5 Best Emerging Market Stocks to Buy According to Hedge Funds

2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 86

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the best emerging market stocks to buy now. As of April 7, the stock has returned 33.81% to investors over the past 6 months.

On March 29, KGI Securities resumed coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with an Outperform rating and a NT$603 price target.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was held by 86 hedge funds at the close of Q4 2022. These funds disclosed stakes worth $10.2 billion in the company. As of December 31, Lone Pine Capital is the most prominent stockholder in the company and has a stake worth $774 million.

Here is what Baron Funds had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third-quarter 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”