Jim Simons, Ray Dalio and Israel Englander are among the most successful investors in history.
All three are billionaires, and their respective hedge funds – Renaissance Technologies, Bridgewater Associates and Millennium Management – have joined them in making thousands of investors rich.
There are no bonus points for originality in investing, so it’s worth studying the masters. In fact, you can also invest alongside these billionaires thanks to the 13F filings that the Securities and Exchange Commission (SEC) requires quarterly.
According to Motley Fool Research, these investors own all three of the same “Magnificent Seven” tech stocks. Read on to find out what they are and whether these stocks are right for you.
1. Nvidia
It’s probably no surprise to see this Nvidia (NASDAQ:NVDA) on this list. More than any other company, Nvidia has been the poster child of the AI boom as its sales and profits have soared over the last year, pushing its stock past $2 trillion in market capitalization and making it the world’s third most valuable company behind it Microsoft And Apple. Nvidia’s graphics processing units (GPUs) have become the backbone of the AI infrastructure, and the company has had little competition so far, even as competition comes.
Simons, Dalio and Englander all count Nvidia among their top holdings. At Renaissance Technologies, Nvidia is the second-largest technology holding, accounting for 1.2% of the portfolio, or $767.5 million, at the end of the fourth quarter.
Dalios Bridgewater Associates, meanwhile, counts Nvidia as its third-largest technology holding, with Nvidia shares valued at $133 million at the end of the fourth quarter. The fast-growing chip stock made up 0.7% of Bridgewater’s portfolio.
Finally, Nvidia represents the fourth largest technology holding in English Millennium Management, with 1% of the portfolio or $1.02 billion.
It’s unclear whether these funds held, added to or sold Nvidia in the first quarter, but we’ll find out soon as 13F filings are due by mid-May. If they hold on to their Nvidia shares, the move paid off, with shares rising 82% in the first quarter.
2. Metaplatforms
Metaplatforms (NASDAQ:META) is another top holding by these hedge funds and, like Nvidia, has risen sharply over the last year and a half. While Meta has benefited from the AI boom, the main reason for its rise is a successful turnaround fueled by cost cuts and a revival of its advertising business that resulted in record profits.
Looking ahead, the company appears to still have a lot of growth ahead of it, especially given new opportunities in AI, although some advertisers have recently complained that the company’s ad manager is unreliable.
At Renaissance, Meta represents the fund’s fourth-largest holding in the technology sector, with $744 million worth of Meta shares. Meta represents 1.2% of the fund’s value.
Ray Dalio’s Bridgewater, meanwhile, is even more bullish on Meta, with the social media giant’s second-largest tech holding accounting for 1.3% of his portfolio. The fund ended the fourth quarter with $235.8 million worth of Meta shares.
Finally, as of the end of the fourth quarter, Millennium held $719.7 million worth of Meta shares, or 0.7% of the portfolio. This made it its fifth largest technology holding.
3. Alphabet
Finally, alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) has long been a top stock among hedge funds as the Google parent company’s competitive advantages are reflected in its dominant search engine, offerings like YouTube and promising “moonshot” companies like autonomous vehicle unit Waymo and its AI investments like Google Brain and DeepMind .
Alphabet didn’t show the overwhelming performance of Nvidia and Meta last year, but it still outperformed them S&P 500 and recently reached an all-time high. Given its history of reliable growth and wide economic moat, it’s no surprise that Alphabet is a top pick among these three funds as well.
At Renaissance, Alphabet was the sixth-largest technology holding, valued at $487.2 million, or 0.8% of the total portfolio.
Bridgewater was more bullish on Alphabet than any other tech stock, ranking Alphabet among its top tech stocks with 1.6% of its total portfolio. At the end of the fourth quarter, Bridgewater owned $285.6 million worth of Alphabet shares.
Millennium also ranks Alphabet among the top stocks, as the Google owner’s shares represent 1.8%, or $1.56 billion. Only Microsoft is a larger tech holding in the Englander fund.
What it means for investors
Owning hedge funds isn’t a guarantee of outperformance, but it’s worth tracking the moves of the biggest investors, especially if their holdings are similar to your own.
Keep an eye on these stocks starting in mid-May, as they could move once we learn which funds bought and sold them in the first quarter. However, I expect them to continue to hold the top positions among the largest hedge funds.
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Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman holds positions in Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
“3 Top Artificial Intelligence (AI) Stocks Billionaires Jim Simons, Ray Dalio, and Israel Englander Are Buying” was originally published by The Motley Fool