In this article, we’ll take a look at the top 10 tech stocks picked by billionaire Cliff Asness.If you want to read more of Billionaire Cliff Asness’s top 10 tech stock picks, head over to Billionaire Cliff Asness’s pick of the top 5 tech stocks.
Billionaire Cliff Asness is the founder of quant giant AQR Capital Management, which had a 13F stock portfolio of more than $40 billion as of the end of September.
As a quantitative fund, AQR Capital Management uses complex data models and intensive calculations to decide what to buy and sell. Given the size of the fund and Asness’s belief in diversification, AQR Capital Management has thousands of positions and regularly rotates in and out of stocks each quarter.
Given the size of the U.S. technology sector, AQR Capital Management has large positions in many leading technology stocks.
For example, in the case of the S&P 500, the technology sector accounts for 28% of the index as of April 2022, or more than the combined weight of the healthcare and consumer discretionary sectors.
For AQR Capital Management’s portfolio, technology stocks account for seven of the fund’s top 10 positions.
Thanks to the industry’s growth over the past 30 years, technology stocks make up a large portion of the S&P 500 and AQR Capital Management’s top spot.
Computers and smartphones have become more affordable over time given advances in semiconductor technology. With billions of potential customers added, some software, hardware and Internet companies have grown significantly as a result. With their size, these companies create more useful services that make more people want to buy computers and smartphones.
Given the cycles, some software, hardware, and internet companies have grown into some of the most valuable companies in the world, and many investors want to have them in their portfolios.
2022
The Fed will raise rates six times in 2022 alone due to high inflation, and many analysts expect the Fed to raise rates further.
Although core inflation was weaker than expected in October, San Francisco Fed President Mary Daly said in mid-November she expected rates to rise by at least a percentage point and possibly more before the Fed pauses to assess the inflation fight.
As interest rates rise, U.S. Treasury bond rates have risen sharply, so capital has shifted from large tech stocks to U.S. Treasuries. Many large tech stocks have fallen sharply year-to-date as capital flows. If the economy slows more than expected ahead, there could be more downside in the near term.
Given the uncertainty, it might be a good idea for long-term investors to own a diversified portfolio of stocks across a number of different industries.
Cliff Asness of AQR Capital Management
method
Based on 13F filings through Q3 2022, we’ve selected AQR Capital Management’s 10 largest tech holdings in billionaire Cliff Asness’s Top 10 Tech Picks list.
We rank them based on the value of AQR Capital Management’s holdings at the end of September.
Billionaire Cliff Asness’s top 10 tech stock picks
10. Texas Instruments (NASDAQ: TXN )
AQR Capital Management equity value as of September 30: $200,116,000
Percentage of AQR Capital Management 13F portfolio as of September 30: 0.48%
AQR Capital Management cut its position in Texas Instruments (NASDAQ: TXN ) by 10% to end the quarter with a stake worth approximately $200 million. Since Sept. 30, the semiconductor company’s shares have risen as the broader market rallied despite the company’s weaker-than-expected fourth-quarter guidance.
Baron Funds commented on Texas Instruments, Inc. (NASDAQ: TXN ) in its third quarter 2022 investor letter,
Shares of Texas Instruments Incorporated (NASDAQ: TXN ), the world’s leading analog semiconductor company, rose 1% in the quarter after the company reported strong financial results, with revenue up 14% year-over-year, operating profit up 23%, and operating The profit margin is 52%. Texas Instruments (TI) has a long history of growing free cash flow per share across markets The cycle that drives shareholder value. We remain investors and believe TI will benefit from the growth of semiconductor content across a broader range of end markets and applications. In addition, we believe that the company will be able to maintain its competitive advantage over the long term due to its manufacturing technologies and processes, broad product portfolio, range of organizations entering the market, and the diversity and longevity of its products.
Along with Alphabet Inc. (NASDAQ: GOOG ), Microsoft Corporation (NASDAQ: MSFT ) and Apple Inc. Texas Instruments (NASDAQ: AAPL ) (NASDAQ: TXN ) is one of billionaire Cliff Asness’s AQR Capital Management’s top tech holdings at the end of the third quarter of 2022.
9. Arrow Electronics (NYSE: ARW )
AQR Capital Management equity value as of September 30: $207,532,000
Percentage of AQR Capital Management 13F portfolio as of September 30: 0.5%
Arrow Electronics (NYSE: ARW ) is one of AQR Capital Management’s largest technology positions, as the fund’s holdings were worth more than $207 million at the end of September. Arrow Electronics (NYSE: ARW ), which provides products and services to industrial and commercial users of electronic components and enterprise computing solutions, has underperformed in 2022, with shares down 19.5% so far this year. Still, Arrow Electronics, Inc. (NYSE:ARW ) shares have risen since the end of the third quarter as the broader market rebounded.
8. Cisco Systems, Inc. (NASDAQ: CSCO )
AQR Capital Management equity value as of September 30: $335,677,000
Percentage of AQR Capital Management 13F portfolio as of September 30: 0.81%
AQR Capital Management increased its position in Cisco Systems Inc. (NASDAQ: CSCO ) ended the quarter with a 22% stake in the computer networking giant of more than $335 million. For the first quarter, Cisco Systems, Inc. (NASDAQ: CSCO ) reported adjusted EPS of $0.86 on sales of $13.6 billion, compared with the consensus estimate of $0.84 per share on sales of $13.31 billion. For FY23, Cisco Systems, Inc. (NASDAQ: CSCO ) adjusted earnings per share were $3.51-$3.58, up from $3.49-$3.56 previously.
7. Meta Platforms, Inc. (NASDAQ: META)
AQR Capital Management equity value as of September 30: $356,988,000
Percentage of AQR Capital Management 13F portfolio as of September 30: 0.87%
Meta Platforms, Inc. (NASDAQ: META ) is no longer among the top 10 most valuable companies in the world given the sharp decline so far this year. Nonetheless, Meta Platforms, Inc. (NASDAQ: META ) was one of the top 10 largest positions in AQR Capital Management’s 13F stock portfolio at the end of the third quarter, as the fund held the social More than $356 million in stake in the media giant. Meta Platforms (NASDAQ: META ) faces competition from TikTok, but still has long-term growth potential.
6. Tesla Inc (NASDAQ: TSLA)
AQR Capital Management equity value as of September 30: $381,898,000
Percentage of AQR Capital Management 13F portfolio as of September 30: 0.93%
Shares of Tesla Inc. (NASDAQ: TSLA ) fell recently on CEO Elon Musk’s acquisition of Twitter. Given these disruptions, some long-term Tesla companies. (NASDAQ: TSLA ) Given that the stock has still risen sharply over the past 10 years, shareholders may have taken profits. However, for AQR Capital Management, the fund increased its position in Tesla Inc. (NASDAQ: TSLA ) grew 327% in the third quarter, ending the quarter with a stake worth nearly $382 million.
Just like Tesla Inc. (NASDAQ: TSLA), Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT) and Apple Inc. (NASDAQ: AAPL ) was billionaire Cliff Asness’s AQR Capital Management’s top tech holding at the end of the third quarter.
Click to read on and check out billionaire Cliff Asness’s top 5 tech stock picks.
recommended article:
Disclosure: None. Billionaire Cliff Asness’s top 10 tech stock picks Originally published on Insider Monkey.