In this article, we discuss the 10-year returns of the Obama stock portfolio.
Former United States President Barack Obama presided over one of the worst recessions in US history. But the stock market saw new highs during his tenure. Obama, a still somewhat divisive figure in the finance world, has been on record saying that he has invested in the Vanguard 500 Index Fund Investor Shares (NASDAQ:VFINX) and the US Treasury Bills. Obama, whose personal net worth is estimated to be in the tens of millions, has also invested in college savings plans for his daughters.
10-Year Returns of Vanguard 500 Index Fund Investor Shares
Per latest figures, over the past five years, the Vanguard 500 Index Fund Investor Shares has returned more than 52% to investors. Over the past ten years, these returns are even more impressive, clocking in at more than 150%. In November 2012, the share price of the fund was around $125. As of November 25, it stands at over $370.
Our Methodology
These were picked from among the top holdings of Vanguard 500 Index Fund Investor Shares, one of the premier investments of Barack Obama when he was in office, according to official disclosures. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Obama Stock Portfolio: 10 Year Returns
10. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. It is one of the best stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On November 1, Tesla demonstrated the beta version of its driver assistance system for California transportation officials, including outside consultants. Tesla markets the demo of this system as Full Self Driving.
On October 24, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Tesla, Inc. stock and lowered the price target to $330 from $350, noting that the company’s Q3 report, while in line with consensus expectations, was both stronger and higher quality than expected.
At the end of the third quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Tesla, Inc., compared to 73 in the preceding quarter worth $7.2 billion.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), Tesla, Inc. is one of the best stocks in the Obama had stakes in during his time in the office.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla, Inc., I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic; second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 89
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. It is one of the top stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On November 3, NVIDIA released a hotfix for its latest Game Ready driver which will fix the issues raised by some players on 28 October by Call of Duty’s lead PC studio Beenox.
On October 25, Needham analyst Rajvindra Gill maintained a Buy rating on NVIDIA Corporation stock and lowered the price target to $155 from $170, noting that the company should continue to deliver strong prints during the Q3 earnings season.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation with 19.2 million shares worth more than $2.3 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation was one of them. Here is what the fund said:
“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them was large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA Corporation, our second largest detractor, costing the Fund 254bps.
NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…(read more)”
8. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 104
Berkshire Hathaway Inc. (NYSE: BRK-B) engages in insurance, freight rail transportation, and utility businesses. It is one of the elite stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On October 14, Berkshire Hathaway and Alleghany Corp, an insurance company, revealed that they have received all regulatory approvals which are needed for Berkshire Hathaway’s proposed acquisition of Alleghany Corporation.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Bill and Melinda Gates Foundation Trust is a leading shareholder in Berkshire Hathaway Inc. with 29.7 million shares worth more than $7.9 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. was one of them. Here is what the fund said:
“Diversified holding company Berkshire Hathaway Inc. reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”
7. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 110
United Group Incorporated (NYSE:UNH) operates as a diversified healthcare company in the United States. It is one of the premier stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On October 14, UnitedHealth Group posted earnings for the third quarter of 2022, reporting earnings per share of $5.79, beating market estimates by $0.35. The revenue over the period was $80.98 billion, up 11.8% compared to the revenue over the same period last year and beating market estimates by $360 million.
On October 18, Deutsche Bank analyst George Hill maintained a Buy rating on UnitedHealth Group Incorporated stock and raised the price target to $615 from $569, highlighting that the company posted solid third quarters results on broad-based strength as membership growth remains robust and value-based arrangements continue to expand.
At the end of the third quarter of 2022, 110 hedge funds in the database of Insider Monkey held stakes worth $10.3 billion in United Group Incorporated, compared to 91 in the preceding quarter worth $10.9 billion.
In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and United Group Incorporated was one of them. Here is what the fund said:
“UnitedHealth Group Incorporated reported solid quarterly results and raised 2022 guidance modestly. Additionally, managed care is another industry that is viewed as defensive in the current environment, which helped support UnitedHealth and its peer group.”
6. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
JPMorgan Chase & Co. operates as a financial services company worldwide. It is one of the major stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On October 31, JPMorgan Chase noted that it is testing a payments platform that automates the receipt and invoicing of online rent payments, part of the bank’s immense investment in technology as it tends to compete with fintech startups.
On October 17, BMO Capital analyst James Fotheringham maintained a Market Perform rating on JPMorgan Chase & Co. stock and raised the price target to $158 from $149, noting that the company’s pre-provision net revenue grew 13% sequentially and that its share repurchases should also resume in Q1 of next year.
At the end of the third quarter of 2022, 110 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in JPMorgan Chase & Co., compared to 104 in the preceding quarter worth $5.8 billion.
In addition to Amazon.com, Inc., Microsoft Corporation, and Apple Inc., JPMorgan Chase & Co. is one of the best stocks in the Obama had stakes in during his time in the office.
In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. was one of them. Here is what the fund said:
“More cyclical sectors, including technology and consumer discretionary, were among the weakest, likely due to rising interest rates and inflation. It was encouraging to see the quarter finish on a strong note with the S&P 500 only about 5% away from its all-time highs. Shares of JPMorgan Chase & Co. detracted from performance due to the company’s increased expense guidance, announced in January.”
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables, and accessories. It is one of the best stocks in the Vanguard index in which Obama had stakes in during his time in the office. On November 3, Apple disclosed that it will continue to source modem chips from Qualcomm, a semiconductor and software creator, for the 2023 iPhone 15 lineup. Qualcomm will provide the vast majority of modem chips for Apple devices.
On October 27, Wedbush analyst Daniel Ives maintained an Outperform rating on Apple Inc. stock and lowered the price target to $200 from $220, noting that the company delivered a mixed September quarter that featured top and bottom line beats despite 600+ basis points of FX headwinds.
At the end of the third quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $144 billion in Apple Inc., compared to 128 in the previous quarter worth $183 billion.
In its Q2 2022 investor letter, Alger Capital, an asset management firm, highlighted a few stocks and Apple Inc. was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact the production of apple products, however, the manufacturing facilities have resumed activity.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms such as Google Services, Google Cloud etc. It is one of the top stocks in the Vanguard index in which Obama had stakes in during his time in the office. On November 3, Google, a subsidiary of Alphabet, noted that it wants to compete to dominate the internet’s next battleground by developing artificial intelligence using the world’s one thousand most spoken languages.
On October 26, Evercore ISI analyst Mark Mahaney maintained an Outperform rating on Alphabet Inc. stock and lowered the price target to $130 from $140, noting that Q3 results of the firm missed the Street estimates across the board by a wider margin than seen in some time.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. with 52.4 million shares worth more than $5 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. was one of them. Here is what the fund said:
“Alphabet Inc. is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It is one of the elite stocks in the Vanguard 500 Index Fund Investor Shares in which Obama had stakes in during his time in the office. On October 26, Meta Platforms posted earnings for the third quarter of 2022, reporting earnings per share of $1.64, missing market estimates by $0.22. The revenue over the period was $27.72 billion, down 4.5% compared to the revenue over the same period last year and beating market estimates by $310 million.
On November 2, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Meta Platforms, Inc. stock and lowered the price target to $260 from $466, noting that the recent pullback in price was a major buying opportunity as total daily and monthly active users continue to grow, and the Metaverse will emerge as a long-term growth driver.
At the end of the third quarter of 2022, 177 hedge funds in the database of Insider Monkey held stakes worth $14 billion in Meta Platforms, Inc., compared to 185 in the preceding quarter worth $18.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc., the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It is one of the premier stocks in the Vanguard index in which Obama had stakes in during his time in the office. On November 2, Snapchat revealed that it has partnered up with Amazon for its augmented reality-powered Virtual Try-On shopping experience. Amazon will offer Snapchat users the ability to digitally try on eyewear styles from a range of popular brands.
On November 2, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Amazon.com, Inc. stock and lowered the price target to $192 from $232, noting that the new price target reflects a re-rating of valuation and growth rate adjustments.
At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $34.6 billion in Amazon.com, Inc., compared to 252 in the preceding quarter worth $30 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. was one of them. Here is what the fund said:
“Amazon.com, Inc. is the world’s largest retailer and cloud services, provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from the overcapacity of resources coming out of COVID. We expect Amazon to grow its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 269
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. It is one of the major stocks in the Vanguard index in which Obama had stakes in during his time in the office. On November 2, Microsoft funded Wemade, a South Korean popular video game developer, which has made aggressive bets on blockchain in recent years.
On October 26, RBC Capital analyst Rishi Jaluria maintained an Outperform rating on Microsoft Corporation stock and lowered the price target to $310 from $380, highlighting that the company’s Q1 results were decent, but its guidance was rough.
At the end of the third quarter of 2022, 269 hedge funds in the database of Insider Monkey held stakes worth $61.2 billion in Microsoft Corporation, compared to 258 in the previous quarter worth $56 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Microsoft Corporation was one of them. Here is what the fund said:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues. (read more…)
You can also take a peek at Was Rajiv Jain’s GQG Partners Right About These 10 Tech Stocks? and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
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This article is originally published at Insider Monkey.
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