In this article, we discuss the 9 dividend stocks to buy according to Marc Majzner’s Clearline Capital based on Q2 holdings of the fund. If you want to skip our detailed analysis of Majzner’s history, investment philosophy, and hedge fund performance, go directly to 5 Dividend Stocks to Buy According to Marc Majzner’s Clearline Capital.
Marc G. Majzner acquired his Master of Computer Science degree from Brown University. He then joined Credit Suisse as an Investment Banking analyst. He also worked as a Senior Portfolio Manager at Talpion Fund Management LP.
Marc Majzner launched Clearline Capital, a New York-based hedge fund, in February 2013 with a seed capital of $70 million from Talpion Fund Management. It is a catalyst-driven long/short equity hedge fund with a concentration on mid-cap equities. The fund aims for high absolute rates of return while reducing the risk of capital loss. Clearline Capital added 49 stocks to its portfolio during the second quarter and increased its positions in 54 of its existing holdings. In the second quarter of 2021, the hedge fund’s 13F public stock portfolio was valued at $671 million.
As of the second quarter of 2021, Clearline Capital has stakes in several big companies like Alphabet Inc. (NASDAQ:GOOGL), Alibaba Group Holding Limited (NYSE:BABA), and Uber Technologies, Inc. (NYSE:UBER).
Alphabet Inc. (NASDAQ:GOOGL), the parent firm of Google and YouTube, is the obvious market leader in digital advertising. Brad Erickson, an analyst at RBC Capital, has an “Outperform” rating and a $3,400 price target for Alphabet Inc. (NASDAQ:GOOGL) stock.
Based on the latest 13F holdings for the second quarter of 2021, Clearline Capital owns 16,979 shares in Alibaba Group Holding Limited (NYSE:BABA) after increasing its holding by 110% from the first quarter of 2021. On October 1, KeyBanc analyst Hans Chung reduced his price objective for Alibaba Group Holding Limited (NYSE:BABA) to $200 from $250 while maintaining an “Overweight” rating.
Uber Technologies, Inc. (NYSE:UBER) is a new arrival on Clearline Capital’s portfolio, as the hedge fund bought about 269,121 shares of the company, worth $13.49 million.
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Let’s start our list of 9 dividend stocks to buy according to Marc Majzner’s Clearline Capital. We used Majzner’s 13F portfolio for Q2 2021 for this analysis.
Dividend Stocks to Buy According to Marc Majzner’s Clearline Capital
9. The Gap, Inc. (NYSE:GPS)
Clearline Capital Stake Value: $2,828,000
Percentage of Clearline Capital’s 13F Portfolio: 0.42%
Number of Hedge Fund Holders: 43
Dividend Yield: 2.11%
The Gap, Inc. (NYSE:GPS) is a global apparel retailer that sells men’s, women’s, and children’s clothes, apparel, accessories, and personal care goods. The company ranks ninth on the list of 9 dividend stocks to buy according to Marc Majzner’s Clearline Capital. The hedge fund owns 84,042 shares of the company worth $2.83 million.
On October 22, Citi analyst Paul Lejuez lowered his price target on Gap, Inc. (NYSE:GPS) to $25 from $32 and reiterated a “Neutral” rating on the shares. In the second quarter, hedge fund sentiment increased for Gap, Inc. (NYSE:GPS). Insider Monkey’s data shows that 43 elite hedge funds held stakes in the company at the end of the second quarter, up from 42 funds a quarter earlier.
Just like Alphabet Inc. (NASDAQ:GOOGL), Alibaba Group Holding Limited (NYSE:BABA), and Uber Technologies, Inc. (NYSE:UBER), Gap, Inc. (NYSE:GPS) is one of the dividend stocks to buy according to Marc Majzner’s Clearline Capital.
8. Scorpio Tankers Inc. (NYSE:STNG)
Clearline Capital Stake Value: $914,000
Percentage of Clearline Capital’s 13F Portfolio: 2.6%
Number of Hedge Fund Holders: 20
Dividend Yield: 2.24%
According to 13F filings, Clearline Capital bought 41,465 shares in Scorpio Tankers Inc. (STNG) worth over $914,000 at the end of the second quarter of 2021, representing 0.13% of the portfolio of the fund.
DNB Markets analyst Jorgen Lian upgraded Scorpio Tankers (NYSE:STNG) to “Buy” from “Hold” lowering his price target to $21, from $25. Jeremy Hosking’s Hosking Partners is the most significant stakeholder of the company, with 803,540 shares worth $17.72 million.
7. ViacomCBS Inc. (NASDAQ:VIAC)
Clearline Capital Stake Value: $7,601,000
Percentage of Clearline Capital’s 13F Portfolio: 1.13%
Number of Hedge Fund Holders: 71
Dividend Yield: 2.29%
ViacomCBS Inc. (NASDAQ:VIAC), a media conglomerate based in New York City, on October 6 announced a quarterly dividend of $0.24 per share, which was in line with the previous.
On October 16, Deutsche Bank analyst Bryan Kraft lowered his price target on ViacomCBS Inc. (NASDAQ:VIAC) to $44 from $45 and maintained a “Hold” rating on the shares.
In addition to Alphabet Inc. (NASDAQ:GOOGL), Alibaba Group Holding Limited (NYSE:BABA), and Uber Technologies, ViacomCBS Inc. (NASDAQ:VIAC) is one the dividend stocks to buy according to Marc Majzner’s Clearline Capital.
6. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Clearline Capital Stake Value: $1,969,000
Percentage of Clearline Capital’s 13F Portfolio: 0.29%
Number of Hedge Fund Holders: 13
Dividend Yield: 1.4%
Beverage manufacturing, distribution, and marketing company Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) is placed sixth on the list of 9 dividend stocks to buy according to Marc Majzner’s Clearline Capital. Marc Majzner added Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) to his portfolio in the third quarter of 2020.
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Disclosure: None. 9 Dividend Stocks to Buy According to Marc Majzner’s Clearline Capital is originally published on Insider Monkey.
