Hedge funds have a new favorite stock, and it’s Warren Buffett’s Berkshire Hathaway
Hedge funds are embracing the stability of Warren Buffett’s Berkshire Hathaway during a volatile market as the Omaha-based conglomerate became one of their favorite stocks last quarter, according to Goldman Sachs. The Wall Street firm analyzed the holdings of 795 hedge funds with $2.4 trillion of gross equity positions at the start of the third quarter based on regulatory filings. It then compiled a basket of the most popular long positions, dubbed Goldman’s “Hedge Fund VIP basket,” consisting of 50 stocks that most frequently appear among the largest 10 holdings of hedge funds. A total of 22 hedge funds held Berkshire’s class B shares among their top 10 stakes at the end of the second quarter, which makes Buffett’s firm one of the most popular stocks among the community, Goldman said. The conglomerate saw the second-largest increase in the number of hedge fund owners last quarter, only behind internet stock Switch , the Wall Street firm said. Many mega-cap tech stocks remained hedge funds’ most loved holdings at the end of June, including, Microsoft, Amazon , Alphabet , Meta and Apple. Berkshire was one of the only nontech names on the list of hedge funds’ most popular stocks. The conglomerate’s operating business is a patchwork of companies focused on the traditional backbone of the economy, from railroads, to batteries, insurance, home furnishing and retail. Many view Berkshire’s stock as a cyclical bet and defensive play. Berkshire’s Class A shares are among the market’s most expensive stocks, priced above $440,000 apiece. Buffett’s conglomerate issued convertible Class B shares in 1996 for one thirtieth of Class A share price initially, in response to demand for a cheaper option among small investors. Shares of Berkshire Class B stock have risen about 3% this year, outperforming the broader market.