In this article, we discuss the 10 growth stocks under $20 in billionaire Ken Fisher’s portfolio. If you want to skip our detailed analysis of these stocks, go directly to the 5 Growth Stocks Under $20 in Billionaire Ken Fisher’s Portfolio.
Ken Fisher oversees Fisher Asset Management, a hedge fund based in Washington that had a portfolio value of more than $160 billion at the end of the third quarter of 2021 with the top holdings in the technology and healthcare sectors. The top ten holdings comprise more than 30% of the entire portfolio. Latest data shows that the fund, between June and September this year, made new purchases in 70 stocks, additional purchases in 434, sold out of 61, and reduced holdings in 371 equities.
Fisher has a personal net worth of over $6.6 billion. Coming from humble beginnings as a fruit picker in California, Fisher has morphed into one of the biggest growth investors on Wall Street over the past few years. He began his fund over 40 years ago with just $250 in his pocket. Since stepping down from the chief executive role at his fund a few years ago, Fisher has turned his attention towards writing and philanthropy.
Some of the stocks in the portfolio of Fisher Asset Management at the end of September included Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
The companies listed below were chosen from the investment portfolio of Fisher Asset Management at the end of the third quarter of 2021. The analyst ratings and business fundamentals of the firms are also discussed to provide readers with some context for their investment choices. Hedge fund sentiment was used as a classifier as well. The share price of each stock, as of December 5, is mentioned alongside other details for further clarity.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Growth Stocks Under $20 in Billionaire Ken Fisher’s Portfolio
10. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)
Number of Hedge Fund Holders: 13
Price as of December 5, 2021: $17.61 per share
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a pharmaceutical company that focuses on developing medicines for pain management. Latest data shows that Fisher Asset Management owned 20,349 shares of the company at the end of the third quarter of 2021 worth $402,000.
HC Wainwright analyst Oren Livnat has a Buy rating on Collegium Pharmaceutical, Inc. (NASDAQ:COLL) stock with a price target of $26. In a recent investor note, the analyst appreciated the potential of pipeline drugs of the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Rubric Capital Management is a leading shareholder in Collegium Pharmaceutical, Inc. (NASDAQ:COLL) with 2.6 million shares worth more than $51 million.
At the end of the third quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $144 million in Collegium Pharmaceutical, Inc. (NASDAQ:COLL), down from 16 in the preceding quarter worth $209 million.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is one of the stocks on the radar of growth investors.
9. Heron Therapeutics, Inc. (NASDAQ:HRTX)
Number of Hedge Fund Holders: 16
Price as of December 5, 2021: $8.68 per share
Heron Therapeutics, Inc. (NASDAQ:HRTX) is a biotech firm that develops treatments for unmet medical needs. According to regulatory filings, Fisher Asset Management owned 35,007 shares in the firm at the end of September 2021 worth $374,000.
Heron Therapeutics, Inc. (NASDAQ:HRTX) recently posted earnings for the third quarter, beating market estimates on earnings per share by $0.10. The revenue over the period was $23 million, up 16% year-on-year.
Unlike expensive names like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Heron Therapeutics, Inc. (NASDAQ:HRTX) is a cheap growth stock.
At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $271 million in Heron Therapeutics, Inc. (NASDAQ:HRTX), the same as in the preceding quarter worth $373 million.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Baker Bros. Advisors is a leading shareholder in Heron Therapeutics, Inc. (NASDAQ:HRTX) with 8 million shares worth more than $86 million.
8. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Number of Hedge Fund Holders: 17
Price as of December 5, 2021: $6.86 per share
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) develops therapies for people with rare diseases. The hedge fund of billionaire Ken Fisher owned 201,801 shares of the company at the end of the third quarter of 2021 worth more than $1 million.
In late September, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) had obtained a favorable court ruling regarding a regulatory approval for an amifampridine product upon which the company holds exclusive rights.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Armistice Capital is a leading shareholder in Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) with 10 million shares worth more than $53 million.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $82 million in Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), up from 16 in the preceding quarter worth $92 million.
7. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 22
Price as of December 5, 2021: $5.66 per share
Nokia Corporation (NYSE:NOK) provides mobile and fixed network solutions. Fisher Asset Management owned 15,253 shares in the firm at the end of September 2021 worth $83,000. It increased stake in the firm by 14% in the third quarter as compared to filings for the first.
In late October, investment advisory Morgan Stanley maintained an Overweight rating on Nokia Corporation (NYSE:NOK) stock and raised the price target to EUR6.5 from EUR6.4. Dominik Olszewski, an analyst at the advisory, issued the ratings update.
At the end of the third quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $388 million in Nokia Corporation (NYSE:NOK), down from 26 in the previous quarter worth $494 million.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Nokia Corporation (NYSE:NOK) with 22 million shares worth more than $123 million.
6. Pitney Bowes Inc. (NYSE:PBI)
Number of Hedge Fund Holders: 23
Price as of December 5, 2021: $6.62 per share
Pitney Bowes Inc. (NYSE:PBI) is a technology company that provides commerce solutions. Latest securities filings reveal that Fisher Asset Management owned 1 million shares in the company at the end of the third quarter of 2021 worth $7.5 million.
Pitney Bowes Inc. (NYSE:PBI) has a decent dividend history and recently declared a quarterly dividend of $0.05 per share, in line with previous. The forward yield was 2.7%. The firm has a market cap of more than $1.1 billion.
At the end of the third quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $105 million in Pitney Bowes Inc. (NYSE:PBI), the same as in the previous quarter worth $126 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Pitney Bowes Inc. (NYSE:PBI) with 2 million shares worth more than $15 million.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Pitney Bowes Inc. (NYSE:PBI) is one of the stocks attracting the attention of hedge funds.
In its Q3 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Pitney Bowes Inc. (NYSE:PBI) was one of them. Here is what the fund said:
“Pitney Bowes (PBI) was also a recent laggard off nearly 20% during the quarter. The company has been building out an E-commerce business for the past 10 years that is approaching $2B in revenue and growing revenues longer-term at a double digit pace. With the E-commerce segment approaching scale, management has significant new initiatives underway to help improve the segment’s profitability to normalized levels (8-12% EBIT margins) over the next couple of years. Success on achieving normalized profitability for the segment would dramatically enhance Pitney Bowes earnings (>$1 in EPS) and annual free cash flow generation (>$250M). Last quarter we highlighted, the digital service business within Pitney’s E-commerce segment and the significant embedded value that was suggested by recent acquisition of a direct competitor Stamps.com at 8x revenue. However, another recent market transaction suggests the E-commerce business has even greater embedded value. At the end of the second quarter, Global-e (GLBE), a UK company that focuses on cross-border business came public at $25/share or approx. $4B market capitalization. The initial IPO price suggested, 2021 Enterprise value to Revenue >20x. Since the IPO, GLBE has climbed to greater than $50/share. Within Pitney Bowes’s E-commerce segment there is a much larger cross border business representing approximately $500M in revenue. The current valuation of Global-e suggests Pitney’s cross border business is worth significantly more than the company’s current market cap. With the marketplace valuing many businesses in excess of 10x revenue, we believe that Pitney Bowes shares remain significantly mispriced at only .35x of revenue and >30% normalized earnings and free cash flow yield. In our opinion, the shares are becoming increasing attractive as their E-commerce segment appears to be significantly undervalued and has the potential to unlock significant equity value over the next couple of years.”
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Disclosure. None. 10 Growth Stocks Under $20 in Billionaire Ken Fisher’s Portfolio is originally published on Insider Monkey.
