In this article, we discuss the 10 best tech stocks to buy according to billionaire Ken Griffin. If you want to skip our detailed analysis of Ken Griffin’s history and his views on the current market situation, go directly to 5 Best Tech Stocks to Buy According to Billionaire Ken Griffin.

Ken Griffin was always destined to become a man with a lot of money on Wall Street. Now worth around $25 billion according to Forbes, Griffin was trading stocks and making money as a teenager studying at Harvard University, and even convinced the college administration to let him install a satellite dish on his dormitory’s roof so he could receive real-time stock quotes. After working with Glenwood Capital Investment’s Frank Meyer for a year after his graduation, Ken Griffin set up a $4.6 million hedge fund named Citadel Investment Group in 1990, which posted returns of 43% and 40% in the next two years. Come 2022, Griffin’s hedge fund manages more than $484 billion as of the end of March, and is one of the most widely-watched funds on Wall Street. In the pandemic-ravaged year of 2020, Citadel posted returns of 24% and earned more than $1.8 billion, making it the 4th highest earner of the year. Ken Griffin also founded Citadel Markets in 2002, which is the largest market maker on the New York Stock Exchange, and one of the largest in the world. It manages and processes one out of every five stock trades in the United States.

Inflation: A Rollback Of Globalization and Shortage Of Workers

Talking to Bloomberg in May, Griffin noted that every economic cycle ends with a recession, and the inevitable coming of one was not a question of “if” but “when.” To that end, the Citadel boss noted that he doesn’t see recession as likely during the next four quarters. Griffin pointed out that China’s zero-tolerance policy towards Covid-19 has drastic impacts on supply chain, and is very “pro-inflationary.” This creates further impetus for the Fed to introduce more aggressive policy decisions which could lead to a recession.

Ken Griffin of Citadel Investment Group

He talked about how the war in Ukraine has created global upheaval in the energy markets, and that Russia’s increasingly aggressive war tactics in Ukraine could eventually lead towards a tipping point for recession. Asked about the future prospects of the S&P500 and when to expect a bottom, Griffin said that he expects positive growth over the next two quarters, and dismissed the notion that all was “gloom and doom,” noting that there were 11 million open jobs with a 3.6% unemployment rate in the United States.

The billionaire said that the world economy was undergoing a rollback of globalization, which had brought immense benefits to the world’s economies, especially the United States. Countries around the globe are now moving towards “in-sourcing,” which Griffin sees as one of the two most important factors leading towards inflation, along with a shortage of workers in the US market. Ken Griffin also talked about how the market was rotating from growth stocks, which offer more potential in the future, to value stocks, which offer a more stable and consistent outlook in the present.

In the first quarter of 2022, Citadel Investment Group initiated positions in 1,689 stocks, increased stakes in 5,558 equities, reduced holdings in 6,042 and completely exited 1,962 stocks. The top 10 holdings of the fund represented 31.76% of its total portfolio. In this article, we’ll focus on the best tech stock to buy according to billionaire Ken Griffin, which includes stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Tesla, Inc. (NASDAQ:TSLA), along with others discussed below.

Our Methodology

Best Tech Stocks to Buy According to Billionaire Ken Griffin

10. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Citadel Investment Group’s Stake Value: $254.91 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.05%

Number of Hedge Fund Holders: 83

Advanced Micro Devices, Inc. (NASDAQ:AMD) starts off our list of billionaire Ken Griffin’s favorite tech stocks. The California-based firm provides graphic cards, microprocessors, and motherboard chipsets that are used in PCs, smartphones, workstations, and data center servers around the world.

Ken Griffin’s stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) during the first quarter consisted of 2.33 million shares valued at $254.9 million, representing 0.05% of his total portfolio. This was a 3% reduction over the previous quarter. In total, 83 hedge funds were long on the company shares at the close of the first quarter, up from 69 hedge funds a quarter ago.  Fisher Asset Management increased his position in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 23% in the first quarter, becoming its biggest shareholder with a $2.66 billion stake.

On June 22, Morgan Stanley analyst Joseph Moore resumed coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) with an ‘Overweight’ rating and a $103 price target. He sees the firm as well-positioned to post share gains over the next two years, and notes that it will continue to increase its share in the cloud services market as supply constraints ease.

In the first quarter, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted earnings per share of $1.13, surpassing Street estimates by $0.20. Revenue of $5.89 billion was also above estimates by $358.26 million.

Investment firm Carillon Tower Advisers talked about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter. Here’s what the fund said:

“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”

Along with Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Tesla, Inc. (NASDAQ:TSLA), Advanced Micro Devices, Inc. (NASDAQ:AMD)) is one of the most prominent stocks in Ken Griffin’s 2022 portfolio.

9. Broadcom Inc. (NASDAQ:AVGO)

Citadel Investment Group’s Stake Value: $301.52 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.06%

Number of Hedge Fund Holders: 71

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor manufacturer based in California, which operates through its segments: Semiconductor Solutions and Infrastructure Software. Ken Griffin increased his stake in the firm by 213% in the first quarter, standing at roughly 479,000 shares worth $301.5 million. In comparison, the billionaire owned 153,000 shares of Broadcom Inc. (NASDAQ:AVGO) a quarter ago.

On May 27, Mizuho analyst Vijay Rakesh reiterated a ‘Buy’ rating on Broadcom Inc. (NASDAQ:AVGO) shares and raised the price target to $725 from $700. He holds that the company’s planned acquisition of VMware (NYSE:VMW), a US-based cloud computing company, potentially unlocks 45% upside. Financial Times recently reported that the deal is set to undergo a lengthy antitrust investigation in the EU over concerns it could possibly harm competition across the global tech industry.

Investors were seen piling into Broadcom Inc. (NASDAQ:AVGO). At the end of the first quarter, 71 hedge funds owned positions in the firm, as compared to 62 hedge funds a quarter earlier. Its largest Q1 shareholder was Fisher Asset Management with a position worth nearly $895 million.

Broadcom Inc. (NASDAQ:AVGO) announced its Q1 earnings on May 26, and disclosed earnings per share of $9.07, beating estimates by $0.35. Quarterly revenue was recorded at $8.1 billion, exceeding market forecasts by $194.74 million and representing a 22.6% jump from the year-ago quarter.

8. Uber Technologies, Inc. (NYSE:UBER)

Citadel Investment Group’s Stake Value: $338.03 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.06%

Number of Hedge Fund Holders: 144

Uber Technologies, Inc. (NYSE:UBER) is up next on the list of top tech stocks to buy according to Ken Griffin. The billionaire owned 9.47 million shares of the firm at the end of the first quarter, priced at around $338 million. This was a decrease of 37% over the previous quarter, where he owned roughly 14.91 million shares of Uber Technologies, Inc. (NYSE:UBER).

The popular ride-hailing firm has seen diminishing investor confidence as of late. At the close of Q1 2022, 144 hedge funds owned positions in Uber Technologies, Inc. (NYSE:UBER), as compared to 153 hedge funds a quarter earlier.

On June 9, Goldman Sachs analyst Eric Sheridan reduced the firm’s price target on Uber Technologies, Inc. (NYSE:UBER) to $45 from $55, and maintained a ‘Buy’ rating on the shares. The analyst has updated his model to reflect a greater probability of a weaker macro environment, and is taking a more conservative view on the ride-sharing and food delivery sectors. Uber Technologies, Inc. (NYSE:UBER) recently announced that its popular ride-sharing feature called UberPool would be relaunching under the name UberX Share. This service was cancelled amid the Covid pandemic, and will now be available in a number of major US cities.

7. Visa Inc. (NYSE:V)

Citadel Investment Group’s Stake Value: $348.52 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.07%

Number of Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is a digital payments company headquartered in California. Ken Griffin owned 1.57 million shares of the company at the end of March, worth $348.5 million. This was an increase in stake of 4% over the previous quarter, and amounted to a 0.07% slice of his overall portfolio.

Baird analyst David Koning on June 22 named Visa Inc. (NYSE:V) as his “bullish Fresh Pick”, and kept an ‘Outperform’ rating on the shares with a $290 price target. He noted that the firm would likely remain quite resilient in a recession-scenario given growing purchase volume. Koning is bullish on Visa stock as cross-border transactions and inflation provide ongoing growth drivers.

Investors were seen buying Visa Inc. (NYSE:V) stock. At the end of March, 159 hedge funds were long on the company shares, as compared to 142 hedge funds a quarter earlier. The combined value of Q1 hedge fund holdings stood at more than $28 billion. The largest shareholder of Visa Inc. (NYSE:V) during the first quarter was TCI Fund Management with a $4.41 billion stake.

In the first quarter of 2022, Visa Inc. (NYSE:V) reported earnings per share of $1.79, exceeding estimates by $0.14. $7.19 billion in revenue for the quarter registered year-on-year growth of 25.5% and also beat market forecasts by $365.4 million.

Here is what Polen Capital, an investment firm, had to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:

“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”

6. Tesla, Inc. (NASDAQ:TSLA)

Citadel Investment Group’s Stake Value: $370.64 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.07%

Number of Hedge Fund Holders: 80

Tesla, Inc. (NASDAQ:TSLA) is an EV manufacturer based in the United States. The company stock represented 0.07% of Ken Griffin’s Q1 portfolio, with roughly 344,000 shares valued at $370.6 million. This showed an increase of 20% over the previous quarter where Griffin owned 289,000 Tesla shares.

On June 24, Credit Suisse analyst Dan Levy maintained an ‘Outperform’ rating on Tesla, Inc. (NASDAQ:TSLA) shares and lowered the price target to $1,000 from $1,125. Despite forecasting lower than expected Q2 deliveries, the analyst retains a bullish outlook on Tesla and sees its long-term fundamentals remaining intact. He also notes that widening supply chain issues could extend Tesla’s lead over other firms in the EV space.

Out of all the hedge funds tracked by Insider Monkey, 80 reported ownership of stakes in Tesla, Inc. (NASDAQ:TSLA) at the close of the first quarter with a combined value of $11.28 billion. This is down from 91 hedge funds a quarter ago. Its largest Q1 shareholder was Cathie Wood’s ARK Investment Management, a long-time investor, with a $1.71 billion stake.

Grantham Mayo Van Otterloo & Co. LLC, an investment management firm, mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter. Here’s what the fund said:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”

Just like Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG), Tesla, Inc. (NASDAQ:TSLA) is one of the best tech stocks to buy according to billionaire Ken Griffin.

Click to continue reading and see 5 Best Tech Stocks to Buy According to Billionaire Ken Griffin.

In this article, we discuss the 5 best tech stocks to buy according to billionaire Ken Griffin. If you want to read our detailed analysis of Ken Griffin’s history and views on the latest market situation, go directly to 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin.

5. Alphabet Inc. (NASDAQ:GOOG)

Citadel Investment Group’s Stake Value: $371.33 million

Percentage Of Citadel Investment Group’s 13F Portfolio: 0.07%

Number of Hedge Fund Holders: 160

Up next is Alphabet Inc. (NASDAQ:GOOG), which represents 0.07% of Ken Griffin’s Q1 portfolio with nearly 134,000 shares priced at $371.3 million. In total, 160 hedge funds from Insider Monkey’s Q1 database were long on GOOG shares, in contrast to 158 hedge funds a quarter ago.

On June 1, Morgan Stanley analyst Brian Nowak reiterated an ‘Overweight’ rating on Alphabet Inc. (NASDAQ:GOOG) shares, and lowered the price target to $3,000 from $3,270 owing to a more conservative online advertising and e-commerce view amid “rising macro and micro uncertainty.” Morgan Stanley now pegs the probability of recession at 35%, as opposed to 5% at the start of the year. As of June 27, shares of Alphabet Inc. (NASDAQ:GOOG) are down 18.29% in the year to date.

For the quarter ending March, Alphabet Inc. (NASDAQ:GOOG) posted EPS which fell below estimates by $0.94. However, quarterly revenue of $68 billion was above analysts’ predictions by $121.3 million and showed year-on-year growth of 22.95%.

Here is what Farrer Wealth Advisors had to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:

“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)

Quant-Investing Pioneer Jim Simons Predicts Warren Buffett’s Old-School Approach will Stay Relevant – and Lays Out the 5 Key Principles He Lives By (Business Insider)
Jim Simons discussed why his hedge fund employs scientists instead of bankers, defended Warren Buffett‘s relevance in an age of supercomputers and algorithmic trading, and shared the five principles he lives by in a recent, rare interview during the 2022 Abel Prize Week. “We hired statisticians, physicists, astronomers, mathematicians — the important thing was that they were very smart,” the Renaissance Technologies founder said about his early recruitment strategy.

Cliff Asness’ Hedge Fund Is Short Selling AMC Stock – And They’re Daring ‘Apes’ To Take Them On (The Street)
Hedge fund manager Cliff Asness of AQR Capital Management has revealed a short position on AMC. He claims that “meme stock maniacs” won’t do anything significant in response. AMC Entertainment (AMC) – stockholders and short-selling hedge funds are on a collision course. Skeptical that retail investors can withstand bear market pressures, hedge funds have been betting against meme stocks in an attempt to capitalize on the fatigue of meme stock fanatics.

Griffin Pick Faces Trump’s Choice in Illinois GOP Governor Race (Bloomberg)
The Republican primary for Illinois governor on Tuesday is shaping up to be a battle of billionaires trying to determine the face of the party in a Democrat-controlled state. Leading the GOP polls are Darren Bailey, a Bible-quoting state senator backed by former President Donald Trump who has collected $9 million from billionaire Richard Uihlein; and Richard Irvin, the Black mayor of the state’s second-largest city who has received about $50 million from hedge fund billionaire Ken Griffin.

Photo by Marga Santoso on Unsplash

One of the Most Prominent Crypto Hedge Funds Just Defaulted on a $670 Million Loan (CNBC)
Prominent crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million. Digital asset brokerage Voyager Digital issued a notice on Monday morning, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $323 million at today’s prices. 3AC’s solvency crunch comes after weeks of turmoil in the crypto market, which has erased hundreds of billions of dollars in value.

Cryptocurrency Hedge Fund ARK36 Establishes Fintech Advisory Board (Hedge Week)
ARK36, a CySec-regulated cryptocurrency hedge fund, has has established a fintech advisory board comprised of global fintech leaders, investment veterans and senior government advisors. The funds has also appointed its first fintech advisory board consultants Frank Thorwald, Dr Mark Moore, Wayne Christian and Lord James Cecil. The fintech advisory board will assist the ARK36 team in developing trading algorithms, conducting qualitative and quantitative analysis on specific tokens and provide advice on working with Sovereign and Institutional Funds and projects as well as expanding the fintech advisory board team through their vast networks of contacts.

Hedge Funds Go Bottom Fishing for Biopharma (Institutional Investor)
RA Capital, Perceptive, and Millennium are making big bets on beaten-down stocks. Biopharma stocks have been among the worst performers in the bear market. The SPDR S&P Biotech ETF lost more than half its value from early November to mid-June, while the NASDAQ Biotechnology Index dropped nearly 40 percent from August 2021 to mid-June.

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In this article, we discuss the 10 biotech stocks that investors are watching. If you want to read about some more biotech stocks, go directly to Investors are Watching These 5 Biotech Stocks.

The stock market plunge in the past few weeks because of soaring inflation and a hawkish central bank has also resulted in a drawdown of investments in the biotech sector. However, since interest rates remained low for a good number of years before the present crisis, venture funds and large firms still boast some strong cash reserves. In mid-June, Third Rock Ventures, a top healthcare venture capital firm, announced a new fund worth $1.1 billion. The fund will invest in new life science companies, giving a new lease of life to emerging biotech startups.

Biotech startups have been battered this year as research and development funding dries up. According to a report from trade group Biotechnology Industry Organization, funding for research and development in the biotech sector is down 47% so far this year compared to figures for 2021. The volume of IPOS during this time has also plunged 83%. Overall, there are increasing job cuts as well as investors shift away from growth stocks. BIO claims that 54 biotech firms announced job cuts in the first half of the year, compared to 13 in all of 2021. 

However, there is a growing sense of positivity around the sector as well in hopes that biotech giants like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV) will embark on a buying spree to take advantage of the correction in valuations in the industry. Venture capital firms are also more active in the sector as mergers and acquisition activity picks up as well. The second half of the year promises to be more fruitful for the industry than the first half. 

Our Methodology

The companies that operate in the biotech sector and have growth catalysts for the coming months were selected for the list. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.

Photo by CDC on Unsplash

Investors are Watching These Biotech Stocks

10. Sanofi (NASDAQ:SNY)

Number of Hedge Fund Holders: 19  

Sanofi (NASDAQ:SNY) is a healthcare company that develops and markets therapeutics solutions. On June 24, the company announced that a COVID-19 vaccine it had developed in partnership with drug giant GSK had shown efficacy against the Omicron variant of the virus in a late stage study. A top GSK official has said that the companies are looking forward to discussions with regulatory authorities and aims to make the vaccine candidate available later this year. Sanofi will be the marketing authorization holder under the partnership. 

On May 23, SVB Leerink analyst David Risinger initiated coverage of Sanofi (NASDAQ:SNY) stock with an Outperform rating and a price target of $64, noting that the stock offered the investors a chance for growth at a reasonable price. 

At the end of the first quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Sanofi (NASDAQ:SNY), the same as in the preceding quarter worth $1.4 billion.

Just like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), Sanofi (NASDAQ:SNY) is one of the stocks on the radar of hedge funds. 

In its Q3 2021 investor letter, Dodge & Cox Stock Fund, an asset management firm, highlighted a few stocks and Sanofi (NASDAQ:SNY) was one of them. Here is what the fund said:

“Sanofi (NASDAQ:SNY) (3.5% position) is a diversified, global pharmaceuticals company with leading positions in vaccines, consumer health products, rare diseases, and emerging markets. Despite a favorable business mix, Sanofi (NASDAQ:SNY) has underperformed its peers in new product development, commercial execution, and profit growth. A new management team, recruited in 2018-19, has made progress turning the company around. Its drug pipeline is improving, targets for higher margins are being met, and earnings per share are growing. Sanofi also pays a 4% dividend yield, maintains a strong balance sheet, and has relatively low exposure to potential pressures from U.S. drug pricing.”

9. Novartis AG (NYSE:NVS)

Number of Hedge Fund Holders: 21  

Novartis AG (NYSE:NVS) makes and sells healthcare products across the world. On June 24, the firm announced that the European Medicines Agency had recommended the approval of Scemblix, a drug made by the firm for the treatment of myeloid leukemia, for adult patients. After the formal approval, the drug will be available as 20 mg and 40 mg film-coated tablets. In general, after drugs are recommended for approval by the European Medicines Agency, the European Commission gives a final nod to the drug as well. 

On December 2, Novartis AG (NYSE:NVS) has also recently revealed that it will be spending around $250 million in the next five years to advance research and development of new treatments to fight against neglected tropical diseases and malaria. 

At the end of the first quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $1.84 billion in Novartis AG (NYSE:NVS), compared to 25 in the preceding quarter worth $1.88 billion.

8. Novo Nordisk A/S (NYSE:NVO)

Number of Hedge Fund Holders: 31    

Novo Nordisk A/S (NYSE:NVO) is a Denmark-based healthcare firm. The company has recently teamed up with French tech firm Echosens to advance early diagnosis of non-alcoholic steatohepatitis and increase awareness of the disease. The former is a condition in which there is inflammation and liver damage and build up of fat in the liver in people who drink little or no alcohol. The two companies will support additional clinical validation and use of non-invasive diagnostic tests as part of the collaboration. 

On May 31, Guggenheim analyst Seamus Fernandez upgraded Novo Nordisk A/S (NYSE:NVO) stock to Buy from Neutral with a price target of DKK 896, lauding the market potential of the pipeline drugs of the company. 

At the end of the first quarter of 2022, 31 hedge funds in the database of Insider Monkey held stakes worth $4.49 billion in Novo Nordisk A/S (NYSE:NVO), up from 28 in the previous quarter worth $4.43 billion.

In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and Novo Nordisk A/S (NYSE:NVO) was one of them. Here is what the fund said:

“We initiated a position in Novo Nordisk A/S (NYSE:NVO), a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. Novo Nordisk and Eli Lilly, another holding in the Fund, are leaders in the GLP-1 (glucagon-like peptide 1 agonists) class of diabetes treatments, a $15 billion market that is growing rapidly but still has just 3% penetration of diabetes prescriptions globally. Diabetes drugs in the GLP-1 class include Trulicity (Eli Lilly), Ozempic (Novo Nordisk), and Rybelsus (Novo Nordisk). These drugs stimulate insulin secretion and inhibit glucagon secretion, which helps lower blood sugar levels. GLP-1s also slow stomach emptying and increase how full you feel after eating, which reduces appetite and can lead to weight loss. We believe Novo Nordisk’s diabetes franchise will continue to generate solid growth driven by Ozempic and Rybelsus. We are particularly excited about the growth prospects for Novo Nordisk’s anti-obesity franchise, which is just getting started with the launch of Wegovy. In a 68-week clinical study of adults living with obesity or excess weight with a medical problem, adults taking Wegovy lost on average 35 pounds or roughly 15% body weight. There are over 650 million people living with obesity globally and only 2% are treated with an anti-obesity medication. Even with more conservative assumptions about the addressable patient population, we think Novo Nordisk’s obesity franchise can exceed $10 billion in sales over time. Novo Nordisk launched Wegovy in June 2021 but faced supply constraints due to overwhelming demand and manufacturing constraints at a contract manufacturer. Management has indicated supply issues will ease in the second half of 2022. Novo Nordisk’s pipeline includes new diabetes and anti-obesity medications that improve upon its existing portfolio. We think Novo Nordisk A/S (NYSE:NVO) can generate double-digit revenue and earnings growth for many years.”

7. Bio-Rad Laboratories, Inc. (NYSE:BIO)

Number of Hedge Fund Holders: 45      

Bio-Rad Laboratories, Inc. (NYSE: BIO) markets life science research and clinical diagnostic products. On April 28, the company posted earnings for the first quarter of 2022, reporting earnings per share of $4.94, beating market estimates by $1.83. The revenue over the period was $700 million, down over 3.5% compared to the revenue over the same period last year but beating analyst expectations by $22 million. The COVID-related revenue during the first three months of 2022 was $45 million. 

On May 2, Citi analyst Patrick Donnelly maintained a Buy rating on Bio-Rad Laboratories, Inc. (NYSE: BIO) stock and lowered the price target to $750 from $800, noting that healthy growth in the life sciences sector was helping the firm beat market estimates on earnings. 

At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Bio-Rad Laboratories, Inc. (NYSE: BIO), compared to 38 in the previous quarter worth $1.3 billion.

6. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 45    

AstraZeneca PLC (NASDAQ:AZN) makes and sells prescription medicines. On June 24, the firm revealed that the European Medicines Agency had recommended the expanded approval of Lynparza, a drug made by the company for the treatment of adult patients with high risk early breast cancer, and those who have been previously treated with neoadjuvant or adjuvant chemotherapy. In the first quarter of 2021, the drug generated more than $790 million in revenue for AstraZeneca PLC. 

On May 24, Danske Bank analyst Caroline Baner initiated coverage of AstraZeneca PLC (NASDAQ:AZN) stock with a Buy rating and a price target of GBP 13,100, noting that the firm had durable growth drivers and visibility through 2030. 

At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in AstraZeneca PLC (NASDAQ:AZN), up from 42 in the previous quarter worth $3.8 billion.

In addition to Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), AstraZeneca PLC (NASDAQ:AZN) is one of the stocks that elite investors are keeping their eye on. 

In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and AstraZeneca PLC (NASDAQ:AZN) was one of them. Here is what the fund said:

“AstraZeneca PLC (NASDAQ:AZN) is a pharmaceutical company developing products across a range of indications including oncology, cardiovascular, and respiratory. AstraZeneca PLC (NASDAQ:AZN) is widely recognized as having the best top-line and bottom- line growth profiles in the pharmaceutical space without a discernable patent cliff this decade. Given consistent new product outperformance (Calquence and Enhertu are recent examples), we expect continued share appreciation as AstraZeneca’s financials compound.”

Click to continue reading and see Investors are Watching These 5 Biotech Stocks.

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Disclosure. None. Investors are Watching These 10 Biotech Stocks is originally published on Insider Monkey.

In this article, we discuss the 5 biotech stocks that investors are watching. If you want to read about some more biotech stocks, go directly to Investors are Watching These 10 Biotech Stocks.

5. Edwards Lifesciences Corporation (NYSE:EW)

Number of Hedge Fund Holders: 45

Edwards Lifesciences Corporation (NYSE:EW) provides healthcare equipment for critical care. On April 26, the company posted earnings for the first quarter of 2022, reporting earnings per share of $0.60, beating analyst expectations by $0.03. The revenue over the period was $1.34 billion, up more than 9% compared to the revenue over the same period last year and beating estimates by $30 million. The firm guided full year sales for 2022 to around $6 billion against consensus estimates of $5.7 billion. 

On May 17, Citi analyst Joanne Wuensch maintained a Buy rating on Edwards Lifesciences Corporation (NYSE:EW) stock and lowered the price target to $115 from $134, noting that market multiples were contracting due to inflation and slowing growth. 

At the end of the first quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $2.4 billion in Edwards Lifesciences Corporation (NYSE:EW), the same as in the preceding quarter worth $2.6 billion. 

In its Q4 2021 investor letter, Harding Loevner highlighted a few stocks and Edwards Lifesciences Corporation (NYSE:EW) was one of them. Here is what the fund said:

“Innovation can foster growth in Health Care fields other than drug discovery. Edwards Lifesciences Corporation (NYSE:EW) makes minimally invasive devices to treat heart disease or for critical care monitoring. Its transcatheter heart valve, SAPIEN, is the most-implanted aortic heart valve in the world. Having settled a lawsuit with Abbott over alleged patent infringement, Edwards Lifesciences Corporation (NYSE:EW) is now moving ahead with a newer product line called PASCAL to treat elderly or frail patients—for whom currently available treatments are ineffective—for mitral and tricuspid disease. PASCAL is the fruit of the company’s ongoing investment in research and development. Between PASCAL and its next-generation SAPIEN valve, the company expects to double its addressable market to approximately US$20 billion by 2028.”

In this article, we discuss Cliff Asness’ short position on AMC and his top 10 stock picks. If you want to read about some more stocks in the Asness portfolio, go directly to Cliff Asness’ Short Position on AMC and His Top 5 Picks.

2022 is not the year of meme stocks, the darlings of the year 2020. Soaring inflation and high interest rates have pushed investors away from speculative bets in such a drastic fashion over the past few months that discussions round meme stocks, once a topic of huge controversy on Wall Street, are now limited to a few Reddit forums. However, Wall Street titans are using this downward spiral to their advantage, shorting some popular meme stocks. Cliff Asness of AQR Capital Management, a growth-focused fund, recently joined this group as well. 

In an interview with news platform CNBC, the chief of AQR Capital Management revealed that his firm held a small short position on AMC Entertainment Holdings, Inc. (NYSE:AMC), the Kansas-based entertainment firm and one of the two most popular meme stocks, comprising 12 basis points of the overall portfolio. Asness claimed that the position was so small that it would not bear on the overall performance of the fund, but outlined his dislike for the fundamentals of the stock, noting it was “terrible on everything we care about”. 

Asness went even further to highlight his short, adding that AMC Entertainment Holdings, Inc. (NYSE:AMC) stock was “super expensive, super unprofitable and super high beta and volatility”. He dared all “meme stock maniacs” to try and hurt him, an apparent reference to the retail traders that have pledged to act as spoiler to hedge fund short-sellers with regards to meme stocks. In early 2020, these retail traders had banded together to inflict losses worth billions to some hedge funds in a similar short-selling scheme. 

Asness joins a growing list of hedge fund managers who have been shorting AMC Entertainment Holdings, Inc. (NYSE:AMC) stock. According to a database maintained by Insider Monkey, prominent funds like Citadel Investment Group of Ken Griffin, 683 Capital Partners of Ari Zweiman, Antara Capital of Himanshu Gulati, Leonard Green & Partners of Leonard Green, Sandler Capital Management of Andrew Sandler, and a host of other funds were also shorting the stock at the end of the first quarter of 2022. 

Asness manages an equity portfolio at his hedge fund worth over $52.6 billion at the first quarter of 2022. The top ten holdings in the portfolio comprise over 16% of the total portfolio. Between January and March this year, Asness made new purchases in 187 stocks, additional purchases in over a 1,000, sold out of 167, and reduced holdings in over 900 stocks. Some of the top stocks in the AQR Capital Management portfolio include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG). 

Our Methodology

These were picked from the investment portfolio of AQR Capital Management at the end of the first quarter of 2022. In order to provide readers with a more comprehensive overview of the companies, the analyst ratings for each firm are mentioned alongside other details. A database of around 900 elite hedge funds tracked by Insider Monkey was used to quantify the popularity of each stock in the hedge fund universe. 

Cliff Asness of AQR Capital Management

10. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Holders: 101  

Thermo Fisher Scientific Inc. (NYSE:TMO) markets analytical instruments, specialty diagnostics, and laboratory products. Latest data shows that AQR Capital Management owned over 710,000 shares of Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the first quarter of 2022 worth $419 million, representing 0.79% of the portfolio. The company has been in the AQR portfolio since the third quarter of 2017. In the first three months of 2022, the fund decreased its stake in the company by around 25% compared to filings for the fourth quarter of 2021. 

On April 25, Wells Fargo analyst Timothy Daley downgraded Thermo Fisher Scientific Inc. (NYSE:TMO) stock to Underweight from Equal Weight with a price target of $525, noting that the valuation of the stock was expensive relative to historical premium. 

At the end of the first quarter of 2022, 101 hedge funds in the database of Insider Monkey held stakes worth $7.9 billion in Thermo Fisher Scientific Inc. (NYSE:TMO), up from 96 in the preceding quarter worth $9.4 billion. 

Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the stocks on the radar of elite hedge funds. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Thermo Fisher Scientific Inc. (NYSE:TMO) was one of them. Here is what the fund said:

“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of Thermo Fisher Scientific Inc. (NYSE:TMO), a leading health care tools company, a leading provider of fertility benefit management services to self-insured employers that offers a rare win-win-win for employers, employees, health systems, and doctors, with clear savings and quality improvements.”

9. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 72  

The Procter & Gamble Company (NYSE:PG) markets branded consumer packaged goods. Securities filings show that AQR Capital Management owned over 3 million shares of The Procter & Gamble Company (NYSE:PG) at the end of March 2022 worth $461 million, representing 0.87% of the portfolio. AQR has steadily reduced its stake in the firm since late 2020, shedding the stock in all four quarters of 2021. 

On June 1, Deutsche Bank analyst Steve Powers maintained a Buy rating on The Procter & Gamble Company (NYSE:PG) stock and lowered the price target to $171 from $177, noting that the stock had outperformed in a difficult environment in the past six months. 

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in The Procter & Gamble Company (NYSE:PG) with 9.9 million shares worth more than $1.5 billion.

8. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) makes and sells healthcare products. Regulatory filings reveal that AQR Capital Management owned over 2.9 million shares of Johnson & Johnson (NYSE:JNJ) at the end of the first quarter of 2022 worth $528 million, representing 1% of the portfolio. The company has been in the AQR portfolio since the third quarter of 2017. AQR reduced its stake in the firm by 1% in the first quarter of 2022 compared to fourth quarter data.

On May 23, SVB Leerink analyst David Risinger assumed coverage of Johnson & Johnson (NYSE:JNJ) stock with an Outperform rating and a price target of $200, lauding the ability of the firm to deliver consistent earnings growth and value-enhancing M&A. 

At the end of the first quarter of 2022, 83 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter worth $7.3 billion.

7. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 79  

Pfizer Inc. (NYSE:PFE) makes and sells biopharma products. Latest 13F filings show that AQR Capital Management owned over 10.7 million shares of Pfizer Inc. (NYSE:PFE) at the end of March 2022 worth $554 million, representing 1.05% of the portfolio. The firm has been in the AQR portfolio since the third quarter of 2017. AQR increased its stake in the firm by 57% in the first quarter of 2022 compared to fourth quarter filings. 

On May 23, SVB Leerink analyst David Risinger initiated coverage of Pfizer Inc. (NYSE:PFE) stock with a Market Perform rating and a price target of $55, noting that there was optimism around the initiatives of the management to boost innovation at the firm. 

At the end of the first quarter of 2022, 79 hedge funds in the database of Insider Monkey held stakes worth $4 billion in Pfizer Inc. (NYSE:PFE), compared to 83 in the preceding quarter worth $5 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:

“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.

What we did not account for, however, was vaccine hesitancy and the risk of further infection waves. As a result, the first variant wave, Delta, was a negative surprise to both the market and our team. When the risk surfaced, we immediately updated our probability-driven models and debated how we should react. The resulting conclusion was that the recovery would be delayed and that we should reduce our exposure quickly, subsequently targeting the most aggressive recovery stocks such as cruise lines. We again acted swiftly and decisively to the positive surprise that Pfizer Inc. (NYSE:PFE) had delivered a high-efficacy antiviral COVID-19 pill. This pill should greatly reduce COVID-19 severity risks globally, increasing the probability of a global travel recovery in 2022. While this is still true, the emergence of the highly mutated Omicron variant set off another infection wave which spurred us to again act quickly and further reduce our risk exposure. This back-and-forth may sound exhausting, but it highlights our compulsion to act if we determine a surprise has a large enough impact on the probabilities that power our valuation-driven investment cases.”

6. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 200    

Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms.  Latest 13F filings show that AQR Capital Management owned 2.9 million shares of Meta Platforms, Inc. (NASDAQ:META) at the end of March 2022 worth $658 million, representing 1.24% of the portfolio of the fund. The firm has been in the AQR portfolio since the third quarter of 2017. The hedge fund led by Asness increased its stake in the tech firm by 48% in the first three months of 2022 compared to filings for the fourth quarter of 2021. 

On June 8, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $220, noting that the firm was the best in terms of “ad-tech and scale” but faced headwinds from further privacy issues. 

At the end of the first quarter of 2022, 224 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 248 in the preceding quarter worth $31 billion. 

Along with Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META) is one of the stocks that elite investors are monitoring. 

In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:META) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

Continue reading and see rest of the stocks in this list by clicking Cliff Asness’ Short Position on AMC and His Top 5 Picks.

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Disclosure. None. “I Dare All Meme Stock Maniacs”: Cliff Asness’ Short Position on AMC and His Top 10 Picks is originally published on Insider Monkey.

In this article, we discuss Cliff Asness’ top 5 stock picks. If you want to read about some more stocks in the Asness portfolio, go directly to “I Dare All Meme Stock Maniacs”: Cliff Asness’ Short Position on AMC and His Top 10 Picks.

5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 81  

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. Latest data shows that AQR Capital Management owned over 6.9 million shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter of 2022 worth $727 million, representing 1.38% of the portfolio. The company has been in the AQR portfolio since the third quarter of 2017. 

On June 21, Loop Capital analyst Charles Park initiated coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock with a Buy rating and a price target of NT$600, noting the firm was a global leader in the foundry business. 

At the end of the first quarter of 2022, 81 hedge funds in the database of Insider Monkey held stakes worth $10.1 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 72 in the preceding quarter worth $10.9 billion. 

In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted in the first quarter due to rising geopolitical tensions, macroeconomic uncertainties, and concerns over softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver above its 15% to 20% revenue growth target over the next several years.”

In this article, we will take a look at the 10 stocks that recently received price-target cuts from analysts. You can skip our detailed analysis of these companies and go directly to Analysts Just Decreased Price Targets of These 5 Stocks.

Footwear retailer NIKE, Inc. (NYSE:NKE), health care company Baxter International Inc. (NYSE:BAX) and biotechnology firm CRISPR Therapeutics AG (NASDAQ:CRSP) recently received price-target cuts from research firms.

In addition, analysts also slashed their price targets for stocks, including Burlington Stores, Inc. (NYSE:BURL) Ameriprise Financial, Inc. (NYSE:AMP) and Alaska Air Group, Inc. (NYSE:ALK).

We will discuss the reasons behind the revised price targets for these companies in the remaining article.

10. H.B. Fuller Company (NYSE:FUL)

Number of Hedge Fund Holders: 10

JPMorgan trimmed its price target for H.B. Fuller Company (NYSE:FUL) from $70 per share to $52 per share on Friday, June 24, 2022, following its fiscal second-quarter results. JPMorgan analyst Jeffrey Zekauskas believes that H.B. Fuller Company (NYSE:FUL) won’t be able to produce much free cash flow in the remaining year due to higher operating costs.

Zekauskas also downgraded H.B. Fuller Company (NYSE:FUL) from “Neutral” to “Underweight,” citing earnings uncertainty. The downgrade follows the company’s mixed financial performance for its fiscal second quarter. While H.B. Fuller Company (NYSE:FUL) beat profit and sales expectations for the quarter, it warned about rising raw material and transportation costs that could weigh on its profitability.

9. Denny’s Corporation (NASDAQ:DENN)

Number of Hedge Fund Holders: 16

Denny’s Corporation (NASDAQ:DENN) is a family restaurant chain primarily operating in the U.S. However, it also has a presence in Canada, Mexico, U.A.E., New Zealand, Costa Rica, El Salvador, Puerto Rico, Indonesia and the U.K.

Wedbush slashed its price target for Denny’s Corporation (NASDAQ:DENN) from $19 per share to $10 per share on Friday, June 24, 2022, citing lower-than-expected comparable sales growth.

In a research note to investors, Wedbush analyst Nick Setyan said Denny’s margins would stay under pressure. In addition, Setyan expressed concerns over a CEO transition later this year. He also downgraded Denny’s Corporation (NASDAQ:DENN) from “Outperform” to “Neutral.”

8. RBC Bearings Incorporated (NASDAQ:ROLL)

Number of Hedge Fund Holders: 16

RBC Bearings Incorporated (NASDAQ:ROLL) received a price-target cut from BofA Securities on Thursday, June 23, 2022. The research firm lowered its price target for the bearing products manufacturer from $218 per share to $193 per share, citing sluggish margin growth.

BofA analyst Ronald Epstein lowered his adjusted profit projections for fiscal 2023 and fiscal 2024 amid a slow margin expansion. Epstein believes most of the company’s business growth has already been mirrored in the current stock price. Epstein also downgraded RBC Bearings Incorporated (NASDAQ:ROLL) from “Buy” to “Neural.”

Separately, investment management firm ClearBridge Investments mentioned RBC Bearings Incorporated (NASDAQ:ROLL) in its third-quarter 2021 investor letter. ClearBridge stated:

“We sold AMETEK, in the industrials sector, and used the proceeds to add RBC Bearings, which manufactures precision engineered bearings and components for highly technical machines, such as aircrafts, submarines and power transmission systems. AMETEK is a company we have held for many years, and we continued to like their long-term prospects, but believe better upside was available in RBC Bearings due to a temporary stock price dislocation created by an equity offering for a highly accretive acquisition. Already well-positioned to capitalize on a cyclical recovery within the aerospace and industrial sectors, RBC’s recent acquisition of DODGE’s power transmission businesses should provide substantial synergies including complementary distribution, cross selling opportunities and increased manufacturing capacity that should all contribute to RBC’s long-term earnings power.”

7. Boise Cascade Company (NYSE:BCC)

Number of Hedge Fund Holders: 18

Shares of Boise Cascade Company (NYSE:BCC) fell over 10 percent on Thursday, June 23, 2022, after BofA Securities cut its price target for the distributor of building materials from $95 per share to $71 per share.

BofA analyst George Staphos referred to the sluggish growth of the housing market amid rising mortgage rates and other factors. Staphos also downgraded Boise Cascade Company (NYSE:BCC) from “Buy” to “Neutral.”

Like Boise Cascade Company (NYSE:BCC), analysts also decreased their price targets for NIKE, Inc. (NYSE:NKE), Baxter International Inc. (NYSE:BAX) and CRISPR Therapeutics AG (NASDAQ:CRSP).

6. Alaska Air Group, Inc. (NYSE:ALK)

Number of Hedge Fund Holders: 30

Raymond James trimmed its price target for Alaska Air Group, Inc. (NYSE:ALK) from $75 per share to $58 per share on Thursday, June 23, 2022. In a research note to investors, Raymond James analyst Savanthi Syth referred to possible financial and operational instability following the retirement of the company’s A320 fleet next year.

Syth believes Alaska Air Group, Inc. (NYSE:ALK) could incur higher costs amid the approaching fleet transition. She also downgraded Alaska Air Group, Inc. (NYSE:ALK) from “Strong Buy” to “Outperform.”

Separately, Alaska Air Group, Inc. (NYSE:ALK) announced on Friday, June 24, that it would continue to compensate employees for medical procedures which are not allowed in their home countries. The announcement follows U.S. Supreme Court’s recent ruling against abortion. Alaska Air said it would cover the travel cost for procedures, including abortion.

Click to continue reading and see Analysts Just Decreased Price Targets of These 5 Stocks.

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Disclosure: None. Analysts Just Decreased Price Targets of These 10 Stocks is originally published on Insider Monkey.

In this article, we discuss the 5 stocks that recently received price-target cuts from analysts. If you want to read our detailed analysis of these companies, go directly to Analysts Just Decreased Price Targets of These 10 Stocks.

5. CRISPR Therapeutics AG (NASDAQ:CRSP)

Number of Hedge Fund Holders: 37

Evercore ISI lowered its price target for CRISPR Therapeutics AG (NASDAQ:CRSP) from $66 per share to $60 per share on Thursday, June 23, 2022. The research firm is excited about the gene-editing programs of CRISPR Therapeutics AG (NASDAQ:CRSP), but thinks they are still in the initial stages.

Evercore ISI analyst Liisa Bayko believes that investors can’t get a clear picture of the efficacy of the company’s Type 1 diabetes (T1D) program by the end of 2023. Bayko also downgraded CRISPR Therapeutics AG (NASDAQ:CRSP) from “Outperform” to “In Line.”

In this article, we discuss the 10 stocks that Jim Cramer recommends for recession. If you want to read about some more stocks that Jim Cramer recommends for recession, go directly to Jim Cramer Recommends These 5 Stocks for Recession.

Recession fears have steadily been gathering pace at the stock market over the past few weeks, resulting in massive slide in all major indexes and spooking investors away from stocks towards safer options. The benchmark S&P 500 is down 18.45% year-to-date, as of June 27, the NASDAQ Composite is down 26.69%, while the Dow Jones Industrial Average is down 13.90%. In early June, these indexes registered their worst-day three day decline since the pandemic panic of March 2020, leading to a mass sell-off at the stock market. 

As inflation soars and the central bank prepares to raise interest rates more aggressively to tame the trend, investors are flocking to stock market veterans for advice. Jim Cramer, the CNBC host and former hedge fund manager, is one of these veterans. In a recent show, Cramer warned that even “high-quality stocks with low price-to-earnings multiples could get beaten down by a recession”. He stressed that even though these stocks looked “investable”, they were not always “recession-proof”. 

Some of the stocks that Cramer has been monitoring as inflation rises include Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T). During his show in mid-June, Cramer noted that there were some high-quality names that investors could justify owning if they were feeling “sanguine about the economy”. Cramer added that when investors bought a stock with low price-to-earnings ratios and they still went down, it was because the stocks “only look cheap thanks to the fact that the earnings estimates are too high”. 

Our Methodology

These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. An extensive database of around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the popularity of each stock among hedge funds.

Jim Cramer Recommends These Stocks for Recession

10. ONEOK, Inc. (NYSE:OKE)

Number of Hedge Fund Holders: 25    

ONEOK, Inc. (NYSE:OKE) is an oil and gas storage and transportation firm. In mid-June, Cramer included ONEOK, Inc. (NYSE:OKE) among a list of stocks that he thought would help investors withstand “geopolitical and economic issues” roiling the stock market. He said that when the market comes “so far, far down” it also opens new buying opportunities, naming ONEOK as one example. He noted that picking “defensive stocks that can hold fine even with inflation” was the key during this time. 

On April 26, Morgan Stanley analyst Robert Kad maintained an Equal Weight rating on ONEOK, Inc. (NYSE:OKE) stock and raised the price target to $81 from $70, noting that there were “constructive management outlooks given the favorable commodity backdrop” for the oil firm. 

At the end of the first quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $174 million in ONEOK, Inc. (NYSE:OKE), the same as in the preceding quarter worth $94 million.

In addition to Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), ONEOK, Inc. (NYSE:OKE) is one of the stocks that hedge funds have their eye on as recession fears rise. 

In its Q3 2021 investor letter, Miller Howard Investments, an asset management firm, highlighted a few stocks and ONEOK, Inc. (NYSE:OKE) was one of them. Here is what the fund said:

”In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK, Inc. (NYSE:OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”

9. Huntington Bancshares Incorporated (NASDAQ:HBAN)

Number of Hedge Fund Holders: 26 

Huntington Bancshares Incorporated (NASDAQ:HBAN) operates as a bank holding firm. On June 14, Cramer identified it as one of the stocks that was available for buying on the cheap. He believes the stock also offers investors some dividend protection. He stressed that investors should become “selective” in a horrific market. He also noted that the stock offered some protection against a Fed-mandated recession. He added that Huntington Bancshares Incorporated (NASDAQ:HBAN) offered “healthy growth” during this period too. 

On April 25, Stephens analyst Terry McEvoy upgraded Huntington Bancshares Incorporated (NASDAQ:HBAN) stock to Overweight from Equal Weight and raised the price target to $17 from $16, noting that the firm had outsized loan growth opportunities over the next 18 months. 

At the end of the first quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $169 million in Huntington Bancshares Incorporated (NASDAQ:HBAN), up from 25 in the preceding quarter worth $402 million. 

8. Advance Auto Parts, Inc. (NYSE:AAP)

Number of Hedge Fund Holders: 29     

Advance Auto Parts, Inc. (NYSE:AAP) provides automotive replacement parts. The journalist investor, in mid-June, placed Advance Auto Parts, Inc. (NYSE:AAP) among a basket of equities that were expected to withstand inflation and recession pressures, even offering investors a chance of growth during the time and a decent dividend yield. Cramer noted that the stock was one for the “hard market” which had registered the worst plunge since the pandemic panic of March 2020 in June, with all major indexes down. 

On June 22, MKM Partners analyst David Bellinger initiated coverage of Advance Auto Parts, Inc. (NYSE:AAP) stock with a Buy rating and a price target of $195, noting that the firm had pricing power in the auto parts retail sector. 

At the end of the first quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $695 million in Advance Auto Parts, Inc. (NYSE:AAP), compared to 36 in the previous quarter worth $872 million.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Advance Auto Parts, Inc. (NYSE:AAP) was one of them. Here is what the fund said:

“Several encouraging macro trends are emerging in support of two areas outside tech: consumer spending and industrial production. Unlike in past recessions and recoveries, consumer balance sheets have actually improved dramatically since the onset of the pandemic. We expect the supply chain constraints contributing to inflation and goods shortages will begin to lessen with an ambitious rebuilding of inventories. This should be a multi-year phenomenon beneficial to quality industrials with high levels of organic growth like distributors such as Advance Auto Parts, Inc. (NYSE:AAP).”

7. NRG Energy, Inc. (NYSE:NRG)

Number of Hedge Fund Holders: 31    

NRG Energy, Inc. (NYSE:NRG) is an integrated power company. The former hedge fund manager was praiseworthy of the company during his show in mid-June, placing it on a list of his ten favorite stocks from among a group of 23 overall that were trading at less than 16.5 times their earnings, were expected to grow their earnings in 2022 and 2023, and also offered yields of more than 3.5%, staying above the benchmark 10-year Treasury yield. He said the stock will offer investors who were worried about tightening Fed policies with some protection. 

On May 6, NRG Energy, Inc. (NYSE:NRG) posted earnings for the first quarter of 2022, reporting earnings per share of $7.17 and a revenue of $7.9 billion. For 2022, the firm guided net income of $480 million to $780 million and adjusted earnings of $1.95 billion to $2.25 billion.

At the end of the first quarter of 2022, 31 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in NRG Energy, Inc. (NYSE:NRG), compared to 28 the preceding quarter worth $1.8 billion.

6. Newell Brands Inc. (NASDAQ:NWL)

Number of Hedge Fund Holders: 31 

Newell Brands Inc. (NASDAQ:NWL) makes and sells consumer and commercial products. The former Goldman Sachs employee was bullish on the company during a period of uncertainty at the stock market, backing it to grow earnings during the period while offering solid dividend protection as well. Cramer noted that as the markets crashed, it was time to do some buying even if it meant taking on some short-term hurt. He identified Newell Brands Inc. (NASDAQ:NWL) as a cheap stock that offered healthy growth and dividend protection. 

On March 30, JPMorgan analyst Andrea Teixeira maintained an Overweight rating on Newell Brands Inc. (NASDAQ:NWL) stock and lowered the price target to $26 from $29, backing the demand for the products of the firm to remain resilient in the coming months. 

At the end of the first quarter of 2022, 31 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Newell Brands Inc. (NASDAQ:NWL), up from 26 in the previous quarter worth $1.7 billion.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Newell Brands Inc. (NASDAQ:NWL) with 36 million shares worth more than $776 million.

Just like Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), and AT&T Inc. (NYSE:T), Newell Brands Inc. (NASDAQ:NWL) is one of the stocks on the radar of elite investors.

Click to continue reading and see Jim Cramer Recommends These 5 Stocks for Recession.

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Disclosure. None. Jim Cramer Recommends These 10 Stocks for Recession is originally published on Insider Monkey.

In this article, we discuss the 5 stocks that Jim Cramer recommends for recession. If you want to read about some more stocks that Jim Cramer recommends for recession, go directly to Jim Cramer Recommends These 10 Stocks for Recession.

5. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 36

VICI Properties Inc. (NYSE:VICI) is a real estate investment trust that focuses on gaming and entertainment properties. Jim Cramer, in mid-June, placed VICI Properties Inc. (NYSE:VICI) among a list of companies that investors should look towards for protection in a recessionary market. He stressed that it was important for investors to focus on companies that made “real things, do real stuff, profit, and turn those profits to shareholders”. 

On May 3, JPMorgan analyst Anthony Paolone reinitiated coverage of VICI Properties Inc. (NYSE:VICI) stock with an Overweight rating and a price target of $35, noting that the firm had the most efficient overhead among peers. 

At the end of the first quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $998 million in VICI Properties Inc. (NYSE:VICI), compared to 37 in the previous quarter worth $1.1 billion.

In this article, we discuss the 8 European coal stocks to buy as Russia squeezes gas supply. If you wish to skip our detailed analysis of the energy sector in Europe and its current situation, go directly to 3 European Coal Stocks to Buy As Russia Squeezes Gas Supply. 

Russia decided to slow down its supply of natural gas to Germany through the Nord 1 pipeline on June 14, citing “technical issues” caused by the West’s crippling sanctions on Russia. The German economic minister Robert Habeck called this a “politically motivated” maneuver which instantly led to gas prices jumping 24% in the EU. Germany subsequently entered phase 2 of its emergency gas plan, which seeks to reduce gas usage and shore up the country’s reserves for the crucial winter months. Current gas storage stands at 57%, and Germany needs these levels to be around 90% in November to make it through the winter. The government has started preparations to restart its coal-fired power generation plants in order to ensure stability in the energy sector. It had previously pledged to completely wean off coal usage by 2038, but now seeks to meet electricity demand by firing up its 151 coal-based power plants again. Most of these coal plants were scheduled to be shut down permanently in the near future.

The United States has effectively banned Russian oil and gas imports, and the United Kingdom has said it would follow suit by end of 2022. In May, the European Union decided to cut 90% of its oil imports from Russia, barring the oil which comes from pipelines. This may not be as easy for Europe, given that it relies on Russia for 40% of its collective demand for natural gas, 46% of coal, and 27% of oil imports.

Amid tight natural gas supplies and soaring prices, utilities across Europe are turning towards coal to fire up their power plants. Without Russian coal, producers such as South Africa, Columbia, and the United States are expected to meet the demand in the near-term, and the market is constantly scrambling to secure supplies of the black metal. Coal prices went as high as $430 per tonne in May, and currently hover around $395 as of June 24. Rystad Energy forecasts that coal prices could likely cross $500 per tonne this year, driven by a lack of supply and growing demand.

In this article, we’ll highlight 8 European stocks which investors can buy to take advantage of the increasing relevance of coal in the current setup. If you wish to take advantage of the global rally in the overall energy sector, big players such as Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), BP plc (NYSE:BP), Shell plc (NYSE:SHEL), and ConocoPhillips (NYSE:COP) present good investment opportunities.

Photo by Stephen Philpott on Unsplash

Our Methodology

We studied the energy sector in Europe, and identified companies with exposure to coal, either in terms of mining or power generation. Most of these firms were originally scheduled to reduce their dependence on coal in the coming months, but are in the process of changing their plans to meet growing demand.

8. PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA)

PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA) is the largest energy producer in Poland. It is a state-owned entity with the Polish State Treasury holding the majority of its shares. BlackRock, the world’s largest asset manager, is the third largest shareholder of PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA). Given that it generates around 71% of its revenue from coal-based production and is the biggest supplier of coal-produced electricity in Europe, PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA) is one of the leading companies that stand to benefit in the current situation.

The Warsaw-based utility company possesses installed capacities to generate 15 GW from coal sources, around 88% of its total production. PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA) also runs the Bełchatów power station in Poland, which is the largest thermal plant in Europe and the biggest contributor to CO2 emissions on the continent. The firm operates a total of 40 power stations across Poland, mainly run by hard coal and lignite (brown coal). The energy conglomerate also owns and operates various electricity retail sales companies, distribution system operator companies, as well as an electricity wholesale company. PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA) has plans to achieve carbon neutrality by 2050, with an objective to limit its usage of coal. The company also aims to make investments in grid infrastructure, wind energy and solar energy.

PGE Polska Grupa Energetyczna S.A. (WSE:PGE.WA) is a good play on the energy sector, just like Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), BP plc (NYSE:BP), Shell plc (NYSE:SHEL), and ConocoPhillips (NYSE:COP).

7. RWE AG (ETR:RWE)

RWE AG (ETR:RWE) is the largest energy supplier in Germany. Following government policies on the transition towards green energy, the company aims to be carbon-neutral by 2040, and invest a gross amount of €50 billion by 2030 towards sustainable energy initiatives. The company’s portfolio consists of onshore and offshore wind farms, solar energy, battery storage technology and energy production from biogas. RWE AG (ETR:RWE) is also at the forefront of the global race to shift towards hydrogen as a source of energy. RWE’s conventional energy portfolio is made up of lignite, hard coal, nuclear power, and gas. The firm had unveiled plans to phase out its usage of coal and nuclear power, given that Germany is shutting down its last nuclear power plant in December 2022.

RWE is currently receiving only 40% of the total quantity of natural gas it is contracted to receive from Russia. As supplies from Russia are halted, the German government has unveiled plans to ramp up its coal energy production to meet the growing gap in demand and supply. The company recently announced that it would halt early retirements in order to retain manpower at three of its 300 MW coal power plants which are currently on ‘security standby’, and can be reopened at the federal government’s request. These power stations rank among the highest CO2 emissions producers in Europe, and look set to resume full-scale operations as Germany reels from an energy crisis which has seen its green energy pledges roll back for the time being.

In 2021, RWE AG (ETR:RWE) produced 160,773 GWh of energy, as compared to 141,204 GWh in 2020. The company’s 2021 free cash flow was recorded at €4.56 billion, up from €1.13 billion in the previous year. As of June 23, the company pays a 2.33% dividend yield, and its EPS for FY21 was recorded at €1.07.

6. Uniper SE (ETR:UN01)

Uniper SE (ETR:UN01) is an energy company which was formed after German electric utility giant E.ON spun off its fossil fuel business into a separate company in 2016. The firm has operations in 40 countries around the world, with electricity production operations throughout Europe and Russia. It also operates a Russian subsidiary called Unipro. Finnish power giant Fortum is a majority stakeholder of Uniper, with a 75.01% stake.

Uniper SE (ETR:UN01) boasts power generating capacity of 33 GW, through its portfolio of natural gas, coal, nuclear (all plants outside Germany), and hydroelectric sources. In 2017, hard coal was the second largest source of power for the company, generating 24.3 TWh as compared to 61.9 TWh generated through oil and gas. One of the most prominent coal power plants run by Uniper is Ratcliffe-on-Soar power station in Nottinghamshire, England, which has a 2,000 MW capacity and is one of the three coal power plants left in the United Kingdom. It is set to close by end of 2024. The company also provides natural gas storage services across Europe on a massive scale, boasting 7.4 billion meter cube in gas storage capacity.

In April, Uniper SE announced that it would start paying for Russian natural gas in roubles, giving in to Russia’s demand which would help it avoid EU sanctions. The company is also one of the financiers of the Nord Stream 2 pipeline project, which was suspended by the German government after Russia invaded Ukraine.

In 2021, Uniper SE (ETR:UN01) posted annual revenue of €68.76 billion, beating estimates by €63.88 billion and showing a massive boost of 225% in comparison to 2020.

5. ENEA SA (WSE:ENA)

ENEA SA (WSE:ENA) is based in Poznań, Poland, and is the fourth largest energy conglomerate in the country. 70% of Poland’s electricity comes from coal, which is the highest figure in the European Union. This makes a company like ENEA SA (WSE:ENA) a good stock to buy in the current environment. The firm was founded after the merger of five coal-fueled power plants, and later went on to make further additions to its portfolio. Its prominent coal plants include the Połaniec, and the Kozienice power plant, which ranks among the highest CO2 emissions producer in Europe.

ENEA SA (WSE:ENA) also owns and operates several coal mines in Poland, which ranks 9th in the world for coal reserves. The country had about 28.45 billion tons of proven coal reserves as of 2016, amounting to 2% of global coal reserves and equaling 191 times its yearly consumption. ENEA SA (WSE:ENA) also has a separately-run electricity distribution operator named Enea Operator, and sells electricity to retail and wholesale customers across Poland.

4. TAURON Polska Energia S.A. (WSE:TPE.WA)

TAURON Polska Energia S.A. (WSE:TPE.WA) is up next on our list of the best European coal stocks to buy. The state-owned company is the second largest producer of electricity in Poland, and owns interests in coal mining through its subsidiaries, mainly in south-western Poland. It has a vast network of power generation and distribution across the country, and offers comprehensive energy solutions for households, businesses and industrial customers. TAURON Polska Energia S.A. (WSE:TPE.WA) also offers photovoltaic (solar panel) installations to its customers, and digital solutions to track and analyze electricity usage.

In 2019, TAURON Polska Energia S.A. (WSE:TPE.WA) announced plans to replace most of its coal-powered plants with renewable sources of energy within the upcoming decade, in line with the global push to phase out energy production from coal. Now with the European energy market in a tailspin, the prospects of power generation from coal stand different for a company like TAURON Polska Energia S.A. (WSE:TPE.WA).

Along with Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY), BP plc (NYSE:BP), Shell plc (NYSE:SHEL), and ConocoPhillips (NYSE:COP), TAURON Polska Energia S.A. (WSE:TPE.WA) is a good stock to buy in order to take advantage of soaring commodity prices.

Click to continue reading and see 3 European Coal Stocks to Buy As Russia Squeezes Gas Supply.

In this article, we talk about the 3 European coal stocks to buy as Russia squeezes gas supply. If you want to read our detailed analysis of the energy sector in Europe and its current situation, go directly to 8 European Coal Stocks to Buy As Russia Squeezes Gas Supply. 

3. CEZ, a. s. (PX:CEZ.PR)

CEZ, a. s. (PX:CEZ.PR) is an energy company based in Prague, Czech Republic. It has more than 7 million customers and 28,000 employees across Europe, ranking it among the 10 largest energy companies in the EU. It deals in the production and transmission of electricity and heat, the purchase and sale of natural gas, and coal mining. Since its inception, CEZ, a. s. (PX:CEZ.PR) has paid out more than 343 billion Czech crowns to its shareholders as dividend payments.

The company generates electricity through a variety of sources, and is the largest producer of electricity from renewable energy sources in the Czech Republic. It also boasts 165 MW power generating capacity from wind energy parks in Turkey, Germany and the Czech Republic. But a large part of the company’s portfolio consists of coal power plants. In total, CEZ, a. s. (PX:CEZ.PR) runs 10 coal-fueled power and heating plants across the Czech Republic and Poland.

The Czech Republic is the fifth-largest net exporter of electricity in the European Union, meaning it has the ability to produce more than its own requirement of power. Many environmentalists have therefore criticized CEZ, a. s. (PX:CEZ.PR) for its continued reliance on coal plants over the years. But now CEZ has the potential to stabilize European energy markets at a time of great crises, making it a good European stock to buy now.

Horos Asset Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Since the inception of Horos (May 21, 2018), Horos Value Internacional has returned 22.3%, below the 55.2% gain of its benchmark, while Horos Value Iberia has returned 8.1%, outperforming the 0.5% return of its index. Moreover, since 2012, the returns of this management team stand at 199% for the international strategy and 167% for the Iberian strategy, compared to 219% and 67% in their benchmark indices, respectively.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Horos Asset Management mentioned Baidu, Inc. (NASDAQ:BIDU) and explained its insights for the company. Founded in 2000, Baidu, Inc. (NASDAQ:BIDU) is a Beijing, China-based multinational technology company with a $52.9 billion market capitalization. Baidu, Inc. (NASDAQ:BIDU) delivered a 1.71% return since the beginning of the year, while its 12-month returns are down by -25.32%. The stock closed at $151.34 per share on June 24, 2022.

Here is what Horos Asset Management has to say about Baidu, Inc. (NASDAQ:BIDU) in its Q1 2022 investor letter:

“Although the initial reaction of the Chinese government was passive, it seems that the blacklist published by the SEC, which already includes companies as important as the technology giant Baidu, has shaken things up. Thus, at the beginning of April the CSRC (China Securities Regulatory Commission) announced possible changes in its regulation that would allow this inspection by foreign auditors, provided that the companies previously communicate to this body the state secrets that would be exposed, as well as the sensitive information that they might have to hand over, and the subsequent audit is carried out in a framework of collaboration with the CSRC. In short, a move in the direction desired by the SEC, although still far from the optimal result, that is, unrestricted access to information.

While these negotiations between the two regulatory bodies are progressing, Chinese companies have to decide how best to preserve their interests. In this regard, some companies are already listed on the Hong Kong stock exchange, as is the case of the three major technology companies (Alibaba Group, Tencent Holdings and Baidu).”

Photo by Samuele Errico Piccarini on Unsplash

Our calculations show that Baidu, Inc. (NASDAQ:BIDU) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Baidu, Inc. (NASDAQ:BIDU) was in 47 hedge fund portfolios at the end of the first quarter of 2022, compared to 38 funds in the previous quarter. Baidu, Inc. (NASDAQ:BIDU) delivered a 3.28% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on Baidu, Inc. (NASDAQ:BIDU) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.

Weitz Investment Management, an investment management firm, published its “Weitz Investment Management Partners Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners Value Fund’s Institutional Class returned -8.68% for the first quarter compared to -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund’s Institutional Class returned +4.35% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners Value Fund mentioned Gartner, Inc. (NYSE:IT) and explained its insights for the company. Founded in 1979, Gartner, Inc. (NYSE:IT) is a Stamford, Connecticut-based technological research and consulting firm with a $20.2 billion market capitalization. Gartner, Inc. (NYSE:IT) delivered a -24.84% return since the beginning of the year, while its 12-month returns are up by 3.86%. The stock closed at $251.29 per share on June 24, 2022.

Here is what Weitz Investment Management Partners Value Fund has to say about Gartner, Inc. (NYSE:IT)  in its Q1 2022 investor letter:

“We added a new position in Gartner (NYSE:IT) as tech-adjacent stocks continued their fall from grace during the quarter. Gartner is the leading provider of subscription-based research services to IT and business professionals (think C-suite executives, among others). The company has an attractive “create once, sell many times” business model that should sound familiar to long-time Fund investors. While Gartner does not scream “cheap” on current earnings, we are drawn to the company’s durability, business momentum, and extended glide path of capital-light, double-digit revenue, and cash flow growth potential.”

Our calculations show that Gartner, Inc. (NYSE:IT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Gartner, Inc. (NYSE:IT) was in 35 hedge fund portfolios at the end of the first quarter of 2022, compared to 36 funds in the previous quarter. Gartner, Inc. (NYSE:IT) delivered a -14.94% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on Gartner, Inc. (NYSE:IT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.

Weitz Investment Management, an investment management firm, published its “Weitz Investment Management Partners Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners Value Fund’s Institutional Class returned -8.68% for the first quarter compared to -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund’s Institutional Class returned +4.35% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners Value Fund mentioned MarketAxess Holdings Inc. (NASDAQ:MKTX) and explained its insights for the company. Founded in 2000, MarketAxess Holdings Inc. (NASDAQ:MKTX) is a United States-based international financial technology company with a $10.4 billion market capitalization. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a -32.49% return since the beginning of the year, while its 12-month returns are down by -40.67%. The stock closed at $277.64 per share on June 24, 2022.

Here is what Weitz Investment Management Partners Value Fund has to say about MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q1 2022 investor letter:

“MarketAxess Holdings (NASDAQ:MKTX) was among the Fund’s largest fiscal-year detractors. While our value estimate for MarketAxess declined considerably, our thesis and the company’s critical role in electronic bond trading for the next decade remain intact.”

Photo by AlphaTradeZone

Our calculations show that MarketAxess Holdings Inc. (NASDAQ:MKTX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. MarketAxess Holdings Inc. (NASDAQ:MKTX) was in 39 hedge fund portfolios at the end of the first quarter of 2022, compared to 32 funds in the previous quarter. MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a -21.10% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on MarketAxess Holdings Inc. (NASDAQ:MKTX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.

In this article, we will look at 10 stocks you should sell in 2022 according to billionaire Dan Loeb. If you want to skip reading about Dan Loeb’s view on the current market situation and his hedge fund’s performance, you can go directly to 5 Stocks You Should Sell in 2022 According to Billionaire Dan Loeb.

Dan Loeb founded his hedge fund, Third Point, back in 1995 with a borrowed $3.3 million from his friends and family. He rose to prominence after his activist shareholder strategies paid off and he successfully executed numerous corporate takeovers over the years of his career. As of June 2022, the activist investor is worth $4.2 billion according to data from Forbes. As of March 31, 2022, Dan Loeb manages over $7.68 billion in 13F securities through his hedge fund.

Dan Loeb is also fond of collecting art and is well-known for his art collection. In a 2011 article, Business Insider ranked Dan Loeb among its “Wall Street’s 25 Most Serious Art Collectors” list and noted that the billionaire is just as quick to take profits from art as he is from stocks. On May 6 the billionaire, in his first quarter 2022 letter to investors, drew an analogy between the current market situation and a 1982 documentary “Koyaanisqatsi”. Koyaanisqatsi means “life out of balance”, much like the current stock market situation is according to billionaire Dan Loeb. Mr. Loeb further elaborated on why, according to him, investors face challenges in tightening economic environments and said that he believes investors stick to their school of thought and do not change their ways to suit better to current market trends. The billionaire wrote:

I have said before that they don’t ring a bell when the rules of the game are changing, but if you listen closely, you can hear a dog whistle.

Third Point’s Returns and Most Recent Portfolio

Looking at Third Point’s quarter-on-quarter performance, the New York-based hedge fund returned 26.04% in the first quarter of 2020, compared to Q4 2019. In the first quarter of 2021, Third Point reported a quarter-on-quarter return of 3.99%. As of the first quarter of 2022, Third Point’s returns have sunk to a negative 22.62% from Q4 2021.

According to Dan Loeb’s most recent investor letter, Third Point’s offshore fund dipped to a negative 11.5% in the first quarter of 2022, as measured from the beginning of the year. However, the fund’s median annualized returns still sit at 14.3% since inception, outperforming the S&P 500’s comparable returns of 9.3% and the MSCI World Index’s median annual returns of 7.7% over the same period.

In the first quarter of 2022, Third Point completely discarded 26 of its positions, reduced stakes in 22 companies, added 9 new stocks to its portfolio and raised its stakes in 5 of its previous holdings. Some of Dan Loeb’s top disposals were Comcast Corporation (NASDAQ:CMCSA), The Walt Disney Company (NYSE:DIS), and Alphabet Inc. (NASDAQ:GOOG).

Dan Loeb of Third Point

Our Methodology

To determine the 10 stocks you should sell in 2022 according to billionaire Dan Loeb, we reviewed Third Point’s first-quarter 2022 investment portfolio and picked companies the billionaire completely exited. We mentioned the analyst and investor sentiment for each stock.

The stocks are ranked in increasing order of hedge fund holders, which were sourced from Insider Monkey’s database of approximately 900 elite hedge funds.

Stocks You Should Sell in 2022 According to Billionaire Dan Loeb

10. The AES Corporation (NYSE:AES)

Number of Hedge Fund Holders: 37

The AES Corporation (NYSE:AES) operates as a power generation and utility company in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. At the close of Q4 2022, Third Point held stakes worth $139.72 million in the utility company, and in the first quarter of 2022, the fund dumped its stakes completely, selling its previously owned 5.75 million shares.

On May 5, The AES Corporation (NYSE:AES) announced that it has signed two renewable energy power purchase agreements with Amazon.com, Inc. (NASDAQ:AMZN). Under the terms of the agreement, the utility company will be providing Amazon.com, Inc. (NASDAQ:AMZN) with 450 megawatts of solar energy. The AES Corporation (NYSE:AES) has signed a supply agreement with Fluence Energy to deliver energy solutions for one of Amazon.com, Inc.’s (NASDAQ:AMZN) projects.

As of May 10, Susquehanna analyst Biju Perincheril has a $30 price target and a Positive rating on The AES Corporation (NYSE:AES).

At the close of Q1 2022, 37 hedge funds were long The AES Corporation (NYSE:AES) with stakes worth $1.48 billion. This is compared to 41 positions a quarter ago with stakes worth $1.55 billion. The hedge fund sentiment around the stock is negative.

The AES Corporation (NYSE:AES) is a stock you should sell in 2022 according to billionaire activist Dan Loeb. Other stocks that Third Point disposed of in Q1 2022 include Comcast Corporation (NASDAQ:CMCSA), The Walt Disney Company (NYSE:DIS), and Alphabet Inc. (NASDAQ:GOOG).

9. Align Technology, Inc. (NASDAQ:ALGN)

Number of Hedge Fund Holders: 45

Align Technology, Inc. (NASDAQ:ALGN) operates as a medical device company and has operations in the United States, Switzerland, China, and internationally. The company operates through two business segments: Clear Aligner, and Scanners & Services. In the first quarter of 2022, billionaire Dan Loeb exited Align Technology, Inc. (NASDAQ:ALGN) after dumping his Q4 2021 stakes of $197.15 million.

On May 4 Joseph Hogan, CEO of Align Technology, Inc. (NASDAQ:ALGN) purchased 6,700 shares of the company’s common stock for a transaction of $2.0 million. On the same day, Credit Suisse analyst Matt Miksic trimmed his price target on Align Technology, Inc. (NASDAQ:ALGN) to $418 from $722 and reiterated an Outperform rating on the shares.

At the close of Q1 2022, 45 hedge funds held stakes in Align Technology, Inc. (NASDAQ:ALGN). The total value of these stakes came in at $1.20 billion, down from $2.43 billion in the preceding quarter with 51 positions. The hedge fund sentiment for Align Technology, Inc. (NASDAQ:ALGN) is negative.

Billionaire Dan Loeb may be bearish on Align Technology, Inc. (NYSE:AES) but Artko Capital, an asset management firm, thinks it’s a “great investment pick”. Here is what the firm said in its recently published Q1 2022 investor letter:

“Align Technology (NASDAQ:ALGN), the leading global provider of clear aligners (“invisible braces”) and dental scanning equipment, warned that rising Omicron cases would suppress first-quarter growth, leading the market to question its guidance for annual topline growth of 20-30%, even though we think its growth will be plenty durable. Align remains among the fastest growing and most innovative companies in consumer health.”

8. Coupa Software Incorporated (NASDAQ:COUP)

Number of Hedge Fund Holders: 46

Coupa Software Incorporated (NASDAQ:COUP) operates as a software company specializing in cloud-based solutions for business spend management. It is one of the stocks billionaire Dan Loeb discarded in the first quarter of 2022 after selling his fund’s stakes of $102.73 million in the company.

On June 7, Coupa Software Incorporated (NASDAQ:COUP) released earnings for the fiscal first quarter of 2023. The company registered an EPS of $0.08 and beat expectations by $0.03. Moreover, the company’s revenue for the quarter amounted to $196.37 million, up 17.64% year over year, and outperformed market consensus by $5.69 million.

Shortly after the company’s earnings release, Evercore ISI analyst Peter Levine lowered his price target on Coupa Software Incorporated (NASDAQ:COUP) to $115 from $140 but reiterated an Outperform rating on the shares.

At the end of Q1 2022, 46 hedge funds disclosed ownership of stakes in Coupa Software Incorporated (NASDAQ:COUP). These funds held collective stakes of $1.71 billion in the company, down from $3.08 billion a quarter ago with 59 positions. The hedge fund sentiment for the stock is negative.

Here is what Aristotle Capital Management had to say about Coupa Software Incorporated (NASDAQ:COUP) in its “Aristotle Large Cap Growth Fund” first-quarter 2022 investor letter:

“We sold our position in Coupa Software following the company’s fourth quarter 2021 earnings results. The company reported earnings that were disappointing relative to the growth trajectory of both pre-COVID and prior quarters over the past fiscal year. We are concerned that the company is seeing slowing traction in the enterprise sector and felt that the weak topline and billings guidance along with margin compression from increased sales and marketing costs creates too many headwinds for us to be comfortable with. The weak fiscal year 2023 billings guidance when combined with management’s qualitative comments about a strong pipeline is concerning to us, and we believe management has done a disappointing job in providing more transparency around the growth drivers for the business.”

7. Accenture Plc (NYSE:ACN)

Number of Hedge Fund Holders: 63

At the close of Q4 2021, Third Point owned 1.25 million shares of the company, which amounted to a stake of $518.18 million. Accenture Plc (NYSE:ACN) is another stock that billionaire Dan Loeb discarded in the first quarter of 2022.

Shortly after the company’s Q3 earnings beat, Barclays analyst Ramsey El-Assal trimmed his price target on Accenture Plc (NYSE:ACN) to $370 from $455 but maintained an Overweight rating on the shares.

Insider Monkey found 63 hedge funds that held stakes in Accenture Plc (NYSE:ACN) at the end of Q1 2022. The total value of these stakes amounted to $3.95 billion, down from $5.11 billion a quarter ago with 50 positions.

Polen Capital, an investment management firm, shared its insights on Accenture Plc (NYSE:ACN) in its “Polen Global Growth Fund” first-quarter 2022 investor letter. Here is what the firm said:

“Accenture’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and Accenture is positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, its stock is currently more fully priced. As such, we lowered Accenture to an average weight. We maintain high conviction in the business and plan to own it for many years, but recognize the increase in their prices.”

6. Apollo Global Management, Inc. (NYSE:APO)

Number of Hedge Fund Holders: 64

Apollo Global Management, Inc. (NYSE:APO) operates as a private equity firm that specializes in investments in credit, private equity, and real estate markets. At the end of Q1 2022, 64 hedge funds held stakes in Apollo Global Management, Inc. (NYSE:APO) worth $2.08 billion. This is compared to 50 hedge funds in the previous quarter with stakes worth $2.13 billion.

On May 19, Deutsche Bank analyst Brian Bedell trimmed his price target on Apollo Global Management, Inc. (NYSE:APO) to $90 from $98 and reiterated a Buy rating on the shares.

Shares of Apollo Global Management, Inc. (NYSE:APO) have dipped 27.30% year-to-date as of June 24. In the first quarter of 2022, billionaire Dan Loeb sold his hedge fund’s position in the company and discarded its Q4 2021 stakes of $14.48 million.

Other stocks that billionaire Dan Loeb abandoned in the first quarter of 2022 include Comcast Corporation (NASDAQ:CMCSA), The Walt Disney Company (NYSE:DIS), and Alphabet Inc. (NASDAQ:GOOG).

Miller Value Partners, an investment management firm, published its “Miller Income Strategy” fourth quarter 2021 investor letter in which it mentioned Apollo Global Management, Inc. (NYSE:APO). Here is what the firm had to say:

“Apollo Global Management (APO) rose 18.4% during the quarter. The company reported Q3 distributable earnings (DE) of $1.71, well ahead of consensus of $1.10 and the quarterly dividend of $0.50/share (2.8% annualized yield). Fee-related earnings of $300M beat by 7% while realized net performance fees of $312M topped estimates by 23%. Total assets under management (AUM) of $481.1Bn and fee-earning AUM of $361.3Bn both rose +2% sequentially on the back of robust capital raising with $18.1Bn of inflows over the period. Additionally, Apollo hosted their 2021 Investor Day, outlining long-term financial targets including over $9/share in distributable earnings by 2026 (14% Compound Annual Growth Rate (CAGR) from $5.50 pro-forma 2022E) and fee-related earnings of $4.50-$4.75 (18% CAGR). Management expects to roughly double AUM by 2026 to $1trn from $481Bn currently with a 2.25x increase in fee-related revenues to $4.6Bn.”

 

Click to continue reading and see 5 Stocks You Should Sell in 2022 According to Billionaire Dan Loeb. 

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Disclosure: None. 10 Stocks You Should Sell in 2022 According to Billionaire Dan Loeb is originally published on Insider Monkey.

Weitz Investment Management, an investment management firm, published its “Weitz Investment Management Partners Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners Value Fund’s Institutional Class returned -8.68% for the first quarter compared to -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund’s Institutional Class returned +4.35% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners Value Fund mentioned CoStar Group, Inc. (NASDAQ:CSGP) and explained its insights for the company. Founded in 1987, CoStar Group, Inc. (NASDAQ:CSGP) is a Washington, D.C.-based commercial property company with a $24.9 billion market capitalization. CoStar Group, Inc. (NASDAQ:CSGP) delivered a -20.47% return since the beginning of the year, while its 12-month returns are down by -28.79%. The stock closed at $62.85 per share on June 24, 2022.

Here is what Weitz Investment Management Partners Value Fund has to say about CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2022 investor letter:

“In insurance parlance, frequency was as relevant as severity. The silver lining is that we think these declines will prove to be temporary rather than permanent. CoStar is among our highest conviction positions, and we added to each during the quarter at attractive prices.”

STUDIO GRAND OUEST/Shutterstock.com

Our calculations show that CoStar Group, Inc. (NASDAQ:CSGP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CoStar Group, Inc. (NASDAQ:CSGP) was in 44 hedge fund portfolios at the end of the first quarter of 2022, compared to 49 funds in the previous quarter. CoStar Group, Inc. (NASDAQ:CSGP) delivered a -6.97% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on CoStar Group, Inc. (NASDAQ:CSGP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.

In this article, we will look at 5 stocks you should sell in 2022 according to billionaire Dan Loeb. If you want to read about Dan Loeb’s view on the current market situation and his hedge fund’s performance, you can go to 10 Stocks You Should Sell in 2022 According to Billionaire Dan Loeb.

5. CF Industries Holdings, Inc. (NYSE:CF)

Number of Hedge Fund Holders: 67

CF Industries Holdings, Inc. (NYSE:CF) manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. On June 17, Citi analyst P.J. Juvekar slashed his price target on CF Industries Holdings, Inc. (NYSE:CF) to $99 from $123 and downgraded the stock to Neutral from Buy.

On June 6, it was reported in a regulatory filing that Richard Hoker, vice president and corporate controller at CF Industries Holdings, Inc. (NYSE:CF), sold roughly 6,600 shares of the company’s common stock at $94.9048 per share.

Third Point owned roughly 1.24 million shares of CF Industries Holdings, Inc. (NYSE:CF) at the end of Q4 2022. In the first quarter of 2022, the fund exited its position in the company after discarding 100% of its previous stakes in it.

At the close of Q1 2022, 67 hedge funds disclosed ownership of stakes in CF Industries Holdings, Inc. (NYSE:CF). The total stakes of these hedge funds amounted to $1.53 billion, down from $1.54 billion in the previous quarter with 58 positions.

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Weitz Investment Management, an investment management firm, published its “Weitz Investment Management Partners Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Partners Value Fund’s Institutional Class returned -8.68% for the first quarter compared to -4.60% for the S&P 500 and -5.28% for the Russell 3000. For the fiscal year ended March 31, 2022, the Fund’s Institutional Class returned +4.35% compared to +15.65% for the S&P 500 and +11.92% for the Russell 3000. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Weitz Investment Management Partners Value Fund mentioned Liberty Latin America Ltd. (NASDAQ:LILA) and explained its insights for the company. Founded in 2017, Liberty Latin America Ltd. (NASDAQ:LILA) is a Denver, Colorado-based telecommunications company with a $1.8 billion market capitalization. Liberty Latin America Ltd. (NASDAQ:LILA) delivered a -33.19% return since the beginning of the year, while its 12-month returns are down by -46.16%. The stock closed at $7.79 per share on June 24, 2022.

Here is what Weitz Investment Management Partners Value Fund has to say about Liberty Latin America Ltd. (NASDAQ:LILA) in its Q1 2022 investor letter:

“In insurance parlance, frequency was as relevant as severity. The silver lining is that we think these declines will prove to be temporary rather than permanent. Liberty Latin America has a “whippy” (frequently changing direction) stock that is often more volatile than the revenues and margins of the underlying business.”

Photo by Mika Baumeister on Unsplash

Our calculations show that Liberty Latin America Ltd. (NASDAQ:LILA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Liberty Latin America Ltd. (NASDAQ:LILA) was in 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 16 funds in the previous quarter. Liberty Latin America Ltd. (NASDAQ:LILA) delivered a -22.26% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Liberty Latin America Ltd. (NASDAQ:LILA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.