BIDU
-1.32%
GM
+0.24%
BRK-B
+0.67%
T-PC
-0.05%
+4
In this article we discuss the 10 undervalued blue chip stocks hedge funds are piling into. If you want to skip our detailed analysis of these stocks, go directly to the 5 Undervalued Blue Chip Stocks Hedge Funds Are Piling Into.
The stock volatility of the past few months has illustrated that the market is now in a constant state of turmoil as technology stocks with astronomical evaluations continue to hog investor interest, offering little in terms of stability and security for the long term but promising higher returns in the short term. In the midst of all this chaos, the smart money has been quietly piling into the undervalued blue chip companies that offer great brand value, positive long-term financial outlook, and competitive products that are likely to be industry leaders for years.
Hedge fund interest is often a good indicator of the overall market direction at any given point. Over the past few months, regulatory concerns around crypto have led to a dramatic fall in prices of several technology stocks, and hedge funds have thus diverted their money into blue chip stocks to weather the storm. Some of the companies that hedge funds have been piling money into over the past few months include Berkshire Hathaway Inc. (NYSE: BRK-A), Baidu, Inc. (NASDAQ: BIDU), and General Motors Company (NYSE: GM).
Berkshire Hathaway Inc. (NYSE: BRK-A) is the fifteenth most popular company among hedge funds on the Insider Monkey database, with 111 funds holding stakes in the firm at the end of the first quarter of 2021. Berkshire Hathaway Inc. (NYSE: BRK-A) pays a regular and healthy dividend and boasts a diverse portfolio of assets that offer handsome returns. Berkshire Hathaway Inc. (NYSE: BRK-A) has recently been trimming holdings in the traditional banking sector, selling stakes in most finance stocks over the past two quarters.
Another surprise inclusion to the undervalued blue chip stock is Baidu, Inc. (NASDAQ: BIDU), the Chinese company working in several internet-related businesses. Baidu, Inc. (NASDAQ: BIDU) was the 32nd most popular stock among hedge funds at the end of March with 89 funds bullish on the company. Baidu, Inc. (NASDAQ: BIDU) is part of a growing number of China-based foreign equities that have piqued investor interest in recent years, especially in the technology sector. Baidu, Inc. (NASDAQ: BIDU) is one of the largest firms in China.
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