Some of the best investors in the world are sticking by Facebook (FB - Get Report) , Amazon (AMZN - Get Report) , Apple (AAPL - Get Report) , Netflix (NFLX - Get Report) , and Alphabet (GOOGL - Get Report) despite their newfound laggard status amid recent market turmoil.

The stocks that make up the acronym FAANG have been hammered as of late, dropping 20% or more from their respective yearly highs. Yet, the development may end up being a boon, not a blight, for agile investors.

Maz Jadallah, CEO of Alphaclone, creator of the Alternative Alpha ETF (ALFA - Get Report) , a vehicle that tracks a selection of major hedge fund managers and institutional investors, told Real Money's Kevin Curran that major institutions and firms are far from forsaking FAANG.

"We basically play moneyball for hedge funds," he said of his product. "We calculate batting averages for a group of 500 active managers and then choose the ten managers with the best batting averages and track their five highest conviction holdings and equal weight them."

Jadallah noted that while technology sector exposure among the highest performing managers has come down, FAANG names remain widely held.

"FAANG names are still very much large holdings among the managers we follow," he clarified. "It means that investors are really favoring larger quality names. Quality is the key word."

The sentiment from large scale investors is echoed by Wall Street analysts who are not ready to give up on stocks like Monday's Stock of the Day Amazon and Tuesday's Stock of the Day Apple.

Despite target trimming among Wall Street firms on both companies, the overwhelming majority of analysts following each stock are prescribing buy ratings amid the depressed share values in recent months.

"We're actually getting to the point where we will stop talking about Amazon as an expensive stock," Nomura Instinet analyst Simeon Siegel told Real Money. "It is transitioning from a product seller to a fee collector...I see margins expanding massively."

He noted that it will take time for the transition to crystallize in investors' minds and for a different sort of investor to come into play. Siegel and his team set a price target of $2050 and a "Buy" rating for the stock.

"In this market you can't hope to call a bottom," he advised. "The bottom line is if you invest in Amazon now, it's going to go up in the long run."

At the very least, there is a lot of smart money riding on that thesis.

For more extensive coverage of FAANG names and trading strategies on each name, check out Real Money's Stock of the Day coverage.

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