Here are the stocks — led by Microsoft — that matter most to hedge fund managers

Many hedge funds have been skillfully navigating this year's market volatility. For investors seeking to follow the smart money, here are the stocks that mattered the most to these managers. VerityData analyzed 565 “fundamental” hedge funds that own between 10 and 300 positions each. Their aggregate disclosed equity holdings reached approximately $746 billion at the end of the third quarter, according to the latest regulatory filings. The research firm then created a list of stocks that most frequently appear among the 10 largest holdings of those hedge funds. Microsoft was the most loved stock last quarter, with 139 funds owning it as one of their largest positions, according to VerityData. The Xbox and Windows software maker has been the hedge fund favorite since the third quarter of 2022. Among the most prominent holders: Philippe Laffont's Coatue Management and Chase Coleman's Tiger Global both owned Microsoft as one of their top holdings at the end of September. Other than Microsoft, the majority of the so-called ” Magnificent Seven ” mega-cap tech stocks — Amazon, Meta, Apple, Nvidia and Google's Alphabet — also made the list, VerityData said. Despite rising interest rates this year, the tech titans have benefited from the buzz around artificial intelligence. Meta has soared 183% in 2023, Microsoft is ahead 57% this year and Amazon is higher by 75%. Uber , JPMorgan and Berkshire Hathaway 's class B shares were also favored by these professional traders.