Billionaire Louis Bacon’s 10 Tech Stock Picks
In this article, we discuss the billionaire Louis Bacon’s 10 tech stock picks. You can skip our detailed analysis of the billionaire’s hedge fund and go directly to the Billionaire Louis Bacon’s 5 Tech Stock Picks.
Louis Moore Bacon is an American investor, philanthropist, and hedge fund manager of Moore Capital Management. The investment management firm was founded in 1989 and is focused on the global financial markets and private equity markets. In 2019, Bacon announced that he is closing Moore Capital because of the difficult trading environment, returning money to the investors. As of 2021, Moore Capital manages internal money as the billionaire announced to concentrate on his personal investments by consolidating all three funds into a single fund.
Investment Philosophy of Louis Bacon
Louis Bacon focuses on macro trading while betting on commodities and bonds through hired traders. His investment philosophy involves meticulous analysis of global political and economic events. Through this strategy, his investment management firm was able to generate profitable returns for a long time.
In 1990, when the Japanese stock market crashed, Bacon had $200 million under management, while his investment firm gained 86% during that year. From 1995 to 1999, the annual returns of Moore Capital ranged from 23% to 32%. Through 2019, the fund’s annual returns averaged 17.6%. However, in recent years, the performance of the fund remained somewhat sluggish as the assets fell to $9 billion in 2018 from $14 billion. The fund delivered a 1.9% return in 2019.
With the onset of Covid-19 in 2020, Bacon continued with his strategy of betting on bonds, which resulted in his fund generating 70% returns during that time.
As of Q2 2021, Louis Bacon’s Moore Global Investments invests heavily in the technology sector. The tech stocks exhibited tremendous growth in 2020, presented by tech-heavy NASDAQ which gained 28.5% in the past year.
Some of the famous tech stocks in Louis Bacon’s 13F portfolio as of the second quarter of 2021 are Amazon.com, Inc. (NASDAQ:AMZN), Magna International Inc. (NYSE:MGA), Affirm Holdings, Inc. (NASDAQ:AFRM), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT).
Our Methodology:
Let’s analyze our list of the billionaire Louis Bacon’s 10 tech stock picks. For this article, we took into account Moore Global Investments’ 13F portfolio as of the second quarter.
Louis Bacon of Moore Global Investments
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here)….