Jim Simons, Ray Dalio, and Israel Englander are some of the most successful investors in history.
All three are billionaires, and their respective hedge funds — Renaissance Technologies, Bridgewater Associates, and Millennium Management — have made thousands of investors rich with them.
In investing, there are no bonus points for originality, so it takes a master's study. In fact, thanks to the 13F filing required by the Securities and Exchange Commission (SEC) every quarter, you can even invest with these billionaires.
According to Motley Fool Research, all three of these investors own the same “Magnificent Seven” tech stocks. Keep reading to see what they are and if these stocks are right for you.
1. Nvidia
This is perhaps not surprising. Nvidia (NASDAQ: NVDA ) on this list. More than any other company, Nvidia has been the flagship of the AI boom as its sales and profits skyrocketed last year, pushing the stock past a $2 trillion market cap, making it the third most valuable company in the world. gave Microsoft And apple. Nvidia's graphics processing units (GPUs) have become the backbone of AI infrastructure, and the company has so far faced little competition, although competition is coming.
Simons, Deleio, and Englander all count Nvidia among their top holdings. Among Renaissance Technologies, Nvidia is the second-largest tech holding, making up 1.2% of the portfolio at the end of the fourth quarter, or $767.5 million.
Dalio's Bridgewater Associates, meanwhile, ranks Nvidia as its third-largest tech holding with $133 million in Nvidia stock at the end of Q4. The fast-growing chip stock makes up 0.7% of Bridgewater's portfolio.
Finally, Nvidia makes up England's Millennium Management's fourth-largest tech holding at 1% of the portfolio, or $1.02 billion.
It's unclear whether these funds were held, added or sold to Nvidia in Q1, but we'll know soon enough with the 13F filing due by mid-May. If they hold on to their Nvidia stake, the move paid off as the stock gained 82% in Q1.
2. Meta-Platforms
Meta platforms (NASDAQ: META ) It's another top holding of these hedge funds, and like Nvidia, it's grown over the past year and a half. While Meta has benefited from the AI boom, the main reason for its rise has been a successful turnaround due to cost-cutting and a resurgence in its advertising business that led to record profits.
Looking ahead, the company still seems to have a lot of growth ahead of it, especially with the new opportunity in AI, although some advertisers have recently complained that the company's ad manager is unreliable.
At Renaissance, Meta represents the fund's fourth-largest holding in the tech sector with $744 million worth of Meta stock. Meta makes up 1.2% of fund value.
Ray DeLeo's Bridgewater, meanwhile, is even more bullish on Meta as the social media giant makes up 1.3% of its portfolio as its second-largest tech holding. The fund ended Q4 with $235.8 million worth of meta stocks.
Finally, Millennium held $719.7 million in Metastock as of the end of Q4, or 0.7% of the portfolio. That makes it his fifth-largest tech holding.
3. Alphabet
Finally, the alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL ) It has long been a top stock among hedge funds because of the Google parent's competitive advantages over its dominant search engine, properties like YouTube, and “moonshot” businesses like its Waymo autonomous vehicle unit, and its AI investments like Appear with Google Brain and DeepMind.
Alphabet hasn't had the kind of blowout performance over the past year that Nvidia and Meta have, but it's still outperformed. S&P 500 And recently touched an all-time high. Given a history of reliable growth and a wide economic gap, it's not surprising that Alphabet is also the top of these three funds.
At Renaissance, Alphabet was its sixth-largest tech holding, worth $487.2 million, or 0.8% of the total portfolio.
Bridgewater was more bullish on Alphabet than any other tech stock, ranking it as its top tech holding at 1.6% of the total portfolio. As of the end of Q4, Bridgewater owned $285.6 million worth of Alphabet stock.
Millennium also counts Alphabet as a top holding as the Google owner owns 1.8% of the stock, or $1.56 billion. Microsoft is the only major tech holding in England's fund.
What this means for investors.
Owning a hedge fund isn't a guarantee of outperformance, but it's worth keeping an eye on the moves of the biggest investors, especially if their holdings are similar to yours.
Keep an eye on these stocks come mid-May as they may move once we know which funds bought and sold them in Q1. Nonetheless, I would expect them to remain among the top hedge funds.
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Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of MetaPlatforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an Alphabet executive, is a member of The Motley Fool's board of directors. Jeremy Bowman holds positions at Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, MetaPlatforms, Microsoft, and Nvidia. 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.
The 3 Top Artificial Intelligence (AI) Stocks Billionaires Jim Simons, Ray Dalio, and Israel England Are Buying was originally published by The Motley Fool.