Harvard University Stocks List: Top 5 Picks

In this piece, we will take a look at Harvard University stocks list: Top 5 Picks. If you want to read our introduction to the institutional investor, then take a look at Harvard University Stocks List: Top 12 Picks.

5. NVIDIA Corporation (NASDAQ:NVDA)

Harvard Management Company’s equity Stake: $21.88 Million
Year to Date Gain: 236%

NVIDIA Corporation (NASDAQ:NVDA) is arguably Harvard University’s most successful stock pick, given its 200% plus rally in 2023.

In the investor letter for Q3 2023, the Artisan Developing World Fund made the following observation concerning NVIDIA Corporation (NASDAQ:NVDA):

“Our focus on scalable business models has its roots in our economic framework. As potential output moderated in most emerging countries, it became clear to us affordability was not improving and that low penetration was necessary but not sufficient for value creation. We eliminated companies from the portfolio that were struggling to generate revenue significantly in excess of fixed costs, often replacing them with passport companies such as NVIDIA Corporation (NASDAQ:NVDA) and Airbnb that were economically tied to emerging markets. Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases, growth in the middle class, revenue velocity and demand fulfilment. Combined with changes in the market backdrop that have resulted in privileged competitive positions for companies with financial strength and access to capital, we find our opportunity set expanding anew to include companies that are both based in emerging markets and conducive to value creation.”

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4. Grab Holdings Limited (NASDAQ:GRAB)

Harvard Management Company’s equity Stake: $46.14 Million
Year to Date Gain: 3%

Headquartered in Singapore, Grab Holdings Limited (NASDAQ:GRAB) is a technology company that offers super apps that enhance merchants and consumer connections in Cambodia, Indonesia, Thailand, Malaysia, Myanmar, Philippines, Singapore and Vietnam.

While the stock is up by 3% for the year, it delivered a first-ever adjusted core profit for Q3 driven by cost reduction measures and strong demand for food delivery and ride-sharing on its apps.

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3. Light & Wonder, Inc. (NASDAQ:LNW)

Harvard Management Company’s equity Stake: $191.1 Million
Year to Date Gain: 48%

Headquartered in Las Vegas, Nevada, Light & Wonder, Inc. (NASDAQ:LNW) is another consumer cyclical play in the Harvard University portfolio.

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2. Alphabet Inc. (NASDAQ:GOOG)

Harvard Management Company’s equity Stake: $227.55 Million
Year to Date Gain: 48%

Harvard Management Company has held stakes in Alphabet Inc. (NASDAQ:GOOG) since Q2 2018, with the stock accounting for 25.68% of the portfolio as of Q3 2023.

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1. Meta Platforms, Inc. (NASDAQ:META)

Harvard Management Company’s equity Stake: $287.75 Million
Year to Date Gain: 165%

Meta Platforms, Inc. (NASDAQ:META) remains one of Harvard University’s top stock picks.

Here is what Rowan Street Capital said about Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.

A deep dive into what is driving the optimism for the stock.

It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion-dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.

Are the markets efficient when you witness this kind of a phenomenon?

We believe that the markets have become much less efficient over the short term with the proliferation of the internet, smartphones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is how it has worked. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We want to share this observation and be clear that we are not complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job valuing companies…” (Click here to read the full text).

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