11 Technology Stocks Hedge Funds Are Buying Like Crazy

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 |  Includes: AAPL, BIDU, EQIX, GOOG, HPQ, MA, MSFT, ORCL, QCOM, SINA, YHOO
by: Insider Monkey

Insider Monkey follows hedge fund managers because they're the smartest investors around. They leave less to chance than most investors, going great lengths to get an “edge” over ordinary investors. Hedge fund managers also have the resources to do extensive research on public companies and access to experts who can guide them. We believe we are more likely to beat the market by imitating insiders and hedge funds than trading against them. Based on the transactions of nearly 700 hedge funds compiled by Goldman Sachs, we present the list of top 11 technology stocks that hedge funds are buying like crazy:

1. Apple Inc (NASDAQ:AAPL): Sixty three hedge funds had Apple among their top 10 holdings. Hedge funds collectively own 3% of the outstanding shares. The stock returned 4.6% so far in 2011. Hedge fund stars like David Einhorn, John Griffin, Chase Coleman and Dan Loeb all have AAPL in their portfolios.

2. Microsoft Co (NASDAQ:MSFT): Microsoft was owned by 54 hedge funds as a top 10 holding at the end of March. Hedge funds collectively own 2% of the outstanding shares. The stock lost 10.2% so far in 2011. Jim Simons’ Renaissance, David Tepper’s Appaloosa, Leon Cooperman’s Omega Advisors, and Tom Steyer’s Farallon are some of the hedge funds that are bullish about Microsoft. Whitney Tilson is extremely bullish about Microsoft too. He predicted that Microsoft will reach $35 by the end of 2011.

3. Google Inc. (NASDAQ:GOOG): Forty eight hedge funds had GOOG among their top 10 holdings. Hedge funds collectively own 4% of the outstanding shares. The stock lost 12.3% in 2011. Stuart Peterson’s Artis Capital had $624 Million and Philippe Laffont’s Coatue had $342 Million in Google.

4. Qualcomm Inc (NASDAQ:QCOM): Thirty one hedge funds had QCOM among their top 10 holdings. Hedge funds collectively own 4% of the outstanding shares. The stock gained 16.7% so far this year. Lee Ainslie’s Maverick and Stephen Mandel’s Lone Pine had the largest stake in QCOM among the 300+ funds we are following.

5. Hewlett-Packard (NYSE:HPQ): Twenty hedge funds had HPQ among their top 10 holdings. Hedge funds collectively own 4% of the outstanding shares. The stock lost 12% so far this year. John Paulson’s Paulson & Co, David Tepper’s Appaloosa and Bill Miller’s Legg Mason had the largest stake in HPQ among the 300+ funds we are following.

6. Yahoo Inc. (NASDAQ:YHOO): Fifteen hedge funds had YHOO among their top 10 holdings. Hedge funds collectively own 11% of the outstanding shares. The stock lost 3.7% so far this year. Jeffrey Altman’s Owl Creek and Philippe Laffont’s Coatue had the largest stake in YHOO among the 300+ funds we are following. Curtis Macnguyen’s Ivory Capital, David Einhorn’s Greenlight, and Richard Schimel’s Diamondback also had large positions in Yahoo.

7. Baidu Inc. (NASDAQ:BIDU): Fourteen hedge funds had BIDU among their top 10 holdings. Hedge funds collectively own 7% of the outstanding shares. The stock gained 38.7% so far this year. Ken Fisher’s Fisher Asset Management and Andreas Halvorsen’s Viking Global had the largest stake in BIDU among the 300+ funds we are following. John Thaler’s JAT Capital and Rob Citrone’s Discovery Capital also had large stakes in BIDU at the end of March.

8. Mastercard (NYSE:MA): Thirteen hedge funds had MA among their top 10 holdings. Hedge funds collectively own 5% of the outstanding shares. The stock gained 27.4% so far this year. Stephen Mandel’s Lone Pine, Tom Russo’s Gardner Russo & Gardner, and Jean-Marie Eveillard’s First Eagle had the largest stakes in MA among the 300+ funds we are following.

9. Oracle (NASDAQ:ORCL): Thirteen hedge funds had ORCL among their top 10 holdings. Hedge funds collectively own 1% of the outstanding shares. The stock gained 8% so far this year. Ken Fisher had the largest stake in ORCL among the 300+ funds we are following. Phill Gross’ Adage Capital, William von Mueffling’s Cantillon, and Robert Pitts’ Steadfast Capital also had large positions in Oracle at the end of March.

10. Sina Corp (NASDAQ:SINA): Thirteen hedge funds had SINA among their top 10 holdings. Hedge funds collectively own 16% of the outstanding shares. The stock gained 68.6% so far this year. Philippe Laffont, John Thaler, and Rob Citrone had large stakes in this Chinese internet company as well.

11. Equinix Inc (NASDAQ:EQIX): Twelve hedge funds had EQIX among their top 10 holdings. Hedge funds collectively own 30% of the outstanding shares. The stock gained 23.8% so far this year. Stephen Mandel’s Lone Pine, Jeffrey Tannenbaum’s Fir Tree and Eric Bannasch’s Cadian had the largest stake in EQIX among the 300+ funds we are following.

These 11 stocks had an average return of 13.6% so far in 2011. We expect them to outperform index funds over long investment horizons. Investors should pay attention to these names.

Disclosure: I am long MSFT.