The most popular stock among hedge funds last quarter was Facebook FB, according to 13F filings. This is based on the total number of funds buying a stock, not the net buys or net change in allocated capital.
Some big names were buying the social network in the second quarter. Tech-focused hedge funds and growth-focused funds were the biggest buyers, although there were also surprises in the data.
Pat Dorsey's Dorsey Asset Management bought shares. The hedge fund increased its position by 6% overall. It now makes up just under 24% of the hedge fund's portfolio. However, it is a relatively small position compared to other firms at 640,000 shares.
Stephen Mandel's Lone Pine Capital, for example, owns a total of 5.3 million shares. Lone Pine was also buying during the second quarter. The fund increased its position by 49%. As a result, Facebook is now the fifth-largest position in the $20 billion hedge fund.
Lee Ainslie (Trades, Portfolio)'s Maverick Capital, another tech-focused hedge fund giant, bought several hundred thousand more shares in Facebook during the quarter. It now owns just under 1.7 million shares, making it the largest holding in the $5 billion hedge fund.
Wells Fargo
The next most bought stock was Wells Fargo WFC. This company was popular with value investors, although some other big names did add to their holdings.
For example, Maverick Capital increased its position by 750%, although even after this gain, the holding is still less than 0.1% of the overall portfolio.
David Tepper (Trades, Portfolio)'s Appaloosa Management added to its holding, taking the position up to 1.9 million shares or 0.8% of his fund's portfolio.
Dodge & Cox was the largest buyer. The fund manager boosted its position by 14% to 63 million shares in the struggling banking giant.
Others
Other top buys by hedge funds during the quarter include Berkshire Hathaway BRK.A BRK.B and Microsoft MSFT.
Madison Square Garden Ent. Corp. MSGE was bought by five big hedge funds during the quarter. Most of these positions were relatively small compared to the overall portfolio. Howard Marks (Trades, Portfolio)'s Oaktree Capital Management was a buyer. The firm acquired 30,000 shares in the entertainment business during the three months to the end of June, giving the position a 0.06% portfolio weight. Prem Watsa (Trades, Portfolio)'s Fairfax Financial Holdings also decided to take a position of 8,000 shares, giving it a 0.04% portfolio weight.
Another firm that was popular with hedge funds during the second quarter was the newly-merged defense group, Raytheon Technologies Corp. RTX. The biggest name buying the company was Chris Hohn's TCI Fund. The $25 billion hedge fund group acquired a position worth nearly $700 million during the quarter, giving it a 2.8% portfolio weight. Daniel Loeb (Trades, Portfolio)'s Third Point, which already owned a significant stake in the defense contractor before the beginning of the second quarter, increased its holding by 31%. Following this deal, Raytheon Technologies is now a top 10 position in Loeb's fund.
Disclosure: The author owns shares in Wells Fargo and Berkshire Hathaway.
Read more here:
- Seth Klarman Exits Energy, Bets on Healthcare
- Warren Buffett: The Ruthless Business Manager
- Warren Buffett: Bank of America Is a 'Fantastic Business'
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
