In this article, we discuss the 5 stocks to invest in according to Stephen Errico’s Locust Wood Capital. If you wish to see our detailed analysis of Errico’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks To Invest In According To Stephen Errico’s Locust Wood Capital.
5. Boston Scientific Corporation (NYSE:BSX)
Locust Wood Capital’s Stake Value: $67.7 million
Percentage of Locust Wood Capital’s 13F Portfolio: 3.67%
Number of Hedge Fund Holders: 51
Boston Scientific Corporation (NYSE:BSX) is a Massachusetts-based manufacturing company that designs, produces and sells devices for interventional medical specialties, including interventional radiology.
On October 6, Piper Sandler analyst Matt O’Brien maintained an Overweight rating on Boston Scientific Corporation (NYSE:BSX) with a $175 price target on its shares.
As of the end of the third quarter of 2021, Stephen Errico’s Locust Wood Capital reported holding over 1.56 million shares of Boston Scientific Corporation (NYSE:BSX). These shares amount to $67.7 million and represent 3.67% of the investment firm’s portfolio.
Of the 873 elite funds tracked by Insider Monkey, 51 held stakes in the company in the second quarter of 2021, up from 44 hedge funds in the preceding quarter.
Out of the hedge funds being tracked by Insider Monkey, Andreas Halvorsen’s Viking Global is the biggest stakeholder in Boston Scientific Corporation (NYSE:BSX), with over 13.3 million shares worth approximately $569.3 million.
Artisan Partners, in its second-quarter investor letter mentioned Boston Scientific Corporation (NYSE:BSX). Here is what the fund said:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
4. Alphabet Inc. (NASDAQ:GOOG)
Locust Wood Capital’s Stake Value: $69.2 million
Percentage of Locust Wood Capital’s 13F Portfolio: 3.75%
Number of Hedge Fund Holders: 155
Multinational technology giant Alphabet Inc. (NASDAQ:GOOG) continued with its year-long tear during the first week of November, as the internet giant’s shares topped $3,000 for the first time ever, its record highest. Shares of the company are up 72.71% year-to-date.
By the end of June, 155 funds out of the 873 tracked by Insider Monkey had stakes in Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter, compared to 159 in the previous quarter. Stephen Errico’s hedge fund holds 25,868 shares in the company, amounting to over $69.15 million.
On October 27, Jefferies analyst Brent Thill raised his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,500 from $3,325, and kept a Buy rating on the shares.
In its Q2 2021 investor letter, Mawer Investment Management mentioned Alphabet Inc. (NASDAQ:GOOG). 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.”
3. American Tower Corporation (NYSE:AMT)
Locust Wood Capital’s Stake Value: $72.9 million
Percentage of Locust Wood Capital’s 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 55
American Tower Corporation (NYSE:AMT) is a Boston-based real estate investment trust (REIT) that operates as an owner of wireless and broadcast communications infrastructure in several countries worldwide.
By the end of the second quarter of 2021, 55 hedge funds out of the 873 tracked by Insider Monkey held stakes in American Tower Corporation (NYSE:AMT) worth roughly $4.7 billion. Of these fund’s, Charles Akre’s Akre Capital Management is a leading shareholder in the company, with over 7 million shares worth more than $1.89 million.
On October 12, Wolfe Research analyst Andrew Rosivach assumed coverage of American Tower Corporation (NYSE:AMT) with a Peer Perform rating and $271 price target.
According to the 13F Filings for the third quarter of 2021, Stephen Errico holds 275,022 shares of American Tower Corporation (NYSE:AMT), worth more than $72.9 million, accounting for 3.96% of his investment firm’s portfolio value.
Qualivian Investment Partners, in its Q3 2021 investor letter, mentioned American Tower Corporation (NYSE:AMT). Here is what the fund had to say:
“What Attracts Us
Superior Business:
• High barriers to entry resulting from low bargaining power of suppliers (land owners) and customers (wireless companies). Neither can find reasonable substitutes for existing cell towers. Combined with low possibility of disruption, this results in a business oligopoly and pricing power.
• Stable business with consistent high returns on equity, low maintenance capital required, and strong cash generation.
− Ten-year, non-cancelable contracts with built in pricing escalators and high renewal rates
− 1%-2% churnSuperior Reinvestment Opportunities:
• Strong growth for the foreseeable future due to increasing demand for wireless data usage, resulting in wireless carriers Capex equipment spend on existing and new towers.
• Low maintenance capital expenditure requirements; most of capital expenditure is for growthSuperior Management / Capital Allocation:
• Capital reinvested back in business has had returns well above cost of capital
• Company has purchased stock opportunistically…” (Click here to see the full text)
2. Waste Management, Inc. (NYSE:WM)
Locust Wood Capital’s Stake Value: $76.3 million
Percentage of Locust Wood Capital’s 13F Portfolio: 4.14%
Number of Hedge Fund Holders: 39
Waste Management, Inc. (NYSE:WM) is a Texas -based provider of waste management, comprehensive waste, and environmental services to residential, commercial, industrial, and municipal customers in North America.
Locust Wood Capital currently holds 511,447 shares of Waste Management, Inc. (NYSE:WM), worth more than $76.3 million and representing for 4.14% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in Waste Management, Inc. (NYSE:WM) worth roughly $3.6 billion. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $3.29 billion.
Of the elite funds in our database, the Bill & Melinda Gates Foundation Trust is the largest stakeholder in Waste Management, Inc. (NYSE:WM), with over 18.6 million shares worth roughly $2.6 billion.
1. Linde plc (NYSE:LIN)
Locust Wood Capital’s Stake Value: $130.8 million
Percentage of Locust Wood Capital’s 13F Portfolio: 7.1%
Number of Hedge Fund Holders: 55
Linde plc (NYSE:LIN) is a multinational chemical company based in Dublin, Ireland, and is a global leader in the production, processing, and distribution of industrial gas.
Based on our data, Stephen Errico’s Locust Wood Capital holds 445,953 shares of Linde plc (NYSE:LIN), amounting to over $130.8 million in worth and accounting for 7.1% of the fund’s total investment portfolio. At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth over $5.9 billion in Linde plc (NYSE:LIN), up from 43 hedge funds in the previous quarter with stakes worth $4.63 billion.
On October 29, Deutsche Bank analyst David Begleiter raised his price target on Linde plc (NYSE:LIN) to $360 from $350, and kept a Buy rating on the shares of the company.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm AKO Capital is a leading shareholder in Linde plc (NYSE:LIN) with over 4.18 million shares worth more than $1.2 billion.
You can also take a look at 20 Best Places to Invest in Rental Property in 2021 and 10 Best Robinhood Stocks Under $20.
