In this article, we discuss the 5 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins. For an in-depth study of Element Capital’s background, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins.
05. Pfizer Inc. (NYSE:PFE)
Element Capital’s Stake Value: $5.568 million
Percentage of Element Capital’s 13F portfolio: 2.79%
Number of Hedge Fund Holders: 70
At the end of the second quarter of 2022, 70 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Pfizer Inc. (NYSE:PFE), compared to 79 in the preceding quarter worth $4.1 billion. During Q2 2022, Element Capital increased its stake in the company by 51% to $5.568 million, which represented 2.79% of its 13F portfolio. With a position worth $533.91 million, AQR Capital Management was the largest hedge fund holder in the company during Q2.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer Inc. (NYSE:PFE) vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. (…read more)
04. CME Group Inc. (NASDAQ:CME)
Element Capital’s Stake Value: $6.141 million
Percentage of Element Capital’s 13F portfolio: 3.08%
Number of Hedge Fund Holders: 56
Based in Illinois CME Group Inc. (NASDAQ:CME) is one of the biggest exchanges for financial derivatives in the world. As of the end of Q2 2022, Element Capital owned $6.141 million worth of shares, accounting for 3.08% of the fund’s 13F portfolio. As a result, CME Group Inc. (NASDAQ:CME) is ranked #4 in our list of Talpins’s top stock picks.
On September 6, analyst Gautam Sawant of Credit Suisse maintained a Neutral rating on the shares of CME Group while lowering his price target on the stock from $216 to $210. According to Insider Monkey’s Q2 2022 database, CME Group Inc. (NASDAQ:CME) was owned by 56 hedge funds. These holdings had a combined worth of almost $2.74 billion. GuardCap Asset Management has the largest investment in the company during Q2, with a holding of around $858.72 million.
In its Q1 2022 investor letter, Baron Durable Advantage Fund mentioned CME Group Inc. (NASDAQ:CME) and explained its insights for the company. Here is what the fund said:
“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”
03. UnitedHealth Group Incorporated (NYSE:UNH)
Element Capital’s Stake Value: $7.849 million
Percentage of Element Capital’s 13F portfolio: 3.93%
Number of Hedge Fund Holders: 91
UnitedHealth Group Incorporated (NYSE:UNH), a global managed healthcare and insurance corporation with operations in Minnetonka, Minnesota, was established in 1977. Jeffrey Talpins’s Element Capital’s portfolio had 15,281 shares of UnitedHealth Group Incorporated (NYSE:UNH) at the end of June 2022, worth $7.849 million, representing 3.93% of the total holdings. In the second quarter of 2022, 91 of the hedge funds monitored by Insider Monkey were long UnitedHealth Group Incorporated (NYSE:UNH), down from 103 funds in the prior quarter. With 3.11 million shares worth $1.60 billion, Rajiv Jain’s GQG Partners is UnitedHealth Group Incorporated’s (NYSE:UNH) largest shareholder.
On September 22, Raymond James analyst John Ransom maintained a Strong Buy rating and increased his price target for the stock from $620 to $635. Ransom informs investors in a research note that the court supervising the UnitedHealth/Change Healthcare (CHNG) trial with the DOJ will permit the deal to go forward, putting an end to a 21-month conflict between UnitedHealth and authorities. Even though there is a slight chance of an appeal and additional delay, the deal is anticipated to close within 10 days of the judge’s ruling, adds Ransom.
Baron Funds, an asset management firm, mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2022 investor letter. Here is what the fund said:
“UnitedHealth Group Incorporated is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and health care services arm, Optum, which offers care delivery and other services. Shares increased 1.1% on strong first quarter results (revenues were up 14% year-over-year), and the company increased its annual guidance.
The performance was driven by Optum as a result of a growing adoption of value-based solutions. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
02. Microsoft Corporation (NASDAQ:MSFT)
Element Capital’s Stake Value: $10.413 million
Percentage of Element Capital’s 13F portfolio: 5.22%
Number of Hedge Fund Holders: 258
As of Q2, Microsoft Corporation (NASDAQ:MSFT) comprises 5.22% of Element Capital’s 13F portfolio. The fund holds 40,544 Microsoft Corporation (NASDAQ:MSFT) shares worth roughly $10.413 million. For Q2, Ken Fisher’s Fisher Asset Management is the largest shareholder holding 28.69 million Microsoft Corporation (NASDAQ:MSFT) shares valued at $7.36 billion. At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT) worth roughly $56 billion, compared to 259 in the preceding quarter worth around $66 billion.
On August 11, Guggenheim analyst John DiFucci started following Microsoft Corporation (NASDAQ:MSFT) with a Neutral rating and a $292 price target. While he believes that Azure and Office Commercial 365 have room to grow and will support Microsoft Corporation’s (NASDAQ:MSFT) revenue and free cash flow, he also believes that the number of Windows users is continuing to fall, which is “not fully reflected in consensus estimates.”
In its Q2 2022 investor letter, Baron Durable Advantage Fund mentioned Microsoft Corporation (NASDAQ:MSFT) and explained its insights for the company. Here is what the fund said:
“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.
As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”
01. Albertsons Companies, Inc. (NYSE:ACI)
Element Capital’s Stake Value: $26.992 million
Percentage of Element Capital’s 13F portfolio: 13.54%
Number of Hedge Fund Holders: 37
After receiving $1.25 billion from investors for its initial public offering (IPO), Albertsons Companies, Inc. (NYSE:ACI) began trading publicly in June 2020. Numerous grocery stores are operated by Albertsons Companies, Inc. (NYSE:ACI) under a variety of brand names, primarily in the northeastern and western parts of the US. Additionally, it runs a large number of supermarkets and associated businesses that sell their goods mostly offline.
Element Capital Management is extremely bullish on Albertsons Companies, Inc. (NYSE:ACI) as it increased its stake by 3857% during Q2, holding 1.010 million of its shares worth roughly $26.992 million. At the end of the second quarter of 2022, 37 of the 895 hedge funds we track had a long position in Albertsons Companies, Inc. (NYSE:ACI), down from 39 funds in the previous quarter.
You can also take a look at the Top 10 Stock Picks of Mark Kleiman’s Factorial Partners and Top 10 Stock Picks of Minerva Advisors.
