Were Hedge Funds Right about Their Top 10 Picks in Q3?

A stock that managed to gain a popularity among hedge funds during the second quarter is Facebook Inc (NASDAQ:FB) and rightly so, since it inched up by 4.80% during the third quarter and stands at 18% in the green year-to-date. At the end of June, 133 funds held $8.86 billion worth of Facebook’s stock, representing roughly 3.70% of the company, which is also an indicator that hedge funds are a bit cautious regarding the company, despite its popularity. Analysts, on the other hand, are fairly optimistic on the stock, having a consensus ‘Buy’ rating and an average price target of around $110, which signals an upside of some 19%. In a research note on Friday, Deutsche Bank reaffirmed its ‘Buy’ rating and $115 price target, and said that it expects Facebook Inc (NASDAQ:FB) to report strong financial results for the third quarter and more growth in the upcoming months. Stephen Mandel’s Lone Pine Capital is the top shareholder of Facebook Inc (NASDAQ:FB) in our database, with a stake of 9.76 million shares, followed by Philippe Laffont’s Coatue Management and Ken Griffin’s Citadel Investment Group with 8.73 million shares and 5.07 million shares, respectively.

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