In this article, we discuss the 5 best large-cap stocks to buy according to Columbus Hill Capital Management. If you want to read our detailed analysis of the hedge fund’s performance, go directly to read the 10 Best Large-Cap Stocks to Buy According to Columbus Hill Capital Management.
5. Uber Technologies, Inc. (NYSE:UBER)
Columbus Hill Capital Management’s Stake Value: $39,239,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 4.68%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) is one of the latest acquisitions of Columbus Hill, as in Q2 the hedge fund started building its position in the company with 782,900 shares, valued at $39.2 million. The company represents 4.68% of the fund’s 13F portfolio.
Uber Technologies, Inc. (NYSE:UBER) provides mobility services around the globe. The company also has an online food ordering and delivery platform, which showed a 124% year-over-year growth in 2020 due to increased takeaway demands during the pandemic. Recently, Evercore ISI lifted its price target on Uber Technologies, Inc. (NYSE:UBER) to $70, with an Outperform rating on the shares, appreciating the company’s food delivery business.
Of the 873 elite funds tracked by Insider Monkey, 135 hedge funds have stakes in Uber Technologies, Inc. (NYSE:UBER) as of Q2, up from 130 in the previous quarter. The total value of these stakes is over $10.4 billion.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER)in its Q2 2021 investor letter. Here is what the firm has to say:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
4. Wells Fargo & Company (NYSE:WFC)
Columbus Hill Capital Management’s Stake Value: $42,682,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 5.1%
Number of Hedge Fund Holders: 94
Wells Fargo & Company (NYSE:WFC), an American multinational financial services company, announced its Q3 results on October 14. The company posted a GAAP EPS of $1.17, beating the estimates by $0.07. With revenue of $18.8 billion in Q3, Wells Fargo & Company (NYSE:WFC) is one of the best large-cap stocks according to Columbus Hill Capital Management.
On October 26, Wells Fargo & Company (NYSE:WFC) announced a quarterly dividend of $0.20 per share, yielding 1.58%. As of Q2, Eagle Capital Management is the company’s largest shareholder, with shares worth $1.5 billion. In addition to this, 94 hedge funds tracked by Insider Monkey reported owning stakes in Wells Fargo & Company (NYSE:WFC) in Q2, compared with 96 in the previous quarter. The total value of these stakes is over $7 billion.
In Q2, Columbus Hill owns 942,418 shares in Wells Fargo & Company (NYSE:WFC), valued at $42.6 million. The company accounts for 5.1% of the hedge fund’s 13F portfolio. Recently, Jefferies raised its price target on Wells Fargo & Company (NYSE:WFC) to $57, with a Buy rating on the shares.
L1 Capital mentioned Wells Fargo & Company (NYSE:WFC) in its Q2 2021 investor letter. Here is what the firm has to say:
“Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”
3. Sea Limited (NYSE:SE)
Columbus Hill Capital Management’s Stake Value: $45,826,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 5.47%
Number of Hedge Fund Holders: 104
As of Q2, Columbus Hill owns 166,882 shares in Sea Limited (NYSE:SE), valued at $45.8 million. The company represents 5.4% of the hedge fund’s 13F portfolio. Sea Limited (NYSE:SE), one of the best large-cap stocks to buy according to Columbus Hill Capital Management, is a Singaporean global consumer internet company.
Of the 873 hedge funds tracked by Insider Monkey, 104 hedge funds reported owning stakes in Sea Limited (NYSE:SE) in Q2, up from 98 in the previous quarter. The total value of these stakes is over $12.2 billion, compared with $10.4 billion in Q1.
On November 2, Barclays initiated its coverage on Sea Limited (NYSE:SE) with an Overweight rating and a $427 price target, highlighting China’s economy and its efforts to strengthen its homegrown internet and tech companies. Since the beginning of the year Sea Limited (NYSE:SE) delivered an 74% return to shareholders, while the stock gained 92% in the past year.
Tao Value mentioned Sea Limited (NYSE:SE) in its Q2 2021 investor letter. Here is what the firm has to say:
“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in established ASEAN & LatAm market and received positive reception from new markets like US. On e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Columbus Hill Capital Management’s Stake Value: $53,965,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 6.45%
Number of Hedge Fund Holders: 266
Meta Platforms, Inc. (NASDAQ:FB), the American technology and social media platform, recently changed its corporate name to Meta Platforms, Inc., which will reflect the company’s perceived growth opportunities. Meta Platforms, Inc. (NASDAQ:FB) gained 23.3% in 2021.
At the end of Q2, 266 hedge funds tracked by Insider Monkey were bullish on Meta Platforms, Inc. (NASDAQ:FB), up from 238 in the previous quarter. The total value of these stakes is over $42.3 billion. In October, BofA lifted its price target on Meta Platforms, Inc. (NASDAQ:FB) to $400, with a Buy rating on the shares.
Columbus Hill owns 155,202 shares of Meta Platforms, Inc. (NASDAQ:FB) as of Q2, valued at roughly $54 million. The company accounts for 6.45% of the hedge fund’s 13F portfolio.
First Eagle Investment Management mentioned Meta Platforms, Inc. (NASDAQ:FB) in its second-quarter investor letter. Here is what the firm has to say:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Columbus Hill Capital Management’s Stake Value: $62,783,000
Percent of Columbus Hill Capital Management’s 13F Portfolio: 7.5%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) announced its Q3 earnings on October 28 and reported revenue of $110.8 billion, up 15.3% from the prior-year quarter. The company’s online net sales stood at $49.9 billion.
As of Q2, Columbus Hill owns 18,250 shares in Amazon.com, Inc. (NASDAQ:AMZN), worth $62.7 million. The company represents 7.5% of the hedge fund’s 13F portfolio. Recently, Truist lifted its price target on Amazon.com, Inc. (NASDAQ:AMZN) to 4,000, with a Buy rating on the shares, appreciating the company’s third-party sales and advertising segment.
Of the 873 hedge funds, 271 hedge funds tracked by Insider Monkey were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the previous quarter. The total value of these stakes is over $60.4 billion.
Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what the firm has to say:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
You can also take a look at 10 Large-Cap Stocks to Buy According to Anand Parekh’s Alyeska Investment Group and 15 Best Long-Term Stocks To Buy Now
