This article presents an overview of the 5 Most Famous Hedge Fund Managers and Their Top Stock Picks. For a detailed overview of such stocks, read our article, 22 Most Famous Hedge Fund Managers and Their Top Stock Picks.
5. Stanley Freeman Druckenmiller
Top Stock Pick: NVIDIA Corp (NASDAQ:NVDA)
Billionaire Stanley Druckenmiller is one of the most keenly followed money managers in the Street. The 70-year-old investor started Duquesne Capital in 1981 but closed it for outside investors after about three decades.
NVIDIA Corp (NASDAQ:NVDA) is the biggest position of Duquesne Capital as of the end of the September 2023 quarter. Druckenmiller has been repeatedly saying that the AI boom is here to stay and it could change everything in various industries.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and NVIDIA Corporation (NASDAQ:NVDA). Those three stocks, as well as Microsoft, were among the leading contributors to Strategy performance for the quarter. Microsoft and Nvidia continued to be supported by strong execution and leadership positions in the implementation of generative artificial intelligence (AI).
These are high-quality, cash flow generative businesses that we will continue to own, actively adjusting our positioning sizes based on risk/reward and portfolio construction priorities. With Nvidia shares more than tripling in 2023, we opportunistically took profits throughout the year, an approach that continued in the fourth quarter with additional trims that brought the position down to 6% of overall assets.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
4. Steve Cohen
Top Stock Pick: NVIDIA Corp (NASDAQ:NVDA)
Billionaire Steve Cohen founded S.A.C. Capital Advisors in 1992. But the fund in 2013 pleaded guilty to insider trading charges and paid $1.8 billion in penalties. It was barred from further operations. In 2014, Cohen launched Poiint72 Asset Management. The hedge fund reportedly gained 10.6% in 2023, lagging behind the S&P 500 performance.
Point72’s top holding as of September 2023 was NVIDIA Corp (NASDAQ:NVDA), in which the fund had a $716 million stake. As of the end of the third quarter of 2023, 180 hedge funds reported having stakes in NVIDIA Corp (NASDAQ:NVDA).
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and NVIDIA Corporation (NASDAQ:NVDA). Those three stocks, as well as Microsoft, were among the leading contributors to Strategy performance for the quarter. Microsoft and Nvidia continued to be supported by strong execution and leadership positions in the implementation of generative artificial intelligence (AI).
These are high-quality, cash flow generative businesses that we will continue to own, actively adjusting our positioning sizes based on risk/reward and portfolio construction priorities. With Nvidia shares more than tripling in 2023, we opportunistically took profits throughout the year, an approach that continued in the fourth quarter with additional trims that brought the position down to 6% of overall assets.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
3. Carl Icahn
Top Stock Pick: CVR Energy Inc. (NYSE:CVI)
With several successful hostile activist campaigns and turnaround stories, Carl Icahn is often labeled as “corporate raider” or ” vulture capitalist” who is always on the lookout for companies trading below their intrinsic value.
Icahn Enterprises, a company Icahn founded in 1987, was the biggest position of Icahn Capital. But since Icahn has a controlling stake in the company (over 80% stake), it would make sense to look at the next stock pick of the fund. Icahn Capital owns a $2.3 billion stake in CVR Energy Inc. (NYSE:CVR).
2. George Soros
Top Stock Pick: Horizon Therapeutics Public Ltd Co. (NASDAQ:HZNP)
Billionaire George Soros is one of the most respected and notable hedge fund managers in the world, with a net worth of over $6.7 billion. The 93 year-old Hungarian American is known as the philosopher investor in the Wall Street, mainly due to his contributions to philosophy and his deep desire to leave his mark in the world of philosophy, which many believe he fulfilled thanks to his General Theory of Reflexivity for capital markets.
Soros’ fund Soros Fund Management manages over $7 billion under managed securities. The fund’s biggest holding as of the end of September 2023 was Horizon Therapeutics Public Ltd Co. (NASDAQ:HZNP). The fund had a $381 million stake in Horizon Therapeutics Public Ltd Co. (NASDAQ:HZNP).
1. Warren Buffett
Top Stock Pick: Apple Inc (NASDAQ:AAPL)
That Warren Buffett tops the list of the most famous hedge fund managers is no surprise. Warren Buffett is generous at sharing investing wisdom in his annual letters to Berkshire investors. In 2022, Buffett said something that shows his intellectual humility and investing wisdom:
“Over the years, I have made many mistakes. Consequently, our extensive collection of businesses currently consists of a few enterprises that have truly extraordinary economics, many that enjoy very good economic characteristics, and a large group that are marginal. Along the way, other businesses in which I have invested have died, their products unwanted by the public. Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services. Schumpeter called this phenomenon “creative destruction.” One advantage of our publicly-traded segment is that – episodically – it becomes easy to buy pieces of wonderful businesses at wonderful prices. It’s crucial to understand that stocks often trade at truly foolish prices, both high and low. “Efficient” markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect.”
Apple Inc (NASDAQ:AAPL) was the biggest holding of Warren Buffett’s Berkshire Hathaway as of the end of the third quarter of 2023 as the fund owned a $157 billion stake in Apple Inc (NASDAQ:AAPL).
In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL):
“We meaningfully reduced our exposure to Apple Inc. (NASDAQ:AAPL) in 2023. Apple is the largest company in the world and produces terrific products that engage users for hours each day. Despite the company’s size, ubiquity and relevance, however, Apple’s growth has slowed dramatically. Its fiscal 2023 earnings were flat with those of 2022. Apple trades at 30x earnings; sustaining that multiple will require a meaningful acceleration in revenues. While such an improvement is possible, we do not see any obvious catalysts for adding tens of billions of dollars to Apple’s topline. Consequently, the risk-reward skews negatively.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Billionaire Paul Singer’s Recent Activist Targets and Top Stock Picks and the Cliff Asness Stock Portfolio: 10 Top Stock Picks.
