London, UK, 3rd August 2021, ZEXPRWIRE – Hedge funds have had a rough go of it so far in 2021, but that hasn’t stopped investors from following the “smart money”. The Eurekahedge Hedge Fund Index has delivered an annualized total return (price appreciation plus dividends) of 7.8% for the year-to date and you can bet on seeing more hedge fund activity than ever before as volatility spooks even those with blue chip stocks to their name.
Hedge funds are large pools of money that can be used for trading both stocks and bonds. Hedge fund operators typically try to make big profits by investing in various types of securities, including derivatives and other instruments. The broker from London Gates says because hedge fund investors collect higher returns than average from the usage of leverage (margin), some also see them as highly risky investment tools.
Now, unlike the early years of this bull market where hedge funds were getting hammered and seen as a sign of a top, they’ve actually been leading the charge since 2016. As the best performing segment for two consecutive quarters, an unusual combination of events has allowed these stock picking wizards to rise from their grave. So here are our 11 top picks for hedge funds in 2021.
1) Google (GOOGL) Rating: 4/5 – Extremely Attractive The self-driving car was once a dream, but is now reality, and much of the credit goes to Google’s innovative software. Though it has its own ride share program, Waymo, this tech giant should be dominant for decades.
2) Apple (AAPL) Rating: 4/5 – Extremely Attractive The iPhone is the most popular phone in the world, and though some people have moved on to Androids, there’s no denying that AAPL has created a near-perfect product. It also makes smart TVs and revolutionary smart watches, and though it’s been hit with some controversies lately, Apple is still a strong company.
3) Facebook (FB) Rating: 5/5 – Outstanding What started as a website where college kids could talk to each other has become one of the most powerful companies in the world. With nearly three billion monthly active users, there’s always new content for Facebook to use, which gives it a virtual monopoly on relevant advertising.
4) Twitter (TWTR) Rating: 4/5 – Extremely Attractive Though it has struggled lately, Twitter is still the best way for the world’s leading brands to have a conversation with their customers. It’s also changed how news is delivered, and tech giants like Amazon are using its live streaming application to reach more people.
5) Tencent Holdings (TCEHY) Rating: 4/5 – Extremely Attractive Like Facebook, shares of Chinese social media giant Tencent Holdings have pulled back some in 2018 after a massive run. However, the stock still has plenty of room to run thanks to the fact that 902 million people use its networks in China. As a result, it should be one of the biggest beneficiaries of China’s growth for decades.
6) Alphabet (GOOGL)(GOOGL) Rating: 4/5 – Extremely Attractive Google’s parent company had a solid quarter as it continues to make strides in the cloud computing industry, where it’s one of the biggest players. Microsoft and Amazon are also big competitors, but both still trail GOOGL in terms of market cap–a sign investors believe there’s plenty of room for growth.
7) Netflix (NFLX) Rating: 4/5 – Extremely Attractive Like Tencent, shares of Netflix have pulled back some in 2018. However, there’s still plenty of room to run as this streaming giant is the market leader with 116 million subscribers worldwide. Moreover, it should be able to continue growing for decades thanks to its original content and a debt-free balance sheet.
8) Amazon (AMZN) Rating: 4/5 – Extremely Attractive This online retailer still has plenty of room to run in the U.S. and internationally, according to investors. Moreover, it recently bought Whole Foods Market for $13 billion, so expect it to keep placing bricks-and-mortar investments as well.
9) American Express (AXP) Rating: 4/5 – Extremely Attractive The payments giant is growing at a steady pace thanks to its credit card business, which has allowed it to deliver solid profit growth for decades now. Moreover, it should be able to benefit from tailwinds in the form of more spending by consumers and governments around the world.
10) Adobe Systems (ADBE) Rating: 4/5 – Extremely Attractive This software giant has enjoyed revenue and earnings growth thanks to its strong focus on digital marketing. Moreover, instead of relying too much on ads with questionable ROI, it’s focused on ad-free solutions that cost more per month but are more profitable.
11) Bank of America (BAC) Rating: 3/5 – Very Attractive Some would argue that BAC isn’t a growth stock anymore, but don’t think for one second that it’s not worth owning. The company has struggled lately, but it still generates hundreds of billions in revenue and is free-cash-flow positive. With a strong balance sheet, it should be able to generate profits for decades to come.
Disclaimer: Our content is intended to be used for informational purposes only.It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.