Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) are still the top holdings in mutual funds and hedge funds, respectively, according to Citi analysts Tobias M Levkovich, Lorraine M Schmitt and Christina Wood. They examined the top five actively managed funds in each of the two categories.
Google holds at #1 in mutual funds
This is the fourth consecutive quarter in which Google Inc (NASDAQ:GOOG) has retained its position as the top holding at mutual funds. The search giant did see a “subtle decline” in the number of mutual funds which hold shares. During the third quarter of this year, 18 funds held Google shares. In the previous quarter, 20 of them held Google shares.
Microsoft Corporation (NASDAQ:MSFT) again came in second in holdings for mutual funds, with 15 of them holding the company’s shares. That’s a decline from 19 in the previous quarter. Mastercard Inc (NYSE:MA) saw the biggest increase in the number of mutual funds holding its shares, climbing from three funds in the second quarter to eight funds in the third quarter. The company with the biggest decline sequentially was Wells Fargo & Co. (NYSE:WFC) with a loss of eight mutual funds.
Here’s a full look at the latest mutual fund holdings according to Citi Research and FactSet.
Citi analysts noted “a much greater concentration amongst a handful of names” at hedge funds. Google Inc (NASDAQ:GOOG) is one of four companies which share the top spot at hedge funds. Apple Inc. (NASDAQ:AAPL), QUALCOMM, Inc. (NASDAQ:QCOM) and Priceline.com Inc (NASDAQ:PCLN) are the other three companies. Eight of the top 50 hedge funds own these companies.
Microsoft Corporation (NASDAQ:MSFT) shares second place with Thermo Fisher Scientific Inc. (NYSE:TMO). There are seven of the top hedge funds with stakes in these companies. Third place is again shared by two companies—CBS Corporation (NYSE:CBS) and Dollar General Corp. (NYSE:DG)—and fourth place is shared by five different companies.
Here’s a full look at the latest hedge fund holdings according to Citi Research and FactSet.
Leading segments at mutual and hedge funds
In terms of investment categories, Citi analysts noted “an increasing preference for Consumer Discretionary” at both mutual funds and hedge funds. Discretionary stocks made up more than one-third of the top holdings among hedge funds. Information Technology was nipping at its heals, however, Energy stocks lost quite a bit of ground, and Citi analysts suggest this might have been because of sector price performance.
In mutual funds, allocation fell from Consumer Staples and moved toward Health Care. Materials and Utilities didn’t have much of a representation in either mutual or hedge funds.
