In this article, we discuss 10 new stock picks of Ken Fisher. If you want to skip our detailed analysis of Ken Fisher’s history, investment philosophy, and hedge fund performance, go directly to 5 New Stock Picks of Ken Fisher.
Ken Fisher is a billionaire investor and hedge fund manager, who founded Fisher Asset Management in 1979, and currently serves as the chairman and co-chief investment officer of the Washington-based hedge fund. The Q4 13F portfolio at Ken Fisher’s fund is worth $178.5 billion, up from roughly $161 billion a quarter earlier.
Ken Fisher manages discretionary assets under management of $159.6 billion at his hedge fund, as per the 13F filings from Q4 2021, and his investments are mainly focused in the information technology, healthcare, finance, consumer discretionary, and communications sectors. His massive portfolio has a top ten holdings concentration of 31.6%, and Fisher Asset Management’s largest holding is Apple Inc. (NASDAQ:AAPL). The $11.36 billion Apple Inc. (NASDAQ:AAPL) stake represents 6.36% of the fund’s 13F securities for the period.
In Q4 2021, Ken Fisher acquired 112 new stocks, made additional purchases in 512 securities, sold out of 69 equities, and reduced holdings in 303 companies. His top buys for the fourth quarter included Microsoft Corporation (NASDAQ:MSFT), Intuit Inc. (NASDAQ:INTU), and Advanced Micro Devices, Inc. (NASDAQ:AMD). Whereas, the billionaire reduced holdings in Walmart Inc. (NYSE:WMT), The Walt Disney Company (NYSE:DIS), and Visa Inc. (NYSE:V).
The most notable stock picks of Ken Fisher’s Fisher Asset Management in Q4 2021 included Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
We used the Q4 2021 portfolio of Ken Fisher’s Fisher Asset Management for this analysis, selecting the newest stock picks of the billionaire for the period. We have ranked the securities according to the stake value of Ken Fisher’s fund in each holding.
New Stock Picks of Ken Fisher
10. The Kraft Heinz Company (NASDAQ:KHC)
Fisher Asset Management’s Stake Value: $232,000
Number of Hedge Fund Holders: 33
The Kraft Heinz Company (NASDAQ:KHC) is a prominent American multinational food company that sells beverages, convenience foods, snacks, and food service. The Kraft Heinz Company (NASDAQ:KHC) offers over 20 different brands and its products are distributed worldwide.
Billionaire Ken Fisher started building his position in The Kraft Heinz Company (NASDAQ:KHC) back in Q3 2015, but has been inconsistent with his stake in the company over the years. He sold out of The Kraft Heinz Company (NASDAQ:KHC) in Q4 2017, only to purchase a stake again in the next quarter. In Q2 2021, Ken Fisher once again discarded his shares of The Kraft Heinz Company (NASDAQ:KHC), and repurchased 6,461 shares of the company in Q4 2021, worth $232,000.
On December 8, The Kraft Heinz Company (NASDAQ:KHC) announced its plan to combine its U.S. and Canada businesses to create the North America Zone. For reporting purposes, the new zone is expected to be effective in the second fiscal quarter of 2022. The rationale for this move is to advance the company’s long-term, sustainable growth plans by bringing increased agility to its innovation agenda and operations.
Morgan Stanley analyst Pamela Kaufman raised the price target on The Kraft Heinz Company (NASDAQ:KHC) to $38 from $37 and kept an Equal Weight rating on the shares. The Packaged Food group underperformed the market over the last year, but has seen stronger performance in the last month due to sector rotation and a rise in COVID-19 cases that supports near-term demand, noted the analyst, who prefers companies that are set for a post-COVID topline recovery, benefit from secular growth tailwinds, and have stronger pricing power.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Berkshire Hathaway held the largest stake in The Kraft Heinz Company (NASDAQ:KHC), owning 325.6 million shares worth roughly $12 billion. Overall, 33 hedge funds were bullish on the stock in the third quarter.
In addition to Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN), The Kraft Heinz Company (NASDAQ:KHC) is a significant addition to Ken Fisher’s Q4 portfolio.
9. Airbnb, Inc. (NASDAQ:ABNB)
Fisher Asset Management’s Stake Value: $241,000
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ:ABNB) is an American vacation rental company that operates an online marketplace to offer lodging and hospitality services to customers worldwide. Ken Fisher acquired a position in Airbnb, Inc. (NASDAQ:ABNB) in Q4 2021, buying 1,447 shares of the company, valued at $241,000.
Although Airbnb, Inc. (NASDAQ:ABNB) shares have dropped roughly 9% year-to-date, heading into 2022, the company will benefit from decentralized living as a consequence of the COVID-19 pandemic. The company is focused on onboarding more hosts and will leverage a gig economy business model, which has received skepticism from many investors.
On January 18, Gordon Haskett analyst Robert Mollins downgraded Airbnb, Inc. (NASDAQ:ABNB) to Hold from Buy with a price target of $172, down from $216. The analyst sees headwinds to the company’s growth and not enough upside catalysts. While Airbnb, Inc. (NASDAQ:ABNB) will prove the most resilient name in online travel for the foreseeable future, its peers will see “far greater” gross book value growth relative to pre-pandemic levels, he tells investors in a research note.
In Q3 2021, Renaissance Technologies was a prominent stakeholder of Airbnb, Inc. (NASDAQ:ABNB), with 2.77 million shares worth $465.3 million. Overall, 58 hedge funds were bullish on Airbnb, Inc. (NASDAQ:ABNB) in the third quarter of 2021, with stakes totalling $2.71 billion.
Here is what Tollymore Investment Partners has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimizing externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
8. The Charles Schwab Corporation (NYSE:SCHW)
Fisher Asset Management’s Stake Value: $392,000
Number of Hedge Fund Holders: 59
The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company that serves retail and institutional clients, offering services including commercial banking, stock brokerage, wealth management, and investment consulting.
Ken Fisher initially purchased a stake in The Charles Schwab Corporation (NYSE:SCHW) in Q2 2015, but sold out of his position in the next quarter. He then purchased shares worth $204,000 in The Charles Schwab Corporation (NYSE:SCHW) in Q2 2021, before discarding his position in Q3 2021. Ken Fisher, as of Q4 2021, once again bought 4,665 shares of The Charles Schwab Corporation (NYSE:SCHW), valued at $392,000.
Publishing its Q4 results on January 18, The Charles Schwab Corporation (NYSE:SCHW) posted earnings per share of $0.86, missing estimates by $0.02. The company’s revenue for the period increased 12.74% year-over-year to $4.71 billion, but missed estimates by $79.07 million.
On January 31, Deutsche Bank analyst Brian Bedell lowered the price target on The Charles Schwab Corporation (NYSE:SCHW) to $121 from $122 and kept a Buy rating on the shares. The analyst remains encouraged by The Charles Schwab Corporation (NYSE:SCHW)’s business growth profile and synergies with the acquired Ameritrade franchise and continues to forecast over 25% earnings growth in each of the next two years. He believes consensus earnings estimates are too low and reiterates the stock as his top pick.
According to the hedge funds tracked by Insider Monkey in Q3 2021, Egerton Capital Limited is the largest stakeholder of The Charles Schwab Corporation (NYSE:SCHW), with a position worth over $1 billion. Overall, 59 hedge funds were bullish on The Charles Schwab Corporation (NYSE:SCHW), down from 72 funds in the quarter earlier.
Here is what Giverny Capital Asset Management has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2021 investor letter:
“Our fourth-largest holding at year-end was Charles Schwab. Schwab shares rose 60%, buoyed by twin tailwinds of asset growth and the prospect of rising interest rates. Schwab is an exceptional business – it has grown new brokerage accounts at a steady 5%-6% clip for many years, and even faster recently. It has won the trust of retail investors – it’s hard to overstate how important trust is in financial services – but also offers financial advisers a low-cost custodial solution that has helped it win large chunks of business from legacy players like Merrill Lynch or Morgan Stanley. Schwab earns the bulk of its profit on interest rate spreads, or the difference between what it earns on cash deposits held in customers’ brokerage and bank accounts and what it pays to the owners of those accounts. As interest rates rise, so Schwab’s earnings. We’re happy about that, but we see Schwab continuing to grow brokerage accounts for years to come.”
7. Arthur J. Gallagher & Co. (NYSE:AJG)
Fisher Asset Management’s Stake Value: $737,000
Number of Hedge Fund Holders: 32
Arthur J. Gallagher & Co. (NYSE:AJG) is an American insurance and risk management company based in Illinois, Chicago. The company specializes in insurance and reinsurance products and is one of the leading insurance brokers worldwide. Ken Fisher acquired a stake in Arthur J. Gallagher & Co. (NYSE:AJG) in Q4 2021, purchasing 4,343 shares of the company, worth $737,000.
On January 27, Arthur J. Gallagher & Co. (NYSE:AJG) announced earnings for Q4 2021. The company posted an EPS of $0.98, beating estimates by $0.03. Revenue for the quarter jumped 16.70% year-over-year to $1.94 billion, exceeding estimates by $35.90 million. The fourth quarter results were helped by strength in core brokerage and risk management, according to Arthur J. Gallagher & Co. (NYSE:AJG)’s management.
RBC Capital analyst Mark Dwelle lowered the price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $160 from $170 and kept a Sector Perform rating on the shares after its Q4 results. The company’s organic growth remains strong and this momentum should continue, but he sees “only modest” margin expansion in 2022 due to difficult comparisons and higher expenses, the analyst told investors in a research note.
According to Insider Monkey’s Q3 database, 32 hedge funds held long positions in Arthur J. Gallagher & Co. (NYSE:AJG), down from 40 funds in the quarter earlier. Billionaire Ken Griffin’s Citadel Investment Group is the leading stakeholder of Arthur J. Gallagher & Co. (NYSE:AJG) as of Q3 2021, with 1.39 million shares worth $207.1 million.
Just like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN), Arthur J. Gallagher & Co. (NYSE:AJG) is a notable stock pick of Ken Fisher as of Q4 2021.
6. The Sherwin-Williams Company (NYSE:SHW)
Fisher Asset Management’s Stake Value: $4,257,000
Number of Hedge Fund Holders: 44
The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based company that specializes in paints, coatings, stains, caulks, sealants, and applicators. In Q3 2021, 44 hedge funds reported owning stakes in The Sherwin-Williams Company (NYSE:SHW), worth $1.5 billion, as compared to 49 funds in the quarter earlier, holding stakes in The Sherwin-Williams Company (NYSE:SHW) amounting to over $2 billion.
Ken Fisher initially purchased a stake in The Sherwin-Williams Company (NYSE:SHW) in Q3 2019, before disposing of his shares completely in Q1 2020. The billionaire once again acquired The Sherwin-Williams Company (NYSE:SHW) shares in Q3 2020, but discarded his position completely in Q2 2021. Ken Fisher, via Fisher Asset Management, added The Sherwin-Williams Company (NYSE:SHW) to his Q4 portfolio yet again, buying 12,088 shares worth $4.25 million.
On January 27, The Sherwin-Williams Company (NYSE:SHW) posted its Q4 results. The company reported earnings per share of $1.34, missing estimates by $0.01. The $4.76 billion revenue outperformed estimates by $3.40 million.
KeyBanc analyst Kenneth Zener lowered the price target on The Sherwin-Williams Company (NYSE:SHW) on January 31 to $335 from $394 to mirror valuation compression in the overall market, while keeping an Overweight rating on the shares. The analyst thinks The Sherwin-Williams Company (NYSE:SHW) is well positioned to recover costs and further share gain, in time, despite rising cyclical concerns amid Fed tightening.
Billionaire Richard Chilton’s Chilton Investment Company held the biggest stake in The Sherwin-Williams Company (NYSE:SHW) as of Q3 2021, with 1.15 million shares worth roughly $324 million.
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Disclosure: None. 10 New Stock Picks of Ken Fisher is originally published on Insider Monkey.
