Little Known $4 Billion Hedge Fund’s Leveraged Bets on US Stocks
In this piece, we will take a look at a billion dollar fund's bets on U.S. stocks. If you want to skip out on finding out who the mysterious investor is and want to skip to the top five stocks, then take a look at Top 5 Stocks of Eisler Capital.
Is playing with stocks akin to playing with fire? Well, the answer depends on who you ask, but one thing that's for sure is that the stock market is one of the most readily available mediums through which one can become a billionaire. Getting to the top of the global wealth food chain isn't easy. Most people become billionaires by taking huge personal and financial risks. For instance, the richest person in the world right now is Elon Musk known primarily for Tesla, Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corporation (SpaceX). However, Mr. Musk wasn't the world's richest person in 2008 - which was one of the worst years of his life. Back then, Musk was sleeping on couches after he'd sold everything he had and plowed the money into the two companies. He would often wake up screaming at night due to the stress, showing the tremendous work that's needed if you want to live the rest of your life without worrying about money.
However, while Mr. Musk is arguably the best known billionaire in the modern world (he has a whopping 165 million Twitter/X followers after all) others manage more money than most dream of. One such money manager is Edward Eisler of Eisler Capital. Eisler Capital is a British investment management company headquartered in London, the United Kingdom. According to Insider Monkey's research, as of the end of the third quarter of this year, the firm's investment portfolio was worth $15.8 billion. This value reflects all the money (borrowed and owned) that the fund has piled into stock investments, and the fund's actual total assets under management (AUM) sit at $3.7 billion according to data from Reuters.
When compared to some other funds that focus on specific market segments such as small cap stocks or distressed debt, Eisler Capital's investments are more diversified. The fund primarily invests in six key areas which are namely equities, assets influenced by macroeconomic indicators, bonds, credit securities, commodities, and emerging markets. As you're likely to have understood, this provides Eisler Capital with a broad buffer against a downturn in one sector. For instance, in 2022, when the stock market was crashing, the commodities sector was roaring, to provide Eisler a nice way to buffer against any downturns.
Eisler Capital is a relatively young hedge fund since it was set up in 2012. However, like other hedge fund founders, Mr. Eisler was also a seasoned finance professional before he set up his hedge fund. He worked at the investment bank Goldman Sachs for two decades before deciding to venture into financial entrepreneurship. Setting up Eisler wasn't initially planned to be the end of this journey as Mr. Eisler had also planned to set up another firm that would have invested in emerging markets. However, Russia's invasion of Ukraine which saw it annex Crimea in 2014 stopped these plans.
Since then, Eisler Capital has come a long way and won several laurels as well as attracted criticism. While you might not become a billionaire as an Eisler employee, you sure can become the next best thing i.e. a multimillionaire. The fact that Eisler is a British company means that it can file its financials with the Companies House, and this data shows that in 2022, an average Eisler employee made a cool $1.2 million. Even better off was the most highly paid director, whose remuneration stood at an even cooler $4.2 million. However, these figures are far higher than the historic averages at the firm, and they come after it spent a busy 2021 expanding its employee headcount and growing its global presence.
There's no such thing as a free lunch though, and while employees at Eisler are paid millions of dollars each year, during the six months that ended in September, 12 employees left the firm. The hedge fund had 153 employees per month on average in 2022, so if the number of departures is higher then it could easily have lost ten percent of its workforce.
With these details in mind, let's take a look at Eisler Capital's latest stock picks. Some notable names are NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Wells Fargo & Company (NYSE:WFC).
An Apple store displaying the latest in consumer electronics, from smartphones to wearables.
Our Methodology
To compile our list of the little known billion dollar fund Eisler Capital's top stock picks, we used its Q3 2023 SEC filings and picked out the top stocks.
Little Known $4 Billion Hedge Fund's Leveraged Bets on US Stocks
15. The Boeing Company (NYSE:BA)
Eisler Capital's Q3 2023 Investment: $38.7 million
The Boeing Company (NYSE:BA) is one of the biggest industrial companies in the world. It is known primarily for its aircraft for military and civilian use. After years of troubles, the firm's shares gained 21% in the month ending on December 4th as its aircraft orders assuaged investor concerns for cash flow.
As of September 2023 end, 64 out of the 910 hedge funds profiled by Insider Monkey had bought and owned The Boeing Company (NYSE:BA)'s shares. Ken Fisher's Fisher Asset Management owns the biggest stake in the firm which is worth $926 million.
Just like Apple Inc. (NASDAQ:AAPL),NVIDIA Corporation (NASDAQ:NVDA), and Wells Fargo & Company (NYSE:WFC), The Boeing Company (NYSE:BA) is a top stock pick of a multi billion dollar hedge fund.
14. Tesla, Inc. (NASDAQ:TSLA)
Eisler Capital's Q3 2023 Investment: $41.3 million
Tesla, Inc. (NASDAQ:TSLA) is the well known American electric vehicle manufacturer. After years of waiting, it launched the Cybertruck truck in November 2023, but Wall Street was less than impressed, with Morgan Stanley sharing that it expects little profit contribution from the product.
During Q3 2023, 81 out of the 910 hedge funds surveyed by Insider Monkey were the firm's investors. Tesla, Inc. (NASDAQ:TSLA)'s largest hedge fund investor is Catherine D. Wood's ARK Investment Management since it owns $1 billion worth of shares.
13. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Eisler Capital's Q3 2023 Investment: $42.2 million
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor designer headquartered in Santa Clara, California. After a bloodbath in 2022, the firm has been doing well on the financial front lately by having beaten analyst EPS estimates in all four of its latest quarters.
By the end of this year's third quarter, 110 out of the 910 hedge funds covered by Insider Monkey's research had held a stake in Advanced Micro Devices, Inc. (NASDAQ:AMD). Out of these, the largest shareholder was Ken Fisher's Fisher Asset Management due to its $2.8 billion investment.
12. Morgan Stanley (NYSE:MS)
Eisler Capital's Q3 2023 Investment: $43.3 million
Morgan Stanley (NYSE:MS) is one of the biggest investment banks in the world. As global markets stabilize, the firm is beefing up its war chest for investing in early stage tech companies as it raised $50 million in capital for this purpose in November 2023.
For their September quarter of 2023 investments, 59 out of the 910 hedge funds profiled by Insider Monkey had bought the firm's shares. Morgan Stanley (NYSE:MS)'s biggest investor out of these is Ken Fisher's Fisher Asset Management as it owns $1.6 billion worth of shares.
11. Mastercard Incorporated (NYSE:MA)
Eisler Capital's Q3 2023 Investment: $43.39 million
Mastercard Incorporated (NYSE:MA) is a financial platform and payment services provider. It is currently seeking to leverage the growing global shift to digital mediums by expanding its business to business platform in the U.A.E.
Insider Monkey dug through 910 hedge funds for their shareholdings during 2023's third quarter and found 140 Mastercard Incorporated (NYSE:MA) investors. Charles Akre's Akre Capital Management owned the largest stake which was worth $2.3 billion.
10. Oracle Corporation (NYSE:ORCL)
Eisler Capital's Q3 2023 Investment: $45.3 million
Oracle Corporation (NYSE:ORCL) is a global enterprise computing giant that provides resource management products. The shares are rated Buy on average and analysts have set an average share price target of $161.
As of Q3 2023 end, 88 out of the 910 hedge funds profiled by Insider Monkey were the firm's shareholders. Oracle Corporation (NYSE:ORCL)'s biggest investor is Ken Fisher's Fisher Asset Management as it owns 18.7 million shares that are worth $1.9 billion.
9. Alphabet Inc. (NASDAQ:GOOG)
Eisler Capital's Q3 2023 Investment: $58.8 million
Alphabet Inc. (NASDAQ:GOOG) is a global technology giant known for its search engine and other platforms. Its investors were treated to a worrying note from Mizuho in December 2023 when the bank shared that Google's Cloud division could struggle to perform in the near future.
During September 2023, 163 out of the 910 hedge funds tracked by Insider Monkey had held a stake in Alphabet Inc. (NASDAQ:GOOG). Ken Fisher's Fisher Asset Management owned the largest stake which was worth $5.7 billion.
8. Citigroup Inc. (NYSE:C)
Eisler Capital's Q3 2023 Investment: $60.5 million
Citigroup Inc. (NYSE:C) is a diversified American bank headquartered in New York. The firm scored a win in November 2023 when Global Finance Magazine rated it as the world's best digital bank.
By the end of this year's third quarter, 79 out of the 910 hedge funds part of Insider Monkey's study had bought the bank's shares. Citigroup Inc. (NYSE:C)'s biggest hedge fund shareholder is Warren Buffett's Berkshire Hathaway due to its $2.2 billion investment.
7. JPMorgan Chase & Co. (NYSE:JPM)
Eisler Capital's Q3 2023 Investment: $65.7 million
JPMorgan Chase & Co. (NYSE:JPM) is one of the biggest banks in the world. An unparalleled financial behemoth, its shares are rated Buy on average and analysts have set an average share price target of $170.57.
Insider Monkey dug through 910 hedge funds for their third quarter of 2023 shareholdings to find that 109 had invested in JPMorgan Chase & Co. (NYSE:JPM). Out of these, the largest investor was Ken Fisher's Fisher Asset Management as it owned $1.6 billion worth of shares.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Eisler Capital's Q3 2023 Investment: $69.3 million
Amazon.com, Inc. (NASDAQ:AMZN) is an eCommerce retailer, a cloud computing company, and a soon to be satellite internet provider. These days it's stacking win after win on the cloud computing front, with the latest development seeing Trip.com pick Amazon.com, Inc. (NASDAQ:AMZN) as its strategic cloud provider.
286 out of the 910 hedge funds profiled by Insider Monkey were the firm's shareholders as of Q3 2023. Amazon.com, Inc. (NASDAQ:AMZN)'s biggest stakeholder in our database is Ken Fisher's Fisher Asset Management courtesy of its $5.2 billion stake.
Amazon.com, Inc. (NASDAQ:AMZN), NVIDIA Corporation (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Wells Fargo & Company (NYSE:WFC) are some of Eisler Capital's top stocks.
Click here to continue reading and check out Eisler Capital's Top 5 Stocks.
Suggested articles:
Disclosure: None. Little Known $4 Billion Hedge Fund's Leveraged Bets on US Stocks is originally published on Insider Monkey.