These 3 Stocks Have Seen Big Buying from Billionaires: I’m Considering Buying, Too.

In a market that’s increasingly filled with uncertainty (but has calmed down on the volatility front considerably, looking at the VIX), it’s difficult to pinpoint which opportunities may seem juiciest right now. On the one hand, there are certain investors who clearly remain on defensive footing, looking to rotate into sectors or companies with more of a value or uncorrelated tilt. On the other hand, we have growth investors who are looking to buy this recent dip and hold for the long-term.

Both strategies should bode well for investors, but are likely to work differently over differing time frames. And given the fact that no one knows which direction the market will be headed over any specific time frame, it’s anyone’s guess as to whether value-based or growth-focused investing strategies will outperform in the years to come.

That said, for those who are looking only a few quarters out, I think considering which companies hedge funds and other billionaire investors are buying are worth considering. Here are three stocks notable billionaire investors have been loading up that are piquing my interest as well.

SPDR Gold Shares ETF (GLD)

Billionaire investor Ray Dalio, still CEO of Bridgewater Associates (the world’s largest hedge fund) is a great person to kick this list off with. One of Dalio’s most recent significant investments in SPDR Gold Shares ETF (GLD), an exchange trade fund which tracks the price of gold via actual physical bouillon. Unlike other ETFs that track futures and other gold-related assets, this fund looks to track the price of bouillon as closely as possible, and it’s done a great job of that over the years.

The fund’s allure to the likes of Dalio and others is defensive in nature. During bear markets (or periods in which investors anticipate a bear market on the horizon), precious metals such as gold tend to outperform. And with gold trading near an all-time high right now, this recent investment from Ray Dalio may be prescient in nature, considering he’s been among the leading bears calling for some deterioration in the equity and bond markets for some time.

Ray Dalio is a leader I admire, and one who makes sense on so many fronts. His assessment of the market tends to be correct over most time frames, so I’m going to take him at his word that this is an investment worth considering right now.

AppLovin (APP)

A more speculative growth stock I’ve had on my radar for some time, AppLovin (NASDAQ:APP) is a favorite of many investors looking to tilt their portfolios more toward a risk-on environment moving forward. A range of hedge funds, from Tiger Global to Stanley Druckenmiller’s Duquesne Family Office, have recently added to positions or initiated new positions in the digital advertising optimization giant.

AppLovin’s appeal really comes from the underlying thesis that over the long-term, demand for better performance from online advertising campaigns will be demanded by clients. The world of online advertising is growing more competitive, and cutting through the noise is becoming increasingly difficult. AppLovin’s platform allows its clientele to make the best of their budgets, allowing for increased spending and improved results overall.

For investors betting on an increasingly digitized future, AppLovin is certainly a company I’d consider at some point. While I do think the company’s valuation remains steep at more than 62-times forward earnings, there’s a reason why investors are paying a premium for this name right now.

Carvana (CVNA)

Last on this list of intriguing stocks billionaires are buying is online auto retailer Carvana (NYSE:CVNA). The used car buying platform has seen its share price surge more than 45% year-to-date and more than 150% over the course of the past year. Accordingly, hedge funds who have invested heavily in this company are ones I think are certainly worth considering.

Much ado has been made about the negative impact tariffs could bring to the table for many companies to operate overseas, or have some sort of import component to their business model. And while the price of vehicles rising overall may make Carvana a more troublesome investment down the road, there are two key factors I think are propelling this company’s stock price higher in the near-term.

For one, rising car prices across the board should increase the value of the vehicles sold on Caravan’s marketplace (and the revenues the company earns as transaction fees down the line). Secondly, the company is now profitable and trading at a reasonable forward multiple, if its growth projections hold up and car prices do indeed rise.

Thus, as a way to lean into what could be bearish trade policy moving forward, Carvana is an intriguing pick I’m going to have to think about a bit more. Lone Pine Capital and other hedge funds that have built positions in this name may be onto something.

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