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Ken Griffin is the founder, CEO, and majority owner of. citadel, one of the major hedge funds. Mr. Griffin founded his company in 1990 and grew it into what it is today through a combination of his quantitative trading and macro strategies.
Ken Griffin and Citadel are known for their aggressive style with a focus on technology and heavy data dependence. Citadel currently has more than 18,000 employees and Ken Griffin’s net worth exceeds his $35 billion. No wonder investors try to copy his trades. The good news is that most of Citadel and Griffin’s activities are very much in line with broader recommendations.
Nvidia (NVDA)
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Ken Griffin and Citadel, like many hedge funds, Nvidia (NASDAQ:NVDA).
Citadel’s investment in Nvidia represents more than 1% of its portfolio and is valued at just over $1 billion. Citadel currently controls 2.05 million shares of NVDA stock. Griffin’s company increased its holdings by 738,000 shares in the third quarter, one of its biggest moves.
Given Citadel’s interest in technology, it’s no surprise that the company would once again invest heavily in Nvidia. However, this is a strong sign for NVDA stock, which peaked in the third quarter. The fact that Citadel has made a significant investment in Nvidia shows that Griffin thinks the stock needs to rise further.
Nvidia’s H100 chip is a standard holder when it comes to artificial intelligence (A.I.), saw incredible demand throughout 2023, resulting in record growth. The company plans to release its latest H200 chip in 2024, which should be the catalyst for further growth.
Microsoft (MSFT)
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Griffin and Citadel are also making a big push to invest in . microsoft (NASDAQ:MSFT). Microsoft is one of the world’s leading technology companies and has positioned itself to benefit from megatrends time and time again. So given the company’s history of following megatrends, it’s easy to see why Griffin and Citadel remain so dedicated to Microsoft.
MSFT is the largest holding within Citadel’s portfolio, accounting for 1.91% of its total holdings. The stock is currently trading at around $375. Citadel increased its position in Microsoft by a total of 3.67 million shares in the second and third quarters of this year.
Citadel attracted more than 1.6 million shares in the third quarter at an average closing price of $330. This should boost investor confidence in Microsoft even as its stock price soars to record highs. As mentioned earlier, the company is incredibly well positioned, especially when it comes to his AI and cloud. For investors looking to replicate the success of Ken Griffin and his Citadel, Microsoft is the most obvious choice.
Eli Lilly (LLY)
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Eli Lilly (New York Stock Exchange:Lily) is another stock to consider for investors looking for a Ken Griffin-like trade. LLY stock is not a particularly large holding for Citadel, accounting for just 0.45% of its overall portfolio. However, the company recently increased its position during the third quarter, raising his 214,000 shares at an average closing price of $515.
The big news, of course, is that Eli Lilly has received FDA approval to sell its diabetes drug Mounjaro as a weight loss drug under the brand name Zepbound.Eli Lilly is in direct competition with novo nordisk (New York Stock Exchange:NVO) in the battle for weight loss drug supremacy.
However, this stock is not without controversy. Many employee-sponsored benefit programs are not equipped to absorb the high cost of treatment, and there are questions about who will pay for the drugs. Additionally, recent data showed that patients who stopped taking Zepbound regained their lost weight. I don’t know if that’s a reason to discount LLY stock. Rather, it suggests to me that Eli Lilly can reasonably predict long-term demand for its drugs. This is good from an investor’s perspective.
On the date of publication, Alex Sirois did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
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