In this article, we will discuss the 5 stocks to buy in 2021 according to Carl Tiedemann’s TIG Advisors. If you want to read our detailed analysis of Tiedemann’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Buy in 2021 According to Carl Tiedemann’s TIG Advisors.
5. IHS Markit Ltd. (NYSE:INFO)
TIG Advisors’ Stake Value: $137,810,000
Percentage of TIG Advisors’ 13F Portfolio: 4.62%
Number of Hedge Fund Holders: 61
IHS Markit Ltd. (NYSE:INFO) provides vital information, analytics, and solutions for many businesses and markets. It was incorporated in 1959 and is placed fifth on the list of 10 stocks to buy in 2021 according to Carl Tiedemann’s TIG Advisors.
On September 15, IHS Markit Ltd. (NYSE:INFO) and Hazeltree formed a collaborative partnership to provide an integrated treasury and portfolio finance solution based on IHS’ Securities Finance dataset. On July 15, Deutsche Bank analyst Sameer Kalucha increased his price target on IHS Markit Ltd. (NYSE:INFO) to $127 from $123 and reiterated a “Buy” rating on the shares.
Artisan Partners, in its first-quarter 2021 investor letter, mentioned IHS Markit Ltd. (NYSE:INFO). Here is what the fund said:
“We ended our campaign in IHS Markit. IHS Markit is a global provider of information services to the financial services, automotive and energy sectors. Since beginning our investment campaign in 2009, we have been attracted to the company’s position relative to the meaningful secular tailwind driving demand for data and analytics to help guide business decisions. The company announced in Q4 it is merging with S&P Global, one of the largest credit ratings agencies globally and a provider of benchmarks, data and analytics to the global capital and commodities markets. We believe the combination provides a good level of cost and revenue synergies which will help drive profit growth, and S&P Global has a solid track record of acquiring and integrating new businesses. However, we exited our position as the combined entity will be well beyond our mid-cap market cap mandate.”
4. Nuance Communications, Inc. (NASDAQ:NUAN)
TIG Advisors’ Stake Value: $158,169,000
Percentage of TIG Advisors’s 13F Portfolio: 5.31%
Number of Hedge Fund Holders: 72
Nuance Communications, Inc. (NASDAQ:NUAN) is a global software technology company based in the United States that sells voice recognition and artificial intelligence technologies. The company was founded in 1992, and it stands fourth on the list of 10 stocks to buy in 2021 according to Carl Tiedemann’s TIG Advisors.
Artisan Partners, in its second-quarter 2021 investor letter, mentioned Nuance Communications, Inc. (NASDAQ:NUAN). Here is what the fund said:
“We ended our campaign in Nuance Communications. Nuance Communications is a leader in automated voice transcription technologies enabling physicians to document patient encounters more efficiently, accurately and consistently. We believe the company’s DAX product is in the very early stages of its launch with a meaningful profit cycle opportunity ahead. However, the company announced early in Q2 it was being acquired by Microsoft. Thus, we harvested our GardenSM position.”
3. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
TIG Advisors’ Stake Value: $172,546,000
Percentage of TIG Advisors’ 13F Portfolio: 5.79%
Number of Hedge Fund Holders: 69
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is a pharmaceutical business based in the United States that focuses on people suffering from rare illnesses. The company was incorporated in 1992 and is placed third on the list of 10 stocks to buy in 2021 according to Carl Tiedemann’s TIG Advisors.
On August 4, SVB Leerink analyst Geoffrey Porges raised his price target on AstraZeneca PLC (NASDAQ:AZN) to $69 from $63 and kept an “Outperform” rating on the shares.
ClearBridge Investments, in its first-quarter 2021 investor letter, mentioned Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). Here is what ClearBridge Investments has to say about Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) in its letter:
“We also sold biotechnology holding Alexion Pharmaceuticals ahead of its acquisition by AstraZeneca but expect to redouble our efforts in health care through the rest of the year. We see good growth potential in the sector and after full due diligence, have been busy populating our wish list with new names we would like to own.”
2. Kansas City Southern (NYSE:KSU)
TIG Advisors’ Stake Value: $192,617,000
Percentage of TIG Advisors’ 13F Portfolio: 6.46%
Number of Hedge Fund Holders: 61
Kansas City Southern (NYSE:KSU) offers domestic and international rail transportation services based in North America. It was founded in 1887 and is ranked second on the list of 10 stocks to buy in 2021 according to Carl Tiedemann’s TIG Advisors.
On September 15, Wolfe Research analyst Scott Group downgraded Kansas City Southern (NYSE:KSU) to “Peer Perform” from “Outperform” after it was reported that Canadian National Railway Company (NYSE:CNI) decided not to raise its proposal, allowing Kansas City to terminate their merger and conclude a deal with Canadian Pacific Railway Limited (NYSE:CP).
Miller/Howard Investments, in its first-quarter 2021 investor letter, mentioned Kansas City Southern (NYSE:KSU). Here is what the fund said:
“Canadian Pacific Railway (CP) agreed to acquire Kansas City Southern (KSU) in the largest rail deal in over a decade. The merger will create the first rail network connecting Canada, the US, and Mexico, and it should benefit from the passage of the USMCA Trade Agreement. We initiated a position in KSU in Q4 as we expected it to benefit from growing North American trade and viewed it as a consolidation candidate.”
1. Slack Technologies, Inc. (NYSE:WORK)
TIG Advisors’ Stake Value: $205,813,000
Percentage of TIG Advisors’ 13F Portfolio: 6.91%
Number of Hedge Fund Holders: 61
Carl Tiedemann’s TIG Advisors holds 4.65 million shares in Slack Technologies, Inc. (NYSE:WORK), worth $205.81 million, representing 6.91% of their portfolio.
In its fourth-quarter 2020 investor letter, TIG Advisors mentioned Slack Technologies, Inc. (NYSE:WORK). Here is what the fund said:
“We became co-owners in Slack, a channels-based communication service for businesses. In an unexpected twist, a few months later it was acquired by Salesforce.com at roughly a 50% premium to what we had paid.
In accordance with my usual practice, I was planning on writing about our investment in Slack. By laying out my investment hypothesis at the onset of an investment, I hope to enable investors to assess in hindsight whether it worked (or not) because of a plausible investment philosophy consistently applied. Given that Slack has effectively already played out as an investment, this rationale has gone. After all, anyone can make a successful investment decision look smart after the fact. …” (Click here to see the full text)
You can also take a peek at 10 Best Dividend Stocks to Buy Now According to Billionaire Jim Simons and 10 Best Stocks to Invest In Right Now According to Seth Klarman
