and social network services.
3. Adobe Inc. (NASDAQ: ADBE)
Number of Hedge Fund Holders: 107
With a beta of 0.95, the software application company Adobe Inc. (NASDAQ: ADBE) is on the list of 5 best defensive stocks to buy today according to billionaire Ken Fisher. Its shares rallied 34% in the last twelve months, thanks to double-digit revenue growth potential. At the end of the first quarter, Fisher Asset Management held 5.9 million shares of Adobe worth around $2.8 billion.
The best stock pickers were in a pessimistic mood. The number of long hedge fund bets retreated by 7 lately. Adobe was in 107 hedge funds’ portfolios at the end of March. The all-time high for this statistic is 115.
2. Alibaba Group Holding Limited (NYSE: BABA)
Number of Hedge Fund Holders: 135
Although Alibaba Group Holding Limited (NYSE: BABA) stock price saw some volatility in the past two quarters due to regulatory headwinds, its low beta of just over 0.80 makes it a defensive stock. The company’s revenue growth potential along with a massive user base backs its share price. At the end of the first quarter, BABA stock represented 2.22% of the Fisher Asset Management 13F stock portfolio.
Polen Capital Management highlighted a few stocks including Alibaba Group Holding Limited in the first quarter investor letter. Here is what Polen Capital Management stated:
“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”
1. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 251
The steady share price upside potential along with a long dividend growth history makes the world’s largest software company Microsoft Corporation (NASDAQ: MSFT) one of the most dependable stock to hold. It is the second-largest stock holding of the Fisher Asset Management portfolio, accounting for 3.98% of the portfolio and valued at around $5.65 billion.
ClearBridge Investments, an investment management firm, mentioned a few stocks including Microsoft Corporation in the first quarter investor letter. Here is what ClearBridge Investments stated:
“We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks. The FAANGs and Microsoft delivered mixed results during the quarter and we continue to be mindful of our weighting to these mega cap growth stocks to ensure they are not limiting our ability to add diversity through new ideas. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
You can also take a peek at Top 20 Defense Contractors in 2021 and Top 10 Aircraft Manufacturers in the World.
