We recently published a list of Arrowstreet Capital Stock Portfolio: Top 10 Stocks to Buy. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other top stocks to buy from Arrowstreet Capital’s portfolio.
Arrowstreet Capital is a Boston-based independent investment management firm known for its quantitative investment strategies and discreet market presence despite overseeing substantial assets. Founded in 1999 by Bruce Clarke, former CEO of PanAgora Asset Management, along with John Y. Campbell and Peter Rathjens, the firm was created to manage institutional investments, focusing on international and emerging market equities. Its client base includes major institutions such as the Oregon Public Employees Retirement System, CalPERS, and Macquarie Group.
In terms of investment philosophy, Arrowstreet Capital operates as a unified team to manage client portfolios through a global, quantitative approach, leveraging data-driven insights to identify market inefficiencies and generate sustainable, risk-adjusted returns. Its strategy is based on research and technology, using quantitative models to uncover investment opportunities that may not be immediately apparent to the broader market. With a focus on global equities across both developed and emerging markets, the fund constructs diversified portfolios aimed at delivering long-term value.
Moreover, Arrowstreet Capital prioritizes continuous improvement in response to shifting market conditions, integrating new data sources and employing advanced data science tools to refine its investment insights and enhance portfolio performance. While Arrowstreet does not assume that ESG-focused stocks will consistently outperform, it acknowledges the impact of environmental, social, and corporate governance factors on profitability and risk, incorporating them into its models. The firm’s collaborative team structure ensures active portfolio management, with a strong emphasis on long-term investment strategies and talent development.
Peter Rathjens is the Chief Investment Officer at Arrowstreet Capital in Boston, Massachusetts. He holds a BA from Oberlin College and an MA from Princeton University. Bruce Clarke, Co-Founder and Chairman of Arrowstreet Capital, leads an institutional asset management firm overseeing a portfolio exceeding $140 billion. Previously, he served as CEO of PanAgora Asset Management and gained international experience working in Canada, the UK, Italy, and the US. Clarke earned an MBA from London Business School and a Bachelor’s degree from the University of British Columbia. John Young Campbell, a Partner and Co-Head of Research at Arrowstreet, has an extensive background in finance, having served as President of the American Finance Association, Director of Research at PanAgora Asset Management, a professor at Princeton University, and President of the International Atlantic Economic Society. He holds a doctorate from Yale University and an undergraduate degree from the University of Oxford.
Arrowstreet Capital’s latest 13F filing for Q4 2024 reported $124.94 billion in managed 13F securities, with a top 10 holdings concentration of 28.9%. This reflects the firm’s strategic focus on high-value investments while maintaining a diversified portfolio.
Our Methodology
The stocks discussed below were picked from Arrowstreet Capital’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 over 1,000 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).
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Arrowstreet Capital’s Equity Stake: $5.21 Billion
Meta Platforms, Inc. (NASDAQ:META) has solidified its leadership in digital advertising through rapid advancements in artificial intelligence (AI), driving substantial financial growth despite shifting industry policies. In its Q4 2024 earnings report, Meta reported exceptional performance, with revenue rising 21% year-over-year to $48.4 billion, surpassing analysts’ expectations of $47 billion and reinforcing its competitive edge. Earnings per share (EPS) surged 50% to $8.02, exceeding projections of $6.76 and contributing to a nearly 9% increase in Meta’s stock price. The company’s digital advertising segment remains its primary revenue source, leveraging AI to enhance ad targeting and content recommendations, which has strengthened its market dominance and attracted higher ad spending.
Meta Platforms, Inc. (NASDAQ:META) has seen a 22% increase over the past year, though its stock remains 15% below its 52-week high. Despite this, investors have reason for optimism as the company prepares to launch its Llama 4 artificial intelligence (AI) model in April 2025, which is expected to introduce major technological advancements. At the Morgan Stanley Technology, Media, and Telecom Conference, Meta’s Chief Product Officer Chris Cox highlighted Llama 4’s capability to enhance AI agents, enabling them to perform complex, multi-step tasks autonomously. Additionally, Meta Platforms, Inc. (NASDAQ:META) is set to host its first LlamaCon AI Conference on April 29, further emphasizing its commitment to AI innovation. Industry experts suggest that Meta’s expanding AI initiatives, including a rumored standalone Meta AI app expected in Q2 2025, could strengthen its position in the competitive generative AI market.
Investor confidence in Meta Platforms, Inc. (NASDAQ:META) continues to grow, with institutional support increasing significantly. Hedge fund interest also saw a notable rise, with 262 funds holding stakes valued at nearly $59.4 billion by the end of Q4 2024, compared to 235 funds in the previous quarter, according to Insider Monkey’s database. With its strong financial position, AI-driven expansion, and dominance in digital advertising, Meta Platforms, Inc. (NASDAQ:META) remains a top stock choice for investors.
Overall, META ranks 4th on our list of top stocks to buy from Arrowstreet Capital’s portfolio. While we acknowledge the potential for META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
