In this article we discuss the 5 best new stocks to buy in 2021 according to billionaire Paul Singer. If you want to read our detailed analysis of the Singer’s investment philosophy and his returns, go directly to 10 Best New Stocks to Buy in 2021 According to Billionaire Paul Singer.
5. F5 Networks, Inc. (NASDAQ: FFIV)
Value: $78,733,000
Percent of Paul Singer’s 13F Portfolio: 0.76%
No. of Hedge Fund Holders: 34
F5 Networks ranks 5th in the list of best new stocks to buy now based on Paul Singer’s portfolio. Recently, investment firm Credit Suisse downgraded the stock to Neutral from Outperform with a $207 price target. The firm cited “uninspiring” first quarter channel checks” for the downgrade. However, Credit Suisse is still bullish on the company’s Cloud transition. In January, the company beat first-quarter results and posted an upbeat guidance for the fiscal second quarter.
As of the end of the fourth quarter, there were 34 hedge funds in Insider Monkey’s database that held stakes in FFIV, compared to 36 funds in the third quarter. Jim Simons’ Renaissance Technologies, owns 3.02 million shares of FFIV worth $531.1 million.
4. Public Storage (NYSE: PSA)
Value: $132,785,000
Percent of Paul Singer’s 13F Portfolio: 1.29%
No. of Hedge Fund Holders: 31
Public Storage is one of the best new stocks to buy according to billionaire Paul Singer as Elliott Management built a new stake in the storage facilities company in the fourth quarter of 2020. The company recently bought Maryland-based ezStorage, which has 48 properties in Washington DC, Virginia, and Maryland. In the fourth quarter, Public Storage posted FFO per share of $2.93, above the Street’s estimate of $2.85. Revenue in the quarter totaled $748.5 million, above the consensus of $731 million.
As of the end of the fourth quarter of 2020, Ric Dillon’s Diamond Hill Capital owns 777,909 shares of PSA worth $179.6 million. PSA accounts for 0.84% of Diamond Hill’s total portfolio.
Third Avenue Management in their Q3 2020 investor letter, said that they sold some shares of Public Storage (NYSE: PSA). Here is what Third Avenue Management has to say about Public Storage in their investor letter:
“During the period, the Fund reduced its exposure to the common stock of Public Storage, Incorporated.- The proceeds from this reduction was primarily used to fund a new investment position.”
3. AT&T Inc. (NYSE: T)
Value: $143,800,000
Percent of Paul Singer’s 13F Portfolio: 1.4%
No. of Hedge Fund Holders: 58
AT&T ranks 3rd in the list of best new stocks to buy now based on billionaire Paul Singer’s Q4 portfolio. AT&T is one of most notable dividend payers, with an over 6% yield and more than 30 years of consistent dividend hikes. Despite lackluster performance in recent months when compared to peers, AT&T remains a solid option for long-term investors. The company would also be a major beneficiary of the upcoming 5G revolution. The company’s 5G network already reaches 230 million Americans in more than 14,000 cities and towns. Its HBO Max streaming service is also poised to grow and become a Netflix competitor in the next couple of years.
With a $193.5 million stake in AT&T, D E Shaw owns 6.7 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 58 hedge funds held stakes in AT&T as of the end of the fourth quarter, versus 51 funds in the third quarter.
2. Materials Select Sector SPDR Fund (NYSE: XLB)
Value: $189,500,000
Percent of Paul Singer’s 13F Portfolio: 1.84%
No. of Hedge Fund Holders: 16
Paul Singer increased his exposure to the materials sector by piling into Materials Select Sector SPDR Fund. The ETF includes companies from various subsectors like chemicals, metals, mining, paper, construction, plastics and more. Some notable holdings of the fund include Linde PLC, Air Products & Chemicals, Sherwin-Williams Co., Ecolab Inc. and Freeport-McMoRan Inc.
Two Sigma Advisors currently holds 4.1 million shares of XLB that amounts $257.6 million. XLB occupies 0.68% of Two Sigma’s total portfolio.
1. Evergy, Inc. (NYSE: EVRG)
Value: $585,182,000
Percent of Paul Singer’s 13F Portfolio: 5.7%
No. of Hedge Fund Holders: 33
Utility company Evergy ranks 1st on the list of best new stocks to buy now according to billionaire Paul Singer. In February, the company posted a full-year non-GAAP EPS of $3.10, beating the Street by $0.06. For 2021, the company expects GAAP EPS of $3.14 to $3.34. Adjusted EPS in the period is expected to come between $3.20 to $3.40.
Paul Singer’s Elliott Management currently owns 10.5 shares of EVRG, worth $585.2 million. EVRG occupies 5.7% of Elliott Management’s overall equity.
You can also take a peek at 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin and 10 Best High-Yield Dividend Stocks to Buy According to Billionaire George Soros.
