Stock-picking hedge funds piled into several lesser-known stocks at the end of 2024, some of which have already rallied double digits year to date. VerityData looked at the year-end top holdings of hedge fund managers that oversee 10 to 300 holdings based on the recent regulatory filings. That includes about 545 hedge funds with aggregate disclosed equity holdings of approximately $819 billion. Several hidden gems gained popularity among the smart-money community last quarter. Insurance broker Arthur J. Gallagher had nine fundamental hedge funds pile into the stock and make it their top holdings. The action came as the firm announced a deal in December to acquire AssuredPartners from private equity firm GTCR in a $13.45 billion all-cash deal. The stock is up 14% in 2025. Hedge funds also bought private prison and facilities operator Geo Group , which surged on the back of President Donald Trump’s election victory. After the shares more than doubled in price in the fourth quarter, they retreated about 5% year to date. Nebius, an Amsterdam-based artificial intelligence infrastructure specialist, was also loved by hedge funds last quarter. The stock soared 46% in the fourth quarter after it relisted on Nasdaq and an investment from chip giant Nvidia was disclosed. The stock has rallied another 51% in 2025. Another AI-related name, Taiwan Semiconductor , was also among the top popularity gainers in the fourth quarter.
