The hedge fund industry rebounded in 2017, reversing its massive declines and liquidations recorded in the last year amid scandals and investor exodus over high fee. In May this year, HFRI Fund Weighted Composite Index rose 0.5%, to 3.5%, compared to S&P 500 growth of 1.2%. A report from CNBC suggests that hedge funds posted record returns in the first half of 2017. In this article we will mention some of the best stocks which famous hedge funds are buying.
Allergan plc Ordinary Shares (NYSE:AGN)
Allergan is one of the most famous companies among the smart money. According to hedge fund VIP list compiled by Goldman Sachs, in 2017, the pharmaceutical stock is in the portfolios of 25 top hedge funds. The stock has gained over 21% since the start of this year.
Facebook Inc (NASDAQ:FB)
Facebook remains the top choice of hedge funds in 2017. The stock is owned by over 155 top hedge funds, as of the end of the first quarter, according to the data compiled by Insider Monkey. One of the biggest investors in Facebook include billionaire Ken Fisher’s Fisher Asset Management and Paul Cantor’s Beech Hill Capital Partners.
JD.Com Inc(ADR) (NASDAQ:JD)
JD.Com Inc(ADR) (NASDAQ:JD) is a spectacular ecommerce stock which remains unfazed despite of the wavering industry. The Chinese ecommerce company’s shares have grown over 76% over the last 7 months. JD.Com is focusing on affluent shoppers and revamping its delivery system to get more orders. According to Goldman Sachs, 16 top hedge funds are bullish on JD.com.
Adient PLC (NYSE:ADNT)
Adient PLC (NYSE:ADNT) is an Ireland based company which manufactures and sells seating equipment for cars. According to the data compiled by Goldman Sachs, 17 hedge funds are bullish on Adient. Adient recently posted a solid third quarter report, reporting adjusted-EPS growth of 4% to $2.52.
Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC)
According to a report by the New York Post, hedge funds are favoring bank stocks in 2017, mainly after the election of Donald Trump. Increasing interest rates and thriving economy are boding well for the banks. Investors like Dan Loeb, who runs hedge fund Third Point, have massive positions in Bank of America, Wells Fargo and JPMorgan.
Salesforce is another great growth stock hedge funds are amassing in 2017. The stock is set to grow to new highs amid a massive potential due to Cloud computing and AI. According to Goldman Sachs, Salesforce is in the portfolios of about 17 elite hedge funds.