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Hedge fund managers are in the business of making money – plain and simple – but, unlike other money managers and investors, these people have far more resources at their disposal. They have teams of analysts studying the markets constantly. Fund managers also have access to top executives and enough weight to request (and get) a tour of a business or a meeting whenever they want. In other words, they have the inside scoop.

By following fund managers investors can gain the benefit of their “insider” status. Obviously, sometimes fund managers make short-term transactions, plays short enough that there wouldn’t be enough time for the observant investor to mimic them – after all, unless a deal is really big, hedge funds report only once a quarter. But, there are positions that fund managers hang on to or invest in heavily.

These are the positions that investors should take notice of. With that in mind, here is a list of stocks that fund managers are heavily invested in, and which fund managers own the largest stakes.

  1. Wells Fargo (WFC): WFC is one of the top picks amongst fund managers. The eminent Warren Buffett had almost 15% of his Berkshire Hathaway invested in WFC at the end of the third quarter while Lee Ainslie’s Maverick Capital had almost 4% of its portfolio in WFC, and John Paulson’s Paulson & Co. had 2.78% of its portfolio in the company.
  2. Microsoft (MSFT): Fund managers also like MSFT. Seth Klarman’s Baupost Group had nearly 10% of its portfolio in MSFT at the end of September while David Einhorn’s Greenlight Capital had just over 8% of its portfolio invested in the company. Whitney Tilson’s T2 Partners also had a large portion of its portfolio in MSFT.
  3. Johnson & Johnson (JNJ): JNJ is on the top of many fund managers’ lists. Warren Buffett had over 4% of his Berkshire Hathaway portfolio invested in JNJ at the end of the third quarter while Ken Fisher’s Fisher Asset Management had 2.28% of its portfolio invested in the company.
  4. Pfizer (PFE): PFE holds a top position in several fund managers’ portfolios. Lee Ainslie’s Maverick Capital had 1.56% of its portfolio invested in PFE at the end of the third quarter, while Ken Fisher’s Fisher Asset Management had 1.29% and David Dreman’s Dreman Value Management had 0.71%.
  5. Wal-Mart (WMT): Fund managers like WMT as well. Warren Buffett’s Berkshire Hathaway had 3.43% in WMT at the end of September. Ken Fisher’s Fisher Asset Management had 1% of its portfolio in the company while Jean-Marie Eveillard’s First Eagle Capital Management had 0.74% of its portfolio invested in WMT.
  6. Apple (AAPL): AAPL is also very popular with fund managers. Both Julian Robertson’s Tiger Management and David Einhorn’s Greenlight Capital had over 10% of their respective portfolios invested in the company at the end of the third quarter. John Griffin’s Blue Ridge Capital came in close at 9.32%.
  7. ConocoPhillips (COP): COP has a fair amount of hedge fund love. Warren Buffett’s Berkshire Hathaway had more than 3% of its portfolio in the company at the end of the third quarter, while Jean-Marie Eveillard’s First Eagle Capital Management had 2.3% and David Dreman’s Dreman Value Management had 0.74%.
  8. Intel (INTC): Fund managers like INTC too. Jean-Marie Eveillard’s First Eagle Capital Management had 1.7% in INTC at the end of September. Ken Fisher’s Fisher Asset Management had 1.38%.
  9. JP Morgan Chase (JPM): JPM figures prominently in several fund managers’ portfolios. Lee Ainslie’s Maverick Capital and John Griffin’s Blue Ridge Capital both had nearly 3% of their respective portfolios invested in the company at the end of the third quarter.
Source: Hedge Fund Managers Love These 9 Stocks