In this article, we will take a detailed look at the Top 10 Stocks to Buy According to Marshall Wace LLP.
Marshall Wace LLP is a prominent British hedge fund established in 1997 by Paul Marshall and Ian Wace. Headquartered in London, the firm has grown to become one of the world’s leading hedge funds. The firm operates as a unified global team, dedicated to fostering long-term client relationships built on trust and integrity, with a culture centered on continuous innovation and improvement.
Sir Paul Roderick Clucas Marshall, known simply as Paul Marshall, serves as the chairman and chief investment officer of Marshall Wace. Born in London, England, he studied history and modern languages at St John’s College, Oxford before earning an MBA from INSEAD Business School in Fontainebleau, France. Prior to co-founding Marshall Wace, Marshall was the Head of European Equities at Mercury Asset Management.
Beyond finance, Marshall is best known as a philanthropist and media baron. He expanded his influence into media by owning UnHerd and The Spectator and co-owning GB News. His philanthropic efforts are equally notable; he was named the top donor on The Sunday Times Giving List in 2024 after donating a hefty sum to various causes including the London School of Economics to establish the Marshall Institute. He was knighted in the 2016 Birthday Honours for his contributions to education and philanthropy.
Politically, Marshall was initially a member and donor of the Liberal Democrats, co-editing the influential Orange Book in 2004 alongside key party figures. However, his stance shifted in 2015 when he left the party due to his support for Brexit. He later became a major donor to the Brexit campaign and the Conservative Party. His ownership of UnHerd and GB News has positioned him as a significant right-wing media figure in the UK.
Ian Gerald Patrick Wace serves as the firm’s chief executive officer and chief risk officer. Despite not holding a college degree, he has achieved exceptional success in the finance industry, earning recognition as “perhaps the only person without a college degree to ever qualify” for Institutional Investor’s Rich List. Wace began his career at S.G. Warburg & Co., where he spent 11 years and became the firm’s youngest director at the age of 25. His rapid ascent continued as he was appointed head of European equity sales in 1988, head of proprietary trading in 1993, and head of international trading in 1994. In 1995, he joined Deutsche Morgan Grenfell as head of equity and derivative trading, further establishing his expertise in the financial sector before co-founding Marshall Wace in 1997.
Marshall Wace LLP manages quantitative, systematic, and fundamental investment strategies, with a primary focus on long/short equity. These strategies are implemented on a global scale, utilizing proprietary systems and processes to optimize performance. For over two decades, technology and data have been central to the firm’s operations. In 2002, Marshall Wace introduced MW TOPS, its Trade Optimized Portfolio System and the world’s first ‘Alpha Capture’ application. This revolutionized the way investment insights were harnessed and contributed largely to its prominence in the hedge fund industry. Today, the firm remains committed to innovation and excellence, continuously refining its methodologies to maintain a competitive edge in the financial markets. Despite its success, Marshall Wace has faced recent challenges; in the fiscal year ending February 2024, the firm’s revenues declined substantially, leading to a nearly 64% drop in profits.
Marshall Wace LLP’s Q4 2024 13F filing reported over $83 billion in managed 13F securities, with its top 10 holdings accounting for 34.5% of the total portfolio.
Paul Marshall of Marshall Wace
Our Methodology
The stocks discussed below were picked from Marshall Wace LLP’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).
Top 10 Stocks to Buy According to Marshall Wace LLP
10. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holders as of Q4: 98
Marshall Wace LLP’s Equity Stake: $636 Million
The world’s largest sports betting and iGaming operator with 13.9 million Average Monthly Players worldwide in 2024, Flutter Entertainment plc (NYSE:FLUT) was founded in 2016 and is based in New York City. The company delivered strong financial performance in Q4 2024, with revenue reaching $3.79 billion, marking a 14% increase compared to the previous year. The company reported a net income of $156 million, a significant turnaround from a net loss of $902 million in Q4 2023. Adjusted EBITDA rose by 4% year-over-year to $655 million, while free cash flow surged by an impressive 175% to $473 million. Earnings per share also improved substantially, shifting from a loss of $5.14 per share in Q4 2023 to a positive $0.45 per share in Q4 2024, demonstrating the company’s enhanced profitability and operational efficiency.
In line with its strategic priorities, Flutter Entertainment plc (NYSE:FLUT) undertook key financial initiatives in 2024, including a share repurchase program that returned $121 million to shareholders in Q4 alone, with plans to reach $1 billion in buybacks by 2025. The company also reduced its total debt by $320 million, lowering its leverage ratio from 3.1 to 2.2. Furthermore, Flutter announced major acquisitions in Brazil and Italy, with NSX and Snai set to join its portfolio in Q2 2025. These moves highlight the company’s commitment to strengthening its global footprint while maintaining financial discipline.
Looking ahead, Flutter Entertainment plc (NYSE:FLUT) expects continued growth in 2025, with projected revenue between $15.48 billion and $16.38 billion and adjusted EBITDA ranging from $2.94 billion to $3.38 billion. Its dominance in the U.S. market, coupled with international expansion and financial prudence, positions the company for long-term success. As a leader in the growing sports betting and iGaming industry, Flutter Entertainment remains a top stock to buy for investors seeking exposure to a high-growth sector with strong financial fundamentals.
9. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Marshall Wace LLP’s Equity Stake: $647.34 Million
Alphabet Inc. (NASDAQ:GOOGL) delivered strong fourth-quarter earnings, exceeding market expectations. The tech giant reported earnings of $2.15 per share on revenue of $96.47 billion, surpassing analyst projections of $2.13 per share. This marked a significant improvement from the previous year’s fourth quarter, where earnings were $1.64 per share on revenue of $86.3 billion. CEO Sundar Pichai emphasized on the company’s focus on innovation, revealing plans to allocate around $75 billion in capital expenditures for 2025, with a primary focus on advancing generative AI. Alphabet views artificial intelligence as a crucial driver for strengthening its market position, particularly in the cloud computing sector.
As Alphabet Inc. (NASDAQ:GOOGL) prepares for its upcoming earnings report, analysts anticipate earnings per share of $2.04 for the quarter, representing a 7.94% increase from the same period last year. Revenue for the quarter is projected to reach $75.67 billion, reflecting an 11.94% year-over-year rise. For the full fiscal year, Alphabet is expected to achieve earnings of $8.89 per share, marking a 10.57% annual growth. Revenue is estimated to reach $334.55 billion, reflecting a 13.36% increase compared to the previous year. These forecasts indicate the company’s continued expansion, supported by strategic investments in AI and infrastructure improvements.
As market conditions shift, and the tech sector regains momentum, Alphabet Inc. (NASDAQ:GOOGL) could benefit significantly from advancements in artificial intelligence. The company’s AI partner recently introduced Gemma 3, an upgraded model used in Google’s Gemini AI chatbot, which is being positioned as the “world’s best single-accelerator model.” Early reports indicate that Gemma 3 outperforms competing models from Meta, DeepSeek, and OpenAI, making it the most powerful AI model capable of running on a single GPU or TPU. If consumer adoption of this technology accelerates, Alphabet Inc. (NASDAQ:GOOGL) could experience a surge in AI-driven growth, further strengthening its stock performance.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
