In this article, we discuss Cliff Asness and his top 5 stock picks. If you want to read about some more stocks in the Asness portfolio, go directly to Cliff Asness Stock Portfolio: 10 Top Stock Picks.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. Latest data shows that AQR Capital Management owned 1.3 million shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of the third quarter of 2023 worth $597 million, representing 1.23% of the portfolio.
On November 13, investment advisory Bank of America maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) stock with a price target of $650, noting the new products of the firm boost AI exposure and counter competition.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA) with 20 million shares worth more than $8.8 billion.
In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“At the portfolio level, the positive fundamental trends we noticed in the second quarter continued into the third quarter as well – many of our companies are reporting stability or slight improvement in business trends. Weighted average 2023 revenue growth expectations for the portfolio were up 3.8% during the third quarter or up 0.8% if we exclude NVIDIA. We wrote at length about NVIDIA earlier this year, but it is worth mentioning that the company has continued to exceed its own projections and the Street’s most optimistic expectations. After raising its revenue and EPS guidance for 2023 by 40% and 69%, respectively, following its last quarter, NVIDIA increased it further by 26% and 35%, respectively, after reporting the most recent one. Consensus expectations now call for revenues to grow 94% this year, while earnings per share are expected to increase by 192%. You may have seen these kinds of growth rates before, but we doubt you saw them from a company generating $50 billion in revenues. The skeptics who continue to question and doubt the accelerating demand for Generative artificial intelligence forgot to tell NVIDIA about it. But we digress…back to the portfolio…profit expectations have risen even faster than revenues and were up 11% during the third quarter (or up 7.8% ex-NVIDIA) with margin expectations up 149bps (107bps ex-NVIDIA). So, broadly speaking, our companies are seeing improvement in overall business trends, which flow through to their bottom lines, driving higher margins. We are also starting to see the benefits of leaner cost structures and more disciplined capital allocation compared to two or three years ago when capital was both cheaper and more readily available.”
4. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 55
Cisco Systems, Inc. (NASDAQ:CSCO) makes and sells networking and other products. Latest data reveals that AQR Capital Management owned over 11.3 million shares of Cisco Systems, Inc. (NASDAQ:CSCO) at the end of the third quarter of 2023 worth $611 million, representing 1.26% of the portfolio.
On November 16, investment advisory Evercore maintained an In Line rating on Cisco Systems, Inc. (NASDAQ:CSCO) stock and lowered the price target to $55 from $63, noting the firm posted strong upside in the October-end quarter.
At the end of the second quarter of 2023, 55 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Cisco Systems, Inc. (NASDAQ:CSCO), compared to 61 in the previous quarter worth $2.4 billion.
Here is what Oakmark Funds has to say about Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2023 investor letter:
“Cisco Systems, Inc. (NASDAQ:CSCO) is the leading networking solutions company. Networking equipment becomes more important as businesses modernize their IT infrastructure, and Cisco is well positioned to capture this demand given its broad portfolio and highly effective go-to-market strategy. Cisco is transitioning away from selling mainly transactional hardware and toward selling more software and subscriptions. This shift is expected to accelerate revenue growth, improve operating margins and build recurring revenue. Despite these notable business improvements, Cisco still trades near a trough valuation relative to the S&P 500 Index. More recently, Cisco announced its intention to acquire Splunk, a leader in security and observability, adding to its already strong position in the increasingly important security market. At a low-teens multiple of our estimate of normalized earnings, Cisco is trading comfortably below our estimate of intrinsic value.”
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology firm. Regulatory filings reveal that AQR Capital Management owned over 4.7 million shares of Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter of 2023 worth $624 million, representing 1.29% of the portfolio.
On November 16, investment advisory Wells Fargo maintained an Equal Weight rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $129 from $126.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 43 million shares worth more than $5.7 billion.
In its Q3 2023 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“As for other quarterly contributors, Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms, Inc., (META) added to their exceptional year-to-date returns. Meta Platforms and Alphabet were the true year-to-date standouts. After steep declines in 2022, both stocks rebounded sharply due to a combination of solid fundamentals, disciplined operational execution, and improved sentiment. Despite outsized gains and attention, we think both Alphabet and Meta remain undervalued.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. Latest 13F filings show that AQR Capital Management owned over 4.2 million shares of Microsoft Corporation (NASDAQ:MSFT) at the end of September 2023 worth $1.3 billion, representing 2.76% of the portfolio.
On November 16, investment advisory Jefferies maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) stock with a price target of $400, noting the firm was innovating at a historically fast pace.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 24 million shares worth more than $7.8 billion.
In its Q3 2023 investor letter, Jackson Peak Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Latest 13F filings show that AQR Capital Management owned 8.4 million shares of Apple Inc. (NASDAQ:AAPL) at the end of September 2023 worth $1.4 billion, representing 2.99% of the portfolio of the fund.
On November 16, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $240 from $225, noting the firm would see a reacceleration in revenue growth driven by a resumption in PC demand.
At the end of the second quarter of 2023, 135 hedge funds in the database of Insider Monkey held stakes worth $194 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $165 billion.
In its Q3 2023 investor letter, Baron Funds highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“After a strong start to the year, shares of Apple Inc. partially retraced their gains this quarter. Mixed second calendar quarter financial results, with iPhone, iPad, and Wearables revenue coming in just shy of consensus expectations, coupled with elevated investor concerns about the macro economy and potential weakness in consumer spending later this year, pressured shares. Despite these quarterly fluctuations in product sales, we are encouraged by several long-term trends, including: (1) revenue from higher-margin services like the App Store, iCloud, and Apple Pay, which are growing faster than the overall business, driving better revenue visibility and higher free-cash-flow (FCF) margins; (2) continued gains in global market share in smartphones, wearables, and other hardware categories; and (3) consistent returns of capital to shareholders via share repurchases and dividends. On top of these trends in the core business, Apple is thoughtfully investing in new categories like augmented reality, search, financial services, and streaming media content. We took advantage of weakness in the quarter to add to our position in Apple.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
