Top 12 Luxury Stocks According to Hedge Funds

6. Ferrari N.V. (NYSE:RACE)

Number of Hedge Fund Holders: 36

Ferrari NV (NYSE:RACE), more commonly known as Ferrari, is an Italy-based manufacturer, designer, and retailer of luxury sports cars. It also produces one-off and limited-series cars and operates under the Ferrari brand. The company boasts a wide range of cars and operates actively in more than 60 markets across the globe through a network of authorized dealers.

The company reported profitability for fiscal Q3 2024. Revenue for the quarter grew by 7% compared to last year, and profitability grew by double-digit percentage. This growth was attributed to the strength of the company’s product mix and the continuing solid trend of personalization. These numbers reflect sustained growth and strong execution for the company.

Ferrari N.V. (NYSE:RACE) is experiencing a solid and continuous brand momentum. The Purosangue, the Roma Spider, and 296 GTS drove deliveries for the company in fiscal Q3 2024. In addition, its order book evolved as per the company’s expectations, with the new 12Cilindri coupe Spider guiding the order intake and providing it with strong visibility well into 2026. Ferrari N.V. (NYSE:RACE) also started the first deliveries of its SF90 XX Spider and increased deliveries of SF90 XX Stradale. It ranks eighth on our list of the top 12 luxury stocks to buy according to hedge funds.

Ensemble Capital Management stated the following regarding Ferrari N.V. (NYSE:RACE) in its first quarter 2024 investor letter:

“Ferrari N.V. (NYSE:RACE): With the company’s utility vehicle, the Purosangue, sold out despite being priced much more aggressively than many investors expected, investor attention has been turning to the company’s long term ability to raise prices. With the business’s earnings power being regularly revised higher by investors who watched the company navigate COVID and inflation easily, the stock has been on a tear.

Ferrari has had a very successful run since we first bought shares in the company in 2017. It has been one of our most successful investments since, with shares rising over five times, and understandably so given how phenomenal this business is and how well it has been managed.

Initially spun out of Fiat (now Stellantis) in 2015, it was a rare jewel within the parent company, where its value was hidden among more standard and premium cars sold under brands such as Fiat, Alpha Romeo, Maserati, Chrysler, Jeep, and others. Under the leadership of the astute business manager Sergio Marchionne, who had run Fiat since 2004, Ferrari came to be recognized as the undervalued and unique asset that it was within its parent…” (Click here to read the full text)