This article discusses Cliff Asness’ AQR Capital Management’s top 5 technology stock picks at the end of the second quarter. To know about Mr. Asness’s early career, the history of AQR Capital Management, its recent performance, and the other technology stocks it held in its portfolio, please read: Top 10 Technology Stocks to Buy According to Billionaire Cliff Asness.
5. Meta Platforms, Inc. (NASDAQ:META)
AQR Capital Management’s Stake Value: $437,486,000
AQR Capital Management’s 13F Portfolio: 0.98%
Number of Hedge Fund Holders: 184
Despite many analysts considering Meta Platforms, Inc. (NASDAQ:META) a value buy at current levels, smart money investors seem to be fleeing the stock in droves. The ownership of a stake in Meta Platforms, Inc. (NASDAQ:META) among around hedge funds tracked by Insider Monkey has seen a steady decline to 184 at the end of June this year from 275 at the same time last year.
According to Bloomberg, US District Judge Edward Davila will hear Meta Platforms, Inc.’s (NASDAQ:META) plea against the Federal Trade Commission in December on a case related to the latter pre-emptively blocking the former’s acquisition of VR app maker Within. In July, the FTC had filed a suit to block Meta Platforms, Inc.’s (NASDAQ:META) $400 million acquisition of Within. Following this, on August 5, Meta Platforms, Inc. (NASDAQ:META) said that it is temporarily putting the acquisition on hold as it prepares to fight the FTC in court over this deal.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
AQR Capital Management’s Stake Value: $557,382,000
Percentage of AQR Capital Management’s 13F Portfolio: 1.25%
Number of Hedge Fund Holders: 72
Apart from Intel Corporation (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was another company that made it to Insider Monkey’s recently published lists 5 Stocks That Will Benefit from CHIPS Act and 5 Semiconductor Stocks to Buy on the Dip.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the few companies currently facing double quandaries in the form of increasing tensions between China and Taiwan and a slowdown in the semiconductor industry. Yet, despite those concerns, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) stock has fallen only 19% in the last one year and is still up by more than 520% over the past 10 years.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has been paying a dividend to its shareholders for many years in a row and, as of August 2022, pays an annual dividend of $1.93 per share, which, based on its current stock price translates to a dividend yield of 2.07%.
3. Alphabet Inc. (NASDAQ:GOOG)
AQR Capital Management’s Stake Value (Class A Stock): $619,843,000
Percentage of AQR Capital Management’s 13F Portfolio (Class A Stock): 1.4%
AQR Capital Management’s Stake Value (Class C Stock): $358,986,000
Percentage of AQR Capital Management’s 13F Portfolio (Class C Stock): 0.81%
Number of Hedge Fund Holders (Class A Stock): 191
Number of Hedge Fund Holders (Class C Stock): 153
AQR Capital Management reduced its stake in both class C and class A stock of search giant Alphabet Inc. (NASDAQ:GOOG) during the second quarter, yet the search giant was the fund’s third favorite stock pick in the tech sector. While AQR Capital Management cut its stake in the class C stock by 291,020 shares to 3,282,240 shares, it lowered its stake in the class A stock by 482,620 shares to 5,754,580 shares.
Funds tracked by us that disposed of their entire holdings in Alphabet Inc. (NASDAQ:GOOG) during Q2 included billionaire Jim Simons’ Renaissance Technologies and Crispin Odey’s Odey Asset Management Group.
Of the 20 analysts on Wall Street who cover Alphabet Inc. (NASDAQ:GOOG), 19 currently have a ‘Buy’ rating on the stock, and those 20 analysts have a consensus price target of $158.4, representing a potential upside of over 30%. On July 27, analysts at Piper Sandler reduced their price target on Alphabet Inc.’s (NASDAQ:GOOG) stock to $135 from $139 but maintained their ‘Overweight’ rating on it.
2. Microsoft Corp. (NASDAQ:MSFT)
AQR Capital Management’s Stake Value: $1,195,293,000
Percentage of AQR Capital Management’s 13F Portfolio: 2.7%
Number of Hedge Fund Holders: 258
Microsoft Corp. (NASDAQ:MSFT) retained its top spot as the most popular stock among hedge funds covered by Insider Monkey, with 258 hedge funds disclosing a stake in the company at the end of Q2, one less than the 259 that reported a stake at the end of the previous quarter. Also, billionaire Ken Fisher’s Fisher Asset Management increased its stake in the company by 3% to 28,694,382 shares and remained the hedge fund with the largest stake in Microsoft Corp. (NASDAQ:MSFT) at the end of Q2 among the 895 hedge funds we cover.
For the fourth quarter of its fiscal year 2022, Microsoft Corp. (NASDAQ:MSFT) reported earnings per share of $2.23 on revenue of $51.87 billion, missing analysts’ projections by $0.07 and $493.37 million, respectively. Nonetheless, most analysts covering the stock continue to remain bullish on it. On August 12, analysts at Guggenheim initiated coverage on Microsoft Corp.’s (NASDAQ:MSFT) stock with a ‘Neutral’ rating and a $292 price target.
1. Apple Inc. (NASDAQ:AAPL)
AQR Capital Management’s Stake Value: $1,329,757,000
Percentage of AQR Capital Management’s 13F Portfolio: 3%
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) remained the apple of AQR Capital Management’s eye at the end of Q2. Not only did the company retain its spot as AQR Capital Management’s top stock pick from the technology sector, but it also remained the fund’s favorite stock pick overall at the end of June. The surprising part of that achievement was that AQR Capital Management reduced its stake in Apple Inc. (NASDAQ:AAPL) by 6% to 9,852,970 shares between April and June.
On August 18, celebrated tech analyst and founder of Loup Ventures, Gene Munster, appeared on CNBC and said that based on his analysis, 70% of Apple Inc.’s (NASDAQ:AAPL) current product offerings are ‘necessities’ and not what one would consider ‘discretionary spending.’ Mr. Munster also talked about how far he thinks the stock can go from here, saying:
“I think that from an upside potential, I think there is still measurable upside, I think 40%+ upside over the next couple years, around $250.”
On the same day, Bank of America’s Chief Market Technician, Stephen Suttmeier, released a note to clients in which he mentioned that if Apple Inc.’s (NASDAQ:AAPL) stock finds support near $157-$150 levels during a downturn, it will set a bullish head and shoulders continuation pattern. Mr. Suttmeier further argued that if that were to happen, the stock could march towards its December 2021 highs of $183 from $176, which will confirm the pattern and then the stock can see further upside to $230 levels.
You can also look at 10 Best Tech Stocks to Buy Now According to Lee Munder’s Hedge Fund and Levin Easterly Partners’ Latest Portfolio: Top 10 Stock Picks.
