In this article, we discuss 5 stocks to invest in now according to Anthony Bozza’s Lakewood Capital Management. If you want to read our detailed analysis of Bozza’s history and hedge fund performance, go directly to 10 Stocks to Invest in Now According to Anthony Bozza’s Lakewood Capital.
5. Cushman & Wakefield plc (NYSE:CWK)
Lakewood Capital Management Stake Value: $108,020,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 4.58%
Number of Hedge Fund Holders: 27
Cushman & Wakefield plc (NYSE:CWK) is a company that deals in commercial real estate. Cushman & Wakefield plc (NYSE:CWK) sold Park at Abernathy Square, a 484-unit apartment complex in Sandy Springs, Georgia, on February 3. The overall sale price was $132.6 million, or $274,000 per unit.
Morgan Stanley analyst Richard Hill raised his price target on Cushman & Wakefield plc (NYSE:CWK) to $23.75 from $21.75 on December 1, and kept an ‘Overweight’ rating on the stock. In addition, he boosted his adjusted EPS estimates for the company’s 2021, 2022, and 2023 fiscal years by about 21% on average due to the company’s strong Q3 profitability.
The hedge fund chaired by Anthony Bozza owns more than 4.86 million shares in the real estate company worth over $108.02 million as of December 31, representing 4.58% of its investment portfolio. In addition, the hedge fund increased its stake in Cushman & Wakefield plc (NYSE:CWK) by 33% in the fourth quarter of 2021. Overall, hedge funds are loading up on Cushman & Wakefield plc (NYSE:CWK), as 27 of the funds tracked by Insider Monkey held stakes in the company at the end of 2021, up from 24 funds a quarter earlier.
4. Dell Technologies Inc. (NYSE:DELL)
Lakewood Capital Management Stake Value: $116,531,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 4.94%
Number of Hedge Fund Holders: 62
Dell Technologies Inc. (NYSE:DELL) is a computer hardware, software, and services firm that makes servers, desktop PCs, and laptop computers. Toni Sacconaghi, a Bernstein analyst, raised his rating on Dell Technologies Inc. (NYSE:DELL) from ‘Market Perform’ to ‘Outperform’ with a $72 price target on January 11.
Lakewood Capital holds more than 2.07 million shares in Dell Technologies Inc. (NYSE:DELL) worth over $116.53 million, representing 4.94% of its portfolio. The hedge fund boosted its stake in Dell Technologies Inc. (NYSE:DELL) by 3% in the fourth quarter.
Dell Technologies Inc. (NYSE:DELL) is also getting the attention of other smart money, as 62 hedge funds tracked by Insider Monkey reported owning stakes in the company as of the end of the fourth quarter, up from 60 funds a quarter earlier. With approximately 9.48 million shares valued at $532.71 million, Elliott Management is the largest shareholder of Dell Technologies Inc. (NYSE:DELL) among those funds.
In its third quarter 2021 investor letter, Third Point Management mentioned Dell Technologies Inc. (NYSE:DELL). Here is what the fund said:
“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”
3. Alphabet Inc. (NASDAQ:GOOG)
Lakewood Capital Management Stake Value: $147,992,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 6.27%
Number of Hedge Fund Holders: 158 (GOOG), 209 (GOOGL)
Google’s parent firm, Alphabet Inc. (NASDAQ:GOOG), is a worldwide tech corporation based in the United States. As of the end of the fourth quarter of 2021, Lakewood Capital owned 51,084 Class A shares in Alphabet Inc. (NASDAQ:GOOG) worth $147.99 million, representing 6.27% of the hedge fund’s investment portfolio.
On February 2, Stifel analyst Scott Devitt boosted his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,500 from $3,200 and maintained a ‘Buy’ rating on the shares after the company reported another solid quarter. Alphabet Inc. (NASDAQ:GOOG) posted its fourth quarter financial results on February 1, reporting EPS of $30.69 that beat estimates by $3.39. In addition, revenue over the period rose by 32.4% year-over-year, reaching $75.32 billion and outperforming estimates by $3.51 billion.
Tenere Capital, managed by Daniel Benel, is one of Alphabet Inc. (NASDAQ:GOOG)’s many stakeholders as of December 31, holding 3,674 Class A shares of the company worth $10.64 million. Overall, 158 funds were long Alphabet’s Class C shares as of the end of 2021, up from 156 funds in the third quarter of 2021, while 209 were long the company’s Class A shares, up from 195 a quarter earlier.
Polen Capital, in its fourth-quarter 2021 investor letter discussed its stance on Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“For the full year, the top performers included Alphabet. Alphabet’s business continues to compound at what we believe to be a healthy rate. The company reported a 40% increase in third-quarter revenues year over year and likely earned approximately $70 billion in incremental revenue in 2021.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Lakewood Capital Management Stake Value: $152,889,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 6.48%
Number of Hedge Fund Holders: 224
Meta Platforms, Inc. (NASDAQ:FB) is a social networking service and website that was founded in 2004 at Harvard University. Out of the hedge funds being tracked by Insider Monkey, Ken Fisher’s Fisher Asset Management is a leading shareholder of Meta Platforms, Inc. (NASDAQ:FB) with over 9.58 million shares worth more than $3.22 billion.
Meta Platforms, Inc. (NASDAQ:FB) was downgraded to ‘Hold’ from ‘Buy’ by China Renaissance analyst Ella Ji on February 4, who also lowered the firm’s price target on the stock to $280, down from $415. The analyst predicted a slower growth rate because of competition from TikTok and updates to iOS privacy.
Meta Platforms, Inc. (NASDAQ:FB) has featured in Lakewood Capital’s portfolio since the second quarter of 2018. In the fourth quarter of 2021, the hedge fund holds 454,553 shares of Meta Platforms, Inc. (NASDAQ:FB), amounting to more than $152.90 million in value and representing 6.48% of the fund’s portfolio assets.
Canterbury Tollgate mentioned Meta Platforms, Inc. (NASDAQ:FB) in its third quarter 2021 investor letter. Here is what the fund said:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.…” (Click here to see the full text).
1. Cigna Corporation (NYSE:CI)
Lakewood Capital Management Stake Value: $157,654,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 6.68%
Number of Hedge Fund Holders: 53
Cigna Corporation (NYSE:CI) is a multinational health services company which operates across multiple segments, including Evernorth, U.S. Medical, International Markets, and Group Disability. At the end of the fourth quarter of 2021, 53 hedge funds tracked by the database of Insider Monkey held stakes worth $1.93 billion in Cigna Corporation (NYSE:CI), down from 58 stakes in the preceding quarter that were worth $2.30 billion.
On February 3, Cigna Corporation (NYSE:CI) published its results for the fourth quarter, announcing earnings per share of $4.77, beating estimates by $0.06. In addition, the $45.69 billion in revenue for the period was up 9.6% year-over-year, exceeding estimates by $1.71 billion. Cigna Corporation (NYSE:CI) also announced a quarterly dividend of $1.12 per share, up 12% from the previous payout of $1.00.
On February 7, RBC Capital analyst Ben Hendrix downgraded Cigna Corporation (NYSE:CI) from ‘Outperform’ to ‘Sector Perform’, lowering the price target on the company to $235, down from $304. In a research note, the analyst claimed that the stock dropped following the Q4 results due to projections for increased medical spending pressure in 2022.
Artisan Partners Limited Partnership highlighted a few stocks in its fourth quarter 2020 investor letter, and Cigna Corporation (NYSE:CI) was one of them. Here is what the fund said:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
Check out some other compelling stock picks from the world’s top hedge fund managers in 10 Stocks to Buy Now According to Wayne Yu’s BCK Capital and Top 10 Stocks to Buy According to John Orrico’s Water Island Capital.
