The TipRanks’ Top Hedge Fund Managers tool allows investors to track the investment decisions of leading financial experts. The tool ranks these professionals based on success rates, average returns, and the significance of their trades. In this article, we will focus on the three top picks – Transdigm (NYSE:TDG), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) – of the leading hedge fund manager, Mark Thomas Massey of Altarock Partners LLC.
According to the rankings, Massey is second among the 487 hedge fund managers evaluated by TipRanks. It should be noted that he has delivered exceptional performance, with a cumulative gain of 409.48% since January 2016 and an average return of 41.22% over the past 12 months.
Additionally, a hedge fund manager’s return on a portfolio is best measured by the Sharpe ratio, which measures the portfolio’s returns against its risks. A Sharpe ratio greater than one means that the portfolio has higher returns than risks. Massey has a Sharpe ratio of 6.23.
With this background, let’s explore what the Street is saying about Massey’s top three picks.
Is TDG Stock a Good Buy?
Transdigm designs and supplies aircraft components and systems for commercial and military markets. With an exposure of 30.61%, TDG occupies the first position in Massey’s portfolio.
Importantly, a Top analyst from Jefferies, Sheila Kahyaoglu, is bullish on the company’s growth prospects. Yesterday, she reiterated a Buy rating on the stock with a price target of $1,625, which implies an upside of 25.6% from the current level.
Overall, TDG has a Moderate Buy consensus rating on TipRanks, based on 12 Buys and five Holds. Further, the analysts’ average price target on Transdigm stock of $1,426.94 implies a 10.28% upside potential to current levels. Shares of the company have gained 27.9% year-to-date.
Is Amazon a Buy, Sell, or Hold?
Amazon is an e-commerce giant and a leading cloud computing player. AMZN is the second-largest holding in Massey’s portfolio, with an exposure of about 16.3%.
Recently, a five-star analyst from Bank of America Securities, Justin Post, gave a Buy rating to the stock with a price target of $210. The analyst is optimistic about Amazon’s commitment to enhancing its logistics capabilities, improving its cost structure, and expanding margins in 2024.
With 42 unanimous Buy ratings, AMZN has a Strong Buy consensus rating. On TipRanks, the analysts’ average price target on Amazon stock of $221.20 implies 18.14% upside potential from current levels. Year-to-date, shares of the company have gained 23.2%.
Interestingly, AMZN stock has a Smart Score of “Perfect 10” on TipRanks. Note that shares with a “Perfect 10” Smart Score have historically outperformed the S&P 500 Index (SPX).
Is Microsoft a Buy, Sell, or Hold?
Microsoft is a multinational technology company known for its software products, including the Windows operating system and its Microsoft Azure cloud computing services. MSFT stock constitutes 15.83% of Massey’s portfolio.
Recently, the stock has been rated a Buy by three Wall Street analysts. Pierre Ferragu, an analyst from New Street Research, is optimistic about MSFT’s strong position in the PC market and the company’s future growth potential due to its partnership with OpenAI.
On TipRanks, MSFT has a Strong Buy consensus rating. This is based on 33 Buy and one Hold recommendations. The analysts’ average price target on Microsoft stock of $494.02 implies 14.18% upside potential. Shares of the company have gained 15.48% so far in 2024.
Concluding Thoughts
Impressive portfolio gains of the leading hedge fund managers may encourage investors to adopt their portfolio allocation strategy. For more ideas on Top Expert Picks, investors can visit the TipRanks Expert Center and make informed investment decisions.
