In this article, we discuss 5 new stock picks of Brian Higgins’ King Street Capital. If you want our detailed analysis of these stocks, go directly to 10 New Stock Picks of Brian Higgins’ King Street Capital.
5. Alpha Partners Technology Merger Corp. (NASDAQ:APTMU)
King Street Capital’s Stake Value: $9,890,000
Percentage of King Street Capital’s 13F Portfolio: 0.83%
Number of Hedge Fund Holders: N/A
King Street Capital, as of the third quarter of 2021, bought 1 million Alpha Partners Technology Merger Corp. (NASDAQ:APTMU) shares, worth $9.89 million, representing 0.83% of the fund’s total investments.
Alpha Partners Technology Merger Corp. (NASDAQ:APTMU) is a blank check company which was created with a primary focus on technology businesses that address market needs through the application of software or technology-led business models. To date, Alpha Partners Technology Merger Corp. (NASDAQ:APTMU) has not engaged in any operations.
4. Vornado Realty Trust (NYSE:VNO)
King Street Capital’s Stake Value: $12,603,000
Percentage of King Street Capital’s 13F Portfolio: 1.06%
Number of Hedge Fund Holders: 25
Vornado Realty Trust (NYSE:VNO) is a New York-based real estate investment trust which mainly focuses on office buildings and retail spaces in Manhattan. Brian Higgins, via King Street Capital, purchased a $12.6 million position in Vornado Realty Trust (NYSE:VNO) in the third quarter, which represents 1.06% of the firm’s total 13F portfolio.
Vornado Realty Trust (NYSE:VNO), on November 1, reported earnings for the third quarter. The company posted a GAAP EPS of $0.20, outperforming estimates by $0.09. The Q3 revenue of Vornado Realty Trust (NYSE:VNO) equaled $409.21 million, up 12.43% year-over-year, exceeding estimates by $28.53 million.
As of September 2021, 25 hedge funds reported owning stakes in Vornado Realty Trust (NYSE:VNO), down from 29 funds in the preceding quarter. One of the largest Vornado Realty Trust (NYSE:VNO) shareholders in the third quarter is Masterton Capital Management, with 457,098 shares worth $19.2 million.
Here is what Baron Funds has to say about Vornado Realty Trust (NYSE:VNO) in its Q2 2021 investor letter:
“Vornado Realty Trust: Vornado is a REIT that owns a high-quality portfolio of office and street retail assets concentrated in New York City. As economic activity improves and employees return to work, we expect leasing and occupancy trends to improve. At its recent price of $47, we believe the shares are attractively valued at a 40% discount to our estimate of net asset value of $78 per share.”
3. Highwoods Properties, Inc. (NYSE:HIW)
King Street Capital’s Stake Value: $15,351,000
Percentage of King Street Capital’s 13F Portfolio: 1.29%
Number of Hedge Fund Holders: 19
Highwoods Properties, Inc. (NYSE:HIW) is a new arrival in Brian Higgins’ Q3 portfolio, with his hedge fund buying 350,000 shares of the company, worth $15.3 million, representing 1.29% of the total securities. Highwoods Properties, Inc. (NYSE:HIW) is a real estate investment trust that owns and operates properties in the elite business districts of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond, and Tampa.
Posting its Q3 results on October 26, Highwoods Properties, Inc. (NYSE:HIW) reported a GAAP EPS of $0.69, beating estimates by $0.32. Revenue over the period totaled $195.50 million, up 7.98% year-over-year, exceeding estimates by $1.79 million.
In the third quarter 2021, 19 hedge funds tracked by Insider Monkey were long Highwoods Properties, Inc. (NYSE:HIW), up from 14 funds in the preceding quarter. Waterfront Capital Partners is the largest Highwoods Properties, Inc. (NYSE:HIW) stakeholder, with 905,109 shares worth $39.6 million.
Here is what Miller/Howard Investments has to say about Highwoods Properties, Inc. (NYSE:HIW) in its Q1 2021 investor letter:
“We also bought Highwoods Properties (HIW), a REIT that owns office buildings in the Sun Belt that are expected to do well post pandemic.”
2. VICI Properties Inc. (NYSE:VICI)
King Street Capital’s Stake Value: $21,308,000
Percentage of King Street Capital’s 13F Portfolio: 1.79%
Number of Hedge Fund Holders: 47
VICI Properties Inc. (NYSE:VICI) is a New York-based REIT that invests mainly in casino properties. Brian Higgins, via King Street Capital, holds 750,000 shares of VICI Properties Inc. (NYSE:VICI), worth $21.3 million, representing 1.79% of the firm’s Q3 portfolio.
In the third quarter earnings report, published on October 27 by VICI Properties Inc. (NYSE:VICI), the company posted a GAAP EPS of $0.28, missing estimates by $0.18. Revenue over the period totaled $375.70 million, up 10.61% year-over-year, beating estimates by $287,570.
Morgan Stanley analyst Thomas Allen resumed coverage of VICI Properties Inc. (NYSE:VICI) with an Equal Weight rating and a $32 price target on December 15. While VICI Properties Inc. (NYSE:VICI) has increased scale, diversified its tenant base, and “further proven itself as a blue chip REIT”, the analyst is more concerned about growth than he has been in the past given that gaming REITs have historically driven much of their annual AFFO growth through acquisitions and the market has become more competitive.
Of the 47 hedge funds that were bullish on VICI Properties Inc. (NYSE:VICI), Gates Capital Management is the largest stakeholder of the company, with almost 7 million shares worth $198.8 million, increasing its stake in the company by 98% in the third quarter.
1. Ardagh Metal Packaging S.A. (NYSE:AMBP)
King Street Capital’s Stake Value: $24,900,000
Percentage of King Street Capital’s 13F Portfolio: 2.10%
Number of Hedge Fund Holders: 27
Ardagh Metal Packaging S.A. (NYSE:AMBP), a leading supplier of recyclable metal beverage cans to brand owners, is one of the newest additions to King Street Capital’s Q3 portfolio, with the hedge fund buying 2.5 million shares of Ardagh Metal Packaging S.A. (NYSE:AMBP), worth $24.9 million, representing 2.10% of the firm’s total investments.
In the third quarter of 2021, 27 hedge funds reported owning stakes worth $400.2 million in Ardagh Metal Packaging S.A. (NYSE:AMBP). The leading company stakeholder is Brahman Capital, with a $73.1 million position as of Q3.
Ardagh Metal Packaging S.A. (NYSE:AMBP) posted its third quarter results on October 28. EPS in the period totaled $0.09, in line with analysts’ consensus estimates. The $1.04 billion revenue outperformed estimates by $16.57 million.
Deutsche Bank analyst Kyle White on December 20 lowered the price target on Ardagh Metal Packaging S.A. (NYSE:AMBP) to $12 from $13 and kept a Buy rating on the shares. The analyst expects consumer spending on goods to normalize back to more flattish levels of growth rather than the large upticks experienced following the height of the pandemic. He views this as a negative situation for packaging companies “as less goods equate to less packaging overall,” and sees containerboard and box demand most at risk from lower spending on consumer products.
You can also take a look at 10 Stocks Under Investors’ Radar After Posting Their Financial Results and 10 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital.
