Hedge funds have been quietly positioning themselves in several under-the-radar stocks that deserve your attention. Recent regulatory filings reveal strategic moves by some of Wall Street’s most sophisticated investors – positioning that often precedes significant price movement.
We’ve identified three compelling opportunities from their recent filings that show particular promise based on fundamental catalysts and institutional backing. These aren’t typical mainstream recommendations, but calculated positions being built by professional investors with extensive research capabilities.
Arthur J. Gallagher (AJG)
Nine elite hedge funds made this insurance broker a top holding last quarter, and for good reason. In December, AJG announced a game-changing $13.45 billion acquisition of AssuredPartners from private equity firm GTCR – a move that will dramatically expand their market reach and revenue potential.
The stock is already up 14% in 2025, but this is likely just the beginning. Insurance brokers thrive during economic uncertainty, and AJG has consistently demonstrated skill in acquiring and integrating new businesses. The company’s growth trajectory looks exceptional, especially with this strategic acquisition providing new scale advantages against competitors.
Nebius (NBIS)
If you missed the first wave of AI stocks, pay attention now. This Amsterdam-based AI infrastructure specialist has become a hedge fund favorite, and the smart money is piling in for a reason that should make your ears perk up: Nvidia just took a strategic position.
When the world’s AI chip leader invests in you, it’s not just capital – it’s validation. After relisting on Nasdaq in Q4 2024, Nebius rocketed 46% higher, followed by another 51% surge in 2025. Despite these gains, the company is just beginning its journey as a critical player in the AI infrastructure space – the backbone that will support the next decade of AI advancement.
Taiwan Semiconductor (TSM)
The quiet giant behind the AI revolution is finally getting the attention it deserves from institutional investors. As the world’s premier chip manufacturer, TSM produces the advanced semiconductors that power virtually every major AI system on the planet.
Elite hedge funds are recognizing what industry insiders have known all along – you can’t have an AI revolution without TSM’s manufacturing prowess. While companies like Nvidia design cutting-edge chips, TSM actually builds them. This positioning grants them exceptional stability while still capturing massive upside from the AI boom, regardless of which AI software or hardware company ultimately dominates.
