In this article, we discuss 10 stocks to invest in today according to Orkun Kilic’s Berry Street Capital. If you want to skip our detailed analysis of Kilic’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital.
Orkun Kilic graduated from Harvard Business School with a master’s degree in business administration. He began his professional career with Fiba Capital as an Investment Analyst. He also worked as an associate at Morgan Stanley. Orkun Kilic was the managing partner of Paulson Europe LLP and the portfolio manager of the Paulson European Opportunities Fund before forming Berry Street Capital.
Orkun Kilic created Berry Street Capital, a London-based hedge fund, in 2019. Technology, healthcare, financial services, real estate, and essential materials are primary areas in which Berry Street Capital invests. As of the fourth quarter of 2021, the hedge fund’s 13F portfolio has about $970.45 million in managed securities.
Some of the essential holdings to analyze based on Orkun Kilic’s stock portfolio in the fourth quarter of 2021 are Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), among others.
Twitter, Inc. (NYSE:TWTR) is a new arrival in Orkun Kilic’s portfolio, as his hedge fund bought about 37,500 shares of the company in Q4, worth $1.62 million. On March 10, Deutsche Bank analyst Benjamin Black initiated coverage of Twitter, Inc. (NYSE:TWTR), rating the stock as a ‘Hold’ and giving a price target of $35.
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Another stock that was added to the Kilic’s portfolio in the fourth quarter is Discovery, Inc. (NASDAQ:DISCA), in which he purchased 350,000 shares. Credit Suisse analyst Douglas Mitchelson decreased his price objective on Discovery, Inc. (NASDAQ:DISCA) from $61 to $52 on February 14 and maintained an ‘Outperform’ rating on the stock.
Berry Street Capital holds 90,000 shares in Cerner Corporation (NASDAQ:CERN), according to its 13F filing for the fourth quarter of 2021. On February 22, Cerner Corporation (NASDAQ:CERN) reported earnings per share of $0.93 for the fourth quarter, exceeding estimates by $0.05. In addition, the company’s quarterly revenue was up 3.6% from the prior-year quarter, amounting to $1.45 billion.
Our Methodology
With this background in mind, let’s start our list of 10 stocks to invest in today according to Orkun Kilic’s Berry Street Capital. For this list, we considered Kilic’s 13F portfolio as of the end of Q4 2021.
Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital
10. RR Donnelley & Sons Company (NYSE:RRD)
Berry Street Capital Stake Value: $14,808,000
Percentage of Berry Street Capital’s 13F Portfolio: 1.52%
Number of Hedge Fund Holders: 26
An integrated communications provider, RR Donnelley & Sons Company (NYSE:RRD) helps businesses design, manage, deliver, and optimize multichannel marketing and business communications. Chatham Asset Management and RR Donnelley & Sons Company (NYSE:RRD) announced on February 25 that they finalized a deal in which Chatham affiliates bought RRD for $10.85 per share in cash.
Carl Tiedemann and Michael Tiedemann’s TIG Advisors is the most significant stakeholder of RR Donnelley & Sons Company (NYSE:RRD) in our database, with 3.28 million shares worth $36.90 million. In the fourth quarter, Berry Street Capital added RR Donnelley & Sons Company (NYSE:RRD) to its portfolio, buying 1.32 million shares.
Hedge funds are loading up on RR Donnelley & Sons Company (NYSE:RRD), as Insider Monkey’s data shows that 26 hedge funds held stakes in the company as of the end of the fourth quarter of 2021, compared to 14 funds in the preceding quarter.
Apart from Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), RR Donnelley & Sons Company (NYSE:RRD) is also one of the favorite stocks of Berry Street Capital.
9. CyrusOne Inc. (NASDAQ:CONE)
Berry Street Capital Stake Value: $15,701,000
Percentage of Berry Street Capital’s 13F Portfolio: 1.61%
Number of Hedge Fund Holders: 43
CyrusOne Inc. (NASDAQ:CONE) is a real estate investment trust that owns and maintains enterprise-class, multi-tenant, carrier-neutral, and single-tenant data center buildings. Elite hedge funds held significant stakes in CyrusOne Inc. (NASDAQ:CONE) in Q4 2021. The fourth quarter database of Insider Monkey indicated that 43 hedge funds were bullish on CyrusOne Inc. (NASDAQ:CONE), up from 27 funds in the prior quarter.
Orkun Kilic loaded up on CyrusOne Inc. (NASDAQ:CONE) in the fourth quarter, increasing his holding in the company by a whopping 205%. Berry Street Capital owns 175,000 shares of the company, worth $15.70 million. On February 16, CyrusOne (NASDAQ:CONE) declared a quarterly dividend of $0.52 per share, in line with its previous payout.
On February 2, TD Securities analyst Jonathan Kelcher downgraded CyrusOne Inc. (NASDAQ:CONE) to ‘Tender’ from ‘Hold’, with a $90.50 price objective, after the approval of the REIT’s takeover by Global Infrastructure Partners and KKR & Co. Inc. (NYSE:KKR).
8. Pilgrim’s Pride Corporation (NASDAQ:PPC)
Berry Street Capital Stake Value: $16,215,000
Percentage of Berry Street Capital’s 13F Portfolio: 1.67%
Number of Hedge Fund Holders: 31
In the United States and Mexico, Pilgrim’s Pride Corporation (NASDAQ:PPC) makes prepared and fresh chicken products. BMO Capital analyst Kenneth Zaslow upgraded Pilgrim’s Pride Corporation (NASDAQ:PPC) to ‘Outperform’ from ‘Market Perform’ on March 10, with a $30 price objective, up from $28.
As of the end of the fourth quarter, 31 hedge funds in Insider Monkey’s database held stakes in Pilgrim’s Pride Corporation (NASDAQ:PPC), an increase compared to 25 funds in the preceding quarter. In addition, Berry Street Capital also strengthened its position in Pilgrim’s Pride Corporation (NASDAQ:PPC) by buying an additional 125,000 shares. This makes their stake in Pilgrim’s Pride Corporation (NASDAQ:PPC) total 575,000 shares worth $16.22 million.
7. BHP Group Limited (NYSE:BHP)
Berry Street Capital Stake Value: $16,437,000
Percentage of Berry Street Capital’s 13F Portfolio: 1.69%
Number of Hedge Fund Holders: 21
BHP Group Limited (NYSE:BHP) is a mining firm that specializes in iron ore, metallurgical coal, and copper exploration, development, production, and processing. On March 10, Deutsche Bank analyst Liam Fitzpatrick raised his price target on BHP Group Limited (NYSE:BHP) to 2,300 GBp from 2,100 GBp and reiterated a ‘Hold’ rating on the shares.
BHP Group Limited (NYSE:BHP) issued a semi-annual dividend of $3.00 per share on February 23, a 25% drop from the previous payout of $4.00. Orkun Kilic initiated a new stake in BHP Group Limited (NYSE:BHP) in the fourth quarter of 2021, purchasing 275,000 shares of the mining company, worth $16.44 million.
As of the end of the fourth quarter, 21 hedge funds in the database of Insider Monkey reported owning stakes in BHP Group Limited (NYSE:BHP), worth $1 billion. This is compared to 18 funds being bullish on the stock in Q3, with stakes amounting to $899.84 million.
Harding Loevner, in its first quarter 2021 investor letter, mentioned BHP Group (NYSE:BHP). Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low-cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
6. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Berry Street Capital Stake Value: $23,007,000
Percentage of Berry Street Capital’s 13F Portfolio: 2.37%
Number of Hedge Fund Holders: 66
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a multinational advising and solutions firm that helps clients convert risk into opportunity worldwide. Willis Towers Watson Public Limited Company (NASDAQ:WTW) changed its Nasdaq ticker symbol from WLTW to WTW on January 7.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 66 at the end of the fourth quarter, compared to 75 positions in the previous quarter. First Eagle Investment Management is the most significant stakeholder of Willis Towers Watson Public Limited Company (NASDAQ:WTW) among that group, trimming its stake in the company by 1% during Q4 to 4.74 million shares worth almost $1.13 billion.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) was downgraded to ‘Equal Weight’ from ‘Overweight’ by Wells Fargo analyst Elyse Greenspan on February 9, with a price objective of $240, down from $284. According to the analyst, the fourth quarter revealed that Willis Towers Watson Public Limited Company (NASDAQ:WTW) will need time to recover to a level of organic growth akin to its peers.
Watson Public Limited Company (NASDAQ:WTW), like Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), is gaining the attention of Orkun Kilic.
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)
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Disclosure: None. 10 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital is originally published on Insider Monkey.
