In this article, we discuss the 5 best tech stocks to buy according to Man GLG. If you want our detailed analysis of these stocks, go directly to the 10 Best Tech Stocks to Buy According to Man GLG.
5. Adobe Inc. (NASDAQ:ADBE)
Man GLG’s Stake Value: $274,216,000
Percentage of Man GLG’s 13F Portfolio: 0.96%
Number of Hedge Fund Holders: 95
Adobe Inc. (NASDAQ:ADBE) is a multinational computer software company offering applications like Adobe Photoshop, Illustrator, PDF, Acrobat Reader, Dreamweaver, and Adobe Creative Cloud, among others. Man GLG holds a $274.2 million position in Adobe Inc. (NASDAQ:ADBE) as of the third quarter, which accounts for 0.96% of the fund’s total investments.
Assuming coverage of the stock on November 22, Atlantic Equities analyst Peter Sazel upgraded Adobe Inc. (NASDAQ:ADBE) to Overweight from Neutral with a price target of $820, up from $600.
Arrowstreet Capital is one of the leading Q3 Adobe Inc. (NASDAQ:ADBE) stakeholders from a total of 95 hedge funds that were bullish on the stock. This is compared to 89 funds being long Adobe Inc. (NASDAQ:ADBE) in the preceding quarter.
Here is what Richie Capital Group has to say about Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
4. Meta Platforms, Inc. (NASDAQ:FB)
Man GLG’s Stake Value: $321,393,000
Percentage of Man GLG’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 248
In a bid to promote competition and retain innovation in digital advertising, the United Kingdom’s Competition and Markets Authority has ordered Meta Platforms, Inc. (NASDAQ:FB) to sell the animated GIF platform, Giphy, as reported on November 30. Concerns have been raised that Meta Platforms, Inc. (NASDAQ:FB) owning Giphy will increase its already abundant market share, and the tech giant will restrict or limit Giphy’s access to competitors, creating an unfair power vacuum in the industry.
Man GLG owns 946,971 shares in Meta Platforms, Inc. (NASDAQ:FB) as of September 2021, worth $321.3 million, representing 1.12% of the fund’s total investment portfolio.
Ken Fisher’s Fisher Asset Management is one of the leading Meta Platforms, Inc. (NASDAQ:FB) stakeholders as of Q3, from a total of 248 hedge funds that were bullish on the company in the third quarter, holding collective stakes amounting to more than $38.5 billion in Meta Platforms, Inc. (NASDAQ:FB).
Here is what Jefferies Group has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“While still early, FB is in the process of building the platforms that will ultimately support the development of the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
3. Alphabet Inc. (NASDAQ:GOOG)
Man GLG’s Stake Value: $322,402,000
Percentage of Man GLG’s 13F Portfolio: 1.13%
Number of Hedge Fund Holders: 156
The parent company of Google and Google subsidiaries like YouTube, Google AdMob, Fitbit, and Kaggle, Alphabet Inc. (NASDAQ:GOOG) is a top tech stock pick of Man GLG as of Q3 2021, with the investment firm owning 120,591 Alphabet Inc. (NASDAQ:GOOG) shares, worth $322.4 million, accounting for 1.13% of the total 13F securities.
Chris Hohn’s TCI Fund Management is the biggest Alphabet Inc. (NASDAQ:GOOG) stakeholder as of September this year, with 2.95 million shares worth $7.86 billion. Overall, 156 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) as of the third quarter, with total stakes amounting to almost $35 billion.
Following the strong Q3 results, Morgan Stanley analyst Brian Nowak on November 2 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,200 from $3,000 and kept an Overweight rating on the shares.
Here is what Giverny Capital has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“During the quarter we trimmed two positions, (which includes) Alphabet, after significant run-ups. Alphabet remains our largest holding at a 9% weight. When it rose above a 10% weight in late July, we brought it down a bit. I won’t automatically trim a position when it reaches the 10% threshold, but Alphabet nearly doubled from the summer of 2020 to 2021 and it felt responsible to take some gains.”
2. Apple Inc. (NASDAQ:AAPL)
Man GLG’s Stake Value: $527,221,000
Percentage of Man GLG’s 13F Portfolio: 1.84%
Number of Hedge Fund Holders: 120
Steve Jobs’ Apple Inc. (NASDAQ:AAPL) is one of the Big Five US tech firms, offering consumer electronics, computer software, and related hardware. Apple Inc. (NASDAQ:AAPL) is one of the top tech stocks from the Q3 portfolio of Man GLG, with the hedge fund owning 3.72 million shares in the company, worth $527.2 million, representing 1.84% of the total 13F portfolio.
Apple Inc. (NASDAQ:AAPL)’s Q3 EPS came in at $1.24 on October 28, in line with analysts’ estimates. The $83.36 billion revenue jumped 28.84% year-over-year, yet missed revenue estimates by -$1.62 billion.
Wells Fargo analyst Aaron Rakers on November 23 kept an Overweight rating on Apple Inc. (NASDAQ:AAPL) shares with a $165 price target, stating that China’s demand for branded mobile phones increased by 85% year-over-year, which is a positive derivative data point for Apple’s iPhone.
Warren Buffett’s Berkshire Hathaway is the leading Q3 stakeholder of Apple Inc. (NASDAQ:AAPL), with over 887 million shares worth approximately $125.5 billion. Overall, 120 hedge funds in the third quarter were bullish on Apple Inc. (NASDAQ:AAPL), down from 138 funds holding stakes in the company in Q2.
Here is what ClearBridge Investments has to say about Apple Inc. in its Q1 2021 investor letter:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
1. Microsoft Corporation (NASDAQ:MSFT)
Man GLG’s Stake Value: $697,901,000
Percentage of Man GLG’s 13F Portfolio: 2.44%
Number of Hedge Fund Holders: 250
Microsoft Corporation (NASDAQ:MSFT) is the largest holding in Man GLG’s Q3 portfolio, as well as one of the most sought after tech stocks by the smart money. As of Q3 2021, 250 hedge funds tracked by Insider Monkey reported owning stakes in Microsoft Corporation (NASDAQ:MSFT), worth almost $66 billion. This is an increase as compared to the prior quarter, when 238 funds held stakes worth $62.4 billion in Microsoft Corporation (NASDAQ:MSFT).
Man GLG, as of September this year, holds 2.47 million Microsoft Corporation (NASDAQ:MSFT) shares, worth almost $700 million, representing 2.44% of the firm’s Q3 portfolio of investments.
On November 22, Wells Fargo analyst Michael Turrin initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with an Overweight rating and a $400 price target, stating that despite the considerable scale of its global operations, Microsoft Corporation (NASDAQ:MSFT) has solid potential for further growth.
Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
You can also take a look at Top Investors’ Stock Portfolio: 10 Mid-cap Stocks To Buy and 10 Best Tech Stocks to Buy Under $10.
