In this article, we will discuss the 10 best stocks to invest in according to Clint Murray’s Lodge Hill Capital based on Q1 portfolio of the fund. If you want to skip our detailed analysis of Murray’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best Stocks to Invest In According to Clint Murray’s Lodge Hill Capital.
Lodge Hill Capital, founded by Clint Murray in September 2011, is a New York-based hedge fund that utilizes a focused long/short equities strategy. Lodge Hill is a spinoff from Citadel Investment Group, one of the world’s most significant quant funds. The hedge fund provides portfolio management and consulting services to pooled investment vehicles across the globe.
The hedge fund’s 13F portfolio is valued at approximately $254.19 million as of the end of the first quarter of 2021. As of the first quarter of 2021, Lodge Hill Capital holds stocks in several big companies like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD).
Amazon.com, Inc. (NASDAQ: AMZN) is the latest addition in Clint Murray’s hedge fund portfolio, as Lodge Hill Capital bought 5,000 shares of the company, worth $15.47 million in the first quarter. On August 11, Amazon.com, Inc. (NASDAQ: AMZN) announced it would invest more than $18 billion in Florida by opening a new robotics fulfilment center and five additional delivery stations. In July, Amazon.com, Inc. (NASDAQ: AMZN) posted earnings for the second quarter of 2021. It declared earnings per share of $15.12, beating the estimates by $2.80.
Lodge Hill Capital also has a stake in The Boeing Company (NYSE: BA), even though the hedge fund slashed its stake in the company by 34% in the first quarter. It still owns 51,000 shares of the company, worth $12.99 million. On August 11, Bloomberg reported that The Boeing Company (NYSE: BA) is in advanced talks to sell 737 MAX jets to a newly formed Indian budget carrier.
Based on the latest 13F holdings for the first quarter of 2021, Lodge Hill Capital owns 80,000 shares in General Dynamics Corporation (NYSE: GD) after cutting its holding in the company by 37% from the previous quarter. On July 29, Credit Suisse analyst Robert Spingarn raised the price target on General Dynamics Corporation (NYSE: GD) to $198 from $182 and kept a “Neutral” rating on the shares.
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The influx of retail investors on the market and the resulting rise of meme stocks has left experts scratching their heads. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, 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 124 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 115 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.
With this context in mind, here is our list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. We used Murray’s 13F portfolio for the first quarter for this analysis.
Best Stocks To Invest In According to Clint Murray’s Lodge Hill Capital
10. Steel Dynamics, Inc. (NASDAQ: STLD)
Murray’s Stake Value: $13,705,000
Percentage of Clint Murray’s 13F Portfolio: 5.39%
Number of Hedge Fund Holders: 26
Steel Dynamics, Inc. (NASDAQ: STLD), along with its subsidiaries, operates in the United States as steel producer and metal recycler. Steel Dynamics, Inc. (NASDAQ: STLD) was incorporated in 1993 and is placed tenth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Steel Dynamics, Inc. (NASDAQ: STLD) stock has offered investors more than 128% in returns over the course of the past 12 months.
On July 19, Steel Dynamics, Inc. (NASDAQ: STLD) reported earnings for the second quarter of 2021. Steel Dynamics, Inc. (NASDAQ: STLD) declared earnings per share of $3.40, beating the estimates by $0.02. In addition, revenue over the period was $4.47 billion, surpassing the forecasts by $250 million. On July 1, Deutsche Bank analyst Sathish Kasinathan raised the price target on Steel Dynamics, Inc. (NASDAQ: STLD) to $72 from $68 and maintained a “Buy” rating on the shares.
Lodge Hill Capital holds 270,000 shares in Steel Dynamics, Inc. (NASDAQ: STLD), worth $13.71 million. This represents 5.39% of their portfolio. The latest data reveals that the hedge fund’s stake in Steel stock decreased by 13% in the first quarter of 2021. Hosking Partners is a leading shareholder in Steel Dynamics, Inc. (NASDAQ: STLD), with 171,247 shares worth more than $10 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), Steel Dynamics, Inc. (NASDAQ: STLD) is one of the best stocks according to Clint Murray’s Lodge Hill Capital.
9. Patterson Companies, Inc. (NASDAQ: PDCO)
Murray’s Stake Value: $13,739,000
Percentage of Clint Murray’s 13F Portfolio: 5.4%
Number of Hedge Fund Holders: 20
Patterson Companies, Inc. (NASDAQ: PDCO) distributes and sells dentistry and animal health goods. The company was founded in 1877 and stands ninth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Patterson Companies, Inc. (NASDAQ: PDCO) currently has $2.81 billion market capitalization.
On August 5, Credit Suisse analyst Vik Chopra initiated a coverage on Patterson Companies, Inc. (NASDAQ: PDCO) with an “Outperform” rating and $38 price target. On June 23, Patterson Companies, Inc. (NASDAQ: PDCO) released earnings for the fourth quarter of 2021.
The hedge fund chaired by Clint Murray holds 430,000 shares in Patterson Companies, Inc. (NASDAQ: PDCO) worth $13.74 million. There were 20 hedge funds in our database that held stakes in the company at the end of the first quarter, compared to 18 funds earlier.
Just like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), Patterson Companies, Inc. (NASDAQ: PDCO) is one of the best stocks according to Clint Murray’s Lodge Hill Capital.
8. Westinghouse Air Brake Technologies Corporation (NYSE: WAB)
Murray’s Stake Value: $13,853,000
Percentage of Clint Murray’s 13F Portfolio: 5.44%
Number of Hedge Fund Holders: 40
Westinghouse Air Brake Technologies Corporation (NYSE: WAB) provides technology-based freight rail and passenger transit vehicle equipment, systems, and its services. The company was founded in 1869 and ranks eighth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Westinghouse Air Brake Technologies Corporation (NYSE: WAB) currently has a $16.75 billion market capitalization.
On July 29, Westinghouse Air Brake Technologies Corporation (NYSE: WAB) announced earnings for the second quarter of 2021. Westinghouse Air Brake Technologies Corporation (NYSE: WAB) posted earnings per share of $1.06, beating the market predictions by $0.10. The revenue over the period was $2.01 billion, 15.5% YoY, surpassing the estimates by $130 million. On July 22, Westinghouse Air Brake Technologies Corporation (NYSE: WAB) declared a quarterly dividend of $0.12 per share, in line with the previous.
Lodge Hill Capital holds 175,000 shares in Westinghouse Air Brake Technologies Corporation (NYSE: WAB), worth over $13 million, representing 5.44% of its portfolio. Pzena Investment Management is the company’s most significant stakeholder, with 10.38 million shares worth $854.42 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), Westinghouse Air Brake Technologies Corporation (NYSE: WAB) is one of the best stocks according to Clint Murray’s Lodge Hill Capital.
7. Vontier Corporation (NYSE: VNT)
Murray’s Stake Value: $14,150,000
Percentage of Clint Murray’s 13F Portfolio: 5.56%
Number of Hedge Fund Holders: 38
Vontier Corporation (NYSE: VNT) is a manufacturer of industrial technologies. The company was founded in 2019 and is placed seventh on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Vontier Corporation (NYSE: VNT) currently has a $5.7 billion market capitalization.
On August 6, Vontier Corporation (NYSE: VNT) announced its earnings for the second quarter of 2021. It posted earnings per share of $0.61, beating the market predictions by $0.06. In addition, the revenue over the period was $724.6 million, beating the estimates by $46.41 million. On July 8, Berenberg analyst Andrew Buscaglia initiated a coverage on Vontier Corporation (NYSE: VNT) with a “Buy” rating and $45 price target.
The stock is a new arrival on Clint Murray’s portfolio, as his hedge fund bought about 467,460 shares of the company in first quarter, worth $14.15 million. Vontier Corporation (NYSE: VNT) occupies 5.56% of Lodge Hill Capital’s total portfolio. As of the end of the first quarter, 38 hedge funds in Insider Monkey’s database of 866 funds held stakes in Vontier Corporation (NYSE: VNT) compared to 36 funds in the quarter earlier.
Just like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), Vontier Corporation (NYSE: VNT) is one of the best stocks according to Clint Murray’s Lodge Hill Capital.
6. General Dynamics Corporation (NYSE: GD)
Murray’s Stake Value: $14,525,000
Percentage of Clint Murray’s 13F Portfolio: 5.71%
Number of Hedge Fund Holders: 31
General Dynamics Corporation (NYSE: GD) is a global aerospace and defense firm. It was incorporated in 1899 and is ranked sixth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. General Dynamics Corporation (NYSE: GD) shares have offered investors returns exceeding 29.52% over the course of the past 12 months.
On August 4, General Dynamics Corporation (NYSE: GD) declared a quarterly dividend of $1.19 per share. On July 28, the company posted earnings results for the second quarter of 2021. The earnings per share was $2.61, beating market predictions by $0.07. On July 29, Credit Suisse analyst Robert Spingarn raised the price target on General Dynamics Corporation (NYSE: GD) to $198 from $182 and kept a “Neutral” rating on the shares following quarterly results.
The hedge fund managed by Clint Murray holds 80,000 shares in General Dynamics Corporation (NYSE: GD), worth over $14 million, representing 5.71% of their portfolio. James A. Star’s Longview Asset Management is the most significant stakeholder in the company, with 30.04 million shares worth $5.66 billion.
Just like Amazon.com, Inc. (NASDAQ: AMZN), The Boeing Company (NYSE: BA), and General Dynamics Corporation (NYSE: GD), General Dynamics Corporation (NYSE: GD) is one of the best stocks according to Clint Murray’s Lodge Hill Capital.
Oakmark Funds, in its first-quarter 2021 investor letter, mentioned General Dynamics Corporation (NYSE: GD). Here is what the fund said:
“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”
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Disclosure: None. 10 Stocks To Invest In According to Clint Murray’s Lodge Hill Capital is originally published on Insider Monkey.
