In this article, we discuss 5 stocks to buy according to Canyon Capital Advisors. If you want to read our detailed analysis of Friedman and Julis’ history and hedge fund performance, go directly to 10 Stocks to Buy According to Canyon Capital Advisors.
5. Dell Technologies Inc. (NYSE:DELL)
Canyon Capital Advisors’ Stake Value: $128,292,000
Percentage of Canyon Capital Advisors’ 13F Portfolio: 4.36%
Number of Hedge Fund Holders: 62
Dell Technologies Inc. (NYSE:DELL) is a global provider of information technology solutions, products, and services that it designs, develops, produces, distributes, sells, and supports. Evercore ISI analyst Amit Daryanani upgraded Dell Technologies Inc. (NYSE:DELL) to Outperform from In-Line with a $60 price target on March 8.
Canyon Capital Advisors owns more than 2.28 million shares of Dell Technologies Inc. (NYSE:DELL) worth $128.29 million, despite selling 3.54 million shares in the fourth quarter.
A total of 62 hedge funds in the Q4 database of Insider Monkey were bullish on Dell Technologies Inc. (NYSE:DELL), up from 60 funds in the quarter earlier. Elliott Management is a prominent stakeholder of Dell Technologies Inc. (NYSE:DELL), owning a $532.71 million position in the company as of Q4 2021.
In its third-quarter investor letter, Third Point Management mentioned Dell Technologies Inc. (NYSE:DELL). Here is what the fund said:
“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”
4. Santander Consumer USA Holdings Inc. (NYSE:SC)
Canyon Capital Advisors’ Stake Value: $131,112,000
Percentage of Canyon Capital Advisors’ 13F Portfolio: 4.46%
Number of Hedge Fund Holders: 15
Santander Consumer USA Holdings Inc. (NYSE:SC) is a technology-driven, full-service consumer finance corporation focusing on car loans and third-party servicing to more than 2.5 million clients throughout its credit spectrum. Santander Consumer USA Holdings Inc. (NYSE:SC) is the fourth-largest holding of Canyon Capital Advisors.
In the fourth quarter of 2021, 15 hedge funds disclosed having positions in Santander Consumer USA Holdings Inc. (NYSE:SC) worth $1.06 billion. In addition, Elliott Management held a significant stake in Santander Consumer USA Holdings Inc. (NYSE:SC) in Q4, owning 16.74 million shares worth $223.4 million.
The Canyon Capital Advisors fund began building its stake in Santander Consumer USA Holdings Inc. (NYSE:SC) in the first quarter of 2014. In the fourth quarter of 2021, Canyon Capital Advisors’ held 3.12 million shares worth about $131.11 million. The hedge fund increased its stake in Santander Consumer USA Holdings Inc. (NYSE:SC) by 213% in the fourth quarter of 2021.
3. Tenet Healthcare Corporation (NYSE:THC)
Canyon Capital Advisors’ Stake Value: $137,138,000
Percentage of Canyon Capital Advisors’ 13F Portfolio: 4.66%
Number of Hedge Fund Holders: 49
Tenet Healthcare Corporation (NYSE:THC) is a healthcare company that offers various services. Hospital Operations and Other, Ambulatory Care, and Conifer are the company’s three segments. At the end of the fourth quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $2.15 billion in Tenet Healthcare Corporation (NYSE:THC), up from 47 the preceding quarter worth $1.91 billion.
On March 7, Jefferies analyst Brian Tanquilut boosted his price target on Tenet Healthcare Corporation (NYSE:THC) to $125 from $120 and kept a Buy rating on the stock after the company revealed that it would forego a public spinoff of its Conifer business.
Canyon Capital Advisors started building its position in Tenet Healthcare Corporation (NYSE:THC) in the fourth quarter of 2012. In the fourth quarter of 2021, it held over 1.68 million shares of the company, valued at $137.14 million. The company represents 4.66% of the hedge fund’s 13F portfolio.
In its Q3 2021 investor letter, Oakmark Funds mentioned Tenet Healthcare Corporation (NYSE:THC). Here is what the fund said:
“Tenet may be best known as the second-largest public hospital chain in the U.S., but its largest business is outpatient acute care centers. In early 2020, investors fled the health care industry because of the great uncertainty that the pandemic presented. The early days of the pandemic were very hard on the hospital industry especially, but as the Covid-19 surge peaked and diminished, hospitals were able to schedule elective procedures and engage in profitable activities.”
2. CBL & Associates Properties, Inc. (NYSE:CBL)
Canyon Capital Advisors’ Stake Value: $137,168,000
Percentage of Canyon Capital Advisors’ 13F Portfolio: 4.66%
Number of Hedge Fund Holders: 11
CBL & Associates Properties, Inc. (NYSE:CBL) is a United States-based real estate investment trust that focuses in retail malls in the Midwest and Southeast. Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors was the lead stakeholder in CBL & Associates Properties, Inc. (NYSE:CBL). The fund owns more than 4.40 million shares of stock worth $137.17 million.
On January 27, EVgo, Inc. (NASDAQ:EVGO) and CBL & Associates Properties, Inc. (NYSE:CBL) announced a partnership to provide EVgo rapid charging to various retail locations, including Kansas’ first EVgo station.
Insider Monkey discovered 11 hedge funds had positions in CBL & Associates Properties, Inc. (NYSE:CBL) at the end of the fourth quarter of 2021. These holdings were worth a total of $296.11 million.
1. Berry Global Group, Inc. (NYSE:BERY)
Canyon Capital Advisors’ Stake Value: $181,890,000
Percentage of Canyon Capital Advisors’ 13F Portfolio: 6.19%
Number of Hedge Fund Holders: 43
Berry Global Group, Inc. (NYSE:BERY) provides tailored solutions for value-added engineered materials, non-woven specialty materials, and consumer packaging. Berry Global Group, Inc. (NYSE:BERY) stock represents 6.19% of Canyon Capital Advisors’ fourth quarter securities, with the hedge fund holding 2.47 million shares worth $181.89 million.
Morgan Stanley analyst Angel Castillo lifted his price objective on Berry Global Group, Inc. (NYSE:BERY) to $79 from $71 on January 20 and kept an Equal Weight rating on the stock. Ricky Sandler’s Eminence Capital is the most significant stakeholder of Berry Global Group, Inc. (NYSE:BERY), with 2.71 million shares worth $199.68 million.
As of the end of the fourth quarter, 43 hedge funds in Insider Monkey’s database held stakes in Berry Global Group, Inc. (NYSE:BERY), an increase compared to 39 funds in the preceding quarter.
Rhizome Partners, an investment management firm, in its third-quarter 2021 investor letter, mentioned Berry Global Group, Inc. (NYSE:BERY). Here is what the fund said:
“Berry Global does what Berry Global does well. It generates a good chunk of cash flow. Building on our Berry Global experience, we built a 3% position in the SPAC warrants of Gores Holdings V. The company purchased the aluminum-packaging business of Ardagh and now trades as Ardagh Metal Packaging. Unlike most SPACs, Gores has a track record of achieving its EBITDA forecast. Ardagh Metal trades at a significant discount to Ball Corporation and has more exposure to higher-margin specialty cans. We believe the SPAC warrants have 3-4x upside and the common stock has the potential to double. The company may force us to exchange the warrants for common shares at a premium. In that case, our upside will be capped at about a triple.”
You can also take a peek at Top 6 Stocks to Buy Today According to Stephen Feinberg’s Cerberus Capital Management and 10 Stocks to Buy According to Himanshu Gulati’s Antara Capital
