Latest news with #hedgefunds
Yahoo
10 hours ago
- Business
- Yahoo
Billionaire Chase Coleman Just Loaded Up on 4 Brilliant AI Stocks
Taiwan Semiconductor trades at a huge discount to the broader market. Nvidia and Amazon still have major growth levers they're pulling. Microsoft is delivering solid growth, but it may not be fast enough to justify its premium valuation. 10 stocks we like better than Nvidia › I monitor billionaires' investments in hedge funds, which gives me investment ideas and helps me determine whether my thoughts on a particular stock are still relevant. One of the funds I follow is Chase Coleman's Tiger Global Management fund, which made some major purchases of top artificial intelligence (AI) stocks during the first quarter. What stocks did Coleman and his team load up on? Let's take a look. If a fund has over $100 million in assets, it is required to divulge its end-of-quarter holdings to the Securities and Exchange Commission (SEC). Then, 45 days after the close of a quarter, that information is made available to the investing public through a Form 13-F. Although this information comes to investors a bit late, it still gives investors an idea of what the fund is doing, especially when compared to its holdings in previous quarters. During the first quarter, Tiger Global Management purchased a few big-time AI stocks. These included Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), and Taiwan Semiconductor Manufacturing (NYSE: TSM). All four of these stocks were already in Tiger Global Management's portfolio prior to Q1, so these represent further buys from Coleman and his team. Although we don't know exactly when the stocks were bought in Q1, we know that since the end of the quarter, each has risen in price. Are any of these four worth buying right now? If you examine each stock by its forward price-to-earnings (P/E) ratio, you can understand how highly each stock is valued relative to the others. The first thing that stands out is that all four of these stocks are still valued at the bottom end of their trading range throughout most of 2024. So, even though they could have been purchased for much cheaper prices just a few weeks ago, they're still attractive considering their range. The second thing that stands out is how cheap Taiwan Semiconductor is compared to the other three. Taiwan Semi's stock can be purchased for under 21 times forward earnings, which is significant because the S&P 500 trades for 22.1 times forward earnings. This is a lower-than-market multiple, yet Taiwan Semi is expected to deliver monster growth over the next five years. Management believes its AI-related revenue can increase at a 45% compound annual growth rate (CAGR), and its overall revenue CAGR will approach 20%. That's faster than the broader market's growth over the next five years (usually around 10% annually), making Taiwan Semiconductor stock a fantastic buy right now. The other three have a bit more work to do. They're trading at a premium valuation, so they will need to deliver market-beating growth. Nvidia is probably the easiest company to make this case for, as its GPU empire is still expanding to meet the massive computing needs of the AI arms race. Wall Street analysts expect 53% revenue growth in fiscal year 2026 (ending January 2026) and 24% next year, so Nvidia has the growth to justify its premium price tag. Amazon's projected revenue growth in 2025 and 2026 is 9% and 10%, respectively. This might immediately throw red flags for investors, as it's slower than the broader market's growth. However, Amazon isn't a revenue growth story; it's a margin expansion story. Over the past few years, Amazon's higher-margin segments have grown much faster than its lower-margin ones, allowing its margins to expand dramatically. This expansion isn't done yet, making Amazon an intriguing stock to consider buying. Last is Microsoft, which is expected to grow revenue at a 14% and 13% pace in 2025 and 2026, respectively, which is quite impressive. However, Microsoft doesn't have the same margin expansion story as Amazon, which slightly caps its return potential. While Microsoft has proven to be a strong and resilient business over the past few years, I don't think I'd want to own the stock as much as the other three. It's just as expensive as Amazon and Nvidia, yet it doesn't have quite the growth upside to justify the cost. Microsoft isn't a bad AI stock to own, but it doesn't have the same potential as the others, which is why it's at the bottom of my list for the four AI stocks that Tiger Global Management bought this quarter. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaire Chase Coleman Just Loaded Up on 4 Brilliant AI Stocks was originally published by The Motley Fool
Russia Today
11 hours ago
- Business
- Russia Today
Ukraine on brink of default
Ukraine will not pay $665 million it owes to international creditors, the country's Finance Ministry said in a statement on Friday. Kiev earlier failed to agree on restructuring terms with a group of debt holders led by hedge funds. The payment on the country's GDP-linked securities – debt with annual payouts tied to economic growth and amounting to $2.6 billion – is due on June 2. Ukraine was originally scheduled to make the payment a year ago, but a moratorium on bond settlements, approved by the authorities in Kiev, allowed the cash-strapped country to avoid default. The moratorium will remain in place until the debt is restructured, the statement says. The Finance Ministry noted that, under an agreement reached with international creditors in 2024, the so-called cross-default clause was removed from contracts. That clause had stipulated that failure to make payments on the GDP warrants could trigger a default on other debt obligations, such as the country's international bonds. The ministry emphasized that the removal of the clause means Ukraine does not need to declare a default on its international bonds. In April, Ukrainian authorities said they had failed to reach a deal to restructure part of the country's debt, with a nominal value of $3.2 billion. According to Bloomberg, Ukraine offered investors two options during the unsuccessful talks, including a full exchange for sovereign bonds by reopening existing notes. However, creditors reportedly agreed only to restructure the May payment and demanded over $400 million in cash, as well as the conversion of more than $200 million into new bonds – a condition Kiev rejected.
Reuters
a day ago
- Business
- Reuters
HEDGE FLOW Hedge fund investors want managers who trade macro, says SocGen survey
LONDON, May 30 (Reuters) - Hedge funds that trade on big macroeconomic market swings have become a top pick for investors, according to a Societe Generale ( opens new tab survey of 322 firms, against a backdrop of global markets roiled by tariff uncertainty and stop-start trade wars. Half of the respondents polled said they would consider putting their money into discretionary global macro hedge funds in the next 12 months, the SocGen survey conducted between November 2024 and May 15 showed. The private survey was sent to investors on Wednesday and was seen by Reuters on Friday. The number of respondents expressing interest in putting money into macro hedge funds rose by around 9% compared with the bank's last survey in autumn 2024, the report said. According to hedge fund research firm PivotalPath, global discretionary macro managers, not using systematic trading to come up with trade ideas, posted a return of around 7% on investment through April in 2025, compared with a flat performance by the wider universe of hedge funds. Investor interest in equity market-neutral funds also grew roughly 10% since SocGen's autumn survey, the report showed. These hedge funds trade a balance of stocks, trying to maintain a portfolio which neither positions them long nor short stock markets as a whole. A short bet expects an asset value to decline. While global macro hedge funds taking discretionary bets often top this survey, the investors queried by SocGen expressed their highest enthusiasm for the strategy in two years, the bank data showed. Crypto hedge funds garnered the least intent to invest from those surveyed, with just 6% of investors wishing to allocate to the strategy, the lowest proportion in two years. Interest in multi-strategy hedge funds ticked up, with roughly around a third of investors surveyed interested in systematic and fundamental multi-strategy funds, up 5% and 4% respectively since the same time last year. Multi-strategy hedge funds trade many different kinds of markets under one brand.
Bloomberg
2 days ago
- Business
- Bloomberg
Hedge Funds Tout Japanese Tires, Hungarian Drugs at Sohn HK
Hedge funds pitched investment ideas ranging from a Japanese tiremaker to a Hungarian pharmaceutical company at the Sohn Hong Kong Investment Leaders Conference on Friday. Chinese e-commerce firm PDD Holdings Inc. was another pick at the annual gathering, which is taking place in the city in support of the Karen Leung Foundation.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
The Billionaire Odd Couple Whose Hedge Fund Is Killing It
LONDON—London investment duo Paul Marshall and Ian Wace outran competitors during the recent market turmoil with an unconventional trading strategy: a top-secret algorithm that analyzes tips from rival hedge funds and investment banks. It's Wall Street meets fantasy football. Stock salespeople and others across Wall Street submit trading recommendations to the duo's hedge-fund firm, Marshall Wace. The firm analyzes the ideas and rewards firms of top contributors with millions of dollars of commissions each year.
