It’s proving to be quite a volatile year for some US stocks. And for smaller retail investors trying to make sense of all the chaos, it can be quite daunting to work out which stocks they should buy.
But one guiding light could be to see what the pros are doing. With that in mind, let’s look at five of the most popular US stocks among billionaire hedge fund managers so far in 2026.
Five hedge fund stock picks
While hedge funds are known for using complex investment strategies, several high conviction names appear repeatedly on billionaire buying lists.
These are:
- Alphabet.
- Meta Platforms.
- Nvidia.
- Vertiv Holdings.
- Visa (NYSE:V).
The first three likely need little introduction, given their dominant presence as ‘Magnificent Seven’ tech stocks. And Vertiv seems to be continuing the artificial intelligence (AI) theme with the business manufacturing cooling, thermal, and power management systems for their data centres.
But the interesting standout is Visa. Overall, the financials sector has been underperforming versus the S&P 500, with investor sentiment being weighed down by instability within the private credit market, deterioration of consumer savings, and uncertainty surrounding interest rates.
So why are the billionaires seemingly rushing to buy this payments business?
An interesting standout
Like the wider financials sector, Visa shares haven’t been stellar performers of late. In fact, over the last 12 months, the US stock’s fallen close to 8% while its parent index delivered a near-20% return.
Yet when looking at the underlying business, net revenues and income are actually still growing by double digits, with management expecting more double-digit growth throughout the rest of 2026.
As such, it seems that hedge funds are capitalising on this disconnect between value and price. And with this high-quality compounder now trading at a more attractive valuation, it isn’t surprising to see the billionaires take advantage. Even more so given the growing geopolitical uncertainty.
Risk versus reward
Even seemingly rock-solid companies like Visa have their weak spots. And there’s a big threat called the Department of Justice (DOJ) looming over this business.
In September 2024, the DOJ accused Visa of illegally monopolising the debit card market through volume discounts and exclusionary agreements, forcing banks and merchants to stay on its network while freezing out competition.
The trial could still be a few years away. But a negative outcome could be far more significant than a regulatory fine. If Visa’s forced to dismantle its merchant incentive structures, transaction volumes could crumble.
The company’s also facing additional legal pressure from ongoing investigations by the European Competition Authority as well as merchant fee class action lawsuits.
With $16.4bn of cash & equivalents on its balance sheet, Visa has a substantial cash cushion to absorb these costs. But if they all land at the same time, it could translate into substantial pressure on this business.
So is it a risk worth taking? The billionaires certainly seem to think so. And with Visa shares now trading below even the most pessimistic stock price target from institutional analysts, now could indeed be a good time to dig a little deeper.
