Billionaire Cliff Asness’ Top 10 Technology Stock Picks

In this article, we’ll look at billionaire Cliff Asness’ top 10 tech stock picks. If you want to see more of billionaire Cliff Asness’ top 10 tech stock picks, click here. Billionaire Cliff Asness’s Top 5 Tech Stock Picks.

Billionaire Cliff Asness is the founder of quantitative giant AQR Capital Management, which has a 13F stock portfolio worth over $40 billion as of the end of September.

As a quant fund, AQR Capital Management uses sophisticated data models and intensive computing to determine what to buy and sell. Given the fund’s massive size and Asness’s belief in diversification, AQR Capital Management has thousands of positions, regularly rotated in and out of the stock each quarter.

Given how large the US tech sector is, AQR Capital Management has significant positions in many leading tech stocks.

In the case of the S&P 500 Index, for example, the technology sector accounted for 28% of the index as of April 2022, more weight than the healthcare and consumer discretionary sectors combined.

In terms of AQR Capital Management’s portfolio, technology stocks account for seven of the fund’s top 10 positions.

Technology stocks make up a significant percentage of the S&P 500 and are also AQR Capital Management’s top rankings due to the industry’s growth over the past 30 years.

Given technological advances in semiconductors, computers and smartphones have gotten cheaper over time. As a result, some software, hardware, and Internet companies have grown significantly, with billions of potential customers. With their size, these companies have created even more useful services that make more people want to buy computers and smartphones.

Given their cycles, some software, hardware and internet companies have grown into some of the most valuable companies in the world that many investors want to own in their portfolios.

2022

Due to high inflation, the Fed has raised rates six times in 2022 alone, and many analysts expect the US central bank to raise rates further.

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Although core inflation was lower than expected in October, San Francisco Federal Reserve President Mary Daly said interest rates would rise by at least one percentage point or more before the Fed paused in mid-November to assess the inflation fight. He said he expects it to rise further.

As interest rates rose, Treasury yields rose significantly, resulting in a shift in capital away from large tech stocks and towards Treasuries. Capital flows have caused many large tech stocks to fall significantly to date. If the economy slows more than expected in the future, there could be a bigger decline in the near term.

Given the uncertainty, it may be a good idea for long-term investors to own a well-diversified portfolio of stocks across a variety of sectors.

AQR Capital Management

AQR Capital Management

Cliff Asness of AQR Capital Management

methodology

For billionaire Cliff Asness’ list of top 10 technology stocks, we selected 10 technology stocks from AQR Capital Management’s top holdings as of 13F filings as of Q3 2022.

We ranked by value of stock holdings in AQR Capital Management at the end of September.

Billionaire Cliff Asness’s Top 10 Tech Stock Picks

10. Texas Instruments (NASDAQ:TXN)

Equity value of AQR Capital Management as of September 30: $200,116,000

AQR Capital Management’s 13F Portfolio Ratio as of September 30: 0.48%

AQR Capital Management reduced its stake in Texas Instruments Incorporated (NASDAQ:TXN) by 10% to close the quarter with a stake valued at approximately $200 million. Since September 30th, the semiconductor company’s shares have risen thanks to a broad market rally, despite the company’s weaker-than-expected fourth-quarter guidance.

Baron Funds commented on Texas Instruments Incorporated (NASDAQ:TXN) in its Q3 2022 investor letter.

Shares of Texas Instruments Incorporated (NASDAQ:TXN), the world’s leading analog semiconductor company, are trading at 14% YoY sales growth, 23% operating profit growth, and 52% operating margin. While a potential macro slowdown and supply chain normalization have raised levels of uncertainty about near-term earnings and free cash flow trends, Texas Instruments has a long history of growing free cash flow per share relative to the market as a whole. Circulation to create shareholder value. We are still investors and believe that Texas Instruments will benefit from the growth of its semiconductor content across a wide range of end markets and applications. We also believe that manufacturing techniques and processes, a broad product portfolio, and the reach, diversity and longevity of our go-to-market organization will enable the company to maintain its competitive advantage over the long term. of its products.

Along with Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL), Texas Instruments Incorporated (NASDAQ:TXN) is a premier technology holding company owned by billionaire Cliff Asness’s AQR Capital Management. is one of them. End of Q3 2022.

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9. Arrow Electronics, Inc. (NYSE:ARW)

Value of equity in AQR Capital Management as of September 30: $207,532,000

AQR Capital Management’s 13F Portfolio Ratio as of September 30: 0.5%

Arrow Electronics, Inc. (NYSE:ARW) is one of AQR Capital Management’s largest technology positions, with the fund’s equity valued at more than $207 million as of the end of September. Arrow Electronics, Inc. (NYSE:ARW), which provides products and services to industrial and commercial users of electronic components and enterprise computing solutions, has performed poorly with its share price declining 19.5% year-to-date in 2022. Nonetheless, shares of Arrow Electronics, Inc. (NYSE:ARW) have increased since the end of the third quarter thanks to a broad market rally.

8. Cisco Systems (NASDAQ:CSCO)

Value of equity in AQR Capital Management as of September 30: $335,677,000

AQR Capital Management’s 13F Portfolio Ratio as of September 30: 0.81%

AQR Capital Management boosted its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 22% to close the quarter with a more than $335 million stake in computer networking giant Cisco Systems. For the first quarter, Cisco Systems, Inc. (NASDAQ:CSCO) reported adjusted EPS of $0.86 on revenue of $13.6 billion, compared to a consensus of $0.84 on revenue of $13.31 billion. For FY23, Cisco Systems, Inc. (NASDAQ:CSCO) expects adjusted EPS of $3.51-$3.58 from $3.49-$3.56 previously.

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7. Metaplatforms (NASDAQ:META)

Value of equity in AQR Capital Management as of September 30: $356,988,000

AQR Capital Management’s 13F Portfolio Ratio as of September 30: 0.87%

After a significant decline to date, Meta Platforms, Inc. (NASDAQ:META) is no longer among the 10 most valuable companies in the world. Nonetheless, Meta Platforms, Inc. (NASDAQ:META) was among the top 10 in AQR Capital Management’s 13F stock portfolio at the end of the third quarter, given the fund’s holdings in the social media giant worth more than $356 million. Meta Platforms, Inc. (NASDAQ:META) faces competition from TikTok, but it still has long-term growth potential.

6. Tesla, Inc. (NASDAQ:TSLA)

Value of equity in AQR Capital Management as of September 30: $381,898,000

AQR Capital Management’s 13F Portfolio Ratio as of September 30: 0.93%

Shares of Tesla, Inc. (NASDAQ:TSLA) fell recently due to CEO Elon Musk’s acquisition of Twitter. If you get distracted, some long-term Tesla, Inc. (NASDAQ:TSLA) shareholders probably benefited, given that the stock has still risen significantly over the past decade. However, in the case of AQR Capital Management, the fund increased its position in Tesla, Inc. (NASDAQ:TSLA) by 327% in the third quarter, ending the quarter with a stake worth nearly $382 million.

Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL), like Tesla, Inc. (NASDAQ:TSLA), are top technology holdings of billionaire Cliff Asness’s AQR Capital Management. no see. End of the 3rd quarter.

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Disclosure: None. Billionaire Cliff Asness’s Top 10 Tech Stock Picks Originally posted on Insider Monkey.

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