In this article, we discuss the 10 top stock picks of Israel Englander. If you want to skip our detailed analysis of these stocks, go directly to the 5 Top Stock Picks of Israel Englander.
Israel Englander has been leading Millennium Management, one of the biggest hedge funds in the world, for more than three decades. The value of the equity portfolio of the fund, at the end of the third quarter of 2023, was close to $200 billion, with top names like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN) featuring prominently on the list. The fund employs over 300 trading teams and has more than 5,000 employees, according to conservative estimates.
In February this year, Englander penned a letter to the investors of his fund, outlining that the operations of the investment firm had become too big for him to supervise alone. The Financial Times reported that even though Englander had effectively given up sole control over the firm, it was still not immediately clear who was in charge. This is because, per the publication, Englander had set up the hierarchy of the fund in such a manner as to remove the need for a central authority, instead relying on the combined expertise of several top executives.
The report is a testament to the incredible leadership of Israel Englander, who started his hedge fund with only $35 million in capital in 1989. Englander uses a multi-manager platform at his investment firm to reward employees. For example, managers who perform well are given more capital to spend, while those that lag behind are shown the doors. Englader, whose personal net worth is over $11 billion, has a background as a floor broker, trader, and specialist on the American Stock Exchange.
Our Methodology
These were picked from the investment portfolio of Millennium Management at the end of the third quarter of 2023. In order to provide readers with some context for their investment choices, the analyst ratings for the stocks are also mentioned. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the second quarter of 2023.
Israel Englander of Millennium Management
Top Stock Picks of Israel Englander
10. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 87
Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. Latest data shows that Millennium Management owned 913,818 shares in Eli Lilly and Company (NYSE:LLY) at the end of the third quarter of 2023 worth $490 million, representing 0.24% of the portfolio.
On November 8, investment advisory Deutsche Bank initiated coverage of Eli Lilly and Company (NYSE:LLY) stock with a Hold rating and a price target of $535, noting the GLP-1 phenomenon had lifted fiscal 2024 earnings multiple for the firm to 48-times.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY) with 3.2 million shares worth more than $1.7 billion.
Just like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), Eli Lilly and Company (NYSE:LLY) is one of the top stocks in the portfolio of Israel Englander.
In its Q3 2023 investor letter, RiverPark Advisors highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY): LLY discovers, develops, manufactures, and markets pharmaceuticals. The company manufactures and distributes products through facilities in the United States and seven other countries and sells into 110 countries. The company has a broad and deep portfolio of products including a focus on diabetes, oncology, immunology, and neuroscience. More recently, LLY’s obesity drug Mounjaro, has delivered revenue growth acceleration, and investors are optimistic that the company’s Alzheimer drug, currently in trials, will add to that growth in the future.
LLY has a stable portfolio of franchise products that enables it to invest heavily in its product pipeline. We believe that this combination of franchise and growth products will drive high teens revenue growth and a four-fold increase in free cash flow in the next five years. We initiated a small position in August.”
9. Boston Scientific Corporation (NYSE:BSX)
Number of Hedge Fund Holders: 69
Boston Scientific Corporation (NYSE:BSX) makes and sells medical devices. According to the latest 13F filings, Millennium Management owned 11 million shares of Boston Scientific Corporation (NYSE:BSX) at the end of September 2023 worth $561 million, representing 0.28% of the portfolio.
On October 27, investment advisory Canaccord maintained a Buy rating on Boston Scientific Corporation (NYSE:BSX) stock and lowered the price target to $60 from $64, appreciating the strong earnings beat of the firm in the third quarter.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Boston Scientific Corporation (NYSE:BSX) with 21 million shares worth more than $1.1 billion.
In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Boston Scientific Corporation (NYSE:BSX) was one of them. Here is what the fund said:
“We added to our position in Boston Scientific Corporation (NYSE:BSX), a global developer, manufacturer, and marketer of medical devices that are used in a broad range of interventional medical specialties. We wrote about Boston Scientific last quarter. We believe Boston Scientific can grow revenue in the high single digits, driven by differentiated products used to treat atrial fibrillation, among others. The company held an Investor Day during the quarter at which management established financial targets for the 2024– 2026 period calling for an organic sales CAGR of 8% to 10%, 150 basis points of margin expansion and strong double-digit adjusted EPS growth and improved free-cash-flow conversion. We think this growth profile makes Boston Scientific a compelling name within the large medical device universe.”
8. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 86
T-Mobile US, Inc. (NASDAQ:TMUS) operates in the wireless communications services business. It is headquartered in Washington. According to the latest filings, Millennium Management owned 4 million shares of T-Mobile US, Inc. (NASDAQ:TMUS) at the end of September 2023 worth $572 million, representing 0.28% of the portfolio.
On November 3, investment advisory RBC Capital maintained an Outperform rating on T-Mobile US, Inc. (NASDAQ:TMUS) stock and raised the price target to $168 from $163, noting the firm posted solid trends in postpaid phone net adds and ARPA growth.
Among the hedge funds being tracked by Insider Monkey, Omaha-based investment firm Berkshire Hathaway is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS) with 5.2 million shares worth more than $734 million.
In its Q3 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and T-Mobile US, Inc. (NASDAQ:TMUS) was one of them. Here is what the fund said:
“During the quarter we initiated positions in two new names: T-Mobile US, Inc. (NASDAQ:TMUS) and Gilead Sciences. T-Mobile is the best-in-class player in the wireless space, delivering the strongest growth with the lowest cost structure and the best consumer proposition. T-Mobile’s strength is rooted in its advantaged competitive position. Its superior spectrum holdings enable it to provide better wireless service at meaningfully lower cost. T-Mobile’s annual capital expenditures run about $10 billion, on the order of half the amount its peers must spend. Due to its lower cost structure, T-Mobile can undercut its competitors on price while still generating compelling profitability and returns.
This combination — superior service at lower prices — has enabled T-Mobile to outgrow its competition. In the three years since completing its merger with Sprint, T-Mobile has grown its post-paid subscriber base by about 22%. Over the same period, AT&T’s has grown by about 14%, while Verizon’s by less than 5%.
Given the high fixed-cost nature of the wireless business, these steady increases in revenue growth have led to outsize increases in profits and free cash flow. Free cash flow in 2023 is expected to come in around $13.5 billion, up from less than $8 billion last year. In 2024 free cash flow is expected to grow by over 20% to approximately $17 billion — providing a 10% yield based on today’s stock price.
We have long admired T-Mobile, but until recently the stock did not pay a dividend. The company announced its inaugural dividend in September, and we bought the stock shortly thereafter. The initial yield is about 2% and it is expected to grow about 10% per year.”
7. VMware, Inc. (NYSE:VMW)
Number of Hedge Fund Holders: 70
VMware, Inc. (NYSE:VMW) provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and workspaces. According to the latest data, Millennium Management owned 3.7 million shares of VMware, Inc. (NYSE:VMW) at the end of September 2023 worth $621 million, representing 0.31% of the portfolio.
In early September, BMO Capital analyst Keith Bachman maintained a Market Perform rating on VMware, Inc. (NYSE:VMW) stock and raised the price target to $160 from $140, noting the second quarter results of the firm were mixed even as subscription growth accelerated.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in VMware, Inc. (NYSE:VMW) with 42 million shares worth more than $7 billion.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Latest 13F filings show that Millennium Management owned 3.6 million shares of Apple Inc. (NASDAQ:AAPL) at the end of September 2023 worth $626 million, representing 0.31% of the portfolio of the fund.
On November 19, investment advisory Morgan Stanley maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock, noting that delivery lead times had moderated for the eighth consecutive week for the firm, now tracking on average to 2 days across the iPhone 15 Series.
At the end of the second quarter of 2023, 135 hedge funds in the database of Insider Monkey held stakes worth $194 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the previous quarter worth $165 billion.
In addition to Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL) is one of the top stocks in the portfolio of Israel Englander.
In its Q3 2023 investor letter, Baron Funds highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“After a strong start to the year, shares of Apple Inc. partially retraced their gains this quarter. Mixed second calendar quarter financial results, with iPhone, iPad, and Wearables revenue coming in just shy of consensus expectations, coupled with elevated investor concerns about the macro economy and potential weakness in consumer spending later this year, pressured shares. Despite these quarterly fluctuations in product sales, we are encouraged by several long-term trends, including: (1) revenue from higher-margin services like the App Store, iCloud, and Apple Pay, which are growing faster than the overall business, driving better revenue visibility and higher free-cash-flow (FCF) margins; (2) continued gains in global market share in smartphones, wearables, and other hardware categories; and (3) consistent returns of capital to shareholders via share repurchases and dividends. On top of these trends in the core business, Apple is thoughtfully investing in new categories like augmented reality, search, financial services, and streaming media content. We took advantage of weakness in the quarter to add to our position in Apple.”
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Disclosure. None. 10 Top Stock Picks of Israel Englander is originally published on Insider Monkey.