In this article, we discuss the 5 important stocks in billionaire Richard Chilton’s latest portfolio. If you want to read our analysis of Chilton Investment Company’s historical performance, go directly to 10 Important Stocks in Billionaire Richard Chilton’s Latest Portfolio.
5. CDW Corporation (NASDAQ:CDW)
Chilton Investment Company’s Stake Value: $266,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0%
Number of Hedge Fund Holders: 41
CDW Corporation (NASDAQ:CDW) is a Lincolnshire, Illinois-based firm that provides tech solutions to government institutions, enterprises, healthcare, and the education sector. The billionaire currently holds 1487 shares in the company at an average quarterly share price of $182.98.
In Q1 2022, CDW Corporation (NASDAQ:CDW) posted an EPS Normalized Actual of $2.20, beating the analysts’ estimates by $0.18. Moreover, the company surpassed the revenue estimates by $277.74 million.
There was a considerable increase in short interest in CDW Corporation (NASDAQ:CDW) during May. As of May 31, the short interest added up to 1,470,000 shares, reflecting an increase of 40% from the number of shares short on May 15.
CDW Corporation (NASDAQ:CDW) was mentioned in the Q1 2022 investor letter of Polen Capital. Here’s what the firm said:
“We sold CDW from the Portfolio to make room for companies we believed offer more attractive risk/reward profiles. CDW is a high-quality company that continues to execute well. It has exceeded the pace of U.S. information technology spending, gained market share globally, and further penetrated the higher-end services that its customers need. That said, the company is at the upper end of our market-cap range, and we believe it no longer offers the compelling return potential we look for, given its lower-growth profile, vulnerability to supply chain issues, tight margins, and premium multiple to peers.”
Of the 912 hedge funds in Insider Monkey’s database, 41 funds held a stake in CDW Corporation (NASDAQ:CDW) as of Q1 2022.
4. Visa Inc. (NYSE:V)
Chilton Investment Company’s Stake Value: $7,882,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.18%
Number of Hedge Fund Holders: 159
Visa Inc. (NYSE:V) is one of the leading digital payments technology companies in the world. The firm’s portfolio of financial services, such as mobile payments, allows consumers, retailers, financial institutions, and government bodies to transact conveniently.
On April 29, Chris Donat at Piper Sandler downgraded Visa Inc. (NYSE:V) from Overweight to Neutral. Moreover, the analyst lowered the price target on Visa Inc. (NYSE:V) from $283 to $239. The analyst expressed his concern over a possible recession in Europe in 2023, which would result in declining payments activity and lower revenue for Visa Inc. (NYSE:V). He credited the uncertain macro-environment as the primary reason for the downgrade.
Here’s what Polen Capital said about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”
At the end of Q1 2022, 159 hedge funds held a position in Visa Inc. (NYSE:V).
3. Honeywell International Inc. (NASDAQ:HON)
Chilton Investment Company’s Stake Value: $328,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0%
Number of Hedge Fund Holders: 50
Honeywell International Inc. (NASDAQ:HON) is a Charlotte, North Carolina-based technology company involved in the production of aerospace products and services. Chilton Investment Company currently has a stake worth $328,000 in Honeywell International Inc. (NASDAQ:HON).
On May 2, Joseph O’Dea at Wells Fargo reiterated an Equal Weight rating on Honeywell International Inc. (NASDAQ:HON) stock. The analyst raised the price target from $196 to $203, citing decent quarterly results. Honeywell International Inc. (NASDAQ:HON) posted revenue of $8.38 billion for Q1 2022, surpassing the consensus estimates by $86.41 million. However, the company recorded an EPS GAAP Actual of $1.64, missing the analysts’ estimates by $0.23.
As of Q1 2022, 50 hedge funds held a stake in Honeywell International Inc. (NASDAQ:HON), down from 51 in the preceding quarter.
2. Lockheed Martin Corporation (NYSE:LMT)
Chilton Investment Company’s Stake Value: $2,504,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 56
Lockheed Martin Corporation (NYSE:LMT) is an American information security and advanced-technology firm with over 114,000 employees globally.
In Q1 2022, Lockheed Martin Corporation (NYSE:LMT) posted an EPS Normalized Actual of $6.44, beating the consensus estimate by $0.26. However, the company missed the revenue estimates by $529.16 million.
Lockheed Martin Corporation (NYSE:LMT) has secured a contract valued at $578 million involving the F-35 Jet Program. The company would provide management and integration support to the program, which is expected to be completed by 2030.
Lockheed Martin Corporation (NYSE:LMT) was mentioned in the Q3 2021 investor letter of Ariel Investments. Here’s what the firm said:
“Conversely, leading global defense contractor Lockheed Martin Corporation (LMT) was the greatest detractor over the trailing one-year period due to pared back F-35 delivery plans and weaker than expected 2022 sales guidance. Nonetheless, we remain confident in LMT’s positioning as they continue to secure a steady stream of lucrative contracts and benefit from a sizeable backlog. Looking ahead, management is focused on driving innovation, underscored by the pending acquisition of Aerojet Rocketdyne enabling vertical integration in propulsion systems for space and missile defense. At today’s valuation, LMT is currently trading at a 32% discount to our estimate of private market value.”
Lockheed Martin Corporation (NYSE:LMT) was held by 56 hedge funds as of Q1 2022.
1. JPMorgan Chase & Co. (NYSE:JPM)
Chilton Investment Company’s Stake Value: $1,715,000
Percentage of Chilton Investment Company’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 110
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services firm providing services to the world’s most renowned enterprises and institutions. The company is one of the leading technology-driven corporations in the world, with an annual investment of $12 billion in technological solutions.
On May 24, James Fotheringham at BMO Capital increased the price target on JPMorgan Chase & Co. (NYSE:JPM) from $150 to $156. However, the analyst maintained a Market Perform rating on JPMorgan Chase & Co. (NYSE:JPM). According to Fotheringham, JPMorgan Chase & Co. (NYSE:JPM) could possibly gain a greater market share in the long-term, but the short-term benefit of increased net interest income is expected to be offset by several headwinds.
Here’s what Ariel Investments said about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:
“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.
“In our view, inflation will not just be a 2021 phenomenon.”
Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”
As of Q1 2022, 110 hedge funds held a stake in JPMorgan Chase & Co. (NYSE:JPM).
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