Facebook as a social media may have a lot of haters, but its stock? Not so much, at least when it comes to where the “smart money” is placing its bets.
The social network’s share were held by 27 of the biggest hedges fund at the end of the fourth quarter, making it the most held stock amongst all the hedge funds in the second quarter for two consecutive times, this according to FactSet. Facebook was followed by Visa which held 25 of the 50 funds and Microsoft which held 23 of the 50 funds.
This could be good news for the fund clients, considering Facebook has surged about 18% so far this year that could easily surpass the performance of the S&P 500 which caught a nice push earlier this month when the company shot past earning targets.
Facebook was not the most popular stock in terms of buys in the fourth quarter. While Facebook has remained fixed in most of these hedge-fund holdings, financials emerged as the most picked in the fourth quarter. In fact, gains were led by the Bank of America, which has the biggest racked over in that three month period.
“These top 50 hedge bought $3.5 billion worth of stock in the financials group during the fourth quarter, which represented the larger purchases of all eleven GIC’s sectors” this was explained by FactSet. Banks, in this got a huge push when Donald Trump became president.