In this article, we discuss 5 stocks to buy according to Mark McMeans’ Brasada Capital Management. If you want to read our detailed analysis of McMeans’ investment philosophy and performance, go directly to 10 Stocks to Buy According to Mark McMeans’ Brasada Capital Management.
5. American Tower Corporation (NYSE:AMT)
Brasada Capital Management’s Stake Value: $13,817,000
Percentage of Brasada Capital Management’s 13F Portfolio: 3.1%
Number of Hedge Fund Holders: 52
American Tower Corporation (NYSE:AMT) is a real estate investment trust with its main office in Boston, Massachusetts. It is a global owner and operator of wireless and broadcast communications infrastructure. It is expected that American Tower Corporation (NYSE:AMT), which has over 43,000 towers in key locations across the United States, would profit significantly from 5G, the Internet of Things (IoT), and next-gen TV technologies.
On July 29, Deutsche Bank analyst Matthew Niknam reiterated a ‘Hold’ rating on American Tower Corporation (NYSE:AMT) and boosted his price objective from $270 to $285. During Q2 2022, Brasada Capital Management sold 1,826 American Tower Corporation (NYSE:AMT) shares, taking its total stake to nearly $13.82 million. The company is the fund’s fifth-largest holding and accounted for 3.1% of Brasada Capital Management’s portfolio.
Among the hedge funds tracked by Insider Monkey, 52 funds were bullish on American Tower Corporation (NYSE:AMT) at the end of Q2 2022. Charles Akre’s Akre Capital Management is the leading stakeholder of the company, with approximately 6.97 million shares worth $1.78 billion.
Here is what ClearBridge Investments had to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:
“The top contributor was our sole real estate holding American Tower (NYSE:AMT), the leading independent wireless tower operator with roughly 221,000 properties globally, including about 43,000 in the U.S., 76,000 in India and 23,000 in Brazil. The company’s business model is to lease space on its towers to predominantly wireless carriers on a long-term basis, generally ranging 5–10 years in duration, with built-in price escalators. This approach results in a stable and predictable cash flow business with high incremental margins — attractive qualities especially in volatile markets like the second quarters.”
4. Danaher Corporation (NYSE:DHR)
Brasada Capital Management’s Stake Value: $15,044,000
Percentage of Brasada Capital Management’s 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 82
Danaher Corporation (NYSE:DHR), founded in 1969 and based in Washington, manufactures, designs, and markets professional, industrial, medical, and commercial products and services. Brasada Capital Management reduced its stake in Danaher Corporation (NYSE:DHR) by 5% in Q2 2022, holding about 59,341 shares worth $15.04 million, representing 3.37% of the total securities.
On August 24, Credit Suisse analyst Dan Leonard commenced coverage of Danaher Corporation (NYSE:DHR), rating the stock as ‘Outperform’ with a price target of $340. The analyst concluded that after the epidemic, the firm had become stronger.
Ken Fisher’s Fisher Asset Management is a prominent shareholder of Danaher Corporation (NYSE:DHR) as of Q2 2022, with 3.84 million shares worth $973.27 million. Another notable stakeholder of Danaher Corporation (NYSE:DHR) is Dan Loeb’s Third Point, with 2.30 million shares of the company. Overall, 82 hedge funds in the database of Insider Monkey owned positions in Danaher Corporation (NYSE:DHR) at the end of June, with a collective stake value of $4.84 billion.
In its Q2 2022 investor letter, Weitz Investment Management mentioned Danaher Corporation (NYSE:DHR). Here is what the fund said:
“Consistent with that approach, portfolio activity among our long holdings tilted toward purchases. We added to almost half our holdings by varying degrees, and we were pleased to initiate new positions in Danaher (NYSE:DHR). Danaher is a provider of instruments and diagnostic tools to medical, life science, and other desirable end-markets worldwide. The business generate significant free cash flow, possess strong competitive positions, and have excellent management teams with demonstrated acquisition records.”
3. Waste Connections, Inc. (NYSE:WCN)
Brasada Capital Management’s Stake Value: $16,078,000
Percentage of Brasada Capital Management’s 13F Portfolio: 3.6%
Number of Hedge Fund Holders: 34
Waste Connections, Inc. (NYSE:WCN) provides comprehensive solid waste management services. Among the hedge funds tracked by Insider Monkey, 34 funds were bullish on Waste Connections, Inc. (NYSE:WCN) at the end of June 2022, compared to 35 funds in the earlier quarter.
On August 9, Deutsche Bank analyst Kyle White maintained a ‘Buy’ rating on Waste Connections, Inc. (NYSE:WCN) and increased his price objective to $154 from $145. White believed that the company outperformed forecasts in the second quarter thanks to continued solid pricing and upped its full-year outlook as anticipated.
Durable Capital Partners, with approximately 1.93 million shares worth $239.21 million, is the largest shareholder of Waste Connections, Inc. (NYSE:WCN). Brasada Capital Management reduced its position in Waste Connections, Inc. (NYSE:WCN) by selling 3,585 shares in Q2 2022. This made its stake in Waste Connections, Inc. (NYSE:WCN) equal 129,706 shares worth $16.08 million.
2. Microsoft Corporation (NASDAQ:MSFT)
Brasada Capital Management’s Stake Value: $17,310,000
Percentage of Brasada Capital Management’s 13F Portfolio: 3.88%
Number of Hedge Fund Holders: 258
Brasada Capital Management reduced its position in Microsoft Corporation (NASDAQ:MSFT) by 5% or 3,253 shares. The hedge fund’s total holding of 67,400 shares was worth more than $17.31 million as of June 30. This represented 3.88% of its portfolio. According to our database, the number of long hedge fund positions in Microsoft Corporation (NASDAQ:MSFT) decreased to 258 at the end of the second quarter, compared to 259 in the previous quarter. Fisher Asset Management is Microsoft Corporation (NASDAQ:MSFT)’s largest shareholder, with shares worth $7.37 billion.
John DiFucci of Guggenheim initiated coverage of Microsoft Corporation (NASDAQ:MSFT) on August 11, assigning the stock a ‘Neutral’ rating and a $292 price target.
Here is what Carillon Tower Advisers said about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
1. Alphabet Inc. (NASDAQ:GOOG)
Brasada Capital Management’s Stake Value: $18,430,000
Percentage of Brasada Capital Management’s 13F Portfolio: 4.13%
Number of Hedge Fund Holders: 153
Brasada Capital Management has been bullish on Alphabet Inc. (NASDAQ:GOOG) since the fourth quarter of 2017. Alphabet Inc. (NASDAQ:GOOG) tops the list of stocks to buy according to Mark McMeans’ Brasada Capital Management. The stock accounted for about 4.13% of Brasada Capital Management’s portfolio, and the hedge fund owned an $18.43 million stake in the firm.
On August 23, Casa Systems, Inc. (NASDAQ:CASA) and Alphabet Inc. (NASDAQ:GOOG) announced a strategic technology and distribution agreement to enhance and distinguish their respective integrated cloud-native software and service offerings.
On August 3, Tigress Financial analyst Ivan Feinseth raised his price target on Alphabet Inc. (NASDAQ:GOOG) from $183 to $186 while maintaining a ‘Strong Buy’ rating. He did this by pointing to the company’s Q2 earnings as proof of the strength of its core businesses in Cloud and Search.
Alphabet Inc. (NASDAQ:GOOG.A) was in 153 hedge fund portfolios at the end of the second quarter of 2022, while there were 160 hedge funds in our database with Alphabet Inc. (NASDAQ:GOOG.A) positions at the end of the previous quarter.
Here is what Horos Asset Management specifically said about Alphabet Inc. (NASDAQ:GOOG.A) in its second quarter 2022 investor letter:
“As we pointed out in the previous quarterly letter, high inflation and, more specifically, the consequent interest rate hikes by the vast majority of central banks, led to companies with high growth and future cash flow generation expectations being the most severely hit in this year’s market downturn. This category also includes technology companies with high quality businesses, but which traded at demanding valuations. This is the case of Alphabet Inc. (NASDAQ:GOOG), a company in which we are investing again two and a half years after our exit….(Click here to read the full text).”
You can also take a peek at 10 Stocks to Buy According to Cheyne Capital and 10 Stocks to Buy According to John Hurley’s Cavalry Asset Management.
