We rank the hedge fund managers by looking at how each fund performs in comparison to other hedge funds and to the S&P 500. Top hedge funds generate the highest return based on their stock portfolio, and consistently outperform the market. We can see where the “smart money†is really going, and then use recent analyst reports to find the hottest stocks that also have Street support.
So here are five stocks that the best performing fund managers are bullish on- and have big upside potential according to the Street:
1. Western Digital (NASDAQ:WDC):
Top fund managers are snapping up WDC, one of the largest computer hard disk drive manufacturers in the world. In the last quarter, fund managers ramped up WDC holdings by 1.4 million shares. Big-name investors include Theofanis Kolokotrones with a position of almost $100 million. Kolokotrones, manager of the $116 billion Primecap fund, is ranked #24 out of 203 hedge fund managers on TipRanks.
With a ‘Strong Buy’ analyst consensus rating and an average analyst price target of $119, WDC has impressive upside potential of over 37% from the current share price. Maxim Group’s Nehal Chokshi applauds WDC’s “bold†acquisition of flash storage company Tegile at the end of August. Tegile has been a leader in the hybrid storage array market since 2013, says Chokshi. He believes that the deal will help WDC compete in the evolving IT systems market.
2. Johnson Controls (NYSE:JCI):
You may not have heard of this Irish company that produces automotive parts such as batteries and electronics, as well as heating, ventilation and aircon (HVAC) for buildings. However big-name hedge funds are very bullish on the stock. We can see that in the last quarter hedge funds increased holdings in the stock by 29.3 million shares. Ric Dillon, for example, of the $18.5 billion Diamond Hill fund, ramped up his JCI holding by a massive 20,209% to $48.5 million.
