This article presents an overview of the Jim Cramer’s 2024 Predictions and Top 5 Stock Picks. For a detailed overview of such stocks, read our article, Jim Cramer’s 2024 Predictions and Top Stock Picks.
5. Nu Holdings Ltd (NYSE:NU)
Number of Hedge Fund Investors: 50
Jim Cramer recently answered a question about Brazil-based banking and financial services company Nu Holdings Ltd (NYSE:NU) during his program on CNBC. Cramer said that “I’d never thought I’d say this” but Nu Holdings Ltd (NYSE:NU) is a Brazilian stock that “I absolutely love.”
Cramer also said that Nu Holdings Ltd (NYSE:NU) is a “winner.”
As of the end of the third quarter of 2023, 50 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Nu Holdings Ltd (NYSE:NU). The most notable hedge fund stakeholder of Nu Holdings Ltd (NYSE:NU) during this period was Warren Buffett’s Berkshire Hathaway which owns a $776 million stake in Nu Holdings Ltd (NYSE:NU).
White Falcon Capital Management made the following comment about Nu Holdings Ltd. (NYSE:NU) in its Q3 2023 investor letter:
“There are comparable narratives involving Nu Holdings Ltd. (NYSE:NU), Amazon, and Teck Resources, to name a few holdings from the White Falcon portfolio. NU Holdings generates an average monthly revenue per user of $9.3, whereas its competitors are achieving over $35, creating a significant opportunity for revenue and earnings growth. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
4. JPMorgan Chase & Co (NYSE:JPM)
Number of Hedge Fund Investors: 109
Jim Cramer on January 11 said JPMorgan Chase & Co (NYSE:JPM) is a “really good” stock that can “grind higher.” However, Cramer said the chances of the stock “screaming” to highs are thin and it would take time to see gains in the stock.
As of the end of the third quarter of 2023, 109 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in JPMorgan Chase & Co (NYSE:JPM).
In its fourth quarter 2023 investor letter, Vltava Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM):
“Last spring, the US went through a brief banking crisis that cost several smaller and medium-sized banks their lives. One of them, First Republic Bank, with assets of $230 billion, went into receivership and was bought out by the largest US bank, JPMorgan Chase & Co. (NYSE:JPM). The acquisition terms were very favourable for JPM and the facts that few, if any, other banks could have taken over the whole of First Republic Bank in its then-present state while guaranteeing more than $100 billion of its deposits played a role. JPM could do it. It is not only the largest, but also by its balance sheet the strongest US bank and, in our opinion, clearly the best managed. It has come out of this crisis even stronger. We have actively followed the banking sector for 20 years in many countries around the world. Our view is that a well-managed bank can be a very good long-term investment but that it is better to focus on the best and highest quality available. Banking is not a sector where it pays to trade quality for cheaper valuations. That is why we hold JPM.”
3. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 180
Jim Cramer was jubilant during his program on January 9 as he celebrated the comeback of tech stocks after a decline earlier in January.
“Stop selling Nvidia, please,” Cramer told his viewers during the program. He was referring to the broader rotation going on in the market where investors are taking profits from technology stocks and investing in other sectors like healthcare and banking.
Cramer has long been a fan of NVIDIA Corp (NASDAQ:NVDA) and in 2023 he kept praising NVIDIA Corp (NASDAQ:NVDA) due to its AI chips demand.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and NVIDIA Corporation (NASDAQ:NVDA). Those three stocks, as well as Microsoft, were among the leading contributors to Strategy performance for the quarter. Microsoft and Nvidia continued to be supported by strong execution and leadership positions in the implementation of generative artificial intelligence (AI).
These are high-quality, cash flow generative businesses that we will continue to own, actively adjusting our positioning sizes based on risk/reward and portfolio construction priorities. With Nvidia shares more than tripling in 2023, we opportunistically took profits throughout the year, an approach that continued in the fourth quarter with additional trims that brought the position down to 6% of overall assets.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
2. Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 234
Jim Cramer remained bullish on Meta Platforms Inc (NASDAQ:META) throughout 2023, and while earlier in January he recommended investors to take some profits on tech stocks and highlighted a market rotation, he remains bullish on Meta Platforms Inc (NASDAQ:META) and other major tech stocks for the long term.
In a latest program, Jim Cramer said that “don’t forget” Meta Platforms Inc (NASDAQ:META) and you ignore these stocks “at your own risk.”
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and Nvidia. Amazon benefited from strong margin expansion across segments, most notably its core e-commerce business, while Meta Platforms, Inc. (NASDAQ:META) saw accelerated revenue growth and share gains in online advertising.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 306
“Get back into Microsoft.”
This is what Jim Cramer said recently in a program on CNBC while talking about a market rotation that he believes is currently going on as investors take profits from tech stocks and invest in other companies.
In December, Jim Cramer said that Microsoft Corp (NASDAQ:MSFT) was the “undisputed leader in AI.”
Microsoft Corp (NASDAQ:MSFT) is the most popular stock among the 910 hedge funds tracked by Insider Monkey. As of the end of the third quarter of 2023, 306 hedge funds tracked by Insider Monkey had stakes in Microsoft Corp (NASDAQ:MSFT).
In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT):
“Microsoft Corporation (NASDAQ:MSFT) is the largest holding in our portfolio. Given its partnership with OpenAI and leading position in the cloud, Microsoft is well-positioned to profit from the boom in AI. However, due to Microsoft’s tremendous scale and diversification, the company is not dependent upon AI for its success. Microsoft’s diverse portfolio of software and cloud offerings ensures the company will thrive even if the next hot thing, like AI, fizzles out. In this way, Microsoft is emblematic of our broader investing approach. We seek to benefit from powerful trends, but we do so with an eye toward managing risk and limiting downside in case the future turns out to be less rosy than hoped for.”
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