10 Best Stocks to Buy According to Eminence Capital’s Ricky Sandler

3. CF Industries Holdings, Inc. (NYSE:CF) CALL

Number of Hedge Fund Holders: 35 

Eminence Capital’s Stake: $276,323,768

CF Industries Holdings, Inc. (NYSE:CF) engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities. The firm has several competitive advantages over peers, positioning it favorably against market fluctuations and making it a classic Sandler stock. For example, the company is the largest producer of nitrogen fertilizer in North America. It also benefits from low US natural gas prices. This gives it a cost advantage over competitors in the global arena and allows for positive free cash flow, even at low fertilizer prices.

At the end of the first quarter of 2024, Eminence Capital held more than 3.3 million shares of CF Industries Holdings, Inc. (NYSE:CF) worth over $276 million, representing 3.91% of the overall 13F portfolio. In the first three months of the year, Sandler decreased the fund’s stake in the firm by nearly 5% compared to the previous quarter. Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in CF Industries Holdings, Inc. (NYSE:CF) with 681,526 shares worth more than $56 million.