In this article, we discuss 10 stocks to buy now according to Wayne Yu’s BCK Capital. If you want to skip our detailed analysis of Yu’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy Now According to Wayne Yu’s BCK Capital.
Wayne Yu is a Harvard College and University of Chicago Law School graduate. Before founding BCK Capital in 2015, he served as a managing director at Citadel and Societe Generale. Wayne Yu has over 15 years of strategy execution expertise and past legal knowledge. He presently works at BCK Capital as the chief executive officer and chief investment officer.
BCK Capital is situated in Stamford, Connecticut. The hedge fund maintains a global market-neutral exceptional circumstances strategy that aims to offer pure alpha to clients by adopting a robust risk management method to defend against market beta exposure effectively. In addition, BCK Capital monitors future revaluations regularly when stock ownership transfers between different investor groups with varied risk/reward expectations. In the fourth quarter of 2021, BCK Capital valued its 13F public stock portfolio at $148.48 million, with a 45.16% concentration of top ten holdings.
Some of the essential holdings to analyse based on Wayne Yu’s stock portfolio in the fourth quarter of 2021 are Walt Disney Company (NYSE:DIS), CyrusOne Inc. (NASDAQ:CONE), and NortonLifeLock Inc. (NASDAQ:NLOK), among others.
In Walt Disney Company (NYSE:DIS), Wayne Yu owns 3,826 shares. Evercore ISI analyst Vijay Jayant trimmed his price target on Walt Disney Company (NYSE:DIS) from $200 to $190 on February 10, but kept an Outperform rating on the company. He noticed a deflation of the streaming valuation multiple in his sum-of-the-parts approach.
BCK Capital added CyrusOne Inc. (NASDAQ:CONE) to its portfolio in the fourth quarter by buying 22,556 shares. Following the approval of CyrusOne Inc. (NASDAQ:CONE)’s purchase by KKR & Co. Inc. (NYSE:KKR) and Global Infrastructure Partners for $90.50 per share, TD Securities analyst Jonathan Kelcher downgraded CyrusOne Inc. (NASDAQ:CONE) to Tender from Hold with a $90.50 price objective on February 2.
Wayne Yu is bullish on NortonLifeLock Inc. (NASDAQ:NLOK). The fund increased its holding in NortonLifeLock Inc. (NASDAQ:NLOK) by 2% in the fourth quarter, ending the period with 103,119 shares of the company. On February 7, NortonLifeLock Inc. (NASDAQ:NLOK) announced a quarterly dividend of $0.125 per share, in line with the previous.
Our Methodology
Here is a list of 10 stocks to buy now according to Wayne Yu’s BCK Capital. We used Yu’s 13F portfolio for Q4 2021 for this analysis. Using Insider Monkey’s hedge fund data for the third quarter of 2021, we also highlighted the number of hedge funds holding interests in these stocks.
Stocks to Buy Now According to Wayne Yu’s BCK Capital
10. Coherent, Inc. (NASDAQ:COHR)
BCK Capital Stake Value: $3,375,000
Percentage of BCK Capital’s 13F Portfolio: 2.27%
Number of Hedge Fund Holders: 37
Coherent, Inc. (NASDAQ:COHR) is an optics and laser company that serves microelectronics, life sciences, industrial production, scientific, aerospace, and defence industries. Matthew Halbower’s Pentwater Capital Management is the leading stakeholder of Coherent, Inc. (NASDAQ:COHR), with a $373.69 million stake in the firm.
Coherent, Inc. (NASDAQ:COHR) reported financial results for the fourth quarter of 2021 on February 9, with earnings per share of $2.32, crossing estimates by $0.56. In addition, the company declared a revenue of $384.5 million, missing market predictions by $7.75 million.
By the end of the third quarter of 2021, 37 hedge funds held stakes in Coherent, Inc. (NASDAQ:COHR), worth roughly $1.46 billion. This is compared to 43 hedge fund holders in the previous quarter, with a total stake value of approximately $1.53 billion.
Just like Walt Disney Company (NYSE:DIS), CyrusOne Inc. (NASDAQ:CONE), and NortonLifeLock Inc. (NASDAQ:NLOK), Coherent, Inc. (NASDAQ:COHR) is a noteworthy stock in Wayne Yu’s BCK Capital portfolio.
Appleseed Fund mentioned Coherent, Inc. (NASDAQ:COHR) in its first-quarter 2021 investor letter. Here is what the fund said:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Coherent (COHR). During the quarter, Coherent announced that it was being acquired, after which several other bidders emerged. Between the takeover announcement and the bidding war among Coherent suitors, the shares rallied strongly during the quarter.”
9. Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD)
BCK Capital Stake Value: $3,385,000
Percentage of BCK Capital’s 13F Portfolio: 2.27%
Number of Hedge Fund Holders: 33
Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) is a company that provides solutions in the aerospace and military industries, in addition to real estate expertise. Jefferies analyst Greg Konrad raised Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) to Buy from Hold on February 8, with a price target of $47, down from $49.
Lockheed Martin Corporation (NYSE:LMT) of the United States cancelled plans to buy Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) for $4.4 billion on February 13 due to antitrust concerns in the United States.
Wayne Yu’s BCK Capital holds a total of 72,391 shares in Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) worth $3.39 million, making up 2.27% of the total holdings. Out of the hedge funds being tracked by Insider Monkey, 33 funds held stakes in Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) in Q3, up from 29 in Q2 2021.
8. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
BCK Capital Stake Value: $3,443,000
Percentage of BCK Capital’s 13F Portfolio: 2.31%
Number of Hedge Fund Holders: 75
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a multinational advising and solutions firm that helps clients convert risk into opportunity worldwide. On January 7, Willis Towers Watson Public Limited Company (NASDAQ:WTW) stated that its Nasdaq stock ticker sign would change to “WTW” from “WLTW.”
David Motemaden of Evercore ISI initiated coverage of Willis Towers Watson Public Limited Company (NASDAQ:WTW) with an In-Line rating and a $240 price target on December 16. Willis Towers Watson Public Limited Company (NASDAQ:WTW), on February 8, posted earnings for the fourth quarter. The reported EPS came in at $5.67, in line with consensus estimates. Revenue over the period gained 1.5% compared to the previous-year quarter, reaching $2.71 billion, below estimates by $80 million.
According to the data of Insider Monkey, the number of hedge funds that owned shares of Willis Towers Watson Public Limited Company (NASDAQ:WTW) as of Q3 increased to 75 from 70 as compared to the previous quarter.
In its third-quarter 2021 investor letter, Vltava Fund mentioned Willis Towers Watson Public Limited Company (NASDAQ:WLTW). Here is what the fund said:
“The second position is much larger and was thrown into our hands by an unexpected turn of events. It is the stock of Willis Towers Watson. This is a British company with roots dating back to 1828. WLTW is the third-largest insurance broker in the world. This is a sector with which we are very familiar, as some time ago we held in our portfolio shares of its slightly larger competitor AON.
It was AON in fact that announced last spring it had agreed to merge with WLTW. In the merger, WLTW shareholders would have received AON shares. As is usually the case with such announcements, investors stepped in to conduct what is known as merger arbitrage. In this particular case, they bought WLTW shares and sold short AON shares in order to profit from the fact that the prices of the two stocks did not yet fully reflect the exchange ratio in the merger. Moreover, merger arbitrage commonly makes extensive use of leverage in order to increase profits…” (Click here to see the full text)
7. SciPlay Corporation (NASDAQ:SCPL)
BCK Capital Stake Value: $3,735,000
Percentage of BCK Capital’s 13F Portfolio: 2.51%
Number of Hedge Fund Holders: 23
SciPlay Corporation (NASDAQ:SCPL) is a company that creates and publishes mobile and web-based digital games. As of the third quarter of 2021, 23 hedge funds out of the 867 tracked by Insider Monkey held stakes in SciPlay Corporation (NASDAQ:SCPL), compared to 17 in the previous quarter.
On January 26, Macquarie analyst Aaron Lee cut his price objective on SciPlay Corporation (NASDAQ:SCPL) from $24 to $20 and kept an Outperform rating, citing that the stock does not correctly reflect the company’s value.
BCK Capital owns about 271,072 shares in SciPlay Corporation (NASDAQ:SCPL), which accounts for 2.51% of its total portfolio. Engine Capital is the leading shareholder of SciPlay Corporation (NASDAQ:SCPL), with 1.81 million shares worth $24.94 million.
6. Pilgrim’s Pride Corporation (NASDAQ:PPC)
BCK Capital Stake Value: $4,083,000
Percentage of BCK Capital’s 13F Portfolio: 2.74%
Number of Hedge Fund Holders: 25
Pilgrim’s Pride Corporation (NASDAQ:PPC) is a multinational food corporation based in the United States. On February 9, Pilgrim’s Pride Corporation (NASDAQ:PPC) published earnings for the fourth quarter, announcing an EPS of $0.56, beating estimates by $0.03. In addition, the $4.04 billion revenue for the period was up 29.5% year-over-year, exceeding estimates by $230 million.
BCK Capital started building its position in Pilgrim’s Pride Corporation (NASDAQ:PPC) in the fourth quarter of 2020. In Q4 2021, the hedge fund held 144,782 shares of the company, valued at $4.08 million. The company represents 2.74% of the fund’s 13F portfolio.
Pilgrim’s Pride Corporation (NASDAQ:PPC) is getting the attention of the smart money, as 25 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 18 funds a quarter earlier.
Like Pilgrim’s Pride Corporation (NASDAQ:PPC), Wayne Yu’s BCK Capital holds significant stakes in Walt Disney Company (NYSE:DIS), CyrusOne Inc. (NASDAQ:CONE), and NortonLifeLock Inc. (NASDAQ:NLOK).
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Disclosure: None. 10 Stocks to Buy Now According to Wayne Yu’s BCK Capital is originally published on Insider Monkey.
