In this article, we discuss the 5 best stocks to buy according to billionaire Chris Rokos. If you want to read our detailed analysis of Rokos’ history, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Buy According to Billionaire Chris Rokos.
5. Salesforce, Inc. (NYSE:CRM)
Rokos Capital Management’s Stake Value: $64.7 million
Percentage of Rokos Capital Management’s Portfolio: 2.93%
Number of Hedge Fund Holders: 114
Salesforce, Inc. (NYSE:CRM) is a cloud computing and consulting company. In addition, it provides customer relationship management software and applications. According to Rokos Capital Management’s 13F filings, in the first quarter of 2022, the firm owned 299,350 shares of Salesforce, Inc. (NYSE:CRM), worth $64.7 million. The company represents 2.93% of the fund’s portfolio after it increased its stake by 28% in the first quarter of 2022.
Salesforce, Inc. (NYSE:CRM) reported its first-quarter 2022 earnings in April. The company beat its EPS and revenue expectations by 3.73% and 0.40%, respectively. The company generated a revenue of $7.41 billion, which shows a 24% YoY growth. Salesforce, Inc. (NYSE:CRM)’s free cash flow of $3.50 billion represented a 14% year-over-year growth. On top of that, the free cash flow margin of the company rose by 47.2% in the first quarter of 2022, compared to 24.8% in the previous quarter.
On June 1, Stifel analyst J. Parker Lane lowered Salesforce, Inc. (NYSE:CRM)’s price target to $250 from $300 and kept a Buy rating on its shares. In a research note, the analyst explained that the company “delivered a solid start to the year” and product and geographic diversification gives Salesforce, Inc. (NYSE:CRM) some cushioning against a weakening macro backdrop.
Vulcan Value Partners mentioned Salesforce, Inc. (NYSE:CRM) in its first-quarter 2021 investor letter. Here are the contents of the letter:
“Salesforce.com Inc. is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”
4. Avino Silver & Gold Mines Ltd. (NYSE:ASM)
Rokos Capital Management’s Stake Value: $66.7 million
Percentage of Rokos Capital Management’s Portfolio: 3.02%
Number of Hedge Fund Holders: 3
Avino Silver & Gold Mines Ltd. (NYSE:ASM) is a mineral exploration company that has been a new addition to the Rokos Capital Management portfolio in the first quarter of 2022. The company makes up 3.02% of the fund’s portfolio. As a penny stock, Avino Silver & Gold Mines Ltd. (NYSE:ASM) managed to secure strong first-quarter 2022 results. The generated revenue was $11.1 million, with a net income of around $600,000 or $0.01 per share.
Alliance Global Partners analyst Jake Sekelsky reiterated a Buy rating on Avino Silver & Gold Mines Ltd. (NYSE:ASM) and increased the company’s price target from $1.40 to $1.70. Moreover, the analyst remains quite positive about the company’s acquisition of the La Preciosa project from Coeur Mining, Inc. (NYSE:CDE).
According to the Insider Monkey database, 3 hedge funds held stakes worth $67.19 million in Avino Silver & Gold Mines Ltd. (NYSE:ASM) in the first quarter of 2022, with Rokos Capital Management as the most prominent name. In the previous quarter, 3 hedge funds had stakes worth $305,000.
3. Apple Inc. (NASDAQ:AAPL)
Rokos Capital Management’s Stake Value: $99.26 million
Percentage of Rokos Capital Management’s Portfolio: 4.49%
Number of Hedge Fund Holders: 131
Among other trillion-dollar companies, Apple Inc. (NASDAQ:AAPL) also made its way into the Rokos Capital Management’s portfolio in the first quarter of 2022. The company makes up 4.49% of the 13F portfolio, with 560,960 shares worth $99.26 million. The most prominent shareholder of Apple Inc. (NASDAQ:AAPL) remains Warren Buffett’s Berkshire Hathaway.
Apple Inc. (NASDAQ:AAPL) has been launching new products since the beginning of 2022. On June 6, at the Worldwide Developers Conference, the company revealed its second-generation M2 chips after the success of its M1 chip for MacBooks. Before that, Apple Inc. (NASDAQ:AAPL) also unveiled its low-cost upgraded version of the iPhone SE as its latest 5G device. In addition to that, according to the first-quarter 2022 earnings report, the company had a revenue of $97.28 billion, compared to $93.99 billion estimates. The services revenue of the company increased by 17% YoY to $19.82 billion. Furthermore, Apple Inc. (NASDAQ:AAPL)’s home accessories and wearables sales saw a 12% surge to $8.81 billion.
On May 19, BofA analyst Wamsi Mohan lowered the price target of Apple Inc. (NASDAQ:AAPL) to $200 from $215 and maintained a Buy rating on its shares. The analyst also increased his iPhone unit estimates to 237 million for the fiscal year 2023 and 230 million for the year 2024. For the current fiscal year, the company is keeping the number of units at flat 220 million according to Bloomberg reports, compared to the estimated 240 million.
Here is what ClearBridge Investments had to say about Apple Inc. (NASDAQ:AAPL) in its fourth-quarter 2021 investor letter:
“Despite these mixed emerging growth results, the ClearBridge Global Growth Strategy outperformed the benchmark due to resilience among our secular and structural growth holdings. The bulk of these contributions came from U.S. mega-cap growth stocks Apple and Microsoft which continued to uniquely act both offensively and defensively as they have through most of the pandemic.”
2. Microsoft Corporation (NASDAQ:MSFT)
Rokos Capital Management’s Stake Value: $124.768 million
Percentage of Rokos Capital Management’s Portfolio: 5.65%
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) is another one of the Big Five tech names taking up a significant part of Rokos Capital Management’s portfolio. Out of the 912 hedge funds tracked by Insider Monkey, 259 were bullish on the company with a total value of $65.6 billion. In the previous quarter, 262 hedge funds had stakes worth $75.7 billion in Microsoft Corporation (NASDAQ:MSFT). Fisher Asset Management increased its position by 4% in the first quarter of 2022 and had the largest stake in the company, with 27.87 million shares worth $8.59 billion.
On June 3, BMO Capital analyst Keith Bachman maintained an Outperform rating on Microsoft Corporation (NASDAQ:MSFT) shares and kept a price target of $345. The company announced that FX is creating a much bigger hindrance in its progress than when the guidance for the June quarter was provided. The analyst believes it to be a neutral event and remains bullish on Microsoft Corporation (NASDAQ:MSFT).
Microsoft Corporation (NASDAQ:MSFT) exceeded its EPS and revenue estimates in the first fiscal quarter of 2022. The EPS was reported at $2.22, outperforming the $2.20 forecast. Similarly, the $49.36 billion revenue exceeded the estimates by $311.18 million.
Motiwala Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2021 investor letter. Here is what it had to say:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
1. Materials Select Sector SPDR Fund (NYSE:XLB)
Rokos Capital Management’s Stake Value: $160.9 million
Percentage of Rokos Capital Management’s Portfolio: 7.29%
Number of Hedge Fund Holders: 13
Rokos Capital Management’s largest holding is Materials Select Sector SPDR Fund (NYSE:XLB), the exchange-traded fund managed by SSGA Funds Management. The ETF is non-diversified and includes companies specializing in chemicals, metals and mining, paper and forest products, containers and packaging, and construction materials.
Rokos Capital Management increased its activity in the ETF by a staggering 1271% in the first quarter of 2022. The fund owned 4.1 million shares of the ETF worth $160.9 million.
You can also take a peek at 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital and 10 Stocks to Buy in April According to Jim Cramer.
