In this article, we discuss the 10 important stocks in billionaire Richard Chilton’s latest portfolio. You can skip our analysis of Chilton Investment Company’s historical performance and go directly to 5 Important Stocks in Billionaire Richard Chilton’s Latest Portfolio.
Richard Chilton founded his hedge fund, Chilton Investment Company, in 1992. The hedge fund aims to provide definite returns to its clients by preserving cash during market volatility. A varied group of investors can benefit from the hedge fund’s customized investing options and methods. Chilton Investment’s Flagship Strategy Fund has produced strong returns throughout the years, with gains of 18.57% in 2013 and 13.99% in 2015. In 2016, the hedge fund recorded a loss of 13.66% but managed to recover in 2017 and posted a return of 12.18%.
Richard Chilton’s investment approach can be defined as value-oriented and responsive to market trends. The billionaire invests in low-volatility stocks by implementing a bottom-up approach. Such stocks allow him to take advantage of steady growth supported by dividends.
Chilton Investment Company’s 13F portfolio was worth over 4.1 billion as of Q1 2022, down from $4.7 billion in the preceding quarter. The hedge fund made significant investments in the services sector, as well as healthcare and consumer goods during the first quarter. Some of the popular holdings of Chilton Investment Company include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG).
Chilton Investment Company increased its holding in Alphabet Inc. (NASDAQ:GOOG) by 1344%, from 2,269 shares to 32,749 shares during the first quarter of 2022. The hedge fund first initiated a position in Alphabet Inc. (NASDAQ:GOOG) in Q4 2015, and the total investment currently represents 2.18% of the Q1 portfolio.
The hedge fund’s investment in Apple Inc. (NASDAQ:AAPL) is worth over $7.9 million, representing 0.19% of the overall portfolio. Following Apple Inc.’s (NASDAQ:AAPL) announcement regarding the release of MacBook laptops with M2 chips, the company is expected to capture PC market share and provide tough competition to Microsoft Corporation (NASDAQ:MSFT). Chilton Investment Company increased its investment in Apple Inc. (NASDAQ:AAPL) by 13% in Q1 2022.
Richard Chilton of Chilton Investment Company
Our Methodology
The stocks have been picked from the Q1 2022 portfolio of Chilton Investment Company. We have discussed the analyst ratings, earnings reports, and business fundamentals for each stock. Insider Monkey has a database of 912 elite funds, which was used to gauge the hedge fund sentiment concerning each stock at the end of Q1 2022.
Important Stocks in Billionaire Richard Chilton’s Latest Portfolio
10. Broadcom Inc. (NYSE:AVGO)
Chilton Investment Company’s Stake Value: $483,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 71
Broadcom Inc. (NYSE:AVGO) is one of the leading tech companies in the world specializing in the production of software solutions. The company’s products cater to key markets such as data centers, broadband, and industrial software infrastructure. Chilton Investment Company had first taken a position in the company in Q2 2020.
On May 27, John Vinh at KeyBanc raised his price target on Broadcom Inc. (NYSE:AVGO) from $720 to $780 and reiterated a Buy rating on the stock. The upgrade follows Broadcom Inc.’s (NYSE:AVGO) decision to acquire VMware for an enterprise value of $61 billion. The acquisition is expected to provide an upside potential of 45% to the stock.
Here’s what ClearBridge Investments said about Broadcom Inc. (NYSE:AVGO) in its Q4 2021 investor letter:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
As of Q1 2022, Broadcom Inc. (NYSE:AVGO) was held by 71 hedge funds.
9. Mettler-Toledo International Inc. (NYSE:MTD)
Chilton Investment Company’s Stake Value: $167,384,000
Percentage of Chilton Investment Company’s 13F Portfolio: 4.02%
Number of Hedge Fund Holders: 36
Mettler-Toledo International Inc. (NYSE:MTD) is a multinational firm that specializes in the production of precision and analytical instruments. It is the world’s largest manufacturer of weighing devices for industrial, scientific, and food retailing purposes. Mettler-Toledo International Inc. (NYSE:MTD) makes use of integrative technology to provide customers with application-specific solutions.
Mettler-Toledo International Inc. (NYSE:MTD) revealed that forecasting was proving to be a challenge for the company due to the uncertain macro-economic environment and dynamic market conditions. Today’s economic situation is more unpredictable than ever, with concerns about COVID-19 lockdowns, global supply chain issues, inflation, and the Russia-Ukraine conflict.
Based on its current evaluation of market conditions, Mettler-Toledo International Inc. (NYSE:MTD) has guided local currency sales to grow by 8% in 2022. Meanwhile, adjusted EPS is expected to be between $38.20 to $38.50, representing a growth rate of 12% to 13%. However, inflationary pressures could hamper the company’s position to offset the impact of the headwinds through pricing and result in the stock’s multiple compressing.
Mettler-Toledo International Inc. (NYSE:MTD) was mentioned in the Q1 2022 investor of Baron Funds. Here’s what the firm said:
“Mettler-Toledo International, Inc. (NYSE:MTD) is a leading provider of precision instruments and services for life sciences, food, and chemicals companies, among others. Similar to IDEXX, we believe that Mettler’s shares fell chiefly because of widespread investor rotation out of growth stocks. In addition, there were concerns about the potential negative impact of foreign currency fluctuation and the possibility of a European economic slowdown, where Mettler has significant business. We continue to believe Mettler is an exceptionally well-managed business with competitive advantages and attractive long-term growth prospects.”
As of Q1 2022, 36 hedge funds held a stake in Mettler-Toledo International Inc. (NYSE:MTD).
8. Mastercard Incorporated (NYSE:MA)
Chilton Investment Company’s Stake Value: $145,022,000
Percentage of Chilton Investment Company’s 13F Portfolio: 3.48%
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) is a Missouri, America-based financial services company. It facilitates the processing of transactions and provides other payment-related services. Mastercard Incorporated (NYSE:MA) leverages technology to meet the changing needs of financial institutions and clients. The billionaire’s current investment in the company is valued at over $145 million.
Payment companies like Mastercard Incorporated (NYSE:MA) rely heavily on corporate activity and the level of consumer spending. Shareholders are concerned that the persistence of high inflation levels would result in the Fed continuing with its harsh monetary policy, which could lead to a recession and lower the spending levels.
However, analysts remain bullish on the stock’s long-term potential. Mastercard Incorporated (NYSE:MA) posted strong Q1 2022 results, with earnings and revenue surpassing the consensus estimates.
Mastercard Incorporated (NYSE:MA) was mentioned in the Q1 2022 investor letter of Polen Capital. Here’s what the investment management firm said:
“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.”
As of Q1 2022, 136 hedge funds held a stake in Mastercard Incorporated (NYSE:MA) as of Q1 2022, down from 144 in the preceding quarter.
7. Thermo Fisher Scientific Inc. (NYSE:TMO)
Chilton Investment Company’s Stake Value: $98,149,000
Percentage of Chilton Investment Company’s 13F Portfolio: 2.35%
Number of Hedge Fund Holders: 101
Thermo Fisher Scientific Inc. (NYSE:TMO) is a Massachusetts, America-based firm specializing in the production of technology-driven scientific instruments, laboratory equipment, and pharmaceutical services. The company generates over $40 billion in annual sales and is a driving force in the research, healthcare, industrial, and applied markets.
On April 25, Timothy Daley at Wells Fargo downgraded Thermo Fisher Scientific (NYSE:TMO) from Equal-Weight to Underweight. Moreover, the analyst decreased the price target on Thermo Fisher Scientific Inc. (NYSE:TMO) from $605 to $525, citing an expensive valuation and major headwinds for the stock ahead. Thermo Fisher Scientific Inc. (NYSE:TMO) stock is down 22% YTD as of June 17.
Here’s what ClearBridge Investments said about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q4 2021 investor letter:
“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, 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.”
As of Q1 2022, 101 hedge funds held a stake in Thermo Fisher Scientific Inc. (NYSE:TMO).
6. Comcast Corporation (NASDAQ:CMCSA)
Chilton Investment Company’s Stake Value: $617,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.01%
Number of Hedge Fund Holders: 78
Comcast Corporation (NASDAQ:CMCSA) is a Pennsylvania-based telecommunications company. The multinational conglomerate provides cloud-based connectivity solutions for small and large corporations.
On June 6, Comcast Corporation (NASDAQ:CMCSA) was downgraded from Outperform to Peer Perform by Peter Supino at Wolfe Research. The analyst also lowered the price target on the stock from $63 to $50. Supino shared that he thinks a greater risk is attached to the 2023 forecasts for advertising and broadband. The analyst expects the gains in Cable EBITDA margin to decline because of intense competition.
Comcast Corporation (NASDAQ:CMCSA) was discussed in the Q4 2021 investor letter of ClearBridge Investments. Here’s what the firm said about the company:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
Comcast Corporation (NASDAQ:CMCSA) was held by 78 hedge funds as of Q1 2022.
Some of the popular companies Richard Chilton has a stake in as of Q1 2022 include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG).
Click to continue reading and see 5 Important Stocks in Billionaire Richard Chilton’s Latest Portfolio.
Suggested Articles:
- 10 Best Dividend Stocks To Buy Now According to Noam Gottesman’s GLG Partners
- 10 LNG Shipping Stocks to Buy Now
- 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management
Disclose. None. 10 Important Stocks in Billionaire Richard Chilton’s Latest Portfolio is originally published on Insider Monkey.
