Institutional investors are among the biggest players in the financial world, and thus, knowing which stocks they are buying could provide value to retail investors. In general, hedge funds and other institutions are known for having state-of-the-art research tools and resources and the best analysts. As a result, the stocks they are investing in usually exhibit significant upside potential. Let’s take a look at the top stocks bought by institutional investors so far in 2023.
Top Stocks Bought By Institutional Investors
We used the 13F and 13D/13G filings that have been submitted since the beginning of Q2 2023 to determine the top stocks bought by institutional investors in 2023 year to date. We only considered stocks (not exchange-traded funds or other funds) for our list of the top stocks bought by institutional investors so far in 2023.
10. Salesforce ($12.08 billion)
Salesforce Inc (NYSE:CRM) is working aggressively to incorporate artificial intelligence (AI) in its operations, which is probably what’s attracting hedge funds to it this year. The top three institutions that have bought Salesforce shares so far in 2023 are: Capital World Investors ($2.26 billion), Capital Research Global Investors ($1.12 billion), and JPMorgan Chase & Co ($653.57 million).
Last month, Salesforce unveiled its conversational AI, Slack GPT. The AI’s significant potential could help the company boost its sales and, in turn, its stock price. Salesforce stock has gained almost 58% since the start of the year, while it is up over 15% in the past 365 days.
9. UnitedHealth Group ($15.55 billion)
UnitedHealth Group Inc (NYSE:UNH) is a large, diversified health insurance company with a modest dividend payout ratio of about 30%. The top three institutional investors that have bought UnitedHealth Group shares are: Envestnet Asset Management ($2 billion), T Rowe Price Investment Management ($917.34 million), and Renaissance Technologies ($457.4 million).
UnitedHealth Group recently reported that it is witnessing a rise in surgeries. This should increase its costs and impact its bottom line. However, the company’s operations seem efficient enough to absorb these rising costs. UnitedHealth Group shares are down almost 10% so far this year.
8. Linde ($15.8 billion)
Linde (NYSE:LIN) shares have been outperforming the broader market, reflecting robust demand for the company’s industrial gases. Linde has long-term contracts that include minimum purchase requirements with on-site customers.
The top three institutions that have bought Linde shares are: Wcm Investment Management ($1.15 billion), Artisan Partners Limited Partnership ($1.04 billion) and BlackRock ($943.49 million). Linde stock has gained almost 14% year to date, bringing its one-year gain to more than 25%.
7. NVIDIA ($17.98 billion)
Big money managers bullish on artificial intelligence are chasing after shares of this U.S. tech company. The top three institutional investors that have bought NVIDIA Corp (NASDAQ:NVDA) shares are: GQG Partners ($1.75 billion), Bank of America Corp ($1.68 billion), and JPMorgan Chase & Co ($1.53 billion).
NVIDIA has witnessed positive sales growth of over 38% and earnings growth of over 40% in the past three years. The stock has gained almost 189% since the start of the year, while it is up by over 150% in the past 365 days.
6. Alphabet ($19.01 billion)
Google parent Alphabet Inc (NASDAQ:GOOG) is among the best FAANG stocks to buy now based on this institutional buying list. The top three institutions that have bought Alphabet shares are: Wellington Management Group ($1.22 billion), Capital Research Global Investors ($799.01 million), and BlackRock ($622.4 million).
In April, UBS analyst Lloyd Walmsley reiterated a Buy rating on Alphabet shares and raised his price target to $123 from $120. The stock has gained almost 37% since the start of the year, although it is up only 6% over the past 365 days.
5. Meta Platforms ($20.81 billion)
Several prominent hedge funds, including Arrowstreet Capital, D1 Capital Partners and Coatue Management, bought shares of Meta Platforms Inc (NASDAQ:META) in Q1. The stock is also on the watch list of many other popular hedge funds in Q2. The top three institutional investors that have bought Meta Platforms shares are: JPMorgan Chase & Co ($1.56 billion), Price T Rowe Associates Inc Md ($1.12 billion), and Nuveen Asset Management ($1.05 billion).
Meta Platforms sustained the worst decline among mega-cap stocks in 2022, but it has bounced back strongly. The stock is up almost 140% this year so far.
4. GE Healthcare Technologies ($22.26 billion)
GE HealthCare Technologies Inc (NASDAQ:GEHC) provides medical technology, pharmaceutical diagnostics and digital solutions. The top three institutions that have bought GE Healthcare shares are: General Electric Co ($6.34 billion), Vanguard Group ($2.53 billion) and BlackRock ($1.88 billion).
Earlier this year, GE announced the separation of its healthcare business, with GE common stockholders receiving one share of GE Healthcare for every three shares of GE common stock held. GE Healthcare stock has gained almost 37% since the start of the year.
3. Amazon ($23.18 billion)
This e-commerce and tech giant has been popular among hedge funds and other institutional investors for many years now. The top three institutions that have bought Amazon.com, Inc. (NASDAQ:AMZN) shares are: JPMorgan Chase & Co ($1.9 billion), Bank Of America ($1.69 billion) and Wellington Management Group ($1.25 billion).
Although skyrocketing inflation took a toll on Amazon’s e-commerce business last year, the stock has performed well this year so far. The stock has gained almost 54% since the start of the year, although it is up by only 14% over the past 365 days.
2. Microsoft ($31.36 billion)
Microsoft Corp (NASDAQ:MSFT) seems to be the second-most popular stock among institutional investors this quarter. The top three institutions that have bought Microsoft shares are: Vanguard Group ($1.81 billion), Envestnet Asset Management ($1.56 billion), and BlackRock ($1.46 billion).
Microsoft stock has performed relatively well this year despite a noticeable rise in inflation and the Federal Reserve’s monetary policy response to it, which has created a tough backdrop for the tech sector. The stock has gained almost 40% since the start of the year, while it is up more than 32% in the past 365 days.
1. Apple ($33.79 billion)
With a total value bought of almost $34 billion, Apple Inc (NASDAQ:AAPL) is the top stock bought by institutional investors this year so far. The top three firms that have bought Apple shares are: Vanguard Group ($4.65 billion), Berkshire Hathaway ($3.01 billion), and Bank Of America Corp ($2.27 billion).
Similar to other tech stocks, Apple had a tough time last year, but it is now making an impressive comeback. The stock has gained almost 44% since the start of the year, while it is up almost 32% in the past 365 days.
FAQs
What stock is held by most hedge funds and other institutional investors?
Hedge funds and other institutions usually favor mega-cap stocks. In fact, mega-caps dominate the list of the top stocks owned by institutional investors. The stocks held by most institutions are: Apple, Amazon, Meta, Alphabet, NVIDIA and Berkshire Hathaway.
What is a perfect hedge-trading stock?
A perfect hedge is a strategy that helps in eliminating the risk in an existing position or eliminates all market risk from a portfolio. Investors generally use options, futures and other derivatives to achieve a perfect hedge.
What is the most successful hedge fund of all time?
Ken Griffin’s Citadel Investment Group is the most successful hedge fund of all time. It is estimated that Citadel has accumulated $65.9 billion in net gains since its founding in 1990.
Who owns the biggest hedge fund?
Ray Dalio‘s Bridgewater Associates, with $126.4 billion in assets under management, is the biggest hedge fund in the U.S. Founded in 1975, Bridgewater is headquartered in Westport, Connecticut. It was originally founded in New York City.
What is the minimum net worth required to invest in a hedge fund?
Hedge funds usually follow the SEC’s minimum-income rules, i.e. an investor needs to have a net worth of $1 million or make more than $200,000 ($300,000 for married couples) in each of the last two years to invest. Such requirements ensure you are an “accredited investor.”
In most cases, the minimum initial investment required by a hedge fund ranges from $100,000 to upwards of $2 million.
