In this article, we discuss the 10 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins. You can skip our comprehensive analysis of Element Capital’s history, investment philosophy, and hedge fund performance and go directly to 5 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins.
Jeffrey Talpins is the Chief Investment Officer of Element Capital Management. The hedge fund, founded in 2005, is based in New York. To take advantage of opportunities in the global economy and limit potential losses, Jeffrey Talpins uses options trading strategies. He holds degrees from Yale University in applied mathematics and economics with a concentration in finance. Talpins, a former trader for Citigroup and Goldman Sachs, makes investments in bonds, currencies, and equities. As of September 26, Jeffrey Talpins has a net worth of $3.3 billion, according to Forbes. Since its establishment in 2005, Element Capital Management has ranked among the top hedge funds, with yearly returns of more than 20%. Element, however, had its worst-ever year in 2021 and experienced a 2.7% decline in January—a month when a majority of other macro managers saw gains. According to those with knowledge of the situation, as reported by Bloomberg, the fund fell by around 9% in 2021.
Element’s last reported 13F filing for Q2 2022 included $199.297 million in managed 13F securities and a top 10 holdings concentration of 40.31%. Some of the notable stocks owned by the fund during the second quarter included Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE) and salesforce.com, inc. (NYSE:CRM).
Jeffrey Talpins of Element Capital
Our Methodology
At Insider Monkey, we cover the portfolios of 895 hedge funds, closely tracking the stocks they buy and sell. We selected the ten stocks discussed in this article based on the 13F regulatory filing submitted by Element Capital Management with the SEC for the quarter ending June 30. The stocks are ranked according to Element Capital’s stake value in each company.
Best Stocks to Buy Now According to Billionaire Jeffrey Talpins
10. The Coca-Cola Company (NYSE:KO)
Element Capital’s Stake Value: $3.386 million
Percentage of Element Capital’s 13F portfolio: 1.69%
Number of Hedge Fund Holders: 60
Analyst Carlos Laboy with HSBC recently increased his price target for The Coca-Cola Company (NYSE:KO) from $72 to $76 while maintaining a Buy recommendation on the shares. Laboy informs investors in a research note that Coke has new revenue drivers in Latin America as it makes its hitherto exclusive sales and distribution system available to other brands.
A total of 60 hedge funds had interests in The Coca-Cola Company (NYSE:KO) at the end of the second quarter of 2022, valued at $28.3 billion. The Coca-Cola Company’s (NYSE:KO) position held by Element Capital was valued at $3.386 million as of June 30. The investment comprises 1.69% of the 13F portfolio owned by Jeffrey Talpins. The hedge fund increased its stake by 50% in Q2 2022, as compared to the previous quarter. Just like Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE), and salesforce.com, inc. (NYSE:CRM), The Coca-Cola Company (NYSE:KO) is one of the best stocks to buy, according to Jeffrey Talpins.
09. Johnson & Johnson (NYSE:JNJ)
Element Capital’s Stake Value: $3.860 million
Percentage of Element Capital’s 13F portfolio: 1.93%
Number of Hedge Fund Holders: 83
With a history spanning more than 135 years, Johnson & Johnson (NYSE:JNJ) is one of the biggest healthcare corporations in the world. Several healthcare items are developed, produced, and sold by Johnson & Johnson (NYSE:JNJ).
One of the most popular stocks among the 895 hedge funds that Insider Monkey tracks is Johnson & Johnson (NYSE:JNJ). A total of 83 hedge funds had shares of Johnson & Johnson (NYSE:JNJ) worth $6.8 billion as of Q2 2022. Element Capital contributed $3.86 million of those $6.8 billion investments. Johnson & Johnson (NYSE:JNJ) largest stakeholder, GQG Partners, owns 6.6 million shares worth $1.2 billion.
Here is what Mayar Capital had to say about Johnson & Johnson (NYSE:JNJ) in its second-quarter 2022 investor letter:
“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.
To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…” (Click here to see the full text)
08. Alphabet Inc. (NASDAQ:GOOG)
Element Capital’s Stake Value: $4.683 million
Percentage of Element Capital’s 13F portfolio: 2.34%
Number of Hedge Fund Holders: 153
According to Insider Monkey’s database, 153 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) at the close of Q2 2022. The total stakes of these hedge funds amounted to $22.29 billion. Of those, $4.683 million were from Element Capital Management. Element Capital upped its stake in Alphabet Inc. (NASDAQ:GOOG) by 51% during Q2. The investment covers 2.34% of Jeffrey Talpins’s 13F portfolio.
Various analysts are bullish on Alphabet Inc. (NASDAQ:GOOG) stock. On July 27, Morgan Stanley analyst Brian Nowak maintained a buy-side Overweight rating on Alphabet Inc. (NASDAQ:GOOG) and increased his price target from $140 to $145. Ivan Feinseth, an analyst with Tigress Financial, restated his Strong Buy rating and increased his price target for Alphabet Inc. (NASDAQ:GOOG) to $186 on August 3.
Madison Funds discussed Alphabet Inc. (NASDAQ:GOOG) in the second quarter investor letter. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) continues to perform well, but the price-to-earnings multiple contracted considerably due to concerns about the potential for revenue to be more economically sensitive than it has been historically given the vast size of the business today. Similarly, Adobe and Accenture continue to report strong sales growth, but performance has moderated a bit relative to the extremely robust results generated over the last year or so. In all three cases, we think that the longer-term outlook remains excellent.”
07. Mastercard Incorporated (NYSE:MA)
Element Capital’s Stake Value: $4.810 million
Percentage of Element Capital’s 13F portfolio: 2.41%
Number of Hedge Fund Holders: 137
Technology firm Mastercard Incorporated (NYSE:MA) works in the global payments sector. In order to facilitate the adoption of electronic payment methods, the company links customers, financial institutions, merchants, governments, digital partners, corporations, and other organizations across the globe.
Charles Akre’s Akre Capital Management was the largest shareholder of Mastercard Incorporated (NYSE:MA) during Q2, holding 5.86 million of its shares, having a total value of $1.849 billion. At the end of the second quarter of 2022, 137 hedge funds owned shares of Mastercard Inc. (NYSE:MA). These stakes were worth a total of $14.9 billion. A total of 136 hedge funds owned shares of the company during the previous quarter. Jeffrey Talpins’s Element Capital increased its stake during Q2 by 51%. It holds 15,248 shares of Mastercard Incorporated (NYSE:MA), worth roughly $4.810 million.
In its Q2 2022 investor letter, Baron Fintech Fund mentioned Mastercard Incorporated (NYSE:MA) and explained its insights for the company. Here is what the fund said:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
06. Visa Inc. (NYSE:V)
Element Capital’s Stake Value: $5.348 million
Percentage of Element Capital’s 13F portfolio: 2.68%
Number of Hedge Fund Holders: 166
A total of 166 hedge funds were invested in Visa Inc. (NYSE:V) at the end of the second quarter of 2022. The stock’s largest shareholder in Q2 was TCI Fund Management, which amassed shares of Visa Inc. (NYSE:V) valued at about $3.9 billion. Since Q1 2022, TCI Fund Management has held the same amount of stock. Jeffrey Talpins’s Element Capital owns 27,161 shares of Visa Inc. (NYSE:V), accounting for 2.68% of its 13F portfolio. The hedge fund increased its stake by 51% in Q2 2022, as compared to the previous quarter.
Here is what Baron Fintech Fund has to say about Visa Inc. (NYSE:V) in its Q2 2022 investor letter:
“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”
Just like Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE) and salesforce.com, inc. (NYSE:CRM), Visa Inc. (NYSE:V) is one of the best stocks to buy, according to Jeffrey Talpins.
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Disclosure: None. 10 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins is originally published on Insider Monkey.
