In this article, we will take a detailed look at the Top 12 Stocks to Buy According to Bourgeon Capital.
Bourgeon Capital Management LLC is an investment advisory firm headquartered in Darien, Connecticut. Founded in 1999 by seasoned financial professional John Aniblo Zaro, the firm specializes in actively managed, separate accounts with investment portfolios consisting primarily of stocks and bonds. In 2002, Bourgeon Capital expanded its leadership team when Michael Keohane joined SAC Capital to co-manage the firm’s long/short hedge fund. With a portfolio value of nearly $535.55 million by the end of December 2024, Bourgeon Capital is known for providing personalized investment strategies designed to manage risk while achieving long-term growth.
John Zaro, the firm’s founder and managing partner, has an extensive background in investment management spanning several decades. In addition to his Bachelor of Arts degree in Political Science and Economics from Stanford University, he is a Chartered Financial Analyst (CFA) and an active member of the New York Society of Security Analysts.
John Zaro’s career in finance has been marked by influential roles at major financial institutions; it began at Morgan Stanley Smith Barney LLC where he held the role of vice president from 1984 to 1991. Later, he served as a portfolio manager and vice president at J.P. Morgan Investment Management from 1991 to 1997 during which he managed substantial assets for clients. Just before establishing Bourgeon Capital, Zaro held the positions of Chief Investment Officer and Managing Director at Warburg Pincus Asset Management from 1997 to 1999. During his time there, he played a key role in shaping investment strategies for high-net-worth clients. With expertise in portfolio and alpha target management, Zaro was instrumental in refining investment processes for private clients and high-net-worth individuals.
With over two decades of experience, Zaro founded Bourgeon Capital with the vision of offering a more client-centric approach to wealth management. His goal has always been to foster strong, long-term relationships with clients through honest and strategic financial guidance. Bourgeon Capital continues to uphold this commitment, ensuring that each client’s investment strategy is tailored to their unique financial needs and aspirations.
In recognition of his accomplishments in wealth management, Morgan Stanley announced in 2022 that Zaro, then serving as a First Vice President and Financial Advisor at the firm’s Wealth Management office, was named to Forbes Magazine’s prestigious list of Top Next-Gen Wealth Advisors. This ranking evaluates candidates based on various qualitative and quantitative factors, including industry experience, leadership experience, assets under management, revenue trends, and compliance records. The selection process also incorporates insights gained from extensive interviews.
Bourgeon Capital’s investment philosophy is centered on achieving consistent, long-term returns while minimizing volatility. The firm prioritizes risk management by employing strategies that aim to reduce extreme market fluctuations. A key approach under Zaro’s leadership has been investing excess cash in the bond market to capitalize on higher interest rates. This strategy reflects the firm’s commitment to balancing risk and reward while ensuring that clients’ investments align with their financial goals.
John Zaro of Bourgeon Capital
Our Methodology:
The stocks discussed below were picked from Bourgeon Capital’s Q4 2024 13F filings. They are compiled in the ascending order of Bourgeon Capital’s stake in them as of December 31, 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1000 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 12 Stocks to Buy According to Bourgeon Capital
12. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Bourgeon Capital’s Equity Stake: $13.56 Million
Apple Inc. (NASDAQ:AAPL) is 12th on the list of the top 12 stocks to buy according to Bourgeon Capital. Headquartered in Cupertino, California, Apple is a leading global technology company known for its innovative consumer electronics, software, and services. Founded in 1976 as Apple Computers, the company rebranded to Apple Inc. in 2007 to reflect its expansion beyond computers. As one of the most valuable technology firms, it has remained a market leader in mobile devices, personal computing, and digital services.
Apple Inc. (NASDAQ:AAPL) reported revenue of $124.3 billion for the quarter ending December 2024, reflecting a 3.95% year-over-year increase from $119.58 billion. This figure marginally exceeded analysts’ expectations of $124.03 billion by 0.22%. The company’s quarterly earnings per share (EPS) reached $2.40, marking an increase of $0.22 compared to the previous year’s quarter. On January 30, 2025, Apple’s Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on February 13, 2025, to shareholders of record as of February 10, 2025.
The company has partnered with Alibaba Group to introduce AI-powered features for iPhone users in China, highlighting Alibaba’s growing expertise in large language models. Confirming the collaboration at the World Governments Summit, Alibaba Chairman Joe Tsai stated that Apple Inc. (NASDAQ:AAPL) selected Alibaba as its AI partner after evaluating multiple Chinese companies. The two firms have submitted their co-developed AI features for regulatory approval in China, aiming to enhance iPhone capabilities in the region. This partnership comes as Apple seeks to strengthen its position in the Chinese market, where it faces increased competition from local smartphone manufacturers. Analysts believe Alibaba’s AI expertise and extensive consumer data will help Apple offer more personalized experiences, potentially boosting iPhone sales.
Tsai Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter. It stated:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
11. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders as of Q4: 101
Bourgeon Capital’s Equity Stake: $13.81 Million
Danaher Corporation (NYSE:DHR), founded in 1984 by Steven and Mitchell Rales, is a global conglomerate headquartered in Washington, D.C., specializing in medical, industrial, and commercial products and services. The company is a leader in science and technology, driving innovation through three primary divisions: biotechnology, diagnostics, and life sciences. Through groundbreaking advancements, Danaher addresses critical health challenges, enhancing the quality of life for billions while building a more sustainable future. Originally established as DMG, Inc. in 1969, the company underwent several transformations before becoming Danaher Corporation (NYSE:DHR), inspired by a Montana creek where the founders envisioned their business. A pioneer in North America’s adoption of Kaizen principles, the company focuses on continuous improvement and efficiency.
Bourgeon Capital owned 60,178 shares of the company as of Q4 2024, with a total value of $13.81 million, representing 2.57% of John Zaro’s portfolio. Moreover, the fund increased its stake in Danaher Corporation (NYSE:DHR) by 8% during the fourth quarter of 2024, which suggests a positive hedge fund sentiment about the stock.
On January 28, 2025, Danaher Corporation (NYSE:DHR) announced its Q4 net revenue of $6.54 billion which showed a year-over-year growth of 2%. The company’s EPS was announced as $2.14, missing consensus estimates by $0.02.
Parnassus Growth Equity Fund stated the following regarding Danaher Corporation (NYSE:DHR) in its Q3 2024 investor letter:
“In Health Care, we continue to favor catalyst-rich names across subsectors, including medical devices, biopharma, life science tools and payors companies. We chose to consolidate our exposure in the Life Sciences Tools and Services industry by selling Danaher Corporation (NYSE:DHR) while maintaining our position in Thermo Fisher Scientific.
Our position in Danaher has been profitable, and we have opted to consolidate our life science tools bet in Thermo Fisher Scientific. Danaher has rerated since we initiated our position, and we believe the anticipated 2025 bioprocessing recovery is largely priced in.”
10. Marvell Technology, Inc. (NYSE:MRVL)
Number of Hedge Fund Holders as of Q4: 105
Bourgeon Capital’s Equity Stake: $14.04 Million
Marvell Technology, Inc. (NYSE:MRVL), headquartered in Santa Clara, California, is a leading semiconductor company specializing in AI-driven computing, connectivity, and storage solutions. Founded in 1995 by Dr. Sehat Sutardja, Weili Dai, and Pantas Sutardja, the company initially focused on CMOS-based read channel technology for disk drives, securing Seagate Technology as its first customer. Marvell has since grown into a key player in data center infrastructure, with operations spanning data centers, automotive, enterprise, and carrier networks. By integrating AI capabilities, the company is reshaping cloud architectures to enhance speed and performance, making AI more accessible across industries. With over 6,500 employees and 10,000 patents in 2024, the company remains at the forefront of semiconductor innovation.
Marvell Technology, Inc. (NYSE:MRVL) has expanded its capabilities through strategic acquisitions, including Cavium, Inc. in 2018, which brought key leadership additions to its board. In 2019, the company acquired Aquantia, further strengthening its networking solutions. The 2021 acquisition of Inphi Corporation led to Marvell’s reorganization and relocation of its corporate domicile to Wilmington, Delaware. In 2023, Marvell Technology, Inc. (NYSE:MRVL) expanded its presence in India with a development hub in Pune. These acquisitions have positioned Marvell as a leader in AI-powered infrastructure, reinforcing its role in advancing data center and semiconductor technology.
Marvell Technology, Inc. (NYSE:MRVL) posted strong financial results for the quarter ending November 2024, reporting $1.52 billion in revenue, which exceeded market expectations of $1.46 billion and reflected a 6.87% year-over-year increase. In addition, the company reported earnings per share (EPS) of $0.43, outperforming analyst projections of $0.41 by 5.53%, highlighting its steady growth and strong market position.
Bourgeon Capital owned 127,098 shares of the company as of Q4 2024, with a total value of nearly $14.04 million, making it the stock with the 10th largest stake in Zaro’s portfolio.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q4 2024 investor letter:
“Marvell Technology, Inc. (NASDAQ:MRVL) is a leading provider of semiconductor chips for data centers. This past quarter, management highlighted very strong orders coming from customers in the artificial intelligence (AI) space as well as design wins for future AI-related chips. Management shared a long-term view for a revenue target that was above expectation.”
