In this article, we will look at 10 stocks under $30 in Ken Fisher’s portfolio.
Ken Fisher is a billionaire investment analyst and hedge fund manager of Fisher Asset Management. Mr. Fisher was a columnist writer for Forbes magazine between the years 1984 and 2017. Moreover, he has written 11 books on finance, 6 of which became national best-sellers, and has published academic papers in the field of investing and finance. According to Forbes, Mr. Fisher’s net worth as of March 17, 2022, stands at $5.5 billion, ranking him 151 on the Forbes 400 2021.
Ken Fisher’s Investment Philosophy
In his book, Super Stocks, Mr. Fisher put forth his work which highlighted how the price-to-sales ratio can be used as a predictive tool when dealing with securities. Mr. Fisher further developed his investment strategies after putting in hours of research, studying returns and price-to-earnings ratios of value and growth stocks of all investing categories between the years 1976 and 1995. Fisher Asset Management was among the pioneers of including small-cap value investing among its offerings in the late 1980s.
Fisher Asset Management
Billionaire investor Ken Fisher founded Fisher Asset Management in 1979, where he served as the CEO up till 2016, and now serves as the chairman and hedge fund manager. Fisher Asset Management has grown to become one of the largest wealth managers in the United States, having over $178.56 billion in Assets Under Management as of the fourth quarter of 2021. The fund has an investment minimum of $500,000 and charges a fixed fee which depends on the size of the client’s portfolio.
Past Performance
According to statistics put forth by Forbes in 2015, for the past two decades, Fisher Asset Management outperformed the broader US market indices by averaging returns of 4.2% per year over the period.
Based on the fourth-quarter 2021 SEC filings, Mr. Fisher upped his stakes in 512 securities, initiated positions in 112 new stocks, exited 69 stocks, and reduced his stakes in 303 third-quarter holdings. Among the fund’s top 13F holdings we have Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG).
Our Methodology
To come up with 10 stocks under $30 in Ken Fisher’s portfolio, we scoured Fisher Asset Management’s investment portfolio at the end of the fourth quarter of 2021. We checked each stock’s closing price and picked stocks that were under $30 on March 16, 2022.
As of the fourth quarter of 2021 Insider Monkey tracks 924 elite hedge funds. We included the hedge fund sentiment for each stock to help our readers get a better idea of which securities are popular among investor circles. We also included the analyst ratings for each stock. The 10 stocks under $30 in Ken Fisher’s portfolio are ranked in order of stake value of Fisher Asset Management in the security at the close of Q4 2021.
10. Vishay Intertechnology (NYSE:VSH)
Fisher Asset Management’s Stake Value: $82,890,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 31
Closing Price on March 16: $19.56
Vishay Intertechnology (NYSE:VSH) operates as a passive electronic components and semi-conductors company in Asia, Europe, and the Americas. By the close of Q4 2021, 31 hedge funds held stakes in Vishay Intertechnology worth over $452.78 million. This is compared to 28 positions in the third quarter of 2021, with stakes equaling $437.38 million.
Last December, Vishay Intertechnology announced its plans to acquire Barry Industries for $21 million. Barry Industries is a leading manufacturer of semiconductor packaging and resistive components including terminations, resistors, and attenuators.
This February, Vishay Intertechnology announced that its earnings per share for the fourth quarter of 2021 were $0.62. The company’s revenue for the quarter was valued at $843.07 million, up 26.36 million, beating revenue estimates by $18.60 million.
On February 22, 2022, Vishay Intertechnology declared a quarterly cash dividend of $0.10 per share, payable March 30, 2022, to shareholders of record on March 17, 2022.
This March, Wasatch Global Investors, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned Vishay Intertechnology. Here’s what the firm had to say:
“In managing the Fund, we seek balance by investing across three areas: Fallen Angels (growth stocks that have slid into value territory due to short-term factors), Undiscovered Gems (inexpensive growth companies flying below Wall Street’s radar) and Quality Value companies (those with characteristics such as strong fundamentals, low leverage and attractive valuations). While our overall approach to investing is long-term, we often have a shorter time horizon when it comes to Quality Value than we do in the other two categories, since this part of our approach is designed to identify “mean reversion” potential in undervalued stocks. Stocks’ wide and frequent swings across sectors, styles and—more recently—the market as a whole have given us an abundance of opportunities to invest in companies that we consider high quality whose stocks are trading below what we assess as their fair value. We added two such companies to the portfolio in the fourth quarter. One was semiconductor producer Vishay Intertechnology, Inc. (VSH). (Current and future holdings are subject to risk.)”
9. Callaway Golf Company (NYSE:ELY)
Fisher Asset Management’s Stake Value: $87,119,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 34
Closing Price on March 16: $23.98
Callaway Golf Company (NYSE:ELY) designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories. This February, Jefferies analyst Randal Konik reiterated his $60 price target and Buy rating on the stock in light of the company’s fourth-quarter earnings for 2021.
On March 16, 2022, Callaway Golf Company’s (NYSE:ELY) shares gained 8.9% after CEO Oliver G. Brewer III and CFO Brian Lynch bought $670,000 worth of shares of the company.
34 hedge funds were bullish on Callaway Golf Company’s (NYSE:ELY) at the end of the fourth quarter of 2021, down from 38 funds in the third quarter of 2021. However, the stakes held in the company amounted to $469.62 million at the end of Q4 2021, up from $443.86 million for Q3 2021.
Bernzott Capital Advisors mentioned Callaway Golf Company in its third-quarter 2021 investor letter. Here are the firm’s thoughts on the company:
“Callaway Golf (ELY): The stock succumbed to profit taking despite a strong earnings report as some perceived pandemic beneficiaries such as Callaway sold off as investors questioned sustainability. In our view, Callaway’s future looks bright, especially as it captures growth opportunities from its acquisition of Topgolf. Despite this quarter’s weakness, the stock remains up +15% for the year.”
8. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX)
Fisher Asset Management’s Stake Value: $104,066,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 21
Closing Price on March 16: $22.00
Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally.
This February, Allscripts Healthcare Solutions, Inc. announced its earnings for the fiscal fourth quarter of 2021, for which the company beat on both EPS and revenue. Allscripts Healthcare Solutions, Inc. reported earnings per share of $0.79, beating estimates by $0.47. The company’s revenue for the quarter stood at $391.70 million and beat estimates by $1.42 million.
This March, Deutsche Bank analyst George Hill raised his price target on Allscripts Healthcare Solutions, Inc. to $26 from $20 and also upgraded the stock to Buy from Hold.
Insider Monkey spotted Allscripts Healthcare Solutions, Inc. on 21 hedge fund portfolios at the end of the fourth quarter of 2021. The total stakes of these funds in the company amounted to $211.77 million.
Among Fisher Asset Management’s most notable 13F holdings we have Microsoft Corporation, Apple Inc., Amazon.com, Inc., and Alphabet Inc., in addition to Allscripts Healthcare Solutions, Inc..
7. Marathon Oil Corporation (NYSE:MRO)
Fisher Asset Management’s Stake Value: $139,972,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 40
Closing Price on March 16: $21.59
Marathon Oil Corporation (NYSE:MRO) operates as an oil and gas exploration and production company in the United States and internationally. On February 22, 2022, Raymond James analyst John Freeman raised his price target on Marathon Oil Corporation to $31 from $27 and maintained a Strong Buy rating on the shares.
This February, Marathon Oil Corporation announced that its EPS for the fiscal fourth quarter of 2021 was $0.77, beating expert estimates by $0.21. The company reported quarterly revenues of $1.80 billion, up 116.87% from $830 million in Q4 2020. The company beat revenue estimates by $255.76 million.
Marathon Oil Corporation is a popular stock among investor circles. At the close of Q4 2021, 40 hedge funds were bullish on the oil corporation’s stock. The total stakes of these funds amounted to $969.10 million, up from $903.22 million in the third quarter of 2021. We can therefore conclude that the hedge fund sentiment for the stock is positive.
6. Trip.com Group Limited (NASDAQ:TCOM)
Fisher Asset Management’s Stake Value: $229,999,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 35
Closing Price on March 16: $23.34
Trip.com Group Limited (NASDAQ:TCOM) operates as an online travel company that provides services including accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China and internationally.
This February, Citi analyst Brian Gong raised his price target on Trip.com Group Limited to $35 from $30 and reiterated a Buy rating on the shares.
Insider Monkey was able to identify 35 hedge funds that were bullish on Trip.com Group Limited by the end of the fourth quarter of 2021. The total stakes of these funds in the company amounted to $1.58 billion.
Fisher Asset Management’s stake in Trip.com Group Limited as of February 2, 2022, is valued at $229.99 million. The investment covers 0.12% of the fund’s 13F portfolio. Other companies that Fisher Asset Management has significant stakes in are Microsoft Corporation, Apple Inc., Amazon.com, Inc., and Alphabet Inc..
Oakmark Funds published its third-quarter 2021 investor letter in which it mentioned Trip.com Group Limited. Here’s what the experts at Oakmark Funds had to say about the stock:
“Trip.com Group ADR (China), the largest online travel agency in China, and Reckitt Benckiser Group (U.K.), a large global consumer products company, were both previous holdings in the Fund. With significant declines in share price, the stocks again offered the necessary potential upside to be selected for our portfolio.”
5. Cleveland-Cliffs Inc. (NYSE:CLF)
Fisher Asset Management’s Stake Value: $272,245,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 36
Closing Price on March 16: $26.18
Cleveland-Cliffs Inc. (NYSE:CLF) operates as a mining company in North America. On February 11, 2022, Cleveland-Cliffs Inc. released its earnings for the fiscal fourth quarter of 2021. The company reported earnings per share of $1.76 and generated revenues of $5.35 billion. The company’s revenue grew by 136.97% year over year from $2.26 billion for the fourth quarter of 2020.
This March, Citi analyst Alexander Hacking raised his price target on Cleveland-Cliffs Inc. to $28 from $25 and maintained a Neutral rating on the shares.
By the end of the fourth quarter of 2021, 36 hedge funds held positions in Cleveland-Cliffs Inc. worth $952.78 million in total. This is compared to 35 positions in the previous quarter, with total stakes worth $682.05 million. The hedge fund sentiment for Cleveland-Cliffs Inc. can be seen to be positive.
4. BP plc (NYSE:BP)
Fisher Asset Management’s Stake Value: $367,145,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.20%
Number of Hedge Fund Holders: 26
Closing Price on March 16: $28.60
BP plc (NYSE:BP) has been gaining popularity with investors. Insider Monkey identified 26 hedge funds having stakes in BP plc (NYSE:BP) at the close of the fourth quarter of 2021. The total value of these stakes amounted to $1.22 billion, up from $1.05 billion in the previous quarter with 29 positions.
This March, BofA analyst Christopher Kuplent upgraded BP plc (NYSE:BP) to Neutral from Underperform and raised his price target to 410 GBP from 360 GBP.
As of February 2, 2022, Fisher Asset Management’s stakes in BP plc (NYSE:BP) are valued at $367.14 million, making the fund the dominating shareholder in the company. The investment covers 0.20% of the fund’s Q4 investment portfolio.
On February 8, 2022, BP plc (NYSE:BP) released its earnings for the fiscal fourth quarter of 2021 in which the company beat on both EPS and revenue. The company’s earnings per share came to $1.23 for the quarter, beating EPS estimates by $0.09. BP plc (NYSE:BP) generated $50.55 billion in quarterly revenues, up 12.87% year over year, beating estimates by $26.07 billion.
3. Petrobras (NYSE:PBR)
Fisher Asset Management’s Stake Value: $385,003,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 26
Closing Price on March 16: $13.26
Petrobras (NYSE:PBR) operates as an oil and gas company and is based in Rio de Janeiro, Brazil. In December, Goldman Sachs analyst Bruno Amorim upgraded Petrobras to Buy from Neutral and gave the stock a $14.20 price target.
This February, Petrobras announced that its earnings per share for the fiscal fourth quarter of 2021 equaled $0.71, beating estimates by $0.06. The company reported quarterly revenues of $26.22 billion for the quarter, beating revenue estimates by $1.21 billion. As of March 17, 2022, Petrobras has gained 37.13% over the past six months.
Petrobras was a part of 26 hedge fund portfolios at the end of the fourth quarter of 2021, up from 23 hedge funds at the end of the third quarter of 2021. The total stakes in the company also saw a rise, from roughly $3.0 billion in Q3 2021 to $3.76 billion at the close of Q4 2021.
2. Infosys Limited (NYSE:INFY)
Fisher Asset Management’s Stake Value: $396,821,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.22%
Number of Hedge Fund Holders: 27
Closing Price on March 16: $25.11
Infosys Limited (NYSE:INFY) provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. Recently, Infosys Limited announced that it will be collaborating with Dow Jones to help expand its product portfolio. The tech company will be working on Dow Jones’ products, aiming to organize information in such a way as to optimize daily business operations.
Investors are pouring in investments in Infosys Limited. By the close of Q4 2021, 27 hedge funds held stakes in the company, worth in excess of $2.96 billion. This is compared to 29 hedge funds in the previous quarter, with total stakes equaling $2.47 billion.
This January, BMO Capital analyst Keith Bachman raised his price target on Infosys Limited to $28 from $25 and reiterated a Market Perform rating on the shares.
Fisher Asset Management’s stakes in the company amounted to $396.82 million at the end of the fourth quarter of 2021. The investment makes up 0.22% of the fund’s 13F portfolio.
1. Vale S.A. (NYSE:VALE)
Fisher Asset Management’s Stake Value: $434,321,000
Percentage of Fisher Asset Management’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 25
Closing Price on March 16: $17.76
Vale S.A. (NYSE:VALE) is rising in popularity among investor circles, especially amid the Ukraine crisis when commodity prices are extremely volatile and soaring to new peaks. Insider Monkey spotted Vale S.A. to be a part of 25 hedge fund portfolios at the close of the fourth quarter of 2021. The total stakes of these funds in the company amounted to $1.71 billion.
Fisher Asset Management is the dominating stakeholder in Vale S.A. as of the fourth quarter of 2021. The fund’s stake in Vale S.A. stood at $434.32 million, which represents 0.24% of Fisher Asset Management’s Q4 2021 investment portfolio.
On March 17, 2022, Deutsche Bank analyst Liam Fitzpatrick raised his price target on Vale S.A. to $20 from $19 and maintained a Buy rating on the shares.
On February 24, 2022, Vale S.A. announced its fourth-quarter 2021 earnings, in which the company beat EPS by $0.65. The company’s earnings per share were reported to be $1.46, and the company’s revenues amounted to $12.50 billion.
Miller Value Partners mentioned Vale S.A. in its third-quarter 2021 investor letter. Here’s what the firm had to say:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
You can also take a look at Billionaire Ken Fisher’s Top 10 High Dividend Stock Picks and 10 Cheap Oil Stocks Under $10.
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This article is originally published at Insider Monkey.
