In this article, we will take a detailed look at Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in.
Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989, the firm has established itself as one of the largest alternative asset management firms. With headquarters in New York, Millennium Management has expanded its operations across North America, Europe, and Asia, with 18 primary offices in financial hubs such as London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, consisting of approximately 330 investment teams operating under a decentralized model. These teams deploy diverse strategies across various asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies encompass fundamental equity research, equity arbitrage, macroeconomic-driven fixed-income investments, and commodity-based trades. By leveraging a data-driven and diversified approach, the firm seeks to generate consistent, high-quality returns for its investors while effectively managing risk across global markets.
Millennium was co-founded by Israel A. Englander and Ronald Shear, both of whom had extensive experience in the American Stock Exchange (AMEX). The firm initially launched with $35 million in capital, with Englander contributing $5 million and securing additional investment from Canadian financiers, the Belzberg brothers. However, the firm faced early struggles, leading to Shear’s departure just six months after its inception. Despite these challenges, Millennium Management evolved into a powerhouse in the hedge fund industry, consistently ranking among the top-performing firms. Over the years, Millennium has adopted an institutionalized structure, attracting seasoned executives such as Bobby Jain, who served as co-CIO alongside Englander until his departure in 2023. By implementing a disciplined risk management framework and continuously refining its investment strategies, Millennium has remained at the forefront of alternative asset management.
Israel Englander, the driving force behind Millennium, has built a reputation as one of the most successful hedge fund managers in modern finance. A graduate of New York University, Englander pursued an MBA before leaving early to trade at AMEX, where he gained valuable experience in market-making and derivatives trading. His expertise and strategic vision enabled Millennium to grow rapidly, managing approximately $13 billion in assets by 2011. In recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a shift towards institutional ownership. His approach to hedge fund management prioritizes capital allocation to specialized teams rather than making direct investment decisions himself. This model has allowed Millennium to maintain a highly competitive edge, attracting top talent and fostering a dynamic investment environment.
Millennium’s outstanding performance has positioned it as one of the most successful hedge funds globally. As of Q4 2024, the firm reported $204.64 billion in managed 13F securities, with its top ten holdings comprising 15.5% of its portfolio. Notably, Millennium has consistently ranked among the highest-grossing hedge funds, posting the fourth-largest net gains of any fund since its inception. Its commitment to risk-adjusted returns, diversification, and strategic innovation has earned it a strong reputation among institutional investors. With a proven track record, an expansive global presence, and a disciplined investment approach, Millennium Management continues to be a dominant force in the hedge fund industry.
Israel Englander of Millennium Management
Our Methodology
The stocks discussed below were picked from Millennium Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in
10. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders as of Q4: 144
Millennium Management’s Equity Stake: $634.31 Million
Netflix, Inc. (NASDAQ:NFLX) has reached record highs following its strong fourth-quarter earnings report, surpassing estimates for subscribers, revenue, and earnings. For Q4 2024, the company reported earnings of $4.27 per share, a 102% increase year over year, on $10.25 billion in revenue, up 16% from the same quarter in 2023. It added 18.91 million subscribers in the quarter, bringing its total to 301.63 million, well above Wall Street’s projections. For 2025, the company expects revenue to grow 13% to $44 billion. However, it will stop reporting quarterly subscriber numbers, shifting investor focus to revenue and operating margins. Netflix, Inc. (NASDAQ:NFLX) stock remains strong, having broken out of a flat base in January, and has received multiple price target upgrades from analysts following its robust performance.
The American streaming giant is reportedly considering expanding its programming to include Sunday afternoon NFL games, building on the success of its Christmas Day NFL broadcasts. Chief Content Officer Bela Bajaria confirmed Netflix’s interest in acquiring these media rights, which could become available earlier than expected. Additionally, Netflix, Inc. (NASDAQ:NFLX) is exploring new content avenues such as video podcasts and live Formula 1 racing events, signaling a broader strategy to enhance its platform and attract a wider audience.
Despite a crowded streaming market, Netflix, Inc. (NASDAQ:NFLX)’s extensive content library and consistent new releases continue to attract and retain subscribers, with significant global expansion opportunities still available. Additionally, the stock’s valuation remains reasonable relative to its projected earnings growth, with a price-to-earnings (P/E) ratio of 53 and an estimated long-term growth rate of 24%, resulting in a price/earnings-to-growth (PEG) ratio of 2.2. This balanced valuation, combined with its strong market position and continued subscriber growth, reinforces Netflix’s potential for long-term success.
Polen Focus Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2024 investor letter:
“Finally, we trimmed Netflix, Inc. (NASDAQ:NFLX) mostly due to valuation but also as a source of funds to add to the new position in Shopify. As a reminder, we added to our position in August 2022 amid broad concerns about the company’s ability to grow and monetize shared passwords. We expected Netflix to show progress in monetizing shared passwords, leading to robust free cash flow generation. This is now playing out and is appreciated by the market. Hence, given the balance of growth and valuation, we felt it was appropriate to reduce our exposure to a more normal weight.”
9. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders as of Q4: 113
Millennium Management’s Equity Stake: $760.38 Million
Bank of America Corporation (NYSE:BAC) is a leading global financial institution, offering a comprehensive range of banking, investment management, and financial services to individuals, businesses, and governments. Headquartered in Charlotte, North Carolina, with investment banking operations in Manhattan, the company operates in over 35 countries and provides access to more than 140 currencies. With a strong presence in both retail and commercial banking, it has consistently expanded its customer base while maintaining a solid financial foundation.
In Q4 2024, Bank of America Corporation (NYSE:BAC) exceeded expectations, reporting $25.3 billion in revenue, demonstrating a 15.2% year-over-year increase and surpassing analysts’ estimates by $170 million. Net income surged to $6.7 billion, or $0.82 per share, more than doubling from the previous year’s $3.1 billion, reflecting strong operational performance. The bank also added 213,000 new consumer checking accounts, marking six consecutive years of quarterly growth, and ended the year with $953 billion in liquidity. Returning $2 billion to shareholders through dividends further demonstrates its commitment to investor value. Given its financial strength, consistent growth, and strategic investments in digital banking and global operations, Bank of America Corporation (NYSE:BAC) remains a strong investment choice.
As of Q4 2024, Millennium Management significantly increased its holdings in Bank of America Corporation (NYSE:BAC) to more than 17.3 million shares, marking a 92% rise from over 9 million shares in Q3. The fund’s stake in the company is now valued at approximately $760.38 million.
Insider Monkey’s database indicated that 113 hedge funds held stakes in Bank of America Corporation (NYSE:BAC) at the end of Q4 2024, with a value of nearly $40.22 billion, as opposed to 98 funds in Q3. This surge in institutional interest underscores strong confidence in the stock’s long-term stability and growth and suggests optimism about the bank’s ability to navigate economic challenges, capitalize on rising interest rates, and maintain profitability in a competitive financial sector.