In this article, we will discuss 10 stocks to invest in according to Alan Parsow’s Elkhorn Partners. If you want to skip our detailed analysis of Parsow’s history, investment philosophy performance, you can go directly to 5 Stocks to Invest in According to Alan Parsow’s Elkhorn Partners.
Alan S. Parsow is the son of David Parsow, the owner of Parsow Clothing and Fashion, which closed down in 2020 after 68 years. He started working with his father at his clothing store. Parsow later drew inspiration from Warren Buffett, a customer of Parsow Fashion, to move towards investment management. Alan Parsow attended the University of Nebraska and graduated with BA Classics, Accounting, and Art History minors. Later on, he also attended the University of California, Los Angeles.
Alan Parsow started Elkhorn Partners in 1989, which has 35 limited partners.
According to the 13F filings of Elkhorn Partners at the end of the second quarter of 2021, Elkhorn Partners managed $163.36 million in 13F securities. The fund bought 8 new stocks and made 8 additional purchases. Furthermore, it sold out of 11 stocks and reduced holdings in 17 companies.
Alibaba Group Holding Limited (NYSE:BABA), Berkshire Hathaway Inc. (NYSE:BRK.A), and Amazon.com, Inc. (NASDAQ:AMZN) are some of the major companies that Elkhorn Partners has invested in.
Photo by Austin Distel on Unsplash
Why should we pay attention to Alan Parsow’s 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.
Our Methodology
With this context in mind, here is our list of 10 stocks to invest in according to Alan Parsow’s Elkhorn Partners. These were picked from Elkhorn’s Q2 portfolio.
Stocks to Invest in According to Alan Parsow’s Elkhorn Partners
10. ProShares Short S&P500 (NYSE:SH)
Parsow’s Stake Value: $596,000
Percentage of Alan Parsow’s 13F Portfolio: 0.36%
ProShares is a subsidiary of Profunds Group that manages several investment funds. The company specializes in exchange-traded fund products.
According to the Q2 filings, Elkhorn Partners has 38,700 shares in ProShares Short S&P500 (NYSE:SH) worth $596,000.
9. CTO Realty Growth, Inc. (NYSE:CTO)
Parsow’s Stake Value: $2.2 million
Percentage of Alan Parsow’s 13F Portfolio: 1.34%
Number of Hedge Fund Holders: 12
CTO Realty Growth, Inc. (NYSE:CTO) is a diversified real estate investment trust specializing in income properties. The company owns around 2.2 million square feet in the US and has a 16% stake in Alpine Income Property Trust (NYSE:PINE), a REIT.
As of the second quarter of 2021, Elkhorn Partners own 42,157 shares of CTO Realty Growth, Inc. (NYSE:CTO) worth $2.2 million. The company represents 1.34% of the fund’s portfolio.
8. Apple Inc. (NASDAQ:AAPL)
Parsow’s Stake Value: $2.30 million
Percentage of Alan Parsow’s 13F Portfolio: 1.4%
Number of Hedge Fund Holders: 138
Apple is a technology company that manufactures electronics and computer software.
According to Elkhorn Partners’ Q2 filings, the fund owns 16,815 shares of Apple Inc. (NASDAQ:AAPL) worth $2.3 million, making it the eighth company on our list of stocks to invest in according to Alan Parsow. Apple Inc. (NASDAQ:AAPL) represents 1.4% of Elkhorn Partners’ portfolio.
ClearBridge Investments’ investor letter of the first quarter of 2021 mentioned Apple Inc. (NASDAQ:AAPL). Here is what the letter said:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
7. Alphabet Inc. (NASDAQ:GOOGL)
Parsow’s Stake Value: $2.32 million
Percentage of Alan Parsow’s 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 190
The Q2 filings of Elkhorn Partners show that it owns 954 shares of Alphabet Inc. (NASDAQ:GOOGL) worth $2.32 million. Out of 873 hedge funds tracked by Insider Monkey, 190 owned shares worth $26.8 billion in the second quarter of 2021 compared to 185 worth 24.57 billion in the previous quarter.
In the second quarter, Alphabet Inc. (NASDAQ:GOOGL) reported an EPS of $27.26, easily beating the estimates by $8.16. The revenue generated for the quarter was $61.88 billion, beating the estimates by $5.80 billion.
6. Citigroup Inc. (NYSE:C)
Parsow’s Stake Value: $573,000
Percentage of Alan Parsow’s 13F Portfolio: 0.35%
Number of Hedge Fund Holders: 87
Citigroup Inc. (NYSE:C) is a New York-based company that offers financial services and products. According to Q2 securities filings, Elkhorn Partners owned 8,100 shares in the company at the end of June 2021, worth $573,000, representing 0.35% of the portfolio.
On October 15, BMO Capital analyst James Fotheringham maintained an Outperform rating on Citigroup Inc. (NYSE:C) stock and raised the target price from $84 to $86, noting the corporation’s revenue in the third quarter of the year.
In the third quarter, Citigroup Inc. (NYSE:C) reported an EPS of $2.15, beating the estimates by $0.36. Moreover, the revenue generated by the company was $17.15 billion, beating the forecast by $223.95 million.
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Disclosure: None. 10 Stocks to Invest in According to Alan Parsow’s Elkhorn Partners is originally published on Insider Monkey.
