Below we present the list of 5 stocks hedge fund legend Donald Sussman is buying. If you want to read our detailed analysis of Donald Sussman’s history, investment philosophy, and hedge fund performance, and go directly to 10 Stocks Hedge Fund Legend Donald Sussman is Buying.
5. Cardinal Health, Inc. (NYSE:CAH)
Kicking off the second half of our list is Cardinal Health, Inc. (NYSE:CAH), which Donald Sussman’s Paloma Partners bought 104,289 shares of during Q3, valued at $5.16 million at the end of September. Overall hedge fund ownership of CAH fell by 20% between Q3 2020 and Q3 2021.
Cardinal Health, Inc. (NYSE:CAH) is one of the rare healthcare services companies that also happens to be a dividend aristocrat, having boosted its dividend payments each year for a quarter-century. Cardinal Health, Inc. (NYSE:CAH)’s shares currently boast a forward yield of 3.75%. Cardinal Health pulled in $43.97 billion in revenue during Q3, a 12.55% year-over-year surge, though its earnings of $1.29 missed estimates by 6%.
4. Noble Corporation (Cayman Island) (NYSE:NE)
Paloma Partners also opened a new position in Noble Corp (Cayman Island) (NYSE:NE) during Q3, consisting of 210,084 shares valued at $5.69 million. Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors has the largest stake in Noble Corp among the funds tracked by Insider Monkey, owning 3.55 million shares.
Noble Corp (Cayman Island) (NYSE:NE) shares have gained 9% over the past month, making up for the stock’s losses after Noble Corp (Cayman Island) (NYSE:NE) announced in November that it would combine with Maersk Drilling in a primarily all-stock transaction. The tie-up is expected to produce annual cost synergies of $125 million and will give the drilling company a combined 20 floaters and 19 jack-up rigs.
3. Merck & Co., Inc. (NYSE:MRK)
Paloma Partners launched a position in Merck & Co., Inc. (NYSE:MRK) during Q3 that was valued at just over $7 million at the end of September, as the fund bought 93,256 shares of the pharmaceutical giant. Hedge fund ownership of Merck has remained remarkably steady over the years, with between 71 and 85 hedge funds owning the stock every quarter since 2016.
One of the 10 Healthcare Dividend Stocks with Over 3% Yield, Merck & Co., Inc. (NYSE:MRK)’s dividend currently yields 3.59%.
In its Q3 investor letter, Miller Howard Investments said that Merck’s high dividend is reasonably safe thanks to its strong cash flow and balance sheet and noted that Merck and several other pharma giants have low valuations because of undue market pessimism about their ability to replace their current blockbuster drugs with new offerings.
2. Asana Inc. (NYSE:ASAN)
Donald Sussman’s firm opened a 71,165-share stake in Asana Inc. (NYSE:ASAN) during Q3, which was valued at $7.39 million on September 30. Other hedge funds were piling into shares of the work platform company as well, as there was a 50% surge in ownership of the stock during Q3, a quarter during which ASAN shares jumped by over 50%.
After gaining over 400% in the 13 months following its October 2020 IPO, Asana Inc. (NYSE:ASAN) shares have tumbled by over 50% since November 19. That dip prompted CEO Dustin Moskovitz to purchase 1.25 million shares for over $97 million in late December, a big vote of confidence in Asana Inc. (NYSE:ASAN) from the man in charge of overseeing it and who likely knows its future prospects better than anyone.
1. Otis Worldwide Corporation (NYSE:OTIS)
Donald Sussman’s biggest new stock purchase of Q3 was in the shares of Otis Worldwide Corporation (NYSE:OTIS), of which Paloma Partners bought 170,426. That stake was valued at $14.02 million at the end of September, making it the fund’s fifth-largest long position.
Otis Worldwide Corporation (NYSE:OTIS) shares gained 33% in 2021 as Otis Worldwide Corporation (NYSE:OTIS) posted impressive quarterly results for both the second and third quarters of the year. The elevator maker’s revenue rose by 22% year-over-year in Q2 to $3.7 billion amid strengthening demand and recovery in its markets, then beat estimates again in Q3, coming in at $3.62 billion.
You can also take a peek at the 17 Safest European Countries for Solo Female Travelers and 15 Most Profitable Industries in the World in 2021.
