Hedge funds and notable investors are focusing on high-conviction stock picks, particularly in the financial sector, which has seen significant interest following Donald Trump’s election. Goldman Sachs reports hedge funds’ largest allocation to financial stocks in 15 years, with LPL Financial as a leading position. Notable investors, including Stephen Mandel’s Lone Pine Capital, have increased stakes in LPL. Additionally, there’s rising interest in Chinese stocks, particularly JD.com, following new government stimulus. Warren Buffett’s Berkshire Hathaway has also invested in Domino’s Pizza, while Bill Ackman’s Pershing Square boosted its stake in Nike amidst company restructuring. Constellation Energy saw substantial hedge fund interest as well.
