Marshall Wace LLP manages quantitative, systematic, and fundamental investment strategies, with a primary focus on long/short equity. These strategies are implemented on a global scale, utilizing proprietary systems and processes to optimize performance. For over two decades, technology and data have been central to the firm’s operations. In 2002, Marshall Wace introduced MW TOPS, its Trade Optimized Portfolio System and the world’s first ‘Alpha Capture’ application. This revolutionized the way investment insights were harnessed and contributed largely to its prominence in the hedge fund industry. Today, the firm remains committed to innovation and excellence, continuously refining its methodologies to maintain a competitive edge in the financial markets. Despite its success, Marshall Wace has faced recent challenges; in the fiscal year ending February 2024, the firm’s revenues declined substantially, leading to a nearly 64% drop in profits.

Marshall Wace LLP’s Q4 2024 13F filing reported over $83 billion in managed 13F securities, with its top 10 holdings accounting for 34.5% of the total portfolio.

The stocks discussed below were picked from Marshall Wace LLP’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1,000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Paul Marshall of Marshall Wace

Number of Hedge Fund Holders as of Q4: 166

Marshall Wace LLP’s Equity Stake: $3.40 Billion 

Apple Inc. (NASDAQ:AAPL), founded in 1976, continues to dominate the global technology sector and is first on the list of top stocks to buy according to Marshall Wace LLP. In Q4 2024, the company reported revenue of $124.3 billion, reflecting a 3.95% year-over-year increase, while earnings per share climbed to $2.40, surpassing analyst expectations. Apple’s Board of Directors announced a quarterly dividend of $0.25 per share, reinforcing investor confidence. Hedge fund interest in the company also increased, with 166 funds holding positions worth nearly $118.6 billion by the end of the quarter. However, despite these strong financial results, the company faces growing uncertainty as the Trump administration enforces higher tariffs on Chinese imports, which could disrupt its supply chain and impact profit margins. Since China accounts for roughly 90% of iPhone production, these tariffs could force Apple to absorb higher costs, raise consumer prices, or negotiate carrier subsidies, all of which pose financial risks.

In response to these challenges, Apple Inc. (NASDAQ:AAPL) is making a significant push to expand its U.S. presence, committing $500 billion over the next four years to domestic manufacturing and technological development. This includes doubling its Advanced Manufacturing Fund to $10 billion, hiring 20,000 employees in key sectors such as R&D, silicon engineering, and AI, and beginning server production in Houston. Additionally, Apple plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with the Trump administration’s push for reshoring production. While these efforts may help mitigate some of the supply chain risks posed by tariffs, they will take years to materialize, leaving Apple vulnerable to short-term economic and geopolitical uncertainties.

Beyond trade concerns, broader macroeconomic risks including inflation, geopolitical instability, and weakening consumer spending add further pressure. The ongoing Ukraine-Russia conflict and trade uncertainties could lead to higher import costs, reduced disposable income, and lower consumer demand, particularly for high-end electronics. As smartphone innovation slows and economic conditions remain fragile, consumers may delay device upgrades, potentially impacting Apple’s revenue growth. While Apple Inc. (NASDAQ:AAPL) remains a strong long-term investment due to its brand strength, innovation, and expanding services segment, near-term volatility could challenge its stock performance.

Overall, AAPL ranks 1st on our list of top stocks to buy according to Marshall Wace LLP. While we acknowledge the potential for AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.