5 Stocks Hedge Funds Are Buying

In this article, we will look at the 5 stocks hedge funds are buying. If you want to see growth stocks that hedge funds are dumping, you can go to Hedge Funds Are Fleeing These 10 Growth Stocks.

5. RXO, Inc. (NYSE:RXO)

Number of Hedge Fund Holders: 27

Number of Hedge Funds That Bought: 27

RXO, Inc. (NYSE:RXO) is an emerging American trucking company. The company provides freight forwarding services, brokered services for managed transportation, and last mile delivery services. RXO, Inc. (NYSE:RXO) was founded in 2022 and is headquartered in Charlotte, North Carolina. As of March 10, the company is worth $2.35 billion on the open market.

On February 7, RXO, Inc. (NYSE:RXO) posted earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $0.28 and beat EPS estimates by $0.05. The company’s revenue for the quarter amounted to $1.12 billion.

In the fourth quarter of 2022, 27 hedge funds initiated positions in RXO, Inc. (NYSE:RXO) and collectively invested $621.9 million in the company. RXO, Inc. (NYSE:RXO) is placed fifth among the top stocks hedge funds are buying right now.

4. Brookfield Asset Management Ltd. (NYSE:BAM)

Number of Hedge Fund Holders: 28

Number of Hedge Funds That Bought: 28

Brookfield Asset Management Ltd. (NYSE:BAM) was formed in December 2022, when Brookfield Corporation (NYSE:BN), formerly known as Brookfield Asset Management Inc., decided to spin-off its asset management arm into a new asset management company. Brookfield Asset Management Ltd. (NYSE:BAM) is one of the world’s largest alternative asset manager and has an estimated $800 billion in assets under management. The company invests across renewable energy, infrastructure, private equity, real estate, and credit. As of March 10, Brookfield Asset Management Ltd. (NYSE:BAM) is worth $13.04 billion.

Brookfield Asset Management Ltd. (NYSE:BAM) is one of the stocks that hedge funds bought heavily in Q4 2022. The stock was spotted on 28 hedge funds’ portfolios at the end of the fourth quarter of 2022. These funds disclosed collective positions worth $292 million in the company.

Here is what Baron Funds had to say about Brookfield Asset Management Ltd. (NYSE:BAM) in its Q4 2022 investor letter:

“Brookfield Asset Management Ltd. (NYSE:BAM) is an asset-light alternative manager that was recently spun out of Brookfield Corporation. The company invests in real estate, infrastructure, renewable power, private equity, and credit assets globally and has more than $750 billion assets under management (AUM) and $400 billion of fee-earning capital. The stock declined 20.9% for the period held during the fourth quarter as investors sold the “stub” security after its spin-off was completed. We retain conviction given the company’s diversified asset base, sustainable cash flows, strong asset management platform, and ability to deploy capital globally.”

3. Mobileye Global Inc. (NASDAQ:MBLY)

Number of Hedge Fund Holders: 29

Number of Hedge Funds That Bought: 29

Mobileye Global Inc. (NASDAQ:MBLY) is a leading global developer of advanced driver assistance systems (ADAS) and autonomous driving technologies. The company went public in October 2022 after Intel Corporation (NASDAQ:INTC) decided to spin it off. The company raised $16.7 billion at its IPO and began trading on the NASDAQ on October 26, 2022. As of March 10, Mobileye Global Inc. (NASDAQ:MBLY) is worth $31.49 billion on the open market and has returned 35.55% to investors over the past 6 months.

29 hedge funds bought stock in Mobileye Global Inc. (NASDAQ:MBLY) in the fourth quarter of 2022. The collective stakes of these hedge funds are valued at $334.2 million. Mobileye Global Inc. (NASDAQ:MBLY) is placed third among the top stocks hedge funds are buying right now.

Here is what Baron Funds had to say about Mobileye Global Inc. (NASDAQ:MBLY) in its Q4 2022 investor letter:

“During the fourth quarter, we participated in Mobileye Global Inc. (NASDAQ:MBLY)’s IPO. Mobileye is a leading ADAS and autonomous driving technologies and solutions provider with over 125 million vehicles across 800 models that have incorporated its products to date across 50-plus vehicle manufacturers (OEMs) including 13 of the top 15 global OEMs. The company was founded in 1999 and effectively pioneered the ADAS market introducing its first EyeQ system-on-chip (SoC) in 2007, enabling the vehicle to gain ADAS capabilities (such as real-time detection of vehicles, pedestrians, and lane markings) for a price of around $50. While the company remains a leader in ADAS today (with an approximate 70% market share), we believe the bigger opportunity is in leading the autonomous driving revolution. This would, in our view, significantly improve safety; meaningfully increase the vehicle utilization rate, which today is only around 4%; and dramatically grow the company’s content per vehicle. Mobileye’s SuperVision, a fully operational point-to-point assisted driving navigation solution, is the next step in the company’s progress towards autonomous driving, and it has a price tag of over 20 times that of its basic ADAS SoC. At the last Consumer Electronics Conference, the company announced a $3.5 billion backlog for its SuperVision solution across six OEMs and nine vehicle models. In addition, the company announced a $1.5 billion design win for its consumer AV program and a $3.5 billion backlog for its Mobility-as-a-Service or robotaxi solution. CEO and Founder, Amnon Shashua discussed his long-term vision in the company’s shareholder letter:

 “More than two decades ago, I founded Mobileye on the belief that computer vision technology could help prevent automobile crashes and save lives. From that simple idea, a global industry was born… By 2030, we expect Mobileye driver-assistance systems to be deployed in another 270 million vehicles globally… We believe that we will be positioned to deliver an autonomous driving solution that can enable the mass adoption of AVs [Autonomous Vehicles] including both Mobileye-powered robotaxis and consumer-owned autonomous driving vehicles. And Mobileye will be well on the way to delivering the future I first envisioned more than two decades ago.””

2. Chart Industries, Inc. (NASDAQ:GTLS)

Number of Hedge Fund Holders: 55

Number of Hedge Funds That Bought: 33

Chart Industries, Inc. (NASDAQ:GTLS) is a leading manufacturer of cryogenic equipment for use in the industrial gas and clean energy markets. The company has worldwide operations and has four business divisions: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing.

At the end of Q4 2022, 55 hedge funds were long Chart Industries, Inc. (NASDAQ:GTLS) and disclosed collective positions worth $663.5 million in the company. This is compared to 22 hedge funds in the third quarter of 2022, with stakes worth $339.2 million. The hedge fund sentiment for the stock is positive and the stock is one of the most-heavily-bought stocks by hedge funds in Q4 2022.

As of December 31, Alyeska Investment Group is the largest shareholder in Chart Industries, Inc. (NASDAQ:GTLS) and has disclosed a position worth $84.9 million in the company.

Here is what Baron Funds had to say about Chart Industries, Inc. (NYSE:GTLS) in its Q4 2022 investor letter:

“Chart Industries, Inc. (NYSE:GTLS) is a leading global manufacturer of highly engineered equipment servicing multiple applications in the clean energy and industrial gas markets. The company announced a large and transformational acquisition of Howden, a company of similar size to Chart, but the market hated the deal and the stock got hammered. The concerns were that Chart would have to take on lots of debt to do the deal, the acquired business is of lower quality, and the synergy estimates seemed aggressive. Our view, after much work and consideration, is that Howden is a fine business that fits very well with Chart, increasing its end-markets, expanding the geographic reach, and doubling the “nexus of clean” opportunities to address. We believe that the synergies are identified and significant, and that the deal will be accretive. We also believe that leverage will decline quickly from the free-cash-flow and asset dispositions we expect. Chart did a large equity raise near the end of the year at a depressed price, which we participated in and more than doubled our position in the stock. We believe Chart is a best-in-class industrial compounder focused on growing clean energy end-markets.

We added to our position in Chart Industries, Inc. during the quarter. Chart is a leader in cryogenic technology, process, and storage equipment sold into industrial gas and clean and traditional energy end-markets. We took advantage of a significant drop in share price when the company announced a $4.4 billion merger with private company Howden, a global leader in compressors and blowers, that approximately doubles Chart’s revenue and EBITDA. The stock sold off as the unexpected deal is the largest in the company’s history, which added integration risk, increased leverage at a time of elevated rates, and required the company to issue equity, all in the face of heightened macroeconomic uncertainty heading into 2023…” (Click here to read the full text)

1. Activision Blizzard, Inc. (NASDAQ:ATVI)

Number of Hedge Fund Holders: 129

Number of Hedge Funds That Bought: 33

On February 6, video game giant Activision Blizzard, Inc. (NASDAQ:ATVI) posted earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $1.87 and outperformed EPS estimates by $0.36. The company’s revenue for the quarter amounted to $3.57 billion, up 43.39% year over year and ahead of Wall Street consensus by $384.51 million.

Activision Blizzard, Inc. (NASDAQ:ATVI) tops our list of the 5 stocks hedge funds are buying right now. 33 hedge funds bought stock in Activision Blizzard, Inc. (NASDAQ:ATVI) in Q4 2022. The stock was held by 129 hedge funds that disclosed collective positions worth $9.52 billion in the company. This is compared to 96 hedge funds in the third quarter of 2022, with stakes worth $9.08 billion. The hedge fund sentiment for the stock is positive.

As of December 31, Warren Buffett’s Berkshire Hathaway is the leading investor Activision Blizzard, Inc. (NASDAQ:ATVI) and has disclosed a position worth $4.03 billion in the company.

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