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Warren Buffett is one of the top investors of the past decade. His every move is closely followed by investors and mainstream media. Unfortunately, he doesn't trade very often. When he buys stocks, he holds them for years. So investors who are worried about short term returns can't really gather much intelligence from Buffett's holdings.

On the other hand most hedge funds have short investment horizons and invest in stocks with short-term catalysts. Their stock picks tend to outperform the market on the average. We believe by focusing on stocks that both Warren Buffett and hedge funds love we might be able to achieve higher short term returns by taking on less long term risk. We compiled the list of stocks that had at least 30 hedge funds invested in with a total investment of at least $1 billion. Both Warren Buffett and hedge funds love these stocks:

CompanyName

Ticker

Value

No. of Funds

Total HF Positions

WELLS FARGO & CO NEW

WFC

10,864,604

51

5,344,166

COCA COLA CO

KO

13,268,001

37

3,106,004

EXXON MOBIL CORP

XOM

35,486

47

2,490,069

JOHNSON & JOHNSON

JNJ

2,525,506

54

2,127,922

BANK OF NEW YORK MELLON

BK

53,584

34

2,092,899

WAL MART STORES INC

WMT

2,031,883

36

2,062,774

MASTERCARD INC

MA

54,372

46

1,696,890

CONOCOPHILLIPS

COP

2,324,057

43

1,687,953

GENERAL ELECTRIC CO

GE

155,947

38

1,636,954

PROCTER & GAMBLE CO

PG

4,728,788

39

1,493,024

KRAFT FOODS INC

KFT

3,299,529

31

1,465,524

U S BANCORP DEL

USB

1,824,712

35

1,312,484

AMERICAN EXPRESS CO

AXP

6,852,803

33

1,196,414

UNITED PARCEL SERVICE

UPS

106,218

30

1,046,083

Wells Fargo tops the list in terms of total amount invested and Johnson and Johnson tops the list with the highest number of hedge funds. Fifty seven hedge funds invested a total of $2.1 billion in JNJ. Another legendary investor and billionaire Jim Simons had nearly $400 million in JNJ (See Jim Simons' other top stock picks here). Ken Fisher also had $370 million in JNJ as well. Fifty one hedge funds invested a total of $5.3 billion in WFC as of March 31st. Steve Heinz's Lansdowne Partners had more than $1 billion in WFC. John Paulson had nearly $650 million in WFC at the end of March (See Paulson's favorite stock picks).

Another stock with more promising short term potential is Mastercard. This is a brand new position for Warren Buffett. It is likely that his protégé Todd Combs made this stock picks because of the relatively small size of the position. However, this small position may turn into a multi-billion dollar position if Buffett likes the idea of investing in a company with little competition. Forty seven hedge funds love Mastercard and they invested a total of $1.7 billion in it. Julian Robertson's Tiger cubs Stephen Mandel and Chase Coleman are among the top hedge funds with MA positions. Brave Warrior Capital's Glenn Greenberg and value investor Bill Miller also have large positions in MA (See Bill Miller's top positions).

We believe these 14 stocks are promising in the short-term and if the economy and stock market turn out worse than expected, these stocks probably will hold up better than the rest of the market.

Source: Warren Buffett and Hedge Funds Love These Stocks