In November, hedge funds lost nearly 2% of their value. COVID-19’s omicron variant spread across the market, resulting in increased market volatility. Quant hedge funds in China have seen many of their expansion plans curtailed due to increased regulatory scrutiny. The assets under management at these funds have increased five-fold in the last two years. For example, in 2021, hedge funds made solid bets on companies such as Alphabet Inc., Microsoft Corporation and Apple Inc. that are likely to pay handsome returns in the long run. The following are some of the best-performing stocks in this regard.
Insider Monkey highlights the 10 stocks that hedge funds were right about in 2021. For several years, Adobe Inc. has consistently outperformed the market in terms of earnings. In the first three quarters of this year, the company has raised its guidance twice. One of the largest shareholders, Fisher Asset Management, owns 6.4 million shares, which are worth over $3.7 billion. Competition in the streaming industry has taken a toll on Netflix, Inc. recently. By limiting the number of screens or devices a user can access, some analysts believe Netflix can boost subscriber numbers significantly. It’s hard to beat the current share price of ServiceNow, Inc. for long-term growth potential. The company’s products are used by more than 85% of Fortune 500 companies. Increased the price target to $800 from $760 by Joseph Bonner of Argus. An estimated $70 billion will be spent by Meta Platforms Inc. between now and 2023 to pursue an opportunity for multi-trillion dollar metaverse. In the span of a few months, the company has dealt with user hacks, antitrust legislation, and a rebranding. In the second half of 2021, JPMorgan Chase & Co. made a comeback on the stock market. Large-cap banks are expected to benefit from increased EPS sensitivity, increased loan and dividend growth, and increased earnings potential. For more details, click 10 Stocks That Hedge Funds Were Right About In 2021.