In this article, we will discuss the 5 stocks to invest in according to Malcolm Levine’s Dendur Capital. If you want to read our detailed analysis of Levine’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Invest in According to Malcolm Levine’s Dendur Capital.
5. Centene Corporation (NYSE:CNC)
Dendur Capital Stake Value: $34,221,000
Percentage of Dendur Capital’s 13F Portfolio: 5.12%
Number of Hedge Fund Holders: 50
Centene Corporation (NYSE:CNC) is a healthcare company that specializes in providing programs and services to government-sponsored healthcare programs. The stock is a new arrival on Malcolm Levine’s portfolio, as his hedge fund bought about 549,200 shares of Centene Corporation (NYSE:CNC) in Q3, worth $34.22 million.
Centene Corporation (NYSE:CNC) was in 50 hedge funds’ portfolios in the third quarter of 2021.
4. US Foods Holding Corp. (NYSE:USFD)
Dendur Capital Stake Value: $40,817,000
Percentage of Dendur Capital’s 13F Portfolio: 6.11%
Number of Hedge Fund Holders: 29
In November, US Foods Holding Corp. (NYSE:USFD) announced that it issued senior unsecured notes due 2030, whose principal amount is $500 million. The net proceeds will be used to repay a part of the company’s existing term loans due to maturity on June 27, 2023.
In the third quarter of 2021, US Food Holding Corp. (NYSE:USFD) reported revenue of $7.9 billion, an increase of 35% year over year, and beat revenue estimates by $290 million. Our data shows that Leonard Green & Partners is one of the biggest stakeholders of US Food Holding Corp. (NYSE:USFD), with 7 million shares worth $242.62 million.
In the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $1.07 billion in US Food Holding Corp. (NYSE:USFD), down from 35 the preceding quarter worth $1.40 billion.
3. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Dendur Capital Stake Value: $65,811,000
Percentage of Dendur Capital’s 13F Portfolio: 9.85%
Number of Hedge Fund Holders: 56
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is a company that specializes in modular and portable storage. Dendur Capital holds more than 2.07 million shares in the firm worth over $65.81 million. This represents 9.85% of their portfolio. The hedge fund’s stake in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) increased by 3% in the third quarter of 2021.
In November, Oppenheimer analyst Scott Schneeberger raised his price target on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) to $42 from $36 and kept an “Outperform” rating on the shares. On November 22, WillScot Mobile Mini (NASDAQ:WSC) finalized the acquisition of Portable Storage’s assets in Los Angeles, bringing the company’s total storage units in California to 3000.
In the third quarter of 2021, 56 hedge funds out of the 867 tracked by Insider Monkey held stakes in WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), worth roughly $1.97 billion. This is compared to 52 hedge funds in the previous quarter, with a total stake value of about $1.40 billion.
2. Elanco Animal Health Incorporated (NYSE:ELAN)
Dendur Capital Stake Value: $107,400,000
Percentage of Dendur Capital’s 13F Portfolio: 16.07%
Number of Hedge Fund Holders: 32
Elanco Animal Health Incorporated (NYSE:ELAN) is a pharmaceutical firm based in the United States that makes medications and vaccines for pets and animals. Scott Ferguson’s Sachem Head Capital is the most significant shareholder of Elanco Animal Health Incorporated (NYSE:ELAN) with 27.84 million shares, worth over $887.67 million.
On November 18, Morgan Stanley analyst Erin Wright initiated coverage of Elanco Animal Health Incorporated (NYSE:ELAN), rating the stock as “Overweight” and gave a price target of $40. In earnings for the third fiscal quarter, disclosed in November, Elanco Animal Health Incorporated (NYSE:ELAN) posted earnings per share of $0.19, beating market estimates by $0.02. In addition, the revenue over the period was $1.13 billion, beating market predictions by $50 million.
Elanco Animal Health Incorporated (NYSE:ELAN) was in 32 hedge fund portfolios in the third quarter of 2021.
1. Builders FirstSource, Inc. (NYSE:BLDR)
Dendur Capital Stake Value: $132,593,000
Percentage of Dendur Capital’s 13F Portfolio: 19.85%
Number of Hedge Fund Holders: 53
Builders FirstSource, Inc. (NYSE:BLDR) provides professional home builders, subcontractors, remodelers, and consumers with building supplies, manufactured components, and construction services. In November, BTIG analyst Ryan Gilbert raised his price target on Builders FirstSource, Inc. (NYSE:BLDR) to $80 from $60 and kept a “Buy” rating on the shares after the company’s solid third-quarter results.
Builders FirstSource, Inc. (NYSE:BLDR) released its third-quarter results in November. The company’s earnings per share (EPS) came in at $3.39, exceeding expectations by $1.76. In addition, revenue increased by 139.6% year over year to $5.51 billion.
The hedge fund chaired by Malcolm Levine owns more than 2.56 million shares in Builders FirstSource, Inc. (NYSE:BLDR) worth over $132.59 million, representing 19.85% of their investment portfolio.
In its third-quarter 2021 investor letter, Merion Road Capital Management mentioned Builders FirstSource, Inc. (NYSE:BLDR). Here is what the fund said:
“I added to our position in Builder’s FirstSource (“BLDR”) during the quarter. BLDR is the largest national supplier of structural building products and value-added components to the residential construction market. They have been active in consolidating the industry, most notably with the merger of BMC earlier this year. Like other distributors, BLDR benefits from scale advantages that afford them a robust product offering, enhanced purchasing power, and fixed cost leverage. They will continue to acquire smaller competitors and have announced 5 new deals so far this year.
I view the strategic benefit of these acquisitions in three different buckets. There are the core tuck-in acquisitions of facilities and customer lists that increase scale and geographic reach. An example would be the company’s May acquisition of John’s Lumber, a lumber and specialty product distributor serving the Detroit MSA, at 0.5x revenue. There are product acquisitions that leverage their platform to increase distribution and improve the product offering. For instance, last month BLDR announced the acquisition of California TrusFrame, a designer and manufacturer of prefabricated components like trusses and wall panels, at 1.3x revenue. And lastly BLDR has begun investing in software and services. In June they spent $450mm on the purchase of WTS Paradigm, a software company that addresses the complexity around building configuration, estimating, and manufacturing, at 9.0x revenue. By utilizing software to in the planning process, WTS Paradigm cuts down on material and labor waste, ensures an optimal fit of product and design, and eases the contractor’s workload. BLDR has followed this up with a much smaller software acquisition in September…” (Click here to see the full text)
You can also take a peek at 10 Stocks To Invest In According To Stephen Errico’s Locust Wood Capital and 10 Best Cheap Technology Stocks To Invest In
