In this article, we discuss BBBY bull Ken Griffin’s 10 favorite stock picks. If you want to read about some more stocks in the Griffin portfolio, go directly to BBBY Bull Ken Griffin’s 5 Favorite Stock Picks.
Ken Griffin, the chief of Citadel Investment Group, was one of the worst-hit Wall Street titans last year when retail traders on Reddit forum WallStreetBets targeted his short positions on stocks like GameStop and initiated a short squeeze which ended up resulting in millions in losses for the hedge fund. The tables seem to have turned this year, with a meme stock resurgence, coming as a total surprise amid recession fears at the stock market, is actually benefiting hedge funds. Citadel owned a stock portfolio worth almost $390 billion at the end of the second quarter of 2022.
Some of the top stocks in the Griffin portfolio at the end of June were Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and T-Mobile US, Inc. (NASDAQ:TMUS). However, by far, one of the biggest winners from his portfolio has been Bed Bath & Beyond Inc. (NASDAQ:BBBY), the firm that owns and runs a chain of retail stores. At the end of the second quarter of 2022, Citadel owned CALL options on over 2.8 million shares of Bath & Beyond Inc. (NASDAQ:BBBY) worth $14.3 million.
Ken Griffin – A BBBY Bull
Interestingly, although Bath & Beyond Inc. (NASDAQ:BBBY) has only been popular as a meme stock on Reddit over the past year or so, a glance at the history of the stock in the Insider Monkey database reveals that it has featured in the Citadel portfolio since the fourth quarter of 2016, long before the dramatic rise of WallStreetBets and retail trading. Since late 2017, Bath & Beyond Inc. (NASDAQ:BBBY) has featured consistently in the Griffin portfolio. In fact, Griffin has been loading up on the stock.
In three of the last four quarters, Citadel has increased its stake in Bath & Beyond Inc. (NASDAQ:BBBY) by a handsome amount. Between March and June 2022, the hedge fund increased its stake in the firm by 59% compared to filings for the first quarter of the year. Between January and March 2022, it upped the stake in the firm by 58% compared to fourth quarter filings. Bath & Beyond Inc. (NASDAQ:BBBY) has gained over 253% in the past four weeks as the short interest on the stock touches a scary 41%.
Griffin has gained over $50 million from this sudden resurgence in the shares. As Griffin makes tens of millions from his Bath & Beyond Inc. (NASDAQ:BBBY) stake, other hedge funds have been selling the stock as the retail firm struggles with margins. At the end of the second quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $23 million in Bed Bath & Beyond Inc. (NASDAQ:BBBY), compared to 15 in the previous quarter worth $69 million. Analysts have been downgrading the stock as well.
On August 16, Odeon Capital analyst Alexander Arnold downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock to Sell from Hold with a price target of $7.50, noting that the consensus view on the shares was overly dour. Wedbush also has a Sell rating on the stock. Griffin owns PUT options on the shares as well, perhaps as a hedge against retail traders who might spoil his short squeeze. At the end of the second quarter of 2022, this position consisted of over 1.7 million shares worth $8.6 million.
Our Methodology
These were picked from the investment portfolio of Citadel Investment Group at the end of the second quarter of 2022. In order to provide readers with a more comprehensive overview of the companies, the analyst ratings for each firm are mentioned alongside other details. A database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to quantify the popularity of each stock in the hedge fund universe.
Ken Griffin of Citadel Investment Group
BBBY Bull Ken Griffin’s Favorite Stock Picks
10. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 66
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. Latest filings show that Citadel owned over 672,000 shares of Broadcom Inc. (NASDAQ:AVGO) at the end of the second quarter of 2022 worth $326 million, representing 0.08% of the overall portfolio. The company has been in the Citadel portfolio since the second quarter of 2018.
On July 20, Deutsche Bank analyst Ross Seymore maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) stock and lowered the price target to $635 from $700, backing the firm to display strength on fundamentals in the ongoing purgatory stage of chip cycle.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Cantillon Capital Management is a leading shareholder in Broadcom Inc. (NASDAQ:AVGO), with 1 million shares worth more than $500 million.
Just like Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and T-Mobile US, Inc. (NASDAQ:TMUS), Broadcom Inc. (NASDAQ:AVGO) is one of the stocks that hedge funds are buying.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Broadcom Inc. (NASDAQ:AVGO) was one of them. Here is what the fund said:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom Inc. (NASDAQ:AVGO) has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom Inc. (NASDAQ:AVGO) was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
9. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 66
Cigna Corporation (NYSE:CI) provides insurance and related products. Regulatory filings reveal that Citadel owned over 1.3 million shares of Cigna Corporation (NYSE:CI) at the end of the second quarter of 2022 worth more than $349 million, representing 0.08% of the portfolio.
On August 8, UBS analyst Kevin Caliendo maintained a Buy rating on Cigna Corporation (NYSE:CI) stock and raised the price target to $330 from $310, noting that the stock had outperformed peers in the past few weeks due to reduced medical loss ratio forecasts.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Glenview Capital is a leading shareholder in Cigna Corporation (NYSE:CI), with 2 million shares worth more than $547 million.
In its Q4 2021 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Cigna Corporation (NYSE:CI) was one of them. Here is what the fund said:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna Corporation (NYSE:CI), United Health Group, Viatris and Quest Diagnostics.”
8. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 68
Charter Communications, Inc. (NASDAQ:CHTR) operates as a broadband connectivity firm. Securities filings show that Citadel owned close to 777,300 shares of Charter Communications, Inc. (NASDAQ:CHTR) at the end of June 2022 worth over $364 million. The company has been in the Citadel portfolio since the second quarter of 2016.
On August 15, investment advisory Atlantic Equities downgraded Charter Communications, Inc. (NASDAQ:CHTR) stock to Neutral from Overweight and lowered the price target to $477 from $755. Analyst Hamilton Faber issued the ratings update.
At the end of the second quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $5.6 billion in Charter Communications, Inc. (NASDAQ:CHTR), compared to 73 in the preceding quarter worth $8.5 billion.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Charter Communications, Inc. (NASDAQ:CHTR) was one of them. Here is what the fund said:
“We also added to Charter Communications, Inc. (NASDAQ:CHTR), a historically strong performer that has faced headwinds recently due to a deceleration in broadband subscriber growth following a period of robust results during the pandemic.”
7. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. Latest 13F filings show that Citadel owned over 1.3 million shares of The Home Depot, Inc. (NYSE:HD) at the end of June 2022 worth $370 million, representing 0.09% of the portfolio. The company has been in the Citadel portfolio, with minor breaks, since the third quarter of 2010.
On August 17, Truist analyst Scot Ciccarelli maintained a Buy rating on The Home Depot, Inc. (NYSE:HD) stock and increased the price target to $399 from $375, appreciating the second quarter earnings beat of the firm.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in The Home Depot, Inc. (NYSE:HD), with 8.3 million shares worth more than $2.2 billion.
In its Q1 2022 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and The Home Depot, Inc. (NYSE:HD) was one of them. Here is what the fund said:
“The Home Depot, Inc. (NYSE:HD) (7.7% weight in the Fund): The demand surge for remodeling and home improvement goods sparked by shelter in place orders, remote work going mainstream, and a shortage of homes on the market to buy, ran headlong into the supply chain crisis, triggering surging prices in the products Home Depot sells. But the company has been able to pass nearly all of these increased costs on to customers, with revenue growing 37% over the past two years while gross profits, or the profits the company makes on each item they sell, increased by 35%. Even this small difference appears to be due not to inflation eating away at Home Depot’s profits, but rather be a function of the huge increase in revenue the company has been generating in low margin lumber sales.”
6. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 70
Eli Lilly and Company (NYSE:LLY) develops and markets human pharmaceuticals. According to the latest disclosures, Citadel owned over 1.1 million shares of Eli Lilly and Company (NYSE:LLY) at the end of the second quarter of 2022 worth $377.7 million, representing a very small portion of the total portfolio. The company has been in the Citadel portfolio since the fourth quarter of 2010.
On August 5, Morgan Stanley analyst Terence Flynn maintained an Overweight rating on Eli Lilly and Company (NYSE:LLY) stock with a price target of $395, noting that the recent weakness in the shares was a buying opportunity.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Eli Lilly and Company (NYSE:LLY), with 1.6 million shares worth more than $529 million.
In addition to Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and T-Mobile US, Inc. (NASDAQ:TMUS), Eli Lilly and Company (NYSE:LLY) is one of the stocks that elite investors are monitoring.
In its Q1 2022 investor letter, Baron Funds highlighted a few stocks and Eli Lilly and Company (NYSE:LLY) was one of them. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company with a diverse offering primarily focused on therapeutics. Performance was strong mostly due to consistent financial growth powered by its core diabetes (and future obesity) franchise, as well as the constant drumbeat surrounding the Alzheimer’s therapeutic market, of which Eli Lilly and Company (NYSE:LLY) has one of the three potential winning blockbuster candidates in Donanemab. We retain conviction in Eli Lilly given the company’s strong long-term growth outlook.”
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Disclosure. None. BBBY Bull Ken Griffin’s 10 Favorite Stock Picks is originally published on Insider Monkey.
