In this article, we discuss the 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital based on Q2 holdings of the fund. If you want to skip our detailed analysis of Tewksbury’s history, investment philosophy, and hedge fund performance, go directly to 5 Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital.
Matthew S. Tewksbury created Pennsylvania-based Stevens Capital Management in 2002. Stevens Capital is owned by Adams Holdings, LLC, a financial services holding firm. Adams Holdings is owned by Matthew Tewksbury and his family, making him the hedge fund’s indirect owner.
Stevens Capital’s 13F public stock portfolio of the second quarter was valued at $341.48 million.
Stevens Capital owns major investments in prominent firms such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) as of the second quarter.
In Apple Inc. (NASDAQ:AAPL), Stevens Capital owns 100,715 shares. The huge investment covers an impressive 4.03% of the fund’s portfolio. On October 19, DA Davidson analyst Tom Forte raised his price target on Apple Inc. (NASDAQ:AAPL) to $175 from $167 and kept a “Buy” rating on the shares.
Another notable stock in Matthew Tewksbury’s portfolio is Microsoft Corporation (NASDAQ:MSFT). The investor owns an $11.76 million stake in the company. On October 21, Citi analyst Tyler Radke lowered his price target on Microsoft Corporation (NASDAQ:MSFT) to $384 from $411 and maintained a “Buy” rating on the shares.
Matthew Tewksbury’s is also bullish on Amazon.com, Inc. (NASDAQ:AMZN). He increased his stake in the company by 378% in the second quarter, ending the period with 4,811 shares of the company, worth $16.55 billion. In October, Credit Suisse analyst Stephen Ju lowered his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,200 from $4,700 and reiterated an “Outperform” rating on the shares.
Source: Unsplash
Why should we pay attention to hedge fund stock picks? 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 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). 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.
With this background in mind, let’s start our list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. We used Tweksbury’s 13F portfolio for Q2 2021 for this analysis.
Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital
10. Starbucks Corporation (NASDAQ:SBUX)
Stevens Capital Stake Value: $5,623,000
Percentage of Stevens Capital’s 13F Portfolio: 1.64%
Number of Hedge Fund Holders: 63
Starbucks Corporation (NASDAQ:SBUX) is a specialty coffee roaster, marketer, and retailer worldwide. Analysts are bullish on Starbucks Corporation (NASDAQ:SBUX). On October 11, BofA analyst Sara Senatore restored coverage on Starbucks Corporation (NASDAQ:SBUX). She rated the stock as “Buy” and gave a price target of $135.
Matthew Tewksbury’s Stevens Capital currently holds 50,288 shares of Starbucks Corporation (NASDAQ:SBUX) that amount to $5.62 million.
Polen Capital, an investment management firm, in its second-quarter 2021 investor letter, mentioned Starbucks Corporation (NASDAQ:SBUX). Here is what the fund said:
“For Starbucks, we believe the underlying businesses for the company remain strong. Starbucks has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”
9. Walmart Inc. (NYSE:WMT)
Stevens Capital Stake Value: $6,951,000
Percentage of Stevens Capital’s 13F Portfolio: 2.03%
Number of Hedge Fund Holders: 71
Walmart Inc. (NYSE:WMT) runs retail, wholesale, and other businesses worldwide. Walmart was added to Goldman Sachs’ Conviction List on October 18, and analyst Kate McShane reiterated a “Buy” rating on the stock and increased her price target to $196, up from $184.
According to the latest data, Stevens Capital owned 28,999 shares of Walmart Inc. (NYSE:WMT) worth more than $10.08 million in the second quarter of 2021, representing 2.95% of the fund’s holdings data.
ClearBridge Investments, in its second-quarter 2021 investor letter, mentioned Walmart Inc. (NYSE:WMT). Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
8. Facebook, Inc. (NASDAQ:FB)
Stevens Capital Stake Value: $10,083,000
Percentage of Stevens Capital’s 13F Portfolio: 2.95%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) controls three of the world’s six most popular social media platforms: WhatsApp, Instagram, and, of course, Facebook itself, with 2.9 billion monthly active users. Matthew Tewksbury’s Stevens Capital currently owns 28,999 shares of Facebook, Inc. (NASDAQ:FB) worth $10.08 million. Facebook occupies 2.95% of the hedge fund’s overall equity.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42.35 billion in Facebook, Inc. (NASDAQ:FB), up from 257 the preceding quarter worth $40.97 billion.
Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), are some of the large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital, along with Facebook, Inc. (NASDAQ:FB).
In its third-quarter 2021 investor letter, Wedgewood Partners mentioned Facebook, Inc. (NASDAQ:FB). Here is what the fund said:
“Facebook detracted from performance despite posting a staggering +56% growth in advertising revenues. Much of the stock’s underperformance was driven by nonoperating concerns that we view as mostly political in nature. The company’s digital properties command a massive audience of over 2.7 billion daily users, so any government or state actor would be able to wield tremendous power by controlling that audience and it should not be a surprise when those actors attempt to do that. However, Facebook has invested aggressively in its content curation capabilities that address many of the concerns raised by media and political critics. We continue to carry Facebook at our maximum weighting as the stock is trading in line with a market multiple despite unrivaled competitive positioning and rapid growth, representing one of the best risk-rewards available in the market.”
7. PayPal Holdings, Inc. (NASDAQ:PYPL)
Stevens Capital Stake Value: $10,407,000
Percentage of Stevens Capital’s 13F Portfolio: 3.04%
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ:PYPL), a technology platform and digital payments corporation, ranks seventh on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. Clients of PayPal Holdings, Inc. (NASDAQ:PYPL) have access to a wider choice of digital banking tools. PayPal said in September that it is working on a new integrated app with high-yield savings, in-app purchasing possibilities with cashback incentives, early access direct deposit, and bill pay.
According to 13F filings, Stevens Capital owned 35,705 shares in PayPal Holdings, Inc. (NASDAQ:PYPL) worth over $10.41 million at the end of the second quarter of 2021, representing 3.04% of the portfolio of the fund.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Locust Wood Capital Advisers is a leading shareholder in PayPal Holdings, Inc. (NASDAQ:PYPL) with 146,178 shares worth more than $38.04 million.
Polen Capital, an investment management firm, in its third-quarter 2021 investor letter, mentioned PayPal Holdings, Inc. (NASDAQ:PYPL). Here is what the fund said:
“Despite reporting solid earnings results, PayPal moved lower during the quarter. We believe the decline was primarily due to the company reporting near-term growth headwinds from the remainder of its eBay payment volumes, which have declined faster than expected. Our expectations included PayPal’s payment volumes from eBay declining rapidly, and much more importantly in our view, the fast-paced growth of the rest of PayPal’s payment volumes. This growth has been due to the increased adoption of its digital wallets (PayPal and Venmo) and checkout buttons. The shift to digital payments and e-commerce are significant tailwinds for PayPal. The pandemic further catalyzed these tailwinds, and we believe the move to digital payments is here to stay.”
6. Netflix, Inc. (NASDAQ:NFLX)
Stevens Capital Stake Value: $11,598,000
Percentage of Stevens Capital’s 13F Portfolio: 3.39%
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ:NFLX) offers entertainment services. It has a diverse selection of TV programs, documentaries, and feature films in various genres and languages. Netflix, Inc. (NASDAQ:NFLX) added 222.06 million paid memberships in the third quarter, easily surpassing the consensus of 221.2 million.
Matthew Tewksbury’s Stevens Capital holds 21,958 shares of Netflix, Inc. (NASDAQ:NFLX) worth $11.60 million, according to publicly accessible data. The hedge fund increased its stake in the firm by 160% in the second quarter of 2021. On October 20, Cowen analyst John Blackledge raised his price target on Netflix, Inc. (NASDAQ:NFLX) to $750 from $650 and maintained an “Outperform” rating on the shares.
In second quarter of 2021, 113 hedge funds out of the 873 tracked by Insider Monkey held stakes in Netflix, Inc. (NASDAQ:NFLX), worth $13.22 billion, compared to 110 hedge funds in the first quarter, with a total value of approximately $14.16 billion.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Netflix, Inc. (NASDAQ:NFLX) is one of the large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital.
Polen Capital, an investment management firm, in its second-quarter 2021 investor letter, mentioned Netflix, Inc. (NASDAQ:NFLX). Here is what the fund said:
“For Netflix, we believe the underlying businesses for the company remain strong. With Netflix, we anticipate content spending to moderate as subscriber growth continues, which we believe should result in attractive double-digit earnings and cashflow growth over the next five years and beyond.”
Click to continue reading and see 5 Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital.
Suggested articles:
- 10 Best Large-cap Stocks To Buy Now
- 10 Large-Cap Stocks to Buy According to Anand Parekh’s Alyeska Investment Group
- 10 Best Healthcare Stocks to Buy According to Matthew Halbower’s Pentwater Capital Management
Disclosure: None. 10 Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital is originally published on Insider Monkey.
