There’s also Anson Funds Management LP, which manages $548 million. The fund has returned 11.7% annually since 2007—nearly double the S&P 500 over the same period.
It’s very difficult to consistently beat the market by this much. But these guys aren’t doing magic tricks. We’ll take a look at what they’re buying in a moment.
Tracking the Whales
One of the best ways to track hedge funds is the Bank of America Merrill Lynch Global Fund Manager Survey. It includes 224 funds with over half a trillion in assets under management.
Here’s the most recent survey. It shows that hedge funds are buying utilities, staples, and telecom stocks right now.
The Global Fund Manager Survey is a great way to see where the overall hedge fund industry is moving. But you can go a step further.
Remember those three funds I mentioned earlier? They all disclose their top holdings each quarter.
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Hedge funds have to file something called Form 13F. These filings show each fund’s top holdings. They even show how much the funds allocate to each stock.
For instance, Crawford Lake, one of the elite funds I mentioned earlier, has 15% of its assets in The Walt Disney Co. (DIS).
Disney is a diversified media juggernaut. It owns globally recognized brands, including Marvel, LucasFilm, and ESPN. It also owns theme parks around the world. Plus, it launched a streaming service recently called Disney+ to compete with Netflix.
Disney is also a consistent dividend payer. It’s raised its dividend for fourteen straight years and sports a 1.4% dividend yield.
Meanwhile, Tiger Global Management has 11.1% of its assets in Microsoft Corp. (MSFT).
Microsoft is one of the largest companies in the world and the dominant player in consumer and enterprise software. It has a wide product portfolio, including premier operating system Windows, Xbox entertainment systems, and professional network LinkedIn.
Microsoft pays a safe 1.5% dividend, and it’s increased its payout for 14 years in a row.
We also talked about Anson Funds Management LP. While over half of the fund’s assets are shorting the S&P 500, 3.1% of its holdings are in Barrick Gold Corp. (GOLD).
Barrick is one of the world’s largest gold producers. Gold is considered a safe haven asset, and investors buy gold stocks when they think stock market volatility is rising. Barrick also pays a decent 1.0% dividend.
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