In this article, we will discuss the 5 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. If you want to read our detailed analysis of Tewksbury’s history, investment philosophy, and hedge fund performance, go directly to the 10 Large-Cap Stocks to Buy According to Matthew Tewksbury’s Stevens Capital.
5. Microsoft Corporation (NASDAQ:MSFT)
Stevens Capital Stake Value: $11,760,000
Percentage of Stevens Capital’s 13F Portfolio: 3.44%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT), a global tech company based in the United States, has a bullish outlook from the analysts. On October 25, KeyBanc analyst Michael Turits boosted Microsoft’s (NASDAQ: MSFT) price objective to $365.00 (from $342.00) while maintaining an “Overweight” rating.
Microsoft Corporation (NASDAQ:MSFT) is the latest addition to Matthew Tweksbury’s portfolio, with Stevens Capital purchasing 43,410 shares for $11.76 million.
Microsoft Corporation (NASDAQ:MSFT) stands fifth on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. Stephen J. Errico’s Locust Wood Capital Advisers is the most significant stakeholder of the company, with 225,703 shares worth $63.63 million.
In its second quarter of 2021 investor letter, Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
4. Apple Inc. (NASDAQ:AAPL)
Stevens Capital Stake Value: $13,794,000
Percentage of Stevens Capital’s 13F Portfolio: 4.03%
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and sells smartphones, laptops, tablets, wearables, and accessories, as well as several other products and services. Due to ongoing component shortages in the semiconductor industry, Apple Inc. (NASDAQ:AAPL) has lowered its iPhone 13 production objectives for this year.
Stevens Capital holds 100,715 shares in Apple Inc. (NASDAQ:AAPL) worth over $13.79 million, representing 4.03% of its portfolio. The hedge fund’s stake in the stock increased by 68% in the second quarter, latest data reveals. DA Davidson analyst Tom Forte raised Apple Inc.’s (NASDAQ:AAPL) price objective to $175 from $167 on October 19, maintaining his “Buy” recommendation on the company. According to the analyst, the outbreak has benefitted the company’s goods, with consumers buying more computers and tablets after being forced to work and learn remotely.
Shares of Apple Inc. (NASDAQ:AAPL) surged 29.24% in the past 12 months, and the company ranks fourth on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. In addition, in the second quarter, hedge fund sentiment improved for Apple Inc. (NASDAQ:AAPL). According to data from Insider Monkey, 138 elite hedge funds had shares in the company at the end of the second quarter, up from 127 the previous quarter.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Stevens Capital Stake Value: $16,551,000
Percentage of Stevens Capital’s 13F Portfolio: 4.84%
Number of Hedge Fund Holders: 271
On October 22, Credit Suisse analyst Stephen Ju lowered his price target on the iconic online shopping giant Amazon.com, Inc. (NASDAQ:AMZN) to $4,200 from $4,700 and kept an “Outperform” rating on the shares. His lower prediction assumes higher fulfillment and shipping costs for the remainder of 2021 and into 2022. The hedge fund chaired by Matthew Tewksbury holds 4,811 shares in Amazon.com, Inc. (NASDAQ:AMZN), worth over $16.55 million.
Worm Capital LLC, an investment management firm, in its third-quarter 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
Amazon, for instance, accumulates marginal gains by compressing their costs year after year for consumers, creating an infrastructure and logistics network unrivaled by its peers. In the short-term, the market can often misunderstand the intentions of the “marginal gain accumulators,” but over time, their value-creation becomes obvious in hindsight.”
2. Tesla, Inc. (NASDAQ:TSLA)
Stevens Capital Stake Value: $17,128,000
Percentage of Stevens Capital’s 13F Portfolio: 5.01%
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) develops, produces, and sells electric automobiles and the batteries that power them, and was co-founded by acclaimed inventor and entrepreneur Elon Musk in 2003. RBC Capital analyst Joseph Spak raised his price target on Tesla, Inc. (NASDAQ:TSLA) to $800 from $755 on October 21, but maintained his “Sector Perform” rating on the stock following the company’s third-quarter results beat.
Matthew Tewksbury’s Stevens Capital raised its position in Tesla, Inc. (NASDAQ:TSLA) by 228% to 25,200 shares in the second quarter, accounting for over 5.01% of the overall portfolio. In the third quarter of 2021, Tesla, Inc. (NASDAQ:TSLA) had an EPS of $1.86, beating estimates by $0.25. In addition, the company’s revenue clocked in at $13.76 billion, surpassing the forecast by $60 million.
The shares of Tesla, Inc. (NASDAQ:TSLA) have shown an impressive performance over the last 12 months, gaining 116.45% in value. The company ranks second on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital. However, Tesla, Inc. (NASDAQ:TSLA) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 60 at the end of the second quarter compared to 62 positions in the previous quarter.
In its third-quarter 2021 investor letter, Worm Capital LLC mentioned Tesla, Inc. (NASDAQ:TSLA). Here is what the fund said:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
The way we see it, Tesla is perhaps the generational example of the marginal gain aggregation theory. It’s also been our largest position for several years now. There are many ways to characterize and value this business (see previous letters for longform write-ups), but perhaps the best way to think about the company is that it is a highly vertically-integrated software and hardware firm that’s devoted entirely to aggregating marginal gains across its organization. The goal? Lower costs, improve thruputs, and dramatically enhance the value proposition—at scale—for consumers…” (Click here to see the full text).
1. CME Group Inc. (NASDAQ:CME)
Stevens Capital Stake Value: $17,698,000
Percentage of Stevens Capital’s 13F Portfolio: 5.18%
Number of Hedge Fund Holders: 62
CME Group Inc. (NASDAQ:CME), which runs contract markets for trading futures and options on futures contracts worldwide, stands first on the list of 10 large-cap stocks to buy according to Matthew Tewksbury’s Stevens Capital.
Matthew Tewksbury’s Stevens Capital increased its hold in CME Group Inc. (NASDAQ:CME) by 11% in the second quarter, ending the period with 83,213 shares of the company. The fund has a $17.70 million stake in the company. Overall, 62 hedge funds in Insider Monkey’s database of 873 funds are bullish on the company. On October 14, CME Group Inc. (NASDAQ:CME) was upgraded at Atlantic Equities to “Overweight” from “Neutral” with a price target of $230.
In August, CME Group Inc. (NASDAQ:CME) announced a quarterly dividend of $0.90 per share, in line with the previous. GuardCap Asset Management is the company’s leading shareholder, with $798.77 million stake in CME Group Inc. (NASDAQ:CME).
Cooper Investors, an investment management firm, in its first-quarter 2021 investor letter, mentioned CME Group Inc. (NASDAQ:CME). Here is what the fund said:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
You can also take a peek at 15 Best Short Squeeze Stocks To Buy Now and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners
