In this article, we will discuss the 5 stocks to invest in according to Sean Murphy’s Game Creek Capital. If you want to see our detailed analysis of Murphy’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks To Invest In According To Game Creek Capital.
5. Salesforce.com, Inc. (NYSE:CRM)
Game Creek Capital’s Stake Value: $6 million
Percentage of Game Creek Capital’s 13F Portfolio: 3.05%
Number of Hedge Fund Holders: 108
Of the 873 elite funds tracked by Insider Monkey, 108 were long in Salesforce.com, Inc. (NYSE:CRM) at the end of June, up from 91 in the first quarter of 2021. Sean Murphy of Game Creek Capital holds 24,875 shares of Salesforce.com, Inc. (NYSE:CRM). These shares are valued at $6 million and make up 3.05% of his fund’s portfolio.
In its Q2 2021 investor letter RV Capital Management explains why it began its investment in Salesforce.com, Inc. (NYSE:CRM). Here is what the fund said:
“Part 5: A New Investment in Salesforce.com
The assertion that mega caps can also be mispriced is a good segue to our second new investment in Salesforce.com. Salesforce is one of the largest software companies in the world with a market value of around US$ 250 bn. It is best known for its customer relationship management or “CRM” solution, known as its Sales Cloud. It has three additional clouds (“Service,” “Marketing” and “Commerce”) as well as a thriving platform business with both owned and 3rd party software solutions.
I first came across Salesforce in 2013. I was invested in Bechtle, a German company that provides companies with their in-house IT. I kept hearing about a strange new concept called “the Cloud” and wanted to get up to speed on the topic in case it was a risk to Bechtle. As a result, I picked up a copy of “Behind the Cloud”. It documents how Salesforce.com pioneered cloud-based software and revolutionised the software industry.
Since then, I have followed Salesforce from a distance and visited it several times in San Francisco. I did not consider it seriously as an investment though as for much of the period, I had not yet overcome my aversion to loss-making companies.
This changed in December last year when Salesforce announced the acquisition of Slack (a former investment of the Business Owner Fund, described in my 2020 half-year letter) for US$ 27 bn. On the date of announcement, Salesforce’s market value fell by around US$ 20 bn. Effectively, the market was saying that Slack was almost worthless, which, as an enthusiastic owner of Slack, I disagreed with. Initially, I decided to keep our Slack stock and roll it into Salesforce (as part of the consideration was in Salesforce’s own stock). As Salesforce’s price fell further in the subsequent months, I bought its stock directly to make it a full-size position post the closing of the Slack acquisition…” (Click here to see the full text)
4. Hess Corporation (NYSE:HES)
Game Creek Capital’s Stake Value: $6.7 million
Percentage of Game Creek Capital’s 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 31
Hess Corporation (NYSE:HES) is a New York-based global energy company involved in the exploration and production of crude oil and natural gas.
According to the recent 13F Filings, Game Creek Capital holds 76,875 shares of Hess Corporation (NYSE:HES), worth more than $6.7 million and representing 3.37% of the fund’s investment portfolio. As of the second quarter of 2021, 31 hedge funds held stakes in Hess Corporation (NYSE:HES), worth more than $615.7 million. This is compared to 26 funds that held stakes in the company in the preceding quarter.
Earlier this September, Citi analyst Scott Gruber maintained a Buy rating on Hess Corporation (NYSE:HES), alongside a price target of $91.
3. Alphabet Inc. (NASDAQ:GOOG)
Game Creek Capital’s Stake Value: $9.68 million
Percentage of Game Creek Capital’s 13F Portfolio: 4.86%
Number of Hedge Fund Holders: 155
As of the end of the June quarter, 155 hedge funds out of the 873 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ:GOOG). Sean Murphy’s Game Creek Capital currently holds 3,965 shares in the company, worth more than $9.68 million, accounting for 4.86% of the fund’s total investment portfolio.
In its Q2 2021 investor letter, Mawer Investment Management named Alphabet Inc. (NASDAQ:GOOG) among the companies that reported strong results. Here is what the fund said:
“Many higher growth companies reported strong results amid the pick-up in broad economic activity including Alphabet. These higher growth companies tend to have increased sensitivity to a change in discount rates and were supported as long-term interest rates stabilized over the period.”
2. Pfizer Inc. (NYSE:PFE)
Game Creek Capital’s Stake Value: $11 million
Percentage of Game Creek Capital’s 13F Portfolio: 5.53%
Number of Hedge Fund Holders: 67
Pfizer Inc. (NYSE:PFE) is a multinational biotechnology and pharmaceutical company that develops and manufactures vaccines, medical devices and other consumer healthcare products. Based in New York, the company ranks second on our list of the 10 stocks to invest in according to Game Creek Capital.
By the end of the second quarter, Game Creek Capital held 281,250 shares of Pfizer Inc. (NYSE:PFE) in a stake that is worth over $11 million and represents 5.53% of its portfolio. During the same time period, 67 of the 873 hedge funds tracked by Insider Monkey held stakes in the company, up from 65 in the previous quarter.
On October 12, Morgan Stanley analyst Matthew Harrison raised the price target on Pfizer Inc. (NYSE:PFE) to $48 from $45, and kept an Equal Weight rating on the shares.
In its first quarter letter, ClearBridge Investments, an investment firm mentioned Pfizer and stated:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
1. General Motors Company (NYSE:GM)
Game Creek Capital’s Stake Value: $11 million
Percentage of Game Creek Capital’s 13F Portfolio: 5.55%
Number of Hedge Fund Holders: 86
General Motors Company (NYSE:GM) is a multinational automotive corporation that designs and manufactures automobiles, through the multiple brands the company owns, including Chevrolet, GMC and Cadillac.
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $7.41 billion in General Motors Company (NYSE:GM). The number of hedge funds that held stakes in the automotive manufacturing company remained the same for the first and second quarters of 2021. Sean Murphy’s Game Creek Capital holds 186,750 shares of General Motors Company (NYSE:GM). These shares amount to $11 million and represent 5.55% of the hedge fund’s total portfolio value.
On October 22, JPMorgan analyst Ryan Brinkman raised the price target on General Motors Company (NYSE:GM) to $80 from $77, and kept an Overweight rating on the shares of the company.
You can also take a peek at 13 Best Hemp Stocks to Buy Now and Billionaire Dan Loeb’s Top 10 Stock Picks.
