Below are the top 5 mid-cap stocks stocks billionaire Brian Higgins’ King Street loves the most. For a comprehensive list see 10 Best Mid-Cap Stocks To Buy Now According To Billionaire Brian Higgins.
5. Cheniere Energy, Inc. (NYSE: LNG)
King Street Capital has reduced its stake by 10% in Cheniere Energy, Inc. (NYSEMKT: LNG) during the September quarter after initiating a position in the second quarter. It is the fifth-largest stock holding of King Street Capital, accounting for 7.48% of the overall portfolio.
Shares of Cheniere Energy also outperformed the S&P 500 index in the past three months. Its shares rallied more than 36% in the last three months and the stock price soared 73% in the past nine months.
Horizon Kinetics has highlighted few stocks including Cheniere Energy in an investor’s letter. Here is what Horizon Kinetics stated:
“Cheniere Energy was formerly an oil and gas exploration company. Around 1999, it abandoned its oil and gas drilling strategy in favor of building a liquefied natural gas terminal on the Gulf Coast – management at the time believed that the abundance of the natural gas reserves held within the United States could position it as a large net exporter of liquefied natural gas.
Over the course of the next two decades, Cheniere managed to navigate the quite cumbersome regulatory and permitting process. Eventually, permission was granted, and construction of the Sabine Pass facility commenced. Yet, given the immense capital requirements of the export facilities, Cheniere financed construction mostly through debt. Since a number of years were required to complete the construction, during which no operational revenues were produced, the incremental debt continued to accumulate, leaving it as a highly leveraged company.”
4. VICI Properties Inc. (NYSE: VICI)
The hedge fund has sold almost 52% of its stake in VICI Properties Inc. (NYSE: VICI) during the September quarter. VICI Properties underperformed in 2020 as its shares are down almost 1% in the last twelve months due to pandemic related disruptions. VICI Properties accounted for 7.53% of the overall portfolio at the end of the third quarter.
Despite lower than expected share price performance, VICI Properties has been rewarding investors through cash returns. It offers a dividend yield of more than 5%.
3. Melco Resorts & Entertainment Limited (NASDAQ: MLCO)
Brian Higgins’ saw the dip in Melco Resorts & Entertainment Limited (NASDAQ: MLCO) stock price as a buying opportunity.
Consequently, the New York-based hedge fund initiated a position in the second quarter and increased its position by 107% in the September quarter. It is the third-largest stock holding of King Street, accounting for 8.43% of the portfolio. Shares of Melco Resorts soared 14% in the last six months but prospects look strong ahead amid easing social distancing restriction.
2. Sabre Corporation (NASDAQ: SABR)
The billionaire Brian Higgins’ also looks optimistic about the Sabre Corporation (NASDAQ: SABR) as the hedge fund has raised its stake by 650% during September after initiating a position in the second quarter. It is the second-largest stock holding of the King Street 13F portfolio, accounting for 10.52% of the overall portfolio.
Shares of Sabre rallied more than 50% in the last six months, thanks to the strengthening travel and tourism business.
RF Capital Management LLC, which posted a return of 18.8% for the second quarter (net of fees), commented on a few stocks including Sabre in an investor’s letter. Here is what RF Capital Management stated:
“Sabre Corporation (SABR) – This holding never became a large position in our portfolio. However, SABR was a profitable investment for us. We bought at an average price of $4.52/share and sold at $7.38/share. We sold our shares due to the quick gain and the company’s increasing leverage on the balance sheet. The airline and travel industries continue to be challenged, so we wanted to reduce our overall exposure as well.”
1. Aramark (NYSE: ARMK)
King Street has also capitalized on the buying opportunity in Aramark (NYSE: ARMK) during the second and third quarter of 2020.
The hedge fund’s strategy of buying distressed companies worked again in the case of Aramark. This is because shares of Aramark rallied 75% in the last six months. Aramark shares were hit harder by the pandemic related lockdowns early in 2020. It provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally.
Please also see Is George Soros Still Good At Picking Stocks At The Age of 90? and 12 Best Social Media Stocks To Buy Now
