The top holdings of billionaire hedge fund magnates like Carl Icahn, Bill Ackman and Warren Buffett tell a lot about the investors themselves. Signaling their most significant conviction picks in the equity markets, the investments can provide insights into the strategies and perceptions of each. They are also often the source of some pretty interesting backstories.
So where are billionaires placing the biggest of their big bets, and what are the narratives behind them?
Here is the look at the favorite stocks of 20 of Wall Street's best and just how much they've invested in each.
1. Warren Buffett -- Wells Fargo, $25.6 Billion
Warren Buffett's love affair with Wells Fargo (WFC - Get Report) stretches across decades. In his 1990 letter to Berkshire Hathaway(BRK.A) (BRK.B) shareholders, the Oracle of Omaha revealed his firm had increased its ownership in Wells Fargo to just under 10% -- the most it was allowed to own without the approval of the Federal Reserve. He called WFC "a superbly-managed, high-return banking operation."
Twenty-five years later, Buffett continues betting on Wells Fargo. In fact, in the first quarter of 2015, he upped his stake in the firm for the first time in nearly two years. Warren Buffett and Berkshire Hathaway today own 9.5% of all of Wells Fargo's outstanding shares.
2. Carl Icahn -- Icahn Enterprises, $9.8 Billion
Carl Icahn really, really likes Apple (AAPL - Get Report) -- but not as much as he likes his own company, Icahn Enterprises (IEP -Get Report). His namesake holding company comprises nearly one third of his public equity portfolio.
As IEP's chairman, Icahn earns an annual salary of just $1; however, he is by no means hurting for cash. The billionaire owns nearly 90% of all of Icahn Enterprises' outstanding shares, and the company has done well. According to a May 2015 investor presentation reported by ValueWalk, IEP has produced a total return of 1,485% since January 1, 2000.
Must Read: Icahn's History With Apple
3. Ray Dalio -- Vanguard Emerging Markets ETF, $4.6 Billion
Ray Dalio's public equity portfolio is largely allocated to just three ETFs, with his most significant stake being the Vanguard Emerging Markets ETF (VWO). The FTSE Emerging Index it tracks is comprised of more than 900 emerging-market stocks from countries like China, Taiwan, India, Brazil and South Africa.
The founder of the world's largest hedge fund, Bridgewater Associates, Dalio employs a global macro style of investing. He and his team look for overarching economic trends, and apparently, emerging markets is an area about which they're optimistic. You can get a glimpse of Dalio's approach to the markets in a 30-minute video he put together, How the Economic Machine Works.
4. Bill Ackman -- Valeant, $3.9 Billion
In early 2014, Bill Ackman and pharmaceutical giant Valeant (VRX - Get Report) teamed up in a bid to take over Allergan (AGN). But when the Botox maker agreed instead to be bought by Actavis (ACT) in November, many thought the Ackman-Valeant affair was over. In fact, it was anything but.
In March, Ackman's Pershing Square revealed it had purchased a 5% stake in Valeant Pharmaceuticals, making it the Canadian drug company's fifth-largest shareholder. His latest regulatory filing revealed his position to be valued at $3.9 billion. And Bill Ackman appears to really believe in Valeant. In early May, he went as far as to suggest the company could be the next Berkshire Hathaway(BRK.A) (BRK.B) .
5. John Paulson -- Shire, $2 Billion
Six months ago, John Paulson was likely singing a very different tune on Shire (SHPG) than he is today. The billionaire took a big hit in October 2014 when a merger deal between Shire and AbbVie (ABBV) fell through. And his subsequent push to get Allergan (now acquired by Actavis (ACT)) to pick up Shire failed as well. But if you don't succeed, try, try again -- or in John Paulson's case, just keep investing.
Shire has proven one of Paulson's best M&A bets of the year, and though it hasn't been acquired, it has been acquiring. It picked upNPS Pharmaceuticals in February, and its stock has enjoyed a solid climb of more than 20% in 2015.
6. Nelson Peltz -- DuPont, $1.8 Billion
Nelson Peltz's relationship with his top stock pick, chemical company DuPont (DD), is contentious. After engaging in a months-long proxy battle to get four seats on its board and push for a breakup, Peltz conceded defeat in May.
However, the activist investor at the helm of Trian Fund Management isn't throwing in the towel on DuPont just yet. "We believe we can make DuPont great again," he told CNBC in an interview after losing the shareholder vote for board seats. "Whatever the results we're proud of the role we've played as a positive change agent."
7. Dan Loeb -- Amgen, $1.6 Billion
Dan Loeb began testing the waters on Amgen (AMGN) during the second quarter of 2014 with the purchase of about 450,000 shares. But by December, he had amped up his stake in a big way, and as of the end of the first quarter of 2015, he holds 10 million Amgen shares, valued at $1.6 billion.
Loeb has dedicated numerous paragraphs to the biotech company in his quarterly letters to Third Point investors. In his third quarter communication, he called Amgen a "pioneer in the biotechnology industry" and said that its long-term underperformance relative to its peers was "surprising." By the time his fourth quarter letter came out in February, the landscape on Amgen was looking quite bright to Loeb, who admitted the company was his biggest winner of 2014.
8. Steve Mandel -- Priceline, $1.5 Billion
Steve Mandel isn't the most vocal billionaire investor, and his hedge fund, Lone Pine Capital, often flies under the radar as well. Lately, the firm has given a few indications of where it thinks the market is headed, but it hasn't had much to say about its top pick,Priceline (PCLN).
In his letters to investors in 2015, Mandel has warned of "eye-popping" valuations and zero-rate interest policies that create distortions in equity markets. Mala Gaonkar, co-portfolio manager at Lone Pine, talked legacy tech at the Sohn Investment Conference and specifically targeted Microsoft (MSFT) within the field. Mum's been the word on Priceline, however, which has been in the Lone Pine portfolio for years.
Must Read: Warren Buffett's Top 10 Dividend Stocks
9. Bruce Berkowitz -- AIG, $1.3 Billion
Bruce Berkowitz halved his stake in AIG (AIG) in the first quarter of the year; however, the insurance company remains the top holding in his public equity portfolio.
In his annual letter to Fairholme Capital Management investors, Berkowitz called AIG the fund's locomotive and commended the company's 25% quarterly dividend increase and $3.4 billion stock buyback program. "If management is able to deliver underwriting margins and expense efficiencies consistent with its peer group, then the company's book value and stock price will meaningfully increase," he wrote. "We shall soon see."
10. Larry Robbins -- Monsanto, $1.1 Billion
Larry Robbins likes what he sees at Monsanto (MON). He began building a stake in agricultural products company in the fourth quarter of 2013 and has consistently added to it since. As of the end of the first quarter, his position is valued at $1.1 billion.
Robbins discussed his Monsanto thesis in a May interview with Bloomberg. "One of the things that attracted us to Monsanto was that their management and board identified that they were building up too much cash on the balance sheet, started to buy back stock at a more accelerated rate, have already set forth a timeframe for review of their capital structure. And so they're asking all the right questions," he said. In a February interview with CNBC, he said Monsanto's business characteristics lead him to believe it should be "levered 2 ½, four times."
11. Edward Lampert - Sears Holdings, $1.1 Billion
Edward Lampert took over as CEO of Sears Holdings (SHLD) in 2013 and has worked to turn the retailer around ever since, garnering mixed results.
The billionaire has raised billions of dollars at Sears since taking over by spinning off assets, leasing out space and selling off stores. In a May 6 blog post, he discussed his measures and what lies ahead. "As important as it is to have a good plan and adapt to changing circumstances, you also need to find the resources to effect the transformation," he wrote, explaining that he hopes the $2.4 billion generated in 2014 will drive Sears' transformation forward at a faster pace.
12. David Einhorn -- Apple, $925.4 Million
Apple (AAPL - Get Report) has proved a bright spot for David Einhorn in recent months. In his first quarter letter to Greenlight Capital investors, he acknowledged the first few months of the year had been "uneventful and unprofitable" for the firm, though its long positions -- led by Apple and SunEdison (SUNE) -- did well.
Einhorn's stake in Apple dates back to the second quarter of 2010. His holdings peaked in 2013, when he reported over 16 million shares. As of his most recent holdings disclosure, he holds 7.4 million. But even though he has scaled back his position in the tech giant, it remains his top public equity holding, and his hopes remain high. "We believe that AAPL is a superior company that merits a premium multiple," he wrote in his first quarter letter to investors.
