In this article, we will discuss the top 3 stock picks of Stephen Feinberg’s Cerberus Capital Management at the end of the first quarter of 2022. If you want to read our detailed analysis of Cerberus Capital Management’s performance and history, please check out 7 Best Stocks to Buy According to Stephen Feinberg’s Cerberus Capital Management.
3. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Cerberus Capital Management’s Stake Value: $331,637,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 5.26%
Number of Hedge Fund Holders: 15
Cerberus Capital Management reduced its stake in the commercial and investment banking giant Deutsche Bank Aktiengesellschaft (NYSE:DB) by 59% to a little over 26 million shares during the first quarter.
Shares of Deutsche Bank Aktiengesellschaft (NYSE:DB) have never fully recovered from the plunge they took amidst the financial crisis in 2008. Before the financial crisis, Deutsche Bank Aktiengesellschaft’s (NYSE:DB) stock made an all-time high above $150, and during the crisis, it tanked to $20 levels. Although it recovered close to $80 soon on the back of the recovery post the financial crisis, it has been on a consistent downward trajectory since then. A major part of the losses that investors have suffered in the stock can be attributed to mismanagement by the bank’s top executives.
Earlier this year, in June, Asoka Woehrmann, the ex-CEO of Deutsche Bank Aktiengesellschaft’s (NYSE:DB) DWS group, resigned as the CEO after authorities in Germany raided its Frankfurt offices. The raid happened over allegations that the bank’s asset management business was engaging in greenwashing, i.e., fudging numbers to support its ESG claims in an effort to mislead investors.
2. Frontier Communications Parent, Inc. (NASDAQ:FYBR)
Cerberus Capital Management’s Stake Value: $607,586,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 9.64%
Number of Hedge Fund Holders: 48
Frontier Communications Parent, Inc. (NASDAQ:FYBR), once a telecommunication giant, filed for bankruptcy in April 2020. The existing shareholders of the company at the time got wiped out. However, after emerging from bankruptcy, Frontier Communications Parent, Inc. (NASDAQ:FYBR) went public again in May last year, getting listed at $30 per share.
Cerberus Capital Management reported its stake in the company in its second quarter 2021 13F filing, which means the firm has been invested in the stock almost since Frontier Communications Parent, Inc. (NASDAQ:FYBR) went public again. Since reporting its stake then, Cerberus has increased its shareholding in the company a little in the next few quarters to around 22 million shares at the end of March 2022.
Analysts’ outlook for the company has remained mixed in the past few months. On July 7, Citi analyst, Michael Rollins, published a report in which he advised clients to do a pair trade by selling the stock of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) and buying the shares of Frontier Communications Parent, Inc. (NASDAQ:FYBR). Rollins thinks that Frontier has room to improve its operations going into 2023, which can lead its stock to outperform over the stock of Consolidated Communications Holdings, Inc. (NASDAQ:CNSL). In addition, analysts at The Goldman Sachs Group reiterated their ‘Buy’ rating on Frontier Communications Parent, Inc.’s (NASDAQ:FYBR) stock but reduced their price target to $39 from $45 on July 12.
1. Albertsons Companies, Inc. (NYSE:ACI)
Cerberus Capital Management’s Stake Value: $5,047,971,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 80.11%
Number of Hedge Fund Holders: 40
Albertsons Companies, Inc. (NYSE:ACI) has remained Cerberus Capital Management’s top public holding ever since the fund first disclosed its position in the company in its 13F filing for the second quarter of 2020. Cerberus Capital Management had held a stake in Albertsons Companies, Inc. (NYSE:ACI) under its private equity funds before the company became a publicly traded corporation.
Albertsons Companies, Inc. (NYSE:ACI) started trading publicly in June 2020 after raising $1.25 billion from investors in its IPO. Albertsons Companies, Inc. (NYSE:ACI) runs multiple grocery stores under various brand names, mainly in the northeastern and western regions of the US. In addition, it also operates many food-related and grocery companies that sell their products primarily through offline channels. Vivek Sankaran is the current President and CEO of Albertsons Companies, Inc. (NYSE:ACI). Before joining Albertsons Companies, Inc. (NYSE:ACI), Mr. Sankaran was the CEO of PepsiCo Foods North America and Frito-Lay.
At the end of the first quarter of 2022, 39 of the 912 hedge funds we track had a long position in Albertsons Companies, Inc. (NYSE:ACI), up from 29 funds in the previous quarter.
You can also look at the 6 Favorite Stock Picks of Munir Javeri’s 3G Sahana Capital Management and Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 10 Stock Picks.
