In this piece, we will take a look at the five best stocks to buy now according to Jonathan Bloomberg’s BloombergSen. For the hedge fund’s introduction and more stocks, head on over to 10 Best Stocks to Buy Now According to Jonathan Bloomberg’s BloombergSen.
5. Charter Communications, Inc. (NASDAQ:CHTR)
BloombergSen’s Stake Value: $96 million
Percentage of BloombergSen’s 13F Portfolio: 5.93%
Number of Hedge Fund Holders: 68
Charter Communications, Inc. (NASDAQ:CHTR) is an American company that offers cable and internet connectivity services. These include pay per view and digital viewing services, alongside fiber connectivity and voice over internet protocol (VoIP) coverage. The firm is headquartered in Stamford, Connecticut.
BloombergSen held a $96 million stake in Charter Communications, Inc. (NASDAQ:CHTR) as part of its June quarter of 2022 investment portfolio, which came in the form of 205,304 shares. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 68 had also invested in the company.
Charter Communications, Inc. (NASDAQ:CHTR)’s latest quarter saw the firm report lower customer growth, which rattled analysts. However, despite this, the firm’s revenue grew by 6% annually, with its average revenue per user growing to a record of $116 from a previous $113.
Charter Communications, Inc. (NASDAQ:CHTR)’s largest investor in our database is Natixis Global Asset Management’s Harris Associates which owns 4.1 million shares that are worth $1.9 billion.
IP Capital Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Like Netflix (and other businesses that initially benefited from the pandemic ) , Charter has seen a substantial acceleration in subscriber growth throughout 2020-2021, followed by a relevant slowdown in recent quarters. Furthermore, after five years in which Cable companies absorbed all of the marginal growth in broadband subscribers in the United States, Telcos’ pledges to accelerate the upgrade of their copper networks over fiber optics has resurfaced a narrative of competition. until then asleep. While we share the concern, the magnitude of the equities correction is substantially greater than the potential impact we see on business value.
First, we believe that the recent growth slowdown is primarily a function of the market, rather than materially different competitive dynamics from recent years. In addition to the anticipated growth due to the pandemic, the slowdown in existing home sales in the US market naturally reduces opportunities to offer plans, disproportionately impacting share-takers like Charter…” (Click here to see the full text)
4. The Progressive Corporation (NYSE:PGR)
BloombergSen’s Stake Value: $107 million
Percentage of BloombergSen’s 13F Portfolio: 6.6%
Number of Hedge Fund Holders: 54
The Progressive Corporation (NYSE:PGR) is an American insurance company headquartered in Mayfield, Ohio. The firm offers a variety of insurance products such as those covering automobiles, property damage, and excess flood damage.
The Progressive Corporation (NYSE:PGR) is the third largest auto insurance provider in the United States, and the firm has a massive $50 billion fixed income portfolio that benefits with an 11% increase in earnings each time the Federal Reserve hikes up the interest rate by 1%. With the markets pricing in strong interest rate hikes for the remainder of this year, it’s clear that the company has strong tailwinds in its favor despite the recent turbulent economic environment.
As this year’s June quarter ended, Mr. Bloomberg’s hedge fund had held a $107 million stake in The Progressive Corporation (NYSE:PGR) that represented 6.6% of its investment portfolio. For the same time period, 54 out of the 895 hedge funds polled by Insider Monkey had also invested in the insurance company.
The Progressive Corporation (NYSE:PGR)’s largest investor is William B. Gray’s Orbis Investment Management which owns 4.6 million shares that are worth $542 million.
RiverPark Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“Progressive Corp had a positive contribution to performance during the quarter. Net Premiums Written (NPW) grew +12% as the Company grew both policies in force and took the rate to offset higher loss cost trends that are being driven by inflation. For example, we estimate accident severity for personal auto is up +35% since the beginning of the pandemic.
However, this is partially offset by a 20% decline in frequency, due to people driving fewer miles. Progressive is making up for this net rise in cost by raising policy rates in the mid-teens percentage range. Progressive has been relatively early to take rate compared to industry peers, so the Company should be able to aggressively compete for share as competitors play catchup.”
3. Aon plc (NYSE:AON)
BloombergSen’s Stake Value: $140 million
Percentage of BloombergSen’s 13F Portfolio: 8.69%
Number of Hedge Fund Holders: 49
Aon plc (NYSE:AON) is a financial services firm that is headquartered in Dublin, Ireland. It offers a host of risk management and brokerage solutions that cover retail and health brokerages, and cyber and global risk management.
BloombergSen’s Q2 2022 investment portfolio reveals that the firm owned 522,302 Aon plc (NYSE:AON) shares that were worth $140 million, with the stake representing 8.69% of its investment portfolio. Insider Monkey profiled 895 hedge funds for their June quarter of 2022 investments to discover that 49 had also held a stake in Aon plc (NYSE:AON).
Aon plc (NYSE:AON) has a high upside share price percentage reward, that is close to 16% and at the same time, its downside price risk is less than 5%, making the firm a relatively safe investment – a feature that blends in with Mr. Bloomberg’s investment approach. BofA set a $294 share price target for the firm in September 2022, highlighting that Aon plc (NYSE:AON) has a strong cash generative business model.
2. W. R. Berkley Corporation (NYSE:WRB)
BloombergSen’s Stake Value: $148 million
Percentage of BloombergSen’s 13F Portfolio: 9.16%
Number of Hedge Fund Holders: 37
W. R. Berkley Corporation (NYSE:WRB) is an American insurance underwriter and reinsurer. The firm underwrites insurance for a variety of products such as fine arts, jewelry, property, and automobiles. The company is headquartered in Greenwich, Connecticut.
W. R. Berkley Corporation (NYSE:WRB)’s latest quarter saw the firm bring in $2.5 billion in operating revenue, to post a solid 9% annual growth. However, at the same time, it suffered from inflationary pressures as well with its operating margin dropping to 8.4% annually from the year ago quarter’s 14%.
Mr. Bloomberg’s hedge fund held a $148 million stake in W. R. Berkley Corporation (NYSE:WRB) as part of its June quarter of 2022 investments. During the same time period, 37 out of the 895 hedge funds surveyed by Insider Monkey had also invested in the firm.
W. R. Berkley Corporation (NYSE:WRB)’s largest investor in our database is Jean-Marie Eveillard’s First Eagle Investment Management which owns 4.6 million shares that are worth $311 million.
The same fund mentioned the company in its Q2 2022 investor letter, which outlined that:
“W. R. Berkley Corporation (NYSE:WRB) is a specialty insurance company based in Connecticut that provides property and casualty insurance and reinsurance products. It reported strong operating results for its most recent quarter, including record underwriting income and net income, as rate increases outpaced expected-loss costs.
Berkely also benefitted from the strong performance of its investment portfolio, which is well-positioned to potentially mitigate the impact of inflation and rising interest rates; notably, the company booked a large pretax gain on the sale of a London real estate investment. The company recently increased its regular dividend and declared a special dividend.”
1. Colliers International Group Inc. (NASDAQ:CIGI)
BloombergSen’s Stake Value: $179 million
Percentage of BloombergSen’s 13F Portfolio: 11.07%
Number of Hedge Fund Holders: 13
Colliers International Group Inc. (NASDAQ:CIGI) is a real estate and investment management company based in Toronto, Canada. The firm real estate services such as brokerage and transaction management, alongside providing other services such as corporate and workforce solutions.
For its Q2 2022 investment portfolio, BloombergSen held a $179 million stake in Colliers International Group Inc. (NASDAQ:CIGI). This came through the fund owning 1.6 million shares of the company and it represented 11.07% of its investment portfolio. Insider Monkey profiled 895 hedge funds to gauge their second quarter of 2022 investments and discovered that 13 had also bought the company’s shares.
Colliers International Group Inc. (NASDAQ:CIGI) is one of the top five real estate brokerages in the world, and the bulk of its revenue is recurring in nature, implying that it does not have to scour for new clients to generate sales. Since the firm has a global footprint, this scale lends it a key advantage to gain large market shares in multiple markets where other smaller companies face economies of scale disadvantages.
Colliers International Group Inc. (NASDAQ:CIGI)’s largest investor after BloombergSen is Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management which owns one million shares that are worth $109 million.
Disclosure: None. You can also take a look at 10 Healthcare Dividend Stocks with Over 3% Yield and 10 Best Cheap Technology Stocks To Buy.
