In this article, we discuss 5 stocks to invest in according to Bart Baum’s Ionic Capital. If you want to read our detailed analysis of Baum’s history, investment philosophy, and hedge fund performance, go directly to 10 Stocks to Invest In According to Bart Baum’s Ionic Capital.
5. AT&T Inc. (NYSE:T)
Ionic Capital Stake Value: $11,694,000
Percentage of Ionic Capital’s 13F Portfolio: 1.48%
Number of Hedge Fund Holders: 70
AT&T Inc. (NYSE:T) is a multinational conglomerate holding corporation headquartered in Downtown Dallas, Texas. It is a telecommunications corporation and a supplier of mobile phone services in the United States. Among the hedge funds being tracked by Insider Monkey, Ken Griffin’s Citadel Investment Group is a leading shareholder of AT&T Inc. (NYSE:T), with 43.80 million shares worth more than $1.08 billion.
Barclays analyst Kannan Venkateshwar decreased his price objective on AT&T Inc. (NYSE:T) to $28 from $30 on January 28 and maintained an Overweight rating on the stock. The post-results stock performance was likely driven more by management remarks on the Warner/ Discovery, Inc. (NASDAQ:DISCA) merger structure, although the 2022 outlook did not assist, according to Venkateshwar in a research report.
As per Insider Monkey’s Q4 data, 70 hedge funds held stakes worth over $4.92 billion in AT&T Inc. (NYSE:T) in Q4. In the third quarter of 2021, 66 hedge funds held long positions in the company, with stakes valued at roughly $3.21 billion.
In its first quarter 2021 investor letter, Nelson Capital Management mentioned AT&T Inc. (NYSE:T). Here is what the firm has to say:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
4. Travel + Leisure Co. (NYSE:TNL)
Ionic Capital Stake Value: $15,361,000
Percentage of Ionic Capital’s 13F Portfolio: 1.95%
Number of Hedge Fund Holders: 34
With approximately 20 resorts, travel clubs, and lifestyle travel brands under its belt, Travel + Leisure Co. (NYSE:TNL) is a membership and leisure travel organization. Travel + Leisure Co. (NYSE:TNL) features online and print travel content, online book stores, and subscription travel brands, providing vacation experiences and travel inspiration to owners, members, and subscribers through its products and services.
Travel + Leisure Co. (NYSE:TNL) accounts for about 1.95% of Bart Baum’s Ionic Capital portfolio, as the hedge fund owns a $15.36 million stake in the company. Overall, hedge funds are loading up on Travel + Leisure Co. (NYSE:TNL), as 34 out of the 924 funds tracked by Insider Monkey held stakes in the company in Q4, up from 33 funds a quarter earlier.
3. Zynga Inc. (NASDAQ:ZNGA)
Ionic Capital Stake Value: $18,094,000
Percentage of Ionic Capital’s 13F Portfolio: 2.3%
Number of Hedge Fund Holders: 47
Zynga Inc. (NASDAQ:ZNGA) is a company that specializes in social gaming. It creates, promotes, and manages live social games for mobile platforms including Apple’s iOS, Google’s Android, and social networking sites like Facebook.
Zynga Inc. (NASDAQ:ZNGA) posted earnings for the fourth quarter on February 9, reporting a loss per share of $0.06, missing market estimates by $0.01. However, average mobile monthly active users (MAUs) increased by 38% year-over-year to 184 million.
At the end of the fourth quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $540.49 million in Zynga Inc. (NASDAQ:ZNGA), down from 52 in the previous quarter valued at $603.90 million.
In its fourth quarter 2020 investor letter, Artisan Partners Limited Partnership highlighted a few stocks, and Zynga Inc. (NASDAQ:ZNGA) was one of them. Here is what the fund said:
“We also added to our position in Zynga. Our multiyear investment campaign in Zynga has been based on a new management team’s ability to drive steady growth in the company’s base portfolio of games, expand margins, reinvigorate the new game development pipeline and use its strong balance sheet to acquire complementary games and studios. Shares have been pressured in recent quarters, presumably because of investor concerns about the company’s moderating growth rate and Apple’s pending new privacy policy which will make it more difficult for Zynga to both efficiently acquire new players and sell advertising in its games. We believe the company has multiple growth levers it can pull in the periods ahead, including the rollout of new games, acquisitions, further penetration into international markets and entry into new gaming categories, to name a few. Furthermore, our research suggests the Apple privacy policy change is manageable for larger mobile game developers such as Zynga. Given our strong conviction in the profit cycle, we used recent weakness to add to our position.”
2. Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH)
Ionic Capital Stake Value: $20,633,000
Percentage of Ionic Capital’s 13F Portfolio: 2.62%
Number of Hedge Fund Holders: 55
Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) is a blank check corporation created to execute a merger, asset acquisition, capital stock exchange, reorganization, stock purchase, or other similar business combinations with one or more firms. On July 22, 2020, billionaire investor Bill Ackman’s Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) raised $4 billion in its initial public offering of 200 million shares at $20 a share.
Bart Baum’s Ionic Capital presently holds more than 1.05 million shares of Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH), worth $20.63 million and accounting for 2.62% of the fund’s Q4 investment portfolio. The company has featured on Baum’s portfolio since the third quarter of 2020.
At the end of the fourth quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $964.92 million in Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH), up from 49 in the preceding quarter worth $ 798.59 million.
1. Liberty Global plc (NASDAQ:LBTYA)
Ionic Capital Stake Value: $26,452,000
Percentage of Ionic Capital’s 13F Portfolio: 3.36%
Number of Hedge Fund Holders: 27
Liberty Global plc (NASDAQ:LBTYA) is an international television and broadband firm specializing in providing high-speed internet access. Even after selling 12,500 shares of Liberty Global plc (NASDAQ:LBTYA) in the fourth quarter of 2021, Bart Baum’s Ionic Capital still holds 941,702 shares of the company, worth about $26.45 million.
For the fourth quarter of 2021, Liberty Global plc (NASDAQ:LBTYA) issued its financial report on February 17, which revealed quarterly revenue of $1.92 billion, down 42.2% YoY, missing estimates by $20 million. In addition, Liberty Global plc (NASDAQ:LBTYA)’s EPS came in at $1.32, surpassing the market predictions by $1.94.
By the end of the fourth quarter of 2021, 27 hedge funds out of the 924 tracked by Insider Monkey held stakes in Liberty Global plc (NASDAQ:LBTYA) worth roughly $609.70 million. This is compared to 34 hedge funds in the previous quarter with a total stake value of approximately $791.29 million.
You can also take a peek at 10 Biotech Stocks to Buy According to Matthew Strobeck’s Birchview Capital and Top 10 Stock Picks of Christopher Lyle’s SCGE Management.
