In this article, we examine Jim Cramer and billionaire Ken Fisher’s stock-picking strategies and love for growth stocks. We will also review 10 stocks Jim Cramer and Ken Fisher have in common.
Jim Cramer, the host of the famous CNBC show Mad Money, in July suggested investors run with the bulls and forget about Federal Reserve policies. The host further added that investors should consider two things in mind at present when picking stocks: the sector and the company. Jim Cramer’s love for tech and growth stocks is not hidden, but he recommends investors to search for what he dubbed ‘senior growth stocks’ right now that are tried and tested such as FAANG stocks.
Famous billionaire Ken Fisher of Fisher Asset Management shares this philosophy of Cramer as his hedge fund has major stakes in famous tech growth stocks.
Besides Facebook (NASDAQ: FB), which is a member of the FAANG group, Advanced Micro Devices, Inc. (NASDAQ: AMD), NVIDIA Corporation (NASDAQ: NVDA), Walmart Inc. (NASDAQ: WMT) and The Walt Disney Company (NYSE: DIS) are also in the list of 10 stocks Jim Cramer and Ken Fisher have in common.
The Harvard-educated, Pennsylvania-born finance guru’s stock picks and recommendations are worth considering amid his stunning track record. He is one of the most followed names on social media and his Mad Money show is widely viewed and appreciated all over the world. Jim Cramer, 66, started his career as a stockbroker at investment bank Goldman Sachs. From 1987 to 2000, he ran his own hedge fund with only one year of negative returns. In 1999, his hedge fund generated a record-high return of 47%.
Similar to Jim Cramer, billionaire Ken Fisher, who is the founder of Fisher Asset Management, is also among the biggest believers of tech and growth stocks. He has been regularly advising investors to stick with growth stocks instead of following value stocks.
According to the second quarter filings, Fisher Asset Management held large investments in high-quality growth companies including Facebook, Advanced Micro Devices, Inc., NVIDIA Corporation, Walmart Inc. and The Walt Disney Company.
The information technology sector accounted for 26% of the Fisher Asset Managements portfolio while communication and consumer discretionary stocks represented 13% and 10% of the overall portfolio. Nine of the top ten stocks in his portfolio belong to fast-growing sectors including information technology, communications, and consumer discretionary sectors.
Ken Fisher of Fisher Asset Management
While Jim Cramer’s and Ken Fisher’s reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let’s start reviewing 10 stocks Jim Cramer and Ken Fisher have in common.
10 Stocks Jim Cramer and Ken Fisher Have in Common
10. Advanced Micro Devices, Inc. (NASDAQ: AMD)
Number of Hedge Fund Holders: 63
The chipmaker Advanced Micro Devices, Inc. is a good stock to buy, according to Jim Cramer. Shares of AMD have been outperforming the broader market trend over the last couple of months, fueled by strong financial numbers. Furthermore, Advanced Micro Devices, Inc. topped revenue and earnings expectations for the second quarter and lifted its outlook for the rest of the year.
Advanced Micro Devices, Inc. is among the 10 stocks Jim Cramer and Ken Fisher have in common. At the end of the second quarter, billionaire Ken Fisher’s hedge fund lifted the stake in Advanced Micro Devices, Inc. by 5% to $941 million. Since the first quarter of 2020, Fisher Asset Management has been holding a stake in AMD.
Advanced Micro Devices, Inc. has experienced an increase in hedge fund interest lately. AMD was in 63 hedge funds’ portfolios at the end of June compared to 62 positions in the previous quarter.
Like The Walt Disney Company, Facebook, NVIDIA Corporation, and Walmart Inc., Advanced Micro Devices, Inc. is also among the 10 Stocks Jim Cramer and Ken Fisher have in common.
9. NVIDIA Corporation (NASDAQ: NVDA)
Number of Hedge Fund Holders: 86
The Santa Clara, California-based chipmaker NVIDIA Corporation is also a member of the 10 stocks Jim Cramer and Ken Fisher have in common. It is a buy regardless of what happens with its proposal to purchase Arm Ltd., according to Jim Cramer. NVIDIA Corporation stock price soared 65% in the last six months amid substantial revenue growth trends. Its second-quarter revenue surged, thanks to 85% growth in gaming revenues.
On the other hand, billionaire Ken Fisher has also been enjoying the bull run in NVIDIA Corporation stock. At the end of the second quarter, his hedge firm held 3.8 million shares of NVIDIA Corporation, accounting for 0.61% of the overall portfolio.
In the second quarter investor letter, Baron Opportunity Fund commented on a few stocks including NVIDIA Corporation. Here is what Baron Opportunity Fund stated:
“NVIDIA Corporation is a fabless semiconductor company and a leader in gaming cards and accelerated computing chips. Shares of NVIDIA rose in the second quarter on financial results and guidance significantly above Street expectations, as it benefited from the upgrade cycle in its gaming franchise along with continued AI-related strength driving its data center segment. NVIDIA’s total revenues of $5.66 billion beat Street expectations by $266 million, growing 84% (including the benefit of acquisitions, 65% organic), with its gaming business growing over 100% and its data center business expanding nearly 80%. We remain confident in NVIDIA’s leading position in gaming, data centers, and autonomous machines.”
8. Facebook, Inc. (NASDAQ: FB)
Number of Hedge Fund Holders: 266
The shares of social media giant Facebook, Inc., which is ranked eighth in the list of the 10 stocks Jim Cramer and Ken Fisher have in common, saw a strong rally recently. Fisher Asset Management held $1.72 billion worth of stake in Facebook, Inc., according to the second quarter 13F filings. In the last six months, shares of a Menlo Park, California-based social networking service company Facebook, Inc. rallied close to 44%, beating the broader market index gains of 18% for the same period. Facebook’s second-quarter revenue surged 56% to $29 billion and net income increased 101% to $10 billion.
Like Advanced Micro Devices, Inc., NVIDIA Corporation, Walmart Inc., and The Walt Disney Company, Facebook is also among the 10 Stocks Jim Cramer and Ken Fisher have in common.
In the second quarter investor letter, Polen Capital, an investment management firm, commented that Facebook, Inc. was a top contributor to its returns. Here is what Polen Capital stated:
“Facebook was the top contributor to our return for the second consecutive quarter. The company has over $1 trillion in market capitalization. Yet, based on first-quarter 2021 results, FB is currently still growing revenue at over 30% organically! In fact, last quarter Facebook grew revenue 48% year over year. Facebook has generated earnings and intrinsic value growth for many years, driven largely by the mostly free services the company provides to people who can easily choose to stop using them and spend their time elsewhere.
That said, we are regularly asked about the perceived high regulatory risk around Facebook. We examine risks to businesses and, in particular, regulatory risks through a lens of risk exposure versus actual risk. For instance, the antitrust complaints globally against Facebook based on their size, influence, and strong competitive positioning, definitionally expose these companies to more regulatory risk than much smaller businesses. However, we do not believe risk exposure is the same as actual risk…” (Click here to see the full text)
7. Walmart Inc. (NASDAQ: WMT)
Number of Hedge Fund Holders: 71
Walmart Inc. is also on the list of the 10 stocks Jim Cramer and Ken Fisher have in common. The Mad Money host recommended investors to buy Walmart Inc. after the consumer staples company topped revenue and earnings expectations for the second quarter. At the end of the second quarter, billionaire Ken Fisher’s hedge fund held $1.78 billion worth of stake in Walmart Inc., representing 1.12% of the overall portfolio. In addition to share price gains, Walmart Inc. offers a hefty dividend yield of 2.2%, making it a good stock to hold for the long term.
Investors should pay attention to an increase in activity from the world’s largest hedge funds. Walmart Inc. was in 71 hedge funds’ portfolios at the end of the second quarter of 2021 compared to 58 positions in the previous quarter.
Like Advanced Micro Devices, Inc., NVIDIA Corporation, and Facebook, Walmart Inc. is also among the 10 stocks Jim Cramer and Ken Fisher have in common.
6. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 112
Entertainment giant The Walt Disney Company could be one best option for investors who believe that the U.S. will soon turn the corner on the delta variant, according to Jim Cramer. During the second quarter, Fisher Asset Management increased its stake in The Walt Disney Company by 3% to 10.72 million shares. Shares of The Walt Disney Company underperformed in the last six months compared to the broader market index due to the threat of rising virus cases.
Like Advanced Micro Devices, Inc., NVIDIA Corporation, Walmart Inc., and Facebook, Inc., The Walt Disney Company is among the 10 stocks Jim Cramer and Ken Fisher have in common.
RiverPark Funds, an investment management firm, highlighted a few stocks including The Walt Disney Company in the second quarter 2021 investor letter. Here’s what RiverPark Funds stated:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series…” (Click here to see the full text).
5. PayPal Holdings, Inc. (NASDAQ: PYPL)
Number of Hedge Fund Holders: 143
CNBC’s host Jim Cramer says PayPal Holdings, Inc. (NASDAQ: PYPL) is a good stock to hold for the long term. Over the last year, the fintech company gained a lot of investors’ confidence amid its growth initiatives and consumer’s shift towards online payment platforms. Moreover, the company’s strategy of diving into crypto markets has also been helping in generating billions of dollars in revenue. Its shares are up 16.5% year to date.
In the second quarter, Fisher Asset Management lifted its position in the payment transfer company by 4% to 11.57 million shares.
Lakehouse Capital, an investment management firm, commented on a few stocks including PayPal in the second quarter investor letter. Here is what Lakehouse Capital stated:
“PayPal had a tremendous year as it was a significant beneficiary in the pull-forward in ecommerce. Total payment volume increased by 50% year-on-year through the first quarter of 2021 thanks to significant growth in users and merchants. The company now has 392 million active users, up 20.6% from March 2020, who use PayPal an average of 42 times a year. The significant growth in users and activity both look structural to us, not cyclical, and we doubt the six-million-plus merchants who began accepting PayPal in the past year will suddenly stop accepting one of the internet’s most widely used forms of payment.
PayPal is a prime example of how a widely followed business can still be chronically misunderstood. FactSet tracks 48 analysts who publish price targets on the stock, suggesting PayPal’s shares should be efficiently priced, and yet PayPal has beaten analysts’ average sales and earnings estimates in 18 of the 21 quarters since it was spun off from eBay. We suspect the market tends to underestimate the business’ inherent operating leverage and that the lifetime values of incremental new users continue to rise over time thanks to improving the functionality and a growing merchant base that allows new users to spend PayPal more widely than did their predecessors…” (Click here to see the full text)
4. Adobe Inc. (NASDAQ: ADBE)
Number of Hedge Fund Holders: 89
Jim Cramer recommended investors buy Adobe Inc. (NASDAQ: ADBE) stock that saw a robust rally of 31% in the last three months. In the second quarter, Fisher Asset Management also raised its position in Adobe by 3% to 6.2 million shares, accounting for 2.28% of the overall portfolio.
Richie Capital Group, an investment management firm, highlighted a few stocks including Adobe in the second quarter investor letter. Here is what Richie Capital Group stated:
“Adobe Systems – 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.”
3. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 271
CNBC’s Jim Cramer recommends investors buy and hold Amzon.com Inc. (NASDAQ: AMZN) shares, which is also the third-largest stock holding of Fisher Asset Management portfolio. Cramer applauds Amazon’s pricing power. Following a depressing performance in the first quarter, Amazon’s stock price bounced back during the second quarter.
In the second quarter investor letter, Nelson Capital Management, an investment management firm, commented on a few stocks including Amazon. Here is what Nelson Capital Management stated:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We reduced our position in Amazon following its stellar performance through the pandemic. Though we believe online shopping is here to stay, we think some portion of consumer wallet share will transition to services and experiences.”
2. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 238
The technology giant Microsoft (NASDAQ: MSFT) is one of Jim Cramer’s most favorite stocks to hold for the long term. He is impressed with the innovation power of the tech giant.
Over the last two decades, Fisher Asset Management has been holding a position in Microsoft. The firm held 24.8 million shares of Microsoft at the end of the second quarter. Along with a steady share price growth, Microsoft’s sustainable dividend growth makes it a good stock to hold for the long term.
Alger, an investment management firm, published its “Alger Spectra Fund” second quarter 2021 investor letter. The firm highlighted a few stocks including Microsoft in the investor letter. Here is what Alger stated:
“Microsoft Corp. was among the top contributors to performance. 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. Recently, Microsoft reported that Azure grew 50% during the past quarter.
This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable 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. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well-positioned to capture market share.”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Jim Cramer has constantly been urging investors to own Apple Inc. (NASDAQ: AAPL) for the long term and not trade this stock as the company’s robust fundamentals are contrasting with the distracting bullish and bearish cycles.
Apple is the largest stock-holding of billionaire Ken Fisher’s hedge fund at the end of the second quarter. Fisher Asset Management held 64.8 million shares of Apple worth around $8.88 billion. Apple stock price soared 16% in the last three months.
Prominent investors were in an optimistic mood. The number of bullish hedge fund positions increased by 11 recently. Apple was in 138 hedge funds’ portfolios at the end of June compared to 127 positions in March.
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This article is originally published at Insider Monkey.
