5 Important Stock Picks of Major Hedge Funds in 2021

1. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156 

Gain in Share Price Over Past Year as of January 4: 67.0%  

Alphabet Inc. (NASDAQ:GOOG) stock offers investors solid fundamentals and a rosy growth outlook for years to come. Although rising interest rates could affect the shares, the growth in different businesses, like the cloud and artificial intelligence markets, will most likely offset these concerns. Alphabet Inc. (NASDAQ:GOOG) was one of the most profitable companies in the world in 2021, boasting 30 cents of net profits per dollar in revenue. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.8 billion. 

In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”

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