Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Stocks to Buy According to Don Morgan’s Brigade Capital

In this article, we discuss 10 stocks to buy according to Don Morgan’s Brigade Capital. If you want to skip our detailed analysis of Morgan’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy According to Don Morgan’s Brigade Capital.

Brigade Capital is a New York City-based hedge fund that was established in 2006. Don Morgan is now in the leadership of the hedge fund due to his extensive expertise in the financial sector. The hedge fund’s investing strategy focuses on companies with impaired balance sheets or considerable debt. Brigade Capital has offices in Tokyo, London, and Colorado.

The price of high-yield bonds and loans fell dramatically in 2015, negatively impacting Brigade Capital’s profits. Some funds that concentrated on the approach were forced to close, others suffered asset losses when investors withdrew, and liquidity froze. As a result, Brigade’s primary pool decreased more than 10% that year. Brigade Capital’s primary fund returned approximately 23% in 2016, as the corporate credit market stabilized after a difficult 2015. The Brigade Energy Fund, one of the firm’s five hedge fund vehicles, generated around 34% of the total return in 2016. To add another accomplishment to its resume, Brigade Capital also received the Firm of the Year honor from the Absolute Return Awards in 2017.

Source:Pixabay

Don Morgan’s Brigade Capital focuses on companies in various sectors, including consumer discretionary, banking, communications, energy, and information technology. As of Q2 2022, Brigade Capital holds a 13F portfolio valued at $891.62 million. Some of the hedge fund’s notable holdings in the second quarter included Chesapeake Energy Corporation (NASDAQ:CHK), SandRidge Energy, Inc. (NYSE:SD), and iHeartMedia, Inc. (NASDAQ:IHRT).

Our Methodology

Below is a list of 10 stocks to buy according to Don Morgan’s Brigade Capital. The equities were chosen from the hedge fund’s second-quarter regulatory filings. The hedge fund sentiment around each stock was determined using information from 895 top-tier hedge funds that Insider Monkey tracked in Q2 2022.

Stocks to Buy According to Don Morgan’s Brigade Capital

10. International Game Technology PLC (NYSE:IGT)

Brigade Capital’s Stake Value: $1,950,000

Percentage of Brigade Capital’s 13F Portfolio: 0.21%

Number of Hedge Fund Holders: 34

International Game Technology PLC (NYSE:IGT) is a gaming company that offers gaming experiences to players across all channels. John Overdeck and David Siegel’s Two Sigma Advisors held a notable stake in International Game Technology PLC (NYSE:IGT) at the end of the second quarter of 2022, worth $34.66 million.

On August 1, Stifel analyst Jeffrey Stantial maintained a ‘Buy’ recommendation on the shares of International Game Technology PLC (NYSE:IGT) while lowering his price objective from $36 to $26. He decreased predictions and target pricing for the gaming technology group in order to be more circumspect about the potential implications of sustained inflation on consumer finances.

In the second quarter of 2022, Brigade Capital held 105,000 shares of International Game Technology PLC (NYSE:IGT), worth $1.95 million. That represented 0.21% of the hedge fund’s portfolio value. Out of the hedge funds tracked by Insider Monkey, 34 reported having ownership stakes in International Game Technology PLC (NYSE:IGT) as of the end of the second quarter of 2022. The aggregate value of hedge funds’ Q2 holdings stood at $263.50 million.

Just like Chesapeake Energy Corporation (NASDAQ:CHK), SandRidge Energy, Inc. (NYSE:SD), and iHeartMedia, Inc. (NASDAQ:IHRT), International Game Technology PLC (NYSE:IGT) is one of the notable stocks in Don Morgan’s Brigade Capital portfolio.

Palm Harbour Capital mentioned International Game Technology PLC (NYSE:IGT) in its Q4 2021 investor letter. Here is what it said:

“The second largest contributor was International Game Technology, the Italian American lottery and slot machine company, which we introduced in our first quarter 2020 letter and which contributed 78 basis points to performance. Early in the quarter, IGT’s main competitor, the highly levered Scientific Games, entered into a definitive agreement to sell its lottery business to Brookfield Business Partners for total consideration of $6.1 billion in cash and contingent payout. At $471 million last twelve months EBITDA (admittedly COVID affected, excluding unallocated central costs), Scientific Games lottery business was sold at trailing 13.0x. Scientific Games exited lottery business to optimize the portfolio and aggressively de-lever its balance sheet. We believe IGT’s lottery business to be much higher quality and certainly larger. If we were to use a similar metric for IGT, including all corporate costs but excluding Gaming and Digital and Betting, we would have around 90% upside. We are willing to bet the Gaming and fast growing Digital and Betting segments are worth something as well. It seems the sell-side willfully ignores this transaction and sticks with their 7-8x EV/EBITDA valuation.

The company reported third quarter earnings with sales up by 21% year on year, EBIT up by 144% and leverage down to 3.8x from 6.4x at year-end 2020. Total Adjusted EBITDA improved by 42% with margin gaining 618 basis points. Following the recovery, management reinstated the dividend of $0.20 per share.”

9. iHeartMedia, Inc. (NASDAQ:IHRT)

Brigade Capital’s Stake Value: $2,170,000

Percentage of Brigade Capital’s 13F Portfolio: 0.24%

Number of Hedge Fund Holders: 20

iHeartMedia, Inc. (NASDAQ:IHRT) provides media and entertainment services. Following disappointing Q2 earnings and the release of a less than favorable Q3 and full-year 2022 forecast, Goldman Sachs analyst Stephen Laszczyk downgraded iHeartMedia, Inc. (NASDAQ:IHRT) to ‘Neutral’ from ‘Buy’ with a price target of $9, down from $15, on August 10.

Securities filings reveal that Brigade Capital decreased its stake in iHeartMedia, Inc. (NASDAQ:IHRT) by 26% during the second quarter of 2022. The fund now owns 275,000 shares of iHeartMedia, Inc. (NASDAQ:IHRT), worth over $2.17 million and representing 0.24% of its 13F portfolio.

20 hedge funds tracked by Insider Monkey reported having bullish bets on iHeartMedia, Inc. (NASDAQ:IHRT) as of the end of the second quarter of 2022, with aggregate stakes worth $118.98 million. Silver Point Capital, with a position worth $37.67 million, stood as the most significant shareholder of iHeartMedia, Inc. (NASDAQ:IHRT).

8. NMI Holdings, Inc. (NASDAQ:NMIH)

Brigade Capital’s Stake Value: $2,631,000

Percentage of Brigade Capital’s 13F Portfolio: 0.29%

Number of Hedge Fund Holders: 21

NMI Holdings, Inc. (NASDAQ:NMIH) provides private mortgage guaranty insurance services in the US. NMI Holdings, Inc. (NASDAQ:NMIH), with its main office in Emeryville, California, was established in May 2011 and started operating in 2012. Howard Marks’ Oaktree Capital Management is a significant stakeholder of NMI Holdings, Inc. (NASDAQ:NMIH), with 5.32 million shares worth over $88.58 million. Millennium Management trailed Oaktree Capital Management with a $14.25 million stake in the firm.

In the second quarter of 2022, 21 hedge funds were bullish on NMI Holdings, Inc. (NASDAQ:NMIH), up from 19 in the preceding quarter. In the second quarter of 2022, Brigade Capital owned 158,000 shares of NMI Holdings, Inc. (NASDAQ:NMIH), worth $2.63 million. This represented 0.29% of the investment portfolio of the hedge fund.

7. CommScope Holding Company, Inc. (NASDAQ:COMM)

Brigade Capital’s Stake Value: $5,068,000

Percentage of Brigade Capital’s 13F Portfolio: 0.56%

Number of Hedge Fund Holders: 28

CommScope Holding Company, Inc. (NASDAQ:COMM), with its main office in Hickory, North Carolina, is a supplier of infrastructure solutions for the core, access, and edge layers of communication networks, including wireless and fibre optic systems.

Deutsche Bank analyst Matthew Niknam increased his price target on CommScope Holding Company, Inc. (NASDAQ:COMM) from $9 to $12 on August 5 while retaining a ‘Buy’ rating as a consequence of the company’s Q2 results being substantially better than expected.

The hedge fund chaired by Don Morgan held close to 828,192 shares in CommScope Holding Company, Inc. (NASDAQ:COMM), worth over $5.07 million. It is the seventh-largest holding of Brigade Capital. However, the hedge fund’s stake in the company decreased by 42% in the second quarter of 2022.

According to Insider Monkey’s database, CommScope Holding Company, Inc. (NASDAQ:COMM) was part of 28 public hedge fund portfolios as of Q2 2022. The total value of these stakes was $254.07 million. In the second quarter of 2022, CommScope Holding Company, Inc. (NASDAQ:COMM)’s largest shareholder was Bob Peck and Andy Raab’s FPR Partners, which owned 20.32 million shares worth $124.38 million. Furthermore, the hedge fund increased its position in CommScope Holding Company, Inc. (NASDAQ:COMM) by 4%.

6. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)

Brigade Capital’s Stake Value: $9,140,000

Percentage of Brigade Capital’s 13F Portfolio: 1.02%

Number of Hedge Fund Holders: 32

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) owns, operates, and sells billboards domestically and internationally. On July 7, Citi analyst Jason Bazinet reaffirmed a ‘Neutral’ rating on Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) while lowering his price target from $1.65 to $1.25. According to a Bazinet study report, most enterprises in the advertising and entertainment industries saw a drop due to recession threats.

32 out of the 895 hedge funds tracked by Insider Monkey were long Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) in the second quarter of 2022, with stakes worth $110.29 million, compared to 37 funds in the previous quarter, holding stakes in the company totaling $353.74 million.

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is the sixth-largest holding of Don Morgan’s Brigade Capital. Morgan began building his stake in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) in the second quarter of 2019. After selling 1.18 million shares of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) in the second quarter of 2022, his hedge fund had a $9.14 million stake in the company.

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is one of the notable stocks in Brigade Capital’s portfolio along with Chesapeake Energy Corporation (NASDAQ:CHK), SandRidge Energy, Inc. (NYSE:SD), and iHeartMedia, Inc. (NASDAQ:IHRT).

Click to continue reading and see 5 Stocks to Buy According to Don Morgan’s Brigade Capital.

Suggested articles:

Disclosure: None. 10 Stocks to Buy According to Don Morgan’s Brigade Capital is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…