In this article, we discuss 5 stocks to buy now according to Munir Javeri’s 3G Sahana Capital Management. If you want to read our detailed analysis of Javeri’s history and hedge fund performance, go directly to 9 Stocks to Buy Now According to Munir Javeri’s 3G Sahana Capital Management.
5. Bath & Body Works, Inc. (NYSE:BBWI)
3G Sahana Capital Management Stake Value: $70,107,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 7.88%
Number of Hedge Fund Holders: 62
Bath & Body Works, Inc. (NYSE:BBWI) is a specialty business that is home to America’s favourite fragrances, specializing in fine fragrance mists, body lotions, body creams, 3-wick candles, home fragrance diffusers, and liquid hand soaps. 3G Sahana Capital Management reduced its stake in Bath & Body Works, Inc. (NYSE:BBWI) during the fourth quarter of 2021 by around 14%. The fund now owns over 1 million shares of Bath & Body Works, Inc. (NYSE:BBWI), worth close to $70.11 million, representing 7.88% of the portfolio.
Out of the 924 elite hedge funds tracked by Insider Monkey, 62 were long Bath & Body Works, Inc. (NYSE:BBWI) at the close of the fourth quarter, in contrast to 56 hedge funds that were bullish on the company in Q3 2021.
After the Q4 results, B. Riley analyst Susan Anderson cut her Bath & Body Works, Inc. (NYSE:BBWI) price target to $76 from $91 and reaffirmed a Buy rating. Due to margin issues, the company’s projection was a little weaker than Wall Street’s expectations, according to Anderson, but it was still within its long-term objective EBIT margin.
4. Charter Communications, Inc. (NASDAQ:CHTR)
3G Sahana Capital Management Stake Value: $70,734,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 7.95%
Number of Hedge Fund Holders: 73
Charter Communications, Inc. (NASDAQ:CHTR) is a telecommunications and media business based in the United States that offers Spectrum services. By the end of Q4 2021, 73 hedge funds tracked by Insider Monkey held stakes in Charter Communications, Inc. (NASDAQ:CHTR), valued at roughly $16.59 billion. In comparison, 74 hedge funds held stakes in the company in the preceding quarter, worth $18.79 billion.
After the Q4 results, Deutsche Bank analyst Bryan Kraft decreased his price objective on Charter Communications, Inc. (NASDAQ:CHTR) to $650 from $725 and maintained a Hold rating. In addition to that, long-term projections for broadband subscriber growth, revenue, EBITDA, and free cash flow all had been decreased by the analyst.
3G Sahana Capital Management has 108,493 shares of Charter Communications, Inc. (NASDAQ:CHTR) worth $70.73 million, accounting for 7.95% of the fund’s total portfolio, according to regulatory filings for the fourth quarter. This is a 50% increase over the previous quarter when the hedge fund owned 72,337 shares in the company.
ClearBridge Investments, in its first quarter 2021 investor letter, highlighted a few stocks, and Charter Communications, Inc. (NASDAQ:CHTR) was one of them. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where Charter Communications, Inc. (NASDAQ:CHTR) trailed after generating robust returns earlier in the recovery.”
3. Booking Holdings Inc. (NASDAQ:BKNG)
3G Sahana Capital Management Stake Value: $145,830,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 16.39%
Number of Hedge Fund Holders: 92
Booking Holdings Inc. (NASDAQ:BKNG) is a supplier of online travel and related services with six major brands: Booking.com, Priceline, agoda, Rentalcars.com, KAYAK, and OpenTable. It serves customers and local partners in over 220 countries and territories. 3G Sahana Capital Management first bought a stake in Booking Holdings Inc. (NASDAQ:BKNG) in the third quarter of 2012. In Q4 2021, the hedge fund increased its position in Booking Holdings Inc. (NASDAQ:BKNG) by 91% to 60,782 shares, accounting for 16.39% of the overall portfolio.
According to the fourth quarter database of Insider Monkey, 92 hedge funds were long Booking Holdings Inc. (NASDAQ:BKNG), down from 96 funds holding stakes in the company in the quarter earlier. Natixis Global Asset Management’s Harris Associates is one of the prominent stakeholders of Booking Holdings Inc. (NASDAQ:BKNG) in the fourth quarter if 2021, with 668,851 shares worth over $1.60 billion.
In its Q4 2021 investor letter, Wedgewood Partners, an investment management firm, talked about Booking Holdings Inc. (NASDAQ:BKNG). Here’s what the fund said:
“Booking Holdings also contributed to performance, though less so compared to most portfolio holdings. The Company reported substantial room-night growth compared to the year ago period, which was heavily affected by COVID. Intra-quarter, Booking Holdings consolidated room-nights approached almost 90% of pre-COVID levels because both domestic and international travelers have had to endure a few years of pent-up travel aspirations and are being eased back into the market with various governments relaxing some of their most stringent, COVID-related travel restrictions. Although infection rates related to new COVID variants (particularly Omicron) have risen subsequent to last quarter, we think populations around the world are coming to grips with the risk of infection and will inevitably return to spending on travel. Booking Holdings represents a key source of demand for the small and medium sized hospitality industry and has the second largest global booking volume for alternative accommodations. The latter observation is significantly misunderstood by investors and represents substantial upside to the stock, regardless of the timing of the recovery of traditional hospitality spending; hence, we added to our position in Booking Holdings.”
2. Comcast Corporation (NASDAQ:CMCSA)
3G Sahana Capital Management Stake Value: $181,589,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 20.41%
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA) is a Philadelphia-based media, entertainment, and communications conglomerate. In Q4 2021, 3G Sahana Capital Management increased its position in Comcast Corporation (NASDAQ:CMCSA) by 37%, holding a total of 3.61 million shares worth over $181.59 million. First Eagle Investment Management is the leading Comcast Corporation (NASDAQ:CMCSA) stakeholder, with a $1.48 million stake in the company.
Truist analyst Greg Miller downgraded Comcast Corporation (NASDAQ:CMCSA) to Hold from Buy on March 1, with a $50 price target, down from $70. Increased broadband competition, according to the analyst, would probably result in flow share losses linked with “new” fibre and wireless technologies due to worries of increased post-pandemic churn.
In the fourth quarter of 2021, 80 funds were bullish on Comcast Corporation (NASDAQ:CMCSA), with stakes equalling $8.64 billion, as compared to 75 funds in the preceding quarter, holding stakes in Comcast Corporation (NASDAQ:CMCSA) worth $8.55 billion.
Artisan Partners, in its Q4 2021 investor letter, mentioned Comcast Corporation (NASDAQ:CMCSA). Here is what the firm has to say:
“Comcast is the leading broadband cable company in North America and a global content producer. Comcast and other cable companies are seeing decreased net subscriber additions as they are lapping tough comparisons from a year ago when net additions were high earlier in the pandemic. Interestingly, churn remains at record low levels—a positive metric that speaks to cable’s value proposition. For Comcast, an additional headwind is a delayed recovery in its theme parks business due to the ongoing pandemic. Additionally, increased investment in 5G by wireless competitors may be weighing on shares. However, 5G is not currently competitive with cable, and based on the economics of 5G capex, it’s unlikely to be competitive for many years, if ever. Cable continues to have a competitive advantage with respect to network speeds and reliability. High recurring revenue, pricing power and low capital intensity make for a powerful economic model that contribute to Comcast’s free cash flow generation, allowing the company to play offense with regards to capital allocation. In summary, Comcast is a well-financed business with a wide competitive moat, that trades cheaply at under 13X our estimate of normalized earnings.”
1. Westinghouse Air Brake Technologies Corporation (NYSE:WAB)
3G Sahana Capital Management Stake Value: $195,499,000
Percentage of 3G Sahana Capital Management’s 13F Portfolio: 21.98%
Number of Hedge Fund Holders: 38
Westinghouse Air Brake Technologies Corporation (NYSE:WAB) provides rail sector equipment, systems, and value-added services. In the fourth quarter of 2021, 38 hedge funds held stakes in Westinghouse Air Brake Technologies Corporation (NYSE:WAB) worth $3.02 billion, compared to the same number of funds holding stakes in Westinghouse Air Brake Technologies Corporation (NYSE:WAB) worth $2.98 billion the previous quarter.
Wells Fargo analyst Allison Poliniak-Cusic boosted his price objective on Westinghouse Air Brake Technologies Corporation (NYSE:WAB) to $110 from $105 on January 10 and maintained an Overweight rating on the stock. According to the expert, Westinghouse Air Brake Technologies Corporation (NYSE:WAB) was in the most outstanding position to benefit from rising technology investments.
The hedge fund of Munir Javeri entered the fourth quarter of 2021 with 2.12 million shares of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in its portfolio worth around $195.50 million. The company has featured on Javeri’s portfolio since the first quarter of 2020.
TGV Intrinsic Fund mentioned Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in its Q2 2021 investor letter: Here is what the fund said:
“The second change concerns the American railway supplier Westinghouse Air Brake Technologies (Wabtec). Wabtec took over the railway division from General Electric (GE) in 2019. As part of this, Rafael Santana – who had come over from GE – became the new CEO of Wabtec. The previous CEO, Ray Betler, is one of the best corporate leaders I know, and I particularly appreciated the decentralized corporate culture he embodied. The operating figures have developed nicely since 2019 under Rafael Santana. However, from conversations with current and former employees of Wabtec, it is becoming increasingly clear to me that the GE culture, which is designed to achieve short-term corporate goals, is establishing itself within the company. This culture is not necessarily bad – but it is a culture that does not fit the long-term orientation of the TGV Intrinsic.
Accordingly, I recommended the sale of all Wabtec shares despite the decent operational development. Wabtec is a good example of a distinction between “process” and “result”. In the long run, the right process typically leads to a good result and the wrong process to a bad one. In the short term, however, even a wrong process can lead to a good result. Considered by itself, Wabtec’s financial development since 2019 (result) is not sufficient to make an investment recommendation for the future. Changes in the corporate culture (process) often only become noticeable in the financial figures after several years and are therefore a more meaningful indicator of long-term operational development than short-term historical business development. Accordingly, my discussions with current and former Wabtec employees about changes in the corporate culture are the crucial reason for the sell recommendation, as I assume that the GE culture will lead to worse operating results in the long term.”
You can also take a peek at 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital and Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital.
