Hedge funds have become more popular among billionaire investors in the U.S., especially now that they have performed better than the stock market.
Their growing popularity has led to the emergence of more companies that assist high net-worth individuals, whether they are looking for hedge fund investing in Park City, Utah – which firms such as alphawealthfunds.com can help them with – or in major cities such as New York.
Outperforming the Stock Market
The hedge fund market outperformed the stock market for the first time since 2008. Increased volatility in stocks and higher energy prices contributed to a 0.38% return between January and April, based on figures from HFRI Fund Weighted Composite Index.
Healthcare and technology stocks have been the largest influencers on the growth rally with a combined 4.54% gain, according to the index. For the first quarter, the top five most popular hedge fund stocks comprised Microsoft, Amazon, Apple, Facebook and Alphabet.
The likes of Warren Buffett and Carl Icahn have dabbled in technology, services and healthcare stocks.
Buffett’s top three holdings consisted of Apple, Wells Fargo and Bank of America owned through Berkshire Hathaway, which was among the top 25 hedge fund picks in the first quarter. The iPhone maker was the second richest person’s biggest buy recently, while Phillips 66 was his biggest sell.
Icahn’s biggest buy consisted of stocks in Newell Brands held under Icahn Enterprises, although his top three holdings comprised CVR Energy, Cheniere Energy and Herbalife.
Hedge fund billionaire George Soros’ recent stock buy was VICI Properties, which now account for the third biggest share of his holdings through Soros Fund Management.
Hedge funds have been known to be secretive with their investment holdings, but their recent filings with the Securities and Exchange Commission have provided some insights on how some of the ultra-rich are making their money these days.
The key to their success is partly due to their choice of a knowledgeable asset manager.