Arrowstreet Capital Gets Hype for Tech, Materials Stocks

Barrick Gold Corporation (USA) (NYSE:ABX)

– Shares Owned by Arrowstreet Capital (as of June 30): 20.30 Million

– Value of The Holding (as of June  30): $432.76 Million

Barrick Gold Corporation (USA) (NYSE:ABX) was another gold mining stock in which Arrowstreet Capital boosted its stake during the second quarter, by 231%. Shares of the Ontario-based gold mining company have appreciated by 153.6% year-to-date, but some analysts expect it to soon undergo a correction. The reason for their pessimism stems from the recent chemical spill at Barrick Gold Corporation (USA) (NYSE:ABX)’s Veladero mine in Argentina, which is costing the company $2 million a day in lost revenues and can have adverse ramifications on its other developments in the region. On September 7, analysts at Berenberg Bank initiated coverage on the stock with a ‘Sell’ rating and $13.50 price target, which represents a potential downside of 18.67% from its current trading price. The number of hedge funds covered by us that were long Barrick Gold Corporation (USA) increased by four to 53 during the second quarter, while the aggregate value of their holdings in it rose 40% to $3.84 billion.

Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)

– Shares Owned by Arrowstreet Capital (as of June 30): 16.85 Million

– Value of The Holding (as of June  30): $441.90 Million

Though its stock ended the second quarter flat, Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) jumped from the 12th to the fourth spot in Arrowstreet Capital’s equity portfolio during that period owing to a 68% increase that fund made to its stake in the company. Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)’s stock is currently trading up by 34.44% year-to-date and very close to its lifetime high. The company is expected to report its third quarter numbers in  the middle of next month and the current consensus estimates among analysts are for EPS of $0.57 and revenue of $7.99 billion. For the same quarter of the previous year, Taiwan Semiconductor had reported EPS of $0.46 on revenue of $6.67 billion. At the start of this week, analysts at Bank of America Corp. reiterated their ‘Buy’ rating on the stock. Hedge funds covered by us were collectively less bullish on the company going into the third quarter as its ownership among them fell by four to 26 and the aggregate value of their holdings in it saw a marginal decline during the April-June period.

Facebook Inc (NASDAQ:FB)

– Shares Owned by Arrowstreet Capital (as of June 30): 9.07 Million

– Value of The Holding (as of June  30): $1.04 Billion

With Arrowstreet Capital increasing its stake in the company by 94% during the second quarter, Facebook Inc (NASDAQ:FB) ended up becoming the fund’s top stock pick at the end of June. Shares of the social media giant have continued the bull run they started in mid-2013 and have advanced by 22.6% so far in 2016. Owing to the continued growth being displayed by the several platforms owned by the company, its push towards mobile commerce and international expansion, most analysts expect the stock to move even higher going forward. The 47 leading analysts and research firms on the Street who cover Facebook Inc (NASDAQ:FB) currently have an average rating of ‘Buy’ and an average price target of $154.12 on it, which represents a potential upside of 18.55% from its current trading price. Hedge funds tracked by us are equally buoyant about the stock. At the end of June, Facebook was the most popular stock among them, with 148, of the over 740 hedge funds we cover, reporting a stake in it and the aggregate value of their holdings in it amounting to $15.24 billion.

Disclosure: None