In this article, we will discuss the 5 technology stocks hedge funds are talking about. If you want our detailed analysis of the technology sector, you can go directly to 10 Technology Stocks Hedge Funds Are Talking About.
5. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 153
ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the third quarter. On an absolute basis, the Strategy had gains across four of the eight sectors in which it was invested (out of 11 sectors total). The leading contributors to performance were in the IT and health care sectors, while the consumer discretionary and industrials sectors were detractors. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
ClearBridge Large Cap Growth Strategy, in its Q3 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE: UBER) and discussed its stance on the firm.
Here is what ClearBridge Large Cap Growth Strategy has to say about Uber Technologies, Inc. in its Q3 2021 investor letter:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”
Based on our calculations, Uber Technologies, Inc. (NYSE: UBER) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. UBER was in 143 hedge fund portfolios at the end of the third quarter of 2021, compared to 135 funds in the previous quarter.
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 158
Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here.
Weitz Investment Management, in its Q4 2021 investor letter, mentioned Alphabet Inc. (NASDAQ: GOOG) and discussed its stance on the firm. Alphabet Inc. is a Mountain View, California-based multinational technology conglomerate holding company with a $1.8 trillion market capitalization.
Here is what Weitz Investment Management has to say about Alphabet Inc. in its Q4 2021 investor letter:
“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the fiveyear outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”
Photo by Kai Wenzel on Unsplash
Our calculations show that Alphabet Inc. (NASDAQ: GOOG) ranks 5th on our list of the 30 Most Popular Stocks Among Hedge Funds. GOOG was in 156 hedge fund portfolios at the end of the third quarter of 2021, compared to 155 funds in the previous quarter.
3. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 224
Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here.
Weitz Investment Management, in its Q4 2021 investor letter, mentioned Meta Platforms, Inc. (NASDAQ: FB) and discussed its stance on the firm. Meta Platforms, Inc. is a Menlo Park, California-based multinational technology conglomerate holding company with an $839.2 billion market capitalization.
Here is what Weitz Investment Management has to say about Meta Platforms, Inc. in its Q4 2021 investor letter:
“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the fiveyear outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”
Photo by Timothy Hales Bennett on Unsplash
Our calculations show that Meta Platforms, Inc. (NASDAQ: FB) ranks 2nd on our list of the 30 Most Popular Stocks Among Hedge Funds. FB was in 248 hedge fund portfolios at the end of the third quarter of 2021, compared to 256 funds in the previous quarter.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 262
Alger, an investment management firm, published its “Alger Spectra Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here.
Alger Spectra Fund, in its Q4 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT) and discussed its stance on the firm. Microsoft Corporation is a Redmond, Washington-based multinational technology conglomerate holding company with a $2.1 trillion market capitalization.
Here is what Alger Spectra Fund has to say about Microsoft Corporation in its Q4 2021 investor letter:
“Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the fourth quarter of 2021. Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s CEO believes technology spending as a percent of GDP is likely to jump from about 5% today to 10% in a few years and that Microsoft will continue to take market share Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 50% inthe past quarter. This high unit volume growth is a primary driver of the company’s higher share price, but 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.”
Pixabay/Public Domain
Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 1st on our list of the 30 Most Popular Stocks Among Hedge Funds. MSFT was in 250 hedge fund portfolios at the end of the third quarter of 2021, compared to 238 funds in the previous quarter.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 279
Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here.
Weitz Investment Management, in its Q4 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN) and discussed its stance on the firm. Amazon.com, Inc. is a Seattle, Washington-based e-commerce company with a $1.5 trillion market capitalization.
Here is what Weitz Investment Management, Inc. has to say about Amazon.com, Inc. in its Q4 2021 investor letter:
“Several “platform” companies thrived during COVID and have been very strong stocks. In 2021, their businesses continued to thrive, though their stock prices cooled off. Amazon continues to steamroll the competition and grow rapidly, but its stock ended the year about where it began.”
Pixabay/ Public Domain
Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) ranks 3rd on our list of the 30 Most Popular Stocks Among Hedge Funds. AMZN was in 242 hedge fund portfolios at the end of the third quarter of 2021, compared to 271 funds in the previous quarter.
You can also take a look at Warren Buffett’s Performance in 2021: 10 Best Stock Picks and 10 ESG Dividend Stocks to Buy.
