In this article, we will look at the 10 stocks to buy according to British-Australian billionaire Michael Hintze. You can skip our detailed analysis of Hintze’s history, investment philosophy, and hedge fund performance and go directly to 5 Stocks to Buy According to British-Australian Billionaire Michael Hintze.
Sir Michael Hintze is a British-Australian businessman. Hintze was born to Russian parents in China and was brought up in Australia, where he served in the army for three years before moving to London in the 1980s. In 1999, he launched his hedge fund CQS Cayman LP.
CQS Cayman LP has developed credit expertise in asset-backed securities, structured credit, loans, corporate credit, and convertibles. Insurance firms, pension funds, private banks, and sovereign wealth funds are among the fund’s numerous investors.
As of the second quarter of 2021, some notable stock picks of Michael Hintze portfolio include Slack Technologies, Inc. (NYSE:WORK), Citigroup Inc. (NYSE:C), and Palo Alto Networks, Inc. (NYSE:PANW).
On July 21, Slack Technologies, Inc. (NYSE:WORK) was acquired by a software firm salesforce.com, inc. (NYSE:CRM). Michael Hintze’s CQS Cayman LP currently holds 795,150 shares of Slack Technologies, Inc. (NYSE:WORK).
The fund manager also has a significant stake in Citigroup Inc. (NYSE:C). The company shares have returned 69.26% to investors over the course of the past 12 months.
CQS Cayman LP also has a stake in Palo Alto Networks, Inc. (NYSE:PANW), which provides cybersecurity solutions globally. On September 15, Deutsche Bank analyst Patrick Colville raised his price target on Palo Alto Networks, Inc. (NYSE:PANW) to $560 from $515 and reiterated a “Buy” rating on the shares.
Michael Hintze of CQS Cayman LP
Why is it important to pay attention to hedge funds’ 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 context and industry outlook in mind, let’s start our list of the 10 stocks to buy according to British-Australian billionaire Michael Hintze.
Stocks to Buy According to British-Australian Billionaire Michael Hintze
10. News Corporation (NASDAQ:NWS)
Hintze’s Stake Value: $28,149,000
Percentage of Michael Hintze’s 13F Portfolio: 1.56%
Number of Hedge Fund Holders: 37
News Corporation (NASDAQ:NWS) is a media and information services company. It was founded in 2013 and is placed tenth on the list of 10 stocks to buy according to British-Australian billionaire Michael Hintze.
On September 13, News Corporation (NASDAQ:NWS) declared a quarterly dividend of $0.10 per share, in line with the previous. On August 10, Jefferies initiated coverage of News Corporation (NASDAQ:NWS) with a “Buy” rating and gave a price target of $20.
L1 Capital, in its fourth-quarter 2020 investor letter, mentioned News Corporation (NASDAQ:NWS). Here is what the fund said:
“News Corp (long +21%) shares rose after reporting strong first quarter FY21 results with all key divisions materially ahead of market expectations. News Corp held an investor day for the Dow Jones division (including the Wall Street Journal) which further highlighted the robust growth potential in the business with the opportunity to double subscribers over the medium term. The Dow Jones division remains significantly undervalued in our assessment, with an implied stand-alone valuation of ~US$7b if we applied a similar multiple to comparable listed peer, the New York Times. Even with the increase in share price this year, we believe News Corp remains significantly undervalued. On a sum of the parts basis, we believe the media, U.S. real estate and publishing assets (including the above-mentioned Dow Jones division) are currently valued at roughly zero. News Corp management are taking progressive steps to better highlight the underlying value of these assets and simplify the corporate structure, which we expect will continue to unlock value going forward.”
9. Ambac Financial Group, Inc. (NYSE:AMBC)
Hintze’s Stake Value: $29,598,000
Percentage of Michael Hintze’s 13F Portfolio: 1.64%
Number of Hedge Fund Holders: 13
Ambac Financial Group, Inc. (NYSE:AMBC) is a financial services holding firm, which provides financial guarantees globally.
Ambac Financial Group, Inc. (NYSE:AMBC) is the latest addition in billionaire British-Australian billionaire Michael Hintze’s hedge fund portfolio, as CQS Cayman LP bought 1.89 million shares of the company, worth $29.60 million. There were 13 hedge funds in our database that held stakes in Ambac Financial Group, Inc. (NYSE:AMBC) in the second quarter of 2021, compared to 17 funds in the previous quarter.
Along with Slack Technologies, Inc. (NYSE:WORK), Citigroup Inc. (NYSE:C) and Palo Alto Networks, Inc. (NYSE:PANW), Ambac Financial Group, Inc. (NYSE:AMBC) is one of the stocks to buy according to British-Australian billionaire Michael Hintze.
In its fourth-quarter investor letter, Anabatic Fund mentioned Ambac Financial Group, Inc. (NYSE:AMBC). Here is what the fund said:
“We sold our shares in Ambac (AMBC) during 2020. The decision was based on concerns about the creditworthiness of many of the state and local entities whose bonds Ambac has insured. The Covid-19 pandemic brought severe pain to many debt issuers, and the ramifications are going to be felt for years to come. There is little room for widespread credit deterioration given the inherent leverage in Ambac’s insured portfolio. And Ambac’s problems don’t end there.
A major reason for owning shares in AMBC for all these years was the pending litigation against Countrywide and Bank of America. The details can be found in prior letters, but the short version is that Ambac is pursuing litigation that was substantively identical to litigation that was filed and settled by a peer insurer in 2013. (2013 also happens to be the year we made our initial investment in Ambac shares, shortly after the company emerged from bankruptcy.).…”(Click here to see the full text)
8. Maxim Integrated Products, Inc. (NASDAQ: MXIM)
Hintze’s Stake Value: $32,318,000
Percentage of Michael Hintze’s 13F Portfolio: 1.79%
Number of Hedge Fund Holders: 56
Maxim Integrated Products, Inc. (NASDAQ: MXIM) provides numerous high-frequency process technologies and capabilities for custom builds in America, Asia, and Europe. The company was established in 1983 and is placed eighth on the list of 10 stocks to buy according to British-Australian billionaire Michael Hintze.
On August 30, Analog Devices, Inc. (NASDAQ:ADI) announced the acquisition of Maxim Integrated Products, Inc. (NASDAQ: MXIM). The merger further solidifies ADI’s position as a high-performance analog semiconductor manufacturer. On August 19, Deutsche Bank analyst Ross Seymore raised his price target on Maxim Integrated Products, Inc. (NASDAQ: MXIM) to $107 from $104 and maintained a “Buy” rating on the shares.
7. Slack Technologies, Inc. (NYSE:WORK)
Hintze’s Stake Value: $35,225,000
Percentage of Michael Hintze’s 13F Portfolio: 1.95%
Number of Hedge Fund Holders: 61
Slack Technologies, Inc. (NYSE:WORK) is a California-based company specializing in software development. It stands seventh on the list of 10 stocks to buy according to British-Australian billionaire Michael Hintze.
In the second quarter, Slack Technologies, Inc.’s (NYSE:WORK) EPS came in at $0.08, surpassing the estimates by $0.09. Revenue in the period was $273 million, up 35% YoY.
According to the latest filings, CQS Cayman LP owned 795,150 shares of Slack Technologies, Inc. (NYSE:WORK) in the second quarter of 2021, worth $35.23 million. Michael Hintze increased his stake in the company by 38% in the second quarter. There were 61 hedge funds in our database that held stakes in Slack Technologies, Inc. (NYSE:WORK) in the second quarter, compared to 60 funds in the previous quarter.
Citigroup Inc. (NYSE:C) and Palo Alto Networks, Inc. (NYSE:PANW) are some of the stocks to buy according to British-Australian billionaire Michael Hintze, along with Slack Technologies, Inc. (NYSE:WORK).
In its fourth-quarter 2020 investor letter, RV Capital, an asset management firm, highlighted a few stocks and Slack Technologies, Inc. (NYSE: WORK) was one of them. Here is what the fund said:
“We became co-owners in Slack, a channels-based communication service for businesses. In an unexpected twist, a few months later it was acquired by Salesforce.com at roughly a 50% premium to what we had paid.
In accordance with my usual practice, I was planning on writing about our investment in Slack. By laying out my investment hypothesis at the onset of an investment, I hope to enable investors to assess in hindsight whether it worked (or not) because of a plausible investment philosophy consistently applied. Given that Slack has effectively already played out as an investment, this rationale has gone. After all, anyone can make a successful investment decision look smart after the fact.…”(Click here to see the full text)
6. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
Hintze’s Stake Value: $35,406,000
Percentage of Michael Hintze’s 13F Portfolio: 1.96%
Number of Hedge Fund Holders: 69
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), a Boston-based pharmaceutical company, is a subsidiary of AstraZeneca that focuses on patients with rare illnesses.
The stock is a new arrival on Michael Hintze’s portfolio, as his hedge fund bought about 192,722 shares of Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), worth $35.41 million.
ClearBridge Investments, in its first-quarter 2021 investor letter, mentioned Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). Here is what the fund said:
“We also sold biotechnology holding Alexion Pharmaceuticals ahead of its acquisition by AstraZeneca but expect to redouble our efforts in health care through the rest of the year. We see good growth potential in the sector and after full due diligence, have been busy populating our wish list with new names we would like to own.”
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Disclosure: None. 10 Stocks to Buy According to British-Australian Billionaire Michael Hintze is originally published on Insider Monkey.
