In this article we will take a look at the 10 best stocks to buy according to billionaire Jeffrey Talpins. If you want to skip our detailed analysis of Talpins’ history and hedge fund performance, go directly to the 5 Best Stocks to Buy According to Billionaire Jeffrey Talpins.
What better way to learn about a business from someone who can rightfully be called a veteran when it comes to that business? By analyzing and compiling data of Jeffrey Talpins’ investment strategy and current holdings, we will be able to give you just the article you need to learn about the best places to invest in. But before you get to any of that, you may be wondering who Talpins is.
Long story short, Jeffrey Talpins is the founder and Chief Investment Officer of the New York-based hedge fund, Element Capital Management. The fund was founded in 2005 at Proxima Alfa Investments USA LLC under the moniker of Element Capital Group, and by 2009, it became an independent firm.
Before launching the hedge fund, Talpins worked in the Mortgage Backed Securities Department at Goldman Sachs, later moving to Citigroup’s Fixed Income Options as the Head Trader, credited with expanding the business. In 2005, he set up Element Capital with $250 million. The fund was last reported to have $18 billion in assets under management and specializes in macro trading. Since its inception, Element Capital Management has been posting annualized returns of over 20%.
The hedge fund is one of the biggest in the world and also one of the best performing of the past decade. It appeared on Barron’s Top 100 Hedge Funds list eight times between 2008 – 2017. From late 2017 to early 2018, Element Capital Management made over $3 billion in profits on a bet that the passage of tax reform would lift the price of global assets. Later in August 2018, the fund made an additional $3 billion from existing investors and closed to new capital.
A glance at Taplins’ Q1 portfolio shows that the billionaire has been piling into SPACs. His hedge fund also exited big tech stocks like Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL) and Apple Inc (NASDAQ: AAPL) in the first quarter of 2021. Some of the stocks in which the fund initiated new stakes include CBS Corporation Common Stock (NASDAQ: VIAC), Tencent Music Entertainment Group – ADR (NYSE: TME) and Baidu Inc ADR Class A (NASDAQ: BIDU).
In CBS Corporation Common Stock (NASDAQ: VIAC), Taplins bought a $50.74 million stake in the company. In Chinese tech company Tencent Music Entertainment Group – ADR (NYSE: TME), Taplins’ hedge fund bought a $46.52 million stake, while in Baidu Inc ADR Class A (NASDAQ: BIDU), the fund bought 161,199 shares, worth $35.1 million.
Talpins’ trading philosophy focuses on applying the global macro investing strategy, and his hedge fund has a multi-process investment strategy combining a variety of macro analysis forms. Such an investment approach has proven to work in Element Capital Management’s favor, as year after year, the fund has proved to be successful in bringing in more returns than most other funds out there. For instance, in 2016, the fund was able to bring in returns of 19.4%, miles ahead of other hedge funds at the time who brought in returns of 2.3% on average. The fund has consistently kept up the same level of work, bringing in returns of 17.3% in 2018, 12% in 2019, and 18.8% in 2020.
Talpins’ investment strategy and highly successful hedge fund continue to bring him to the forefront, with the media even dubbing him as the “hedge king you’ve never heard of” and one of the hottest investors on Wall Street. Even though Talpins is extremely secretive even by hedge fund standards, he has still managed to become one of the most popular and influential investors known today.
But Taplins is an exception in an industry that is reeling from losses. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Jeffrey Talpins of Element Capital
With the above in mind, we have compiled a list of the 10 best stocks to buy according to billionaire Jeffrey Talpins, drawing on Element Capital Management’s stakes in the stocks as of the first quarter of 2021.
Best Stocks to Buy According to Billionaire Jeffrey Talpins
10. CONX Corp. (NASDAQ: CONX)
Talpins’ Stake Value: $14,955,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.42%
Number of Institutions Holding Shares: 35
Ranking 10th on the list of the best stocks to buy according to billionaire Jeffrey Talpins is CONX Corp. (NASDAQ: CONX). The company operates as a blank check company focusing on mergers, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with different businesses. By the first quarter of 2021, CONX Corp.’s (NASDAQ: CONX) net income stood at $8.67 million.
As of the end of the first quarter, 35 hedge funds in Insider Monkey’s database of 887 funds held stakes in CONX, compared to 38 funds in the fourth quarter.
9. Health Assurance Acquisition Corp. (NASDAQ: HAAC)
Talpins’ Stake Value: $16,659,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.81%
Number of Institutions Holding Shares: 7
According to Yahoo Finance, a total of 56 institutions currently hold shares in Health Assurance Acquisition Corp. (NASDAQ: HAAC), which is 9th on the list of the best stocks to buy according to billionaire Jeffrey Talpins. This is another blank check company and is sponsored by General Catalyst. Health Assurance Acquisition Corp. (NASDAQ: HAAC) serves to effect mergers, share exchanges, facilitate asset acquisitions, and share purchases, alongside working on reorganizing similar business combinations with one or more businesses or entities. By the fourth quarter of 2020, the company raised $500 million from investors.
According to our database, the number of HAAC’s long hedge funds positions decreased at the end of the first quarter of 2020. There were 7 hedge funds that hold a position in the company, compared to 20 funds in the fourth quarter.
Like CBS Corporation Common Stock (NASDAQ: VIAC), Tencent Music Entertainment Group – ADR (NYSE: TME) and Baidu Inc ADR Class A (NASDAQ: BIDU), HAAC is one of the best stocks to buy based on billionaire Jeffrey Taplins’ Q1 portfolio.
8. Revolution Healthcare Acquisition Corp. (NASDAQ: REVH)
Talpins’ Stake Value: $20,100,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 4.63%
Number of Institutions Holding Shares: N/A
Element Capital Management holds 2 million shares worth $20.1 million in Revolution Healthcare Acquisition Corp. (NASDAQ: REVH). The company stands 8th on the list of the best stocks to buy, according to billionaire Jeffrey Talpins.
The company is a newly incorporated blank check company, making it the fourth blank check company on this list that Talpins has invested in. Revolution Healthcare Acquisition Corp. (NASDAQ: REVH) seeks other companies whose vision aligns with theirs on the matter of providing patient-centric health case delivery using technology-driven models.
As evident, Taplins has been buying SPACs in the first quarter of 2021, and sold stakes in notable companies like Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL) and Apple Inc (NASDAQ: AAPL).
7. Vy Global Growth (NYSE: VYGG)
Talpins’ Stake Value: $20,240,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 4.63%
Number of Institutions Holding Shares: 36
Vy Global Growth (NYSE: VYGG) is yet another blank check company, one intending to partner with a technology business that would gain from its global expertise to define the future of its industry. It is a smaller company with a market capitalization of $623 million in the first quarter of 2021. As such, it may be going unnoticed by many investors, but not by Talpins, whose hedge fund owns 2 million shares in the company worth $20.2 million.
Apart from Talpins, institutional investors also have a fair degree of stake in the company. Owing to this fact, we can determine that Vy Global Growth (NYSE: VYGG) has some level of credibility in the investment community. Institutions own over half of the company’s shares, while hedge funds owned around 5.4% until April of this year.
As of the end of the first quarter of 2021, there were 36 hedge funds in Insider Monkey’s database that held stakes in VYGG, compared to 38 funds in the fourth quarter of 2020.
6. TPG Pace Tech Opportunities Corp. (NYSE: PACE)
Talpins’ Stake Value: $21,802,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 4.99%
Number of Institutions Holding Shares: N/A
TPG Pace Tech Opportunities Corp. (NYSE: PACE), ranked 6th on the list of the 10 best stocks to buy according to billionaire Jeffrey Talpins, has 76 institutions holding its shares according to Yahoo Finance. As of the first quarter of 2021, Element Capital Management owns 2.2 million shares in this SPAC, worth $21.8 million. Yet another blank check company the hedge fund has invested in, TPG Pace Tech Opportunities Corp.’s (NYSE: PACE) shares were bought at $10 per share by Talpins, while currently, the stock trade stands as $10.02.
Taplins has been buying SPACs in the first quarter and selling big companies like Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL) and Apple Inc (NASDAQ: AAPL). Other than SPACs, some of the notable holdings of Taplins include CBS Corporation Common Stock (NASDAQ: VIAC), Tencent Music Entertainment Group – ADR (NYSE: TME) and Baidu Inc ADR Class A (NASDAQ: BIDU).
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Disclosure: None. 10 Best Stocks to Buy According to Billionaire Jeffrey Talpins is originally published on Insider Monkey.
