Is it High Time to Put Majority of Your Portfolio in Alphabet (GOOG)?

Harding Loevner, an investment management firm, published its “Global Equity Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 4.35% was recorded by the fund for the fourth quarter of 2021, trailing its Benchmarks, the MSCI All Country World Index, and the MSCI World Index which returned 6.77% and 7.86% respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Harding Loevner Global Equity Fund, 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 $1.7 trillion market capitalization. GOOG delivered a -7.27% return since the beginning of the year, while its 12-month returns are up by 32.40%. The stock closed at $2,683.36 per share on March 01, 2022.

Here is what Harding Loevner Global Equity Fund has to say about Alphabet Inc. in its Q4 2021 investor letter:

“In a quarter that saw Alphabet’s Al-driven protein modeler win Science magazine’s “Breakthrough of the Year,” we also focused on a pair of companies putting somewhat less cutting-edge health care
technology to lucrative use.

The one region where the style headwinds didn’t slow us at all was the US, where the portfolio’s holdings outperformed a very strong market. Good relative performance within the US was amplified by our hefty allocation there, which for most of the year remained close to the 65% ceiling of our risk guidelines, despite our trimming exposure to several US holdings as their valuations climbed. The positive contributors included Google parent Alphabet, up strongly on the year, thanks to a solid recovery in its core advertising business and ongoing progress on its cloud computing offerings.”

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 158 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 156 funds in the previous quarter. Alphabet Inc. (NASDAQ: GOOG) delivered a -5.26% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on GOOG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.