In this article, we will take a look at the 5 cheap stocks to buy according to billionaire Ken Fisher. If you want to read our comprehensive analysis of the history and investment philosophy of Ken Fisher and his fund Fisher Asset Management, go directly to 10 Cheap Stocks to Buy According to Billionaire Ken Fisher.
5. BP plc (NYSE:BP)
Fisher Asset Management’s Stake Value: $345.321 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders as of Q3 2021: 29
Stock Price as of December 8, 2021: $27.59
Return since December 8. 2021: 17%
In December, the London-based oil and gas company announced its acquisition of AMPLY Power, a strategic move to participate in the automobile electrification in the US. Earlier known as British Petroleum, the company operates in 78 countries worldwide.
On November 2, BP plc (NYSE:BP) announced its Q3 revenue of $36.2 billion that showed an annual growth of 38% and surpassed estimates by $4.1 billion. Following this, in December, James Hubbard, an analyst at Deutsche Bank, upgraded the stock to “Buy” from its previous position of “Hold”.
Fisher Asset Management owns over 12 million shares of the company as of Q3 2021, with a total value of $345 million. Moreover, the fund increased its stake in BP plc (NYSE:BP) by 6% during the third quarter of 2021, which suggests a positive hedge fund sentiment about the stock. Overall, by the end of the September quarter, 29 funds out of the 867 funds tracked by Insider Monkey held stakes in BP plc (NYSE:BP) worth over $1 billion, down from 30 funds by the end of Q2.
4. Infosys Limited (NYSE:INFY)
Fisher Asset Management’s Stake Value: $357.108 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.22%
Number of Hedge Fund Holders as of Q3 2021: 29
Stock Price as of December 8, 2021: $23.06
Return since December 8. 2021: -22%
Fisher Asset Management held roughly 16 million shares of Infosys Limited (NYSE:INFY) by the end of the third quarter of 2021. Overall, out of the 867 hedge funds that Insider Monkey tracks, 29 were bearish on Infosys Limited (NYSE:INFY) with a combined stake of $2.5 billion by the end of Q3 2021. Since only 22 funds had stakes in the company with a total worth of $2.2 billion at the end of the second quarter, it indicates a strong hedge fund sentiment about the company.
The Indian information technology company announced its Q3 revenue of nearly $4 billion on October 13. The revenue demonstrated year-over-year growth of 20.5% and beat estimates by $100 million. As a result, Keith Bachman, an analyst at BMO Financial Group, raised his price target on Infosys Limited (NYSE:INFY) to $25 from $23 and maintained a “Market Perform” rating on the shares. The share price of Infosys Limited (NYSE:INFY) as of December 8 was $23.06.
Since October, the company has announced strategic collaborations with Shell Global Solutions International, Bloomberg Media, Madison Square Garden Sports, Madison Square Garden Entertainment, and Financial Times.
3. Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Fisher Asset Management’s Stake Value: $452.807 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders as of Q3 2021: 23
Stock Price as of December 8, 2021: $11.15
Return since December 8. 2021: 83.4%
Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR), commonly known only as Petrobras, is a state-owned petroleum company in Brazil. Ken Fisher’s fund held nearly 44 million shares in the company worth more than $452 million by the end of the third quarter of 2021. Moreover, Fisher Asset Management decreased its stake in the company by 6% during the third quarter of 2021.
The company announced a net profit of $5.3 billion for Q3, which beat estimates by a wide margin due to the rising oil prices worldwide. In Q3 2021, Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) presented a mixed hedge fund sentiment, as 23 hedge funds out of the 867 in the Insider Monkey database reported having stakes in the company, down from 25 in the previous quarter. However, the total value of these stakes is over $3 billion as compared to $2.8 billion in the previous quarter.
2. Vale SA (NYSE:VALE)
Fisher Asset Management’s Stake Value: $486.355 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders as of Q3 2021: 27
Stock Price as of December 8, 2021: $13.65
Return since December 8. 2021: -6.5%
Fisher Asset Management held 34 million shares of Vale SA (NYSE:VALE) by the end of Q3 2021, after lowering its stake in the company by 6% during the same quarter. The total value of its current stake is over $486 million and constitutes 0.3% of the fund’s portfolio. Headquartered in Rio de Janeiro, the Brazilian mining company deals with metals such as iron and nickel.
Although Vale SA (NYSE:VALE)’s revenue for Q3 2021 grew by 18% year over year to over $12 billion, it fell short of consensus predictions by $1.3 billion. Similarly, the company’s Q3 EPS of $0.76 missed estimates by $0.47.
Among the 867 elite funds tracked by Insider Monkey, 27 hedge funds reported having stakes in Align Technology, Inc. (NASDAQ:ALGN) at the end of the third quarter worth nearly $2 billion.
The investment management firm Miller Value Partners published its third-quarter 2021 investor letter in which it mentioned Vale SA (NYSE:VALE) and shared insights about the company. Here is what the letter said about Vale SA (NYSE:VALE) in its Q3 2021 investor letter:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
1. ING Groep N.V. (NYSE:ING)
Fisher Asset Management’s Stake Value: $672.013 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.41%
Number of Hedge Fund Holders as of Q3 2021: 8
Stock Price as of December 8, 2021: $14.33
Return since December 8. 2021: -33.7%
Based in the Netherlands, ING Groep N.V. (NYSE:ING) is a financial services company. By the end of the third quarter of 2021, Ken Fisher’s fund held 46 million shares of ING Groep N.V. (NYSE:ING) worth over $672 million and constituting 0.41% of the fund’s 13F portfolio. Fisher Asset Management is, therefore, the leading shareholder of the banking company.
On November 4, the company announced its Q3 net income of $1.6 billion, up from $892 million for the same quarter of the previous year. ING Groep N.V. (NYSE:ING)’s revenue for the quarter grew by 8.4% year over year and was $5.3 billion.
At the end of the third quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth over $693 million in ING Groep N.V. (NYSE:ING), compared to 9 in the previous quarter worth $602 million.
In its “Artisan International Value Fund” third quarter 2021, Artisan Partners mentioned ING Groep N.V. (NYSE:ING) and discussed its stance on the firm. Here is what the fund said:
“ING Groep is a Netherlands-based commercial bank. ING’s core operations are in Benelux and Germany, but the bank also operates in several other European markets using primarily a fintech strategy. This is not new for ING. In fact, the bank has been operating direct banking for decades. However, the share price has suffered over the last few years, along with other European banks’ share prices, from increased regulation and financial suppression. This year, ING is recovering like most banks from the COVID-related provisions charged to the P&L in 2020. But unlike other banks, ING started 2021 with an overcapitalized balance sheet and a new CEO. Under CEO Steven van Rijswijk’s leadership, ING has taken steps to exit poorly performing businesses—which will positively impact both profits and the bank’s capital position. In addition, core profits are increasing, and the company continues generating capital. During the quarter, ING announced both a resumption of dividend payments and a new share repurchase program. The market is just waking up to this company’s quality and value. Even after the 12% share price increase during the quarter and the more than 66% increase year to date, the shares still trade undeservedly below book value.”
You can also take a peek at the 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and 10 Latest Stock Picks of Billionaire Ray Dalio.
