To The Moon

Key Takeaways:

• Top 5 Best Performed Hedge Funds In 2021
• Current Holdings of Best Hedge Fund's analysis

Hedge funds bounced back in December 2021, and deliver broad-based annual returns of10.3%, the third best performance since 2009.The 2021 YTD of hedge funds has lagged far behind the growth rates of the three major US stock indexes, however, some hedge funds have outperformed.

Cite from: https://arstechnica.com/

For an individual retail investor, a closer look at hedge funds’ data reveals which companies or sectors they are upbeat about – an interesting insight.

In this article, Capital Insights collect the TOP 5 Bestperformancehedge funds'in 2021 ,and you will see why they were gainers.

Top 5 Best Performed Hedge Funds In 2021

Data from TipRanks, Chart Made by Capital Insights

No.1 John Kim (Night Owl Capital Management)

Kim's portfolio shows that Microsoft (MSFT) makes up 9.3% of the portfolio, followed by Amazon (AMZN) and Aon (AON) at 8.8% and 8.5%, respectively. Tech stock weights the most of his holdings.

No.2 Nelson Peltz (Trian Fund Management)

Peltz’s currently holding covers Comcast (CMCSA) which makes up 13.8% of the portfolio, followed by Sysco (SYY) and Invesco (IVZ) at 13.1% and 10.9%, respectively.

No.3 Brad Gerstner (Altimeter Capital Management)

Altimeter’s portfolio currently holds snowflake (SNOW) ,which makes up more than half of the portfolio at 52%, followed by Meta Platforms (FB) and Uber Technologies (UBER) at 10.4% and 8.9%, respectively.

No.4 Chuck Akre (Akre Capital Management)

The portfolio managed by Akre currently holds Mastercard (MA), Moody’s (MCO), and American Tower (AMT) , which make up 12.5%, 12.3%, and 11.4% respectively.

No.5 Andy Brown (Cedar Rock Capital Ltd.)

Brown 's portfolio with 24.7% invested in Procter & Gamble (PG) and 18.2% invested in Phillip Morris (PM). The portfolio has a majority holdings which weigh 58.6% in the Consumer Goods sector.

Holdings of Best Performed Hedge Funds' Analysis

Below are the sector and action analysis about the mentionedhedge funds:

• Holdings Proportion By Sectors

As you can see fromthe above chart, hedge fund managers have a preference for tech stocks in 2021 .

Among the top 45 companies holds by 5 Hedge funds , 20 are tech companies which accounts for 44% of total holdings, followed by services and finance sectors account for 22% & 20% respectively.

• Buy& Sell Actions by Sectors

As can be seen from the chart, In 2021, technology companies was accounted for the highest proportion of top holdings. Then the service sector also received better attention from fund managers, while the consumer goods sector represented by AMZN was sold off in 2021.

As we can see, many high-yielding hedge funds had benefited from tech companies in 2021.

However,hedge funds are selling tech shares at their fastest pace in a decade as rates spike in recent days.(Watch out! 10 Large Tech Stocks Are Dumped by Hedge Funds)

Inside the article, we have common sense that tech stocks are sensitive to rising yields because increased debt costs can hinder their growth and can make their future cash flows appear less valuable.Many big investing banks are selling Tech stocks, marked the biggest sale in more than 10 years . They may expect tech companies will retreat under the pressure of High Valuation Correation and Rate Hike impact.

Below are the current trend of NASDAQ

Here are the Questions:

Do you still believe technology companies will fly to the moon again？

Which sectors will be the next "tech-sector" in 2022 ?

What sectors will benefit from the Fed's interest rate hike?

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