In this article, we discuss 10 stocks to buy according to Bulldog Investors. If you want to skip our detailed analysis of the fund’s history, investment philosophy, and performance, go directly to 5 Stocks to Buy According to Bulldog Investors.
Phil Goldstein, a former civil engineer, and Steve Samuels, a securities analyst, founded the New Jersey-based hedge fund, Bulldog Investors, in 1993. The fund began with $700,000 in assets and by the end of 1993, it had $3 million in assets under management. The hedge fund has since then acquired prominence for its pioneering and ongoing work with closed-end funds, as well as its proclivity for battling the US Securities and Exchange Commission over matters ranging from disclosures to the restriction on soliciting investments from unqualified customers. Currently, Phil Goldstein and Andrew Dakos serve as principal and portfolio managers at Bulldog Investors.
Since Bulldog Investors became functional, the hedge fund has averaged a return of 11.2% compared to the S&P 500’s 9.5% return. In addition, the fund, which had SPAC investments mainly, outperformed the market the most from 2000 to 2002 (+5% vs. -22% for the S&P 500), and in 2008 it had what was probably the only long-only equity fund with positive returns of 2%, while the S&P 500 was down 37%.
Finance stocks covered 91.64% of Bulldog Investors’ portfolio in the second quarter of 2022. The hedge fund’s portfolio had a value of $362.12 million at the end of the second quarter of 2022, down from $389.40 million in the first quarter of 2022. In Q2 2022, Bulldog Investors purchased 34 new securities, discarded 31 stocks, reduced holdings in 182 companies, and made additional purchases in 46 equities. Bulldog Investors snags assets by focusing on SPACS and income funds instead of going for mainstream stocks like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
Here is our list of 10 stocks to buy according to Bulldog Investors. The equities were chosen from the hedge fund’s second-quarter regulatory filings. The number of hedge fund holders in each company was assessed using data from 895 elite hedge funds tracked by Insider Monkey in Q2 2022.
Stocks to Buy According to Bulldog Investors
10. GX Acquisition Corp. II (NASDAQ:GXIIU)
Bulldog Investors’ Stake Value: $4,592,000
Percentage of Bulldog Investors’ 13F Portfolio: 1.26%
Number of Hedge Fund Holders: N/A
GX Acquisition Corp. II (NASDAQ:GXIIU) was established in 2020 and has its headquarters in New York. The operations of GX Acquisition Corp. II are not very extensive. The company may seek an initial target for a business combination in any sector or industry. However, it plans to concentrate its search on firms with an enterprise value of at least $1 billion. GX Acquisition Corp. II (NASDAQ:GXIIU) is managed by Michael Maselli, the president, and Jay Bloom and Dean Kehler, the co-chief executive officers.
Bulldog Investors first initiated a stake in GX Acquisition Corp. II (NASDAQ:GXIIU) in Q2 2021. To profit from the recent price increases, the company sold 7% of its stock in the second quarter of 2022. The hedge fund currently holds 469,577 shares of GX Acquisition Corp. II (NASDAQ:GXIIU) valued at around $4.59 million, accounting for 1.26% of the overall portfolio.
While smart investors usually opt for the likes of Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Bulldog Investors is bullish on GX Acquisition Corp. II (NASDAQ:GXIIU) instead.
9. KKR Acquisition Holdings I Corp. (NYSE:KAHC)
Bulldog Investors’ Stake Value: $5,113,000
Percentage of Bulldog Investors’ 13F Portfolio: 1.41%
Number of Hedge Fund Holders: N/A
KKR Acquisition Holdings I Corp. (NYSE:KAHC) is a blank check business funded by the private equity firm, KKR & Co Inc. The company is based in New York, and was incorporated on January 14, 2021. Glenn Murphy, the chairman of yoga gear producer Lululemon Athletica Inc., leads KKR Acquisition Holdings I Corp. (NYSE:KAHC).
KKR Acquisition Holdings I Corp. (NYSE:KAHC)’s acquisition and value creation strategy is to find, acquire, and create a company in the consumer or retail industries. However, the company’s attempts to discover a possible business combination opportunity is not confined to a specific sub-sector or geographic location. KKR Acquisition Holdings I Corp. announced on March 17 the pricing of its revised initial public offering of 120,000,000 shares at a price of $10.00 per unit.
Ken Griffin’s Citadel Investment Group is a notable position holder in KKR Acquisition Holdings I Corp. (NYSE:KAHC), with approximately 6.86 million shares worth $67.17 million. KKR Acquisition Holdings I Corp. (NYSE:KAHC) stock represents 1.41% of Bulldog Investors’ second-quarter holdings, with the hedge fund owning 522,256 shares of the company, worth $5.11 million. KKR Acquisition Holdings I Corp. (NYSE:KAHC) has featured on Bulldog Investors’ portfolio since the second quarter of 2021.
8. Screaming Eagle Acquisition Corp. (NASDAQ:SCRM)
Bulldog Investors’ Stake Value: $5,205,000
Percentage of Bulldog Investors’ 13F Portfolio: 1.43%
Number of Hedge Fund Holders: N/A
Screaming Eagle Acquisition Corp. (NASDAQ:SCRM) is a blank check corporation formed to achieve a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combinations with one or more companies. It is Eagle Equity Partners’ ninth public acquisition entity, overseen by Harry Sloan, Jeff Sagansky, and Eli Baker.
Screaming Eagle Acquisition Corp. (NASDAQ:SCRM) was founded in 2021 and is headquartered in New York. It is ranked eighth on the list of list of stocks to buy according to Bulldog Investors. It presently has a $907.5 million market capitalization. On January 6, Screaming Eagle Acquisition Corp. (NASDAQ:SCRM) priced its initial public offering of 75 million units at $10.00 each.
According to its 13F filings for the second quarter of 2022, Bulldog Investors held 536,042 shares of Screaming Eagle Acquisition Corp. (NASDAQ:SCRM), amounting to more than $5.21 million and representing 1.43% of the fund’s 13F portfolio. However, the hedge fund trimmed its stake in the firm by 6% during Q2.
7. Fortress Value Acquisition Corp. IV (NYSE:FVIV)
Bulldog Investors’ Stake Value: $5,445,000
Percentage of Bulldog Investors’ 13F Portfolio: 1.5%
Number of Hedge Fund Holders: N/A
Fortress Value Acquisition Corp. IV (NYSE:FVIV) works with one or more firms to complete a merger, capital stock exchange, asset purchase, stock purchase, reorganization, or other relevant business combinations. The firm was founded in 2020. Fortress Acquisition Sponsor IV LLC, an associate of Fortress Investment Group LLC, is Fortress Value Acquisition Corp. IV (NYSE:FVIV)’s sponsor. Joshua Pack, the CEO and director of Fortress Value Acquisition Corp. IV (NYSE:FVIV), and Andrew McKnight, the chairman, are both managing partners at Fortress Investment Group.
In the second quarter of 2022, Bulldog Investors owned 557,269 shares of Fortress Value Acquisition Corp. IV (NYSE:FVIV), worth about $5.45 million, representing 1.5% of the total 13F portfolio. The hedge fund has decreased its stake in Fortress Value Acquisition Corp. IV (NYSE:FVIV) by 7% in the second quarter of 2022. Boaz Weinstein’s Saba Capital is a notable position holder in the company, with approximately 3.51 million shares worth $34.30 million.
6. PWP Forward Acquisition Corp. I (NASDAQ:FRW)
Bulldog Investors’ Stake Value: $5,558,000
Percentage of Bulldog Investors’ 13F Portfolio: 1.53%
Number of Hedge Fund Holders: N/A
PWP Forward Acquisition Corp. I (NASDAQ:FRW) is a women-led, unregulated business venture supported by Perella Weinberg Partners and its associates and staff. The business announced the pricing of its initial public offering in 2021. Magnetar Capital is the largest shareholder of PWP Forward Acquisition Corp. I (NASDAQ:FRW), with more than 1.24 million shares worth $12.25 million.
Bulldog Investors held 569,517 shares of PWP Forward Acquisition Corp. I (NASDAQ:FRW), which amounted to $5.56 million. PWP Forward Acquisition Corp. I (NASDAQ:FRW) occupied 1.53% of the hedge fund’s total portfolio. The hedge fund slashed its stake in the firm by 8% during the June quarter.
PWP Forward Acquisition Corp. I (NASDAQ:FRW) is one of the stocks to buy according to Bulldog Investors, as the fund prefers SPACs over companies like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Amazon.com, Inc. (NASDAQ:AMZN).
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Disclosure: None. 10 Stocks to Buy According to Bulldog Investors is originally published on Insider Monkey.
