In this article, we discuss 10 stocks to buy now according to Steve Ketchum’s Sound Point Capital. If you want to skip our detailed analysis of Ketchum’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital.
Steve Ketchum, the Sound Point Capital‘s current Managing Partner and Chief Investment Officer, received his MBA from Harvard Business School and founded Sound Point Capital in 2008. The New York-based hedge fund invests significantly throughout the capital structure to benefit from undervalued assets. This covers stock and equity-linked instruments, as well as corporate bonds and secured bank loans.
As of the fourth quarter of 2021, Sound Point Capital held stakes in several mid-cap companies like Maxar Technologies Inc. (NYSE:MAXR), iHeartMedia, Inc. (NASDAQ:IHRT), and Lions Gate Entertainment Corp. (NYSE:LGF-B).
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Our Methodology:
For this list, we considered data from Ketchum’s 13F portfolio as of Q4 2021. All hedge fund data comes from Insider Monkey’s distinct group of 900+ funds that filed 13Fs for the fourth quarter of 2021.
Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital
10. Telesat Corporation (NASDAQ:TSAT)
Sound Point Capital’s Stake Value: $336,000
Percentage of Sound Point Capital’s 13F Portfolio: 1.18%
Number of Hedge Fund Holders: 19
Telesat Corporation (NASDAQ:TSAT) is a satellite communications company that also provides consultancy services. On March 18, Telesat Corporation (NASDAQ:TSAT) reported earnings for the fourth quarter, posting revenue amounting to C$187.49 million, down 7.1% from the prior-year quarter.
At the end of the fourth quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $667.26 million in Telesat Corporation (NASDAQ:TSAT), up from 13 the preceding quarter worth $518.03 million.
Steve Ketchum initiated a new stake in Telesat Corporation (NASDAQ:TSAT) in the fourth quarter of 2021, buying 11,716 shares of Telesat Corporation (NASDAQ:TSAT), worth $336,000.
Just like Maxar Technologies Inc. (NYSE:MAXR), iHeartMedia, Inc. (NASDAQ:IHRT), and Lions Gate Entertainment Corp. (NYSE:LGF-B), Telesat Corporation (NASDAQ:TSAT) is one of the stocks in the Q4 portfolio of Steve Ketchum’s Sound Point Capital.
9. National CineMedia, Inc. (NASDAQ:NCMI)
Sound Point Capital’s Stake Value: $393,000
Percentage of Sound Point Capital’s 13F Portfolio: 1.39%
Number of Hedge Fund Holders: 14
National CineMedia, Inc. (NASDAQ:NCMI) is a cinema advertising firm based in the United States. Consumers in the United States can see NCM commercials in movie theatres, online, and mobile devices. Sound Point Capital added National CineMedia, Inc. (NASDAQ:NCMI) to its portfolio in the fourth quarter by buying 140,000 shares.
Following the Q4 results, Barrington analyst James Goss decreased his price objective on National CineMedia, Inc. (NASDAQ:NCMI) to $3.50 from $4.50 and maintained an Outperform rating on the stock. According to Goss, cost limits arose due to resuming employment and remuneration within an unequal reopening process.
At the end of the fourth quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $7.98 million in National CineMedia, Inc. (NASDAQ:NCMI). This is compared to 12 hedge funds in the preceding quarter, with stakes worth approximately $10.85 million.
8. SilverBox Engaged Merger Corp (NASDAQ:SBEA)
Sound Point Capital’s Stake Value: $406,000
Percentage of Sound Point Capital’s 13F Portfolio 1.43%
Number of Hedge Fund Holders: N/A
SilverBox Engaged Merger Corp (NASDAQ:SBEA) is a special purpose acquisition company sponsored by SilverBox Capital LLC and Engaged Capital LLC. Telsey Advisory analyst Sarang Vora initiated coverage of SilverBox Engaged Merger Corp (NASDAQ:SBEA) on January 25, maintaining an Outperform rating on the stock with a price target of $13.
SilverBox Engaged Merger Corp (NASDAQ:SBEA) is one of Sound Point Capital’s latest acquisitions in Q4 2021. The hedge fund bought shares worth $406,000 in the company, representing 1.43% of its 13F portfolio.
The merger of SilverBox Engaged Merger Corp (NASDAQ:SBEA) and Authentic Brands LLC, the parent company of BRC Inc. (NYSE:BRCC), was completed on February 9. BRC Inc. (NYSE:BRCC) sells coffee, coffee accessories, and branded products through its subsidiaries.
7. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)
Sound Point Capital’s Stake Value: $831,000
Percentage of Sound Point Capital’s 13F Portfolio: 2.94%
Number of Hedge Fund Holders: 34
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is a company that specializes in outdoor advertising. The company is organized into two segments: Americas Outdoor Advertising and International Outdoor Advertising. Mason Capital Management is the most significant Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) shareholder with a $70.37 million stake.
Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is also attracting the attention of the smart money, with 34 hedge funds reporting having interests in the firm at the end of the fourth quarter, up from 28 funds a quarter earlier.
In the fourth quarter, Steve Ketchum cut his stake in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) by 75,000 shares, reducing his total stake size by 23%. He first invested in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) in the second quarter of 2019. The stock has struggled in the past one month, dropping more than 14%. However, Steve Ketchum still holds 251,189 shares of Clear Channel Outdoor Holdings, Inc. (NYSE:CCO).
6. Mudrick Capital Acquisition Corporation II (NASDAQ:MUDSU)
Sound Point Capital’s Stake Value: $895,000
Percentage of Sound Point Capital’s 13F Portfolio: 3.16%
Number of Hedge Fund Holders: N/A
Mudrick Capital Acquisition Corporation II (NASDAQ:MUDSU) focuses on bringing one or more firms together through a merger, asset acquisition, stock exchange, reorganization, stock purchase, or similar corporate combination. The corporation was founded in 2020 and is headquartered in New York, New York.
According to Q4 2021 securities filings, Steve Ketchum’s Sound Point Capital held 90,000 Mudrick Capital Acquisition Corporation II (NASDAQ:MUDSU) shares worth $895,000, representing 3.16% of the total 13F portfolio.
Mudrick Capital Acquisition Corporation II (NASDAQ:MUDSU) is one of the stocks on Steve Ketchum’s Sound Point Capital’s radar, alongside Maxar Technologies Inc. (NYSE:MAXR), iHeartMedia, Inc. (NASDAQ:IHRT), and Lions Gate Entertainment Corp. (NYSE:LGF-B).
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Disclosure: None. 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital is originally published on Insider Monkey.
