In this article, we will discuss 10 stocks to invest in today according to Rob Cope’s Columbus Point. If you want to skip our detailed analysis of Rob Cope’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Invest In Today According to Rob Cope’s Columbus Point.
Columbus Point is a London-based hedge fund, which Rob Cope founded in 2017. Rob began his financial career in 1994 by joining the investment banking section of Baring Brothers. He started working as an analyst at Lazard Asset Management in 1996 and then worked as a portfolio manager. Rob co-founded Cantillon Capital Management in 2003 before launching Columbus Point. He oversaw the Global Equity Strategy at Cantillon from 2005 until June 2016, with an excellent track record of outperformance.
Columbus Point is a global equities manager based in London. The Columbus Point Global Equity Strategy is the firm’s only product. The hedge fund has a history of producing value through investing in companies with great long-term growth prospects and high returns on capital.
The hedge fund’s 13F portfolio is valued at approximately $224.40 million as of the second quarter of 2021.
As of the second quarter of 2021, some notable stock picks of Rob Cope’s Columbus Point portfolio include Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV).
Based on the latest 13F holdings for the second quarter of 2021, Columbus Point owns 106,402 shares in Microsoft Corporation (NASDAQ: MSFT) after increasing its holding in the company by 12% from first quarter of 2021. Shares of Microsoft Corporation (NASDAQ: MSFT) are up 42.43% in the past 12 months. On August 20, Wedbush analyst Daniel Ives raised the price target on Microsoft Corporation (NASDAQ: MSFT) to $350 from $325 and maintained an “Outperform” rating on the shares. On August 19, Microsoft Corporation (NASDAQ: MSFT) announced an increase in price for business subscriptions to its Microsoft 365 program, marking the first substantial adjustment to the product since its 2011 introduction as Office 365.
Rob Cope’s Columbus Point also has a stake in Adobe Inc. (NASDAQ: ADBE). The hedge fund increased its stake in the company by 33% in the second quarter of 2021. It owns 31,089 shares of Adobe Inc. (NASDAQ: ADBE), worth $18.21 million. Shares of Adobe Inc. (NASDAQ: ADBE) ascended 35.91% in the past 12 months. On August 19, Adobe Inc. (NASDAQ: ADBE) agreed to buy Frame.io, a cloud-based video collaboration platform, for $1.275 billion. On June 18, JPMorgan analyst Sterling Auty raised the price target on Adobe Inc. (NASDAQ: ADBE) to $660 from $595 and kept an “Overweight” rating on the shares.
Columbus Point also owns 2.73 million shares of Ambev S.A. (NYSE: ABEV), worth $9.38 million. This represented 4.17% of the investment portfolio of Columbus Point. Ambev S.A. (NYSE: ABEV) currently has a $50.97 billion market capitalization. It delivered a 36.91% return in the past 3 months. On August 13, Goldman Sachs analyst Thiago Bortoluci initiated coverage on Ambev S.A. (NYSE: ABEV) with a “Sell” rating and a $2.60 price target. On July 29, Ambev S.A. (NYSE: ABEV) posted earnings for the second quarter of 2021. It declared revenue of R$15.72 billion, up 35.3% YoY.
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Diversification is the key in today’s volatile financial markets, which are causing trouble even for the experts. 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 stocks to invest in today according to Rob Cope’s Columbus Point. We used Cope’s 13F portfolio for the second quarter for this analysis.
10 Stocks to Invest In Today According to Rob Cope’s Columbus Point
10. Danaher Corporation (NYSE: DHR)
Cope’s Stake Value: $11,325,000
Percentage of Rob Cope’s 13F Portfolio: 5.04%
Number of Hedge Fund Holders: 78
Danaher Corporation (NYSE: DHR) develops, produces, and markets professional, industrial, commercial, and medical services and products globally. It was founded in 1969 and is ranked tenth on the list of 10 stocks to invest in today according to Rob Cope’s Columbus Point. Danaher Corporation (NYSE: DHR) shares have returned 56.42% to investors over the course of the past 12 months.
On August 4, Credit Suisse analyst Katie Tryhane initiated coverage on Danaher Corporation (NYSE: DHR) with an “Outperform” rating and gave a $306 price target. On July 27, Pall Corporation and Cytiva, two Danaher Corporation (NYSE: DHR) subsidiaries, devised a strategic growth strategy to invest more than $1.5 billion in expanding manufacturing capacity and services for global life sciences customers.
The stock is a new arrival on Rob Cope’s portfolio, as his hedge fund bought about 42,201 shares of Danaher Corporation (NYSE: DHR), worth $11.33 million. Danaher Corporation (NYSE: DHR) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 78 in the second quarter compared to 81 positions in the previous quarter.
Just like Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV), Danaher Corporation (NYSE: DHR) is one of the best stocks to invest in today according to Rob Cope’s Columbus Point.
Cooper Investors, in its second-quarter 2021 investor letter, mentioned Danaher Corporation (NYSE: DHR). Here is what the fund said:
“During the quarter the Fund’s largest holding Danaher made a notable acquisition, spending US$9bn (~5% of its market cap) to buy privately held Aldevron, a leading player in the fast growing field of genomic medicine. Over the years Danaher has built up a unique portfolio of life science and diagnostic assets. Their key life sciences businesses involve providing the tools and services to research, develop and manufacture biotech drugs. For example, they are a key provider to over 400 COVID vaccine and therapeutic projects globally.
Aldevron expands Danaher’s capability into gene therapy. Aldevron is a supplier of key ingredients for the next generation of therapies, namely cell and gene therapy and mRNA vaccines. Aldevron is the leader in these fields and this deal puts Danaher in pole position to participate in the wave of innovation occurring in this space…” (Click here to see the full text)
9. Stanley Black & Decker, Inc. (NYSE: SWK)
Cope’s Stake Value: $11,709,000
Percentage of Rob Cope’s 13F Portfolio: 5.21%
Number of Hedge Fund Holders: 44
Stanley Black & Decker, Inc. (NYSE: SWK) is a multinational company that operates in the tool and storage, industrial, and security industries. It was founded in 1843 and is placed ninth on the list of 10 stocks to invest in today according to Rob Cope’s Columbus Point. Stanley Black & Decker, Inc. (NYSE: SWK) shares have gained about 18.72% over the last 12 months.
On July 27, Stanley Black & Decker, Inc. (NYSE: SWK) reported second-quarter 2021 earnings. It reported earnings per share of $3.08, beating the expectations by $0.19. Revenue over the period was $4.3 billion, up 36.5% year over year, surpassing the predictions by $70 million. On July 14, Deutsche Bank analyst Nicole DeBlase lowered the price target on Stanley Black & Decker, Inc. (NYSE: SWK) to $238 from $241 and kept a “Buy” rating on the shares. In a research note, Deblase informed investors that expectations for the sector are substantially lower than they were three months ago. Since the end of the first quarter, the group underperformed the S&P 500 by 7%.
Columbus Point holds 57,121 shares in Stanley Black & Decker, Inc. (NYSE: SWK), worth $11.71 million, representing 5.21% of their portfolio. The company is also getting the attention of the smart money, as 44 hedge funds tracked by Insider Monkey reported owning stakes in Stanley Black & Decker, Inc. (NYSE: SWK) in the second quarter of 2021, up from 33 funds a quarter earlier.
Just like Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV), Stanley Black & Decker, Inc. (NYSE: SWK) is one of the best stocks to invest in today according to Rob Cope’s Columbus Point.
8. Nasdaq, Inc. (NASDAQ: NDAQ)
Cope’s Stake Value: $12,498,000
Percentage of Rob Cope’s 13F Portfolio: 5.56%
Number of Hedge Fund Holders: 23
Nasdaq, Inc. (NASDAQ: NDAQ) provides services to financial markets and other industries globally. It was founded in 1971 and ranks eighth on the list of 10 stocks to invest in today according to Rob Cope’s Columbus Point. Nasdaq, Inc. (NASDAQ: NDAQ) currently has a $31.55 billion market capitalization and was able to deliver a 43.39% return in the past 12 months.
On August 2, Nasdaq, Inc. (NASDAQ: NDAQ) purchased a large minority position in Level ATS, an independent U.S. Equity Dark Pool trading venue. Other investors include Fidelity, Citi, and Bank of America. On July 23, Morgan Stanley analyst Michael Cyprys raised the price target on Nasdaq, Inc. (NASDAQ: NDAQ) to $222 from $208 and maintained an “Overweight” rating on the shares.
Nasdaq, Inc. (NASDAQ: NDAQ) is the latest addition in Rob Cope’s hedge fund portfolio, as Columbus Point bought 71,094 shares worth $12.50 million. This represents 5.56% of their portfolio. Hedge funds are loading up on Nasdaq, Inc. (NASDAQ: NDAQ), as Insider Monkey’s data shows that 23 hedge funds held stakes in the company in the second quarter of 2021, compared to 22 funds in the first quarter of 2021.
Just like Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV), Nasdaq, Inc. (NASDAQ: NDAQ) is one of the best stocks to invest in today according to Rob Cope’s Columbus Point.
Artisan Partners, in its first-quarter 2021 investor letter, mentioned Nasdaq, Inc. (NASDAQ: NDAQ). Here is what the fund said:
“We started new investment campaigns in Nasdaq. Nasdaq is the second-largest diversified global exchange and a technology provider for US and European capital markets. While the company is well-known for its US stock exchange, the current management team is transitioning Nasdaq away from this more mature and volatile business and toward faster-growing software and information service models. Most recently, the company’s acquisition of Verafin makes it a leader in software to help financial institutions detect financial crime (fraud, money laundering, etc.)—an increasingly critical regulatory challenge for customers. Over time, we think management can achieve its target of 70%-80% recurring revenues while increasing its revenue growth rate and margin profile.”
7. Becton, Dickinson and Company (NYSE: BDX)
Cope’s Stake Value: $ 14,242,000
Percentage of Rob Cope’s 13F Portfolio: 6.34%
Number of Hedge Fund Holders: 52
Becton, Dickinson and Company (NYSE: BDX) produces and trades devices, medical supplies, diagnostic products, and laboratory equipment. It was founded in 1897 and stands seventh on the list of 10 stocks to invest in today according to Rob Cope’s Columbus Point. Becton, Dickinson and Company (NYSE: BDX) shares currently has a $71.6 billion market capitalization.
On August 6, JPMorgan analyst Robert Marcus downgraded Becton, Dickinson and Company (NYSE: BDX) to “Neutral” from “Overweight” with a price target of $265, down from $280. On August 5, Becton, Dickinson and Company (NYSE: BDX) posted earnings for the third quarter of 2021. It declared earnings per share of $2.74, surpassing the estimates by $0.30.
Columbus Point holds 58,562 shares in Becton, Dickinson and Company (NYSE: BDX) worth $14.24 million, representing 6.34% of their investment portfolio. Becton, Dickinson and Company (NYSE: BDX) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 52 in the second quarter of 2021, compared to 65 positions in the previous quarter.
Just like Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV), Becton, Dickinson and Company (NYSE: BDX) is one of the best stocks to invest in today according to Rob Cope’s Columbus Point.
6. PayPal Holdings, Inc. (NASDAQ: PYPL)
Cope’s Stake Value: $15,582,000
Percentage of Rob Cope’s 13F Portfolio: 6.94%
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ: PYPL) is a technology platform and digital payments corporation that enables customers and merchants to make digital and mobile payments. It was founded in 1998 and ranks sixth on the list of 10 stocks to invest in today according to Rob Cope’s Columbus Point. PayPal Holdings, Inc. (NASDAQ: PYPL) shares have gained about 37.25% in value over the last 12 months.
On August 18, PayPal Holdings, Inc. (NASDAQ: PYPL) started ‘Cash Back to Crypto,’ allowing Venmo credit cardholders to automatically acquire cryptocurrencies from their Venmo account using Cashback earned from card purchases. On July 29, RBC Capital analyst Daniel Perlin raised the price target on PayPal Holdings, Inc. (NASDAQ: PYPL) to $322 from $300 and kept an “Outperform” rating on the shares.
The hedge fund managed by Rob Cope holds 53,458 shares in PayPal Holdings, Inc. (NASDAQ: PYPL) worth over $15.58 million. Columbus Point’s stake in the company increased by 49% in the second quarter of 2021. There were 143 hedge funds in our database that held stakes in PayPal Holdings, Inc. (NASDAQ: PYPL) in the second quarter of 2021, the same as the preceding quarter.
Just like Microsoft Corporation (NASDAQ: MSFT), Adobe Inc. (NASDAQ: ADBE), and Ambev S.A. (NYSE: ABEV), PayPal Holdings, Inc. (NASDAQ: PYPL) is one of the best stocks to invest in today according to Rob Cope’s Columbus Point.
Lakehouse Capital, in its second-quarter 2021 investor letter, mentioned PayPal Holdings, Inc. (NASDAQ: PYPL). Here is what the fund said:
“PayPal had a tremendous year as it was a significant beneficiary in the pull-forward in ecommerce. Total payment volume increased by 50% year-on-year through the first quarter of 2021 thanks to significant growth in users and merchants. The company now has 392 million active users, up 20.6% from March 2020, who use PayPal an average of 42 times a year. The significant growth in users and activity both look structural to us, not cyclical, and we doubt the six-million-plus merchants who began accepting PayPal in the past year will suddenly stop accepting one of the internet’s most widely used forms of payment.…” (Click here to see the full text)
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Disclosure: None. 10 Stocks to Invest In Today According to Rob Cope’s Columbus Point is originally published on Insider Monkey.
