Billionaire Cliff Asness’ Top 10 Tech Stocks

In this article, we’ll take a look at billionaire Cliff Asness’s top 10 tech stock picks. If you want to learn more about billionaire Cliff Asness’s top 10 tech stock picks, head straight to Billionaire Cliff Asness’ Top 5 Tech Stocks.

Billionaire Cliff Asness is the founder of the quantitative giant AQR Capital Management which, at the end of September, had a portfolio of 13F shares of more than $40 billion.

As a quantitative fund, AQR Capital Management uses sophisticated data models and intensive IT to decide what to buy and sell. Given the huge size of the fund and Asness’ belief in diversification, AQR Capital Management has thousands of positions and regularly rotates buying and selling stocks each quarter.

Given the size of the technology sector in the United States, AQR Capital Management holds significant positions in many leading technology stocks.

When it comes to the S&P 500, for example, the tech sector made up 28% of the index in April 2022, more than the combined weighting of the healthcare and consumer discretionary sectors.

In terms of AQR Capital Management’s portfolio, technology stocks represent 7 of the fund’s top 10 positions.

Technology stocks represent a substantial percentage of the S&P 500 and also AQR Capital Management’s top positions due to the growth of the sector over the past thirty years.

Given technological advances in semiconductors, computers and smartphones have become more affordable over time. With billions of additional potential customers, some software, hardware and internet companies have grown significantly as a result. With their scale, these companies created even more useful services that made more people want to buy computers and smartphones.

Given the cycle, some software, hardware and internet companies have grown to rank among the most valuable companies in the world that many investors want to have in their portfolios.

2022

Due to high inflation, the Federal Reserve has raised interest rates six times in 2022 alone and many analysts expect the US central bank to raise rates further.

Although core inflation in October was weaker than expected, San Francisco Federal Reserve Chair Mary Daly said in mid-November that she expects interest rates to rise. rise by at least a percentage point or potentially more before the Federal Reserve pauses to assess the fight against inflation.

With rising interest rates, Treasury rates have risen dramatically and capital has shifted from big tech stocks to Treasuries. Along with capital flows, many big tech stocks have fallen significantly since the start of the year. If the economy slows more than expected in the future, there could be even more downside in the short term.

Given the uncertainty, it might make sense for long-term investors to own a well-diversified portfolio of stocks across many different sectors.

AQR CAPITAL MANAGEMENT

Cliff Asness of AQR Capital Management

Methodology

For our list of top 10 tech stock picks from billionaire Cliff Asness, we selected 10 tech stocks from AQR Capital Management’s top holdings according to 13F filings in Q3 2022.

We ranked them based on the value of AQR Capital Management’s stake in the stock at the end of September.

Billionaire Cliff Asness’ Top 10 Tech Stocks

10. Texas Instruments Incorporated (NASDAQ:TXN)

Value of AQR Capital Management’s stake as of 09/30: $200,116,000

Percentage of AQR Capital Management’s 13F portfolio as of 09/30: 0.48%

AQR Capital Management trimmed its position in Texas Instruments Incorporated (NASDAQ:TXN) by 10% to end the quarter with a stake of about $200 million. Since Sept. 30, shares of the semiconductor company have rallied on the back of the broader market rally despite the company’s weaker-than-expected fourth-quarter guidance.

Barons Fund commented on Texas Instruments Incorporated (NASDAQ:TXN) in a third quarter 2022 letter to investors,

Shares of Texas Instruments Incorporated (NASDAQ:TXN), the world leader in analog semiconductors, rose 1% in the quarter after the company reported strong financial results with 14% year-on-year revenue growth annual operating profit growth of 23% and operating margins of 52%. While the level of uncertainty over near-term revenue and free cash flow trends has increased due to a potential macroeconomic slowdown and supply chain normalization, Texas Instruments has a long history of growth. free cash flow per share in the overall market. cycles to generate shareholder value. We remain investors and believe Texas Instruments will benefit from growth in semiconductor content across a broader set of end markets and applications. In addition, we believe the company will be able to maintain its long-term competitive advantages, underpinned by its technology and manufacturing process, its broad product portfolio, the reach of its go-to-market organization, as well as diversity and longevity of its products.

Alongside Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL), Texas Instruments Incorporated (NASDAQ:TXN) is one of billionaire Cliff Asness’ top tech holdings of AQR Capital Management at the end of the third quarter of 2022.

9. Arrow Electronics, Inc. (NYSE:ARW)

Value of AQR Capital Management’s stake as of 09/30: $207,532,000

Percentage of AQR Capital Management’s 13F portfolio as of 09/30: 0.5%

Arrow Electronics, Inc. (NYSE: ARW) is one of AQR Capital Management’s largest technology positions given the value of the fund’s holding of more than $207 million at the end of September. Arrow Electronics, Inc. (NYSE: ARW), which provides products and services to industrial and commercial users of electronic components and enterprise computing solutions, did not perform well in 2022 with shares down 19.5 % since the beginning of the year. Nonetheless, shares of Arrow Electronics, Inc. (NYSE:ARW) have risen since the end of the third quarter on the back of the broader market rally.

8. Cisco Systems, Inc. (NASDAQ:CSCO)

Value of AQR Capital Management’s stake as of 09/30: $335,677,000

Percentage of AQR Capital Management’s 13F portfolio as of 09/30: 0.81%

AQR Capital Management increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 22% to end the quarter with a stake of more than $335 million in the computer networking giant. For the first quarter, Cisco Systems, Inc. (NASDAQ: CSCO) reported Adjusted EPS of $0.86 on sales of $13.6 billion versus consensus of $0.84 on sales of 13.31 billions of dollars. For FY23, Cisco Systems, Inc. (NASDAQ:CSCO) sees Adjusted EPS of $3.51 to $3.58, up from the previous $3.49 to $3.56.

7. Meta Platforms, Inc. (NASDAQ:META)

Value of AQR Capital Management’s stake as of 09/30: $356,988,000

Percentage of AQR Capital Management’s 13F portfolio as of 09/30: 0.87%

Given its substantial year-to-date decline, Meta Platforms, Inc. (NASDAQ:META) no longer ranks among the top 10 most valuable companies in the world. Nonetheless, Meta Platforms, Inc. (NASDAQ:META) was among the top 10 positions in AQR Capital Management’s 13F stock portfolio at the end of the third quarter, given the fund’s holdings of more than $356 million. dollars in the social media giant. Meta Platforms, Inc. (NASDAQ:META) faces competition from TikTok but still has long-term growth potential.

6. Tesla, Inc. (NASDAQ:TSLA)

Value of AQR Capital Management’s stake as of 09/30: $381,898,000

Percentage of AQR Capital Management’s 13F portfolio as of 09/30: 0.93%

Shares of Tesla, Inc. (NASDAQ:TSLA) recently fell due to CEO Elon Musk’s purchase of Twitter. Given the distractions, some long-term shareholders of Tesla, Inc. (NASDAQ:TSLA) likely took profits given that the stock has still risen significantly over the past 10 years. As for AQR Capital Management, however, the fund increased its position in Tesla, Inc. (NASDAQ:TSLA) by 327% in the third quarter to end the quarter with a stake worth nearly $382 million.

Like Tesla, Inc. (NASDAQ:TSLA), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) are billionaire Cliff Asness’ AQR Capital Management’s top technology holdings in the end of the third trimester.

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Disclosure: none. Billionaire Cliff Asness’ Top 10 Tech Stocks is originally published on Insider Monkey.

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