Billionaire Chris Rokos is Selling These 5 Stocks in 2023

In this article, we discuss billionaire Chris Rokos is selling these 5 stocks in 2023. If you want to read our detailed analysis of Rokos’ investment philosophy and portfolio construction, go directly to the Billionaire Chris Rokos is Selling These 12 Stocks in 2023.

5. Bunge Limited (NYSE:BG) 

Number of Hedge Fund Holders: 37

Bunge Limited (NYSE:BG) is a global company connecting farmers to consumers, delivering essential food, feed, and fuel. With a focus on sustainability and global food security, the company collaborates with partners to improve agricultural efficiency and provide innovative solutions. Headquartered in St. Louis, Missouri, Bunge Limited (NYSE:BG) operate in over 40 countries with nearly 23,000 employees.

BMO Capital analyst Andrew Strelzik initiated coverage of Bunge Limited (NYSE:BG) on April 13, giving it an ‘Outperform’ rating and setting a price target of $120, indicating a potential upside of 30%.

Rokos Capital Management initially purchased 164,150 shares of Bunge Limited (NYSE:BG) in the second quarter of 2022. However, in the first quarter of 2023, billionaire Chris Rokos’ fund divested its entire stake in the company.

According to Insider Monkey’s first-quarter database, 37 hedge funds were bullish on Bunge Limited (NYSE:BG), with collective stakes worth $378.5 million. Anand Parekh’s Alyeska Investment Group held the most prominent position in Bunge Limited (NYSE:BG).

4. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 37

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a clinical-stage biotech company focused on precision medicine for immune-mediated diseases. Their Prometheus360 platform uses machine learning and a vast gastrointestinal bioinformatics database to discover therapeutic targets and develop treatment candidates.

Prometheus Biosciences, Inc. (NASDAQ:RXDX) received a downgrade from Jefferies analyst Michael Yee, shifting its rating from ‘Buy’ to ‘Hold,’ with a price objective of $200. According to an analyst’s research note, Merck (MRK) plans to acquire Prometheus by Q3. The agreement is anticipated to be finalized according to the planned timeline.

Rokos Capital Management bought 20,000 shares in Prometheus Biosciences, Inc. (NASDAQ:RXDX) in Q4 2022 but offloaded its entire stake in the first quarter of 2023.

As of the first quarter of 2023, 37 hedge funds in Insider Monkey’s database held stakes in Prometheus Biosciences, Inc. (NASDAQ:RXDX). The most prominent shareholder in Prometheus Biosciences, Inc. (NASDAQ:RXDX) is Steve Cohen’s, 72 Investment Holdings, with 1.85 million shares valued at $198.33 million.

In its Q1 2023 investor letter, Baron Funds provided its assessment of Prometheus Biosciences, Inc. (NASDAQ: RXDX) with the following comment:

“We added to our position in Prometheus Biosciences, Inc. (NASDAQ:RXDX), a clinical stage biotechnology company. Prometheus’ lead product candidate, PRA023, is a monoclonal antibody that has been shown to block a target called TL1A that is associated with intestinal inflammation and fibrosis. In December 2022, the company reported promising Phase 2 clinical trial results, suggesting potential for PRA023 to be a novel treatment for ulcerative colitis and Crohn’s disease. The company plans to advance PRA023 into Phase 3 clinical trials for ulcerative colitis and Crohn’s disease in 2023. The company is also studying PRA023 as a treatment for Systemic-Sclerosis-associated Interstitial Lung Disease and plans to announce a fourth potential indication for PRA023 in 2023. We believe PRA023 has blockbuster potential. Prometheus also has a pipeline of earlier stage product candidates. On April 16, Merck issued a press release announcing its agreement to acquire Prometheus for $200 per share in cash.”

3. Chart Industries, Inc. (NYSE:GTLS)

Number of Hedge Fund Holders: 43

Chart Industries, Inc. (NYSE:GTLS) is a global leader in designing and manufacturing process technologies and equipment for gas and liquid molecule handling in clean power, clean water, clean food, and clean industries. They specialize in serving the Nexus of Clean, regardless of the molecule involved. On May 8, CL King analyst Thomas Hayes initiated coverage of Chart Industries, Inc. (NYSE:GTLS) with a ‘Buy’ rating and a price objective of $165.

Chart Industries, Inc. (NYSE:GTLS) has been in the portfolio of Chris Rokos’ Rokos Capital Management since the fourth quarter of 2022. The hedge fund bought 25,000 shares of the company worth $2.85 million. However, in the first quarter of 2023, the hedge fund completely sold off its position in the company.

 In the first quarter of 2023, 43 hedge funds had stakes worth $377.83 million in Chart Industries, Inc. (NYSE:GTLS), down from 55 in the preceding quarter worth $663.57 million. The most prominent shareholder in Chart Industries, Inc. (NYSE:GTLS) is Marshall Wace LLP.

In its Q1 2023 investor letter, Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Chart Industries, Inc. (NYSE:GTLS):

“Chart Industries, Inc. (NYSE:GTLS) is a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets. Its unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. Chart’s customers are mainly large, multinational producers and distributors of hydrocarbon and industrial gases. The company generates about half its sales in North America.

We see Chart Industries as a leading manufacturer of highly engineered cryogenic solutions that are used for the production and storage of industrial gases. With the exposure to energy end markets including liquified natural gas (LNG), compressed natural gas (CNG) and hydrogen, the company has the technology to ship gas from oversupplied markets to markets that do not have access to enough energy resources. Hydrogen is gaining traction as a renewable fuel due to the focus on climate change. The recent acquisition of Howden is complementary to Chart’s existing product and service offerings.”

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 52

Headquartered in Oakland, PG&E Corporation (NYSE:PCG) is a holding company that serves as the parent company of Pacific Gas and Electric Company. This energy provider caters to approximately 16 million residents in Northern and Central California, covering a service area spanning 70,000 square miles. Ladenburg analyst Paul Fremont initiated coverage of PG&E Corporation (NYSE:PCG) on April 4, assigning it a ‘Buy’ rating and setting a price target of $20.50.

In Q2 2021, Rokos’ fund initiated a position in PG&E Corporation (NYSE:PCG) by acquiring shares worth $51.34 million, only to sell off its stake in Q1 2022. The fund then purchased 100,000 shares of the company in Q4 2022, but quickly offloaded them in Q1 2023.

According to Insider Monkey data, PG&E Corporation (NYSE:PCG) had 52 hedge funds at the end of the first quarter 2023. Dan Loeb’s Third Point is the company’s notable stakeholder in Q1 2023, with 59.25 million shares worth $958 million.

In its Q4 2022 investor letter, the ClearBridge Global Infrastructure Value Strategy offered its perspective on PG&E Corporation (NYSE: PCG) with the following comment:

“Turning to the U.S. and Canada, U.S. electric utility PG&E Corporation (NYSE:PCG) and U.S. water company American Water Works (AWK) also made strong contributions. PG&E is a regulated utility operating in central and northern California that serves 5.3 million electricity customers and 4.4 million gas customers in 47 of the state’s 58 counties. PG&E outperformed given several positive catalysts: it was included in the S&P 500 Index, the Fire Victim’s Trust sold some of its stake in the company, easing a market overhang, and the company displayed evidence of its operational improvements, with no major fires seen so far this fire season.”

1. Zoetis Inc. (NYSE:ZTS)

Number of Hedge Fund Holders: 55

Zoetis Inc. (NYSE:ZTS) is a global company that specializes in animal health products, including medicines, vaccines, and diagnostics. Piper Sandler analyst David Westenberg lowered the price target on Zoetis Inc. (NYSE:ZTS) to $210 from $220 while maintaining an ‘Overweight’ rating. This adjustment was made after updating estimates to align with the company’s earnings release, mainly focusing on operating expenses and margin forecasts in line with guidance.

Rokos Capital Management joined the Zoetis Inc. (NYSE:ZTS) bandwagon in the second quarter of 2022 by purchasing shares worth $21.23 million but promptly exited in the first quarter of 2023, completely divesting its stake.

According to Insider Monkey’s first quarter database, 55 hedge funds in the database of Insider Monkey held stakes worth $1.19 billion in Zoetis Inc. (NYSE:ZTS), down from 58 in the preceding quarter worth $1.50 billion. William Von Mueffling’s Cantillon Capital Management is the biggest position holder in the company, with 1.79 million shares worth $ 297.7 million.

In its investor letter for Q1 2023, Baron Funds stated the following regarding Zoetis Inc. (NYSE:ZTS):

“Zoetis Inc. (NYSE:ZTS) is a global leader in the discovery, development, and manufacturing of companion and farm animal health medicines and vaccines, selling in more than 120 countries across eight core species. Shares rose after the company reported a fourth quarter revenue beat and issued 2023 guidance that met Street forecasts, calling for 6% to 8% operational growth and 7% to 9% adjusted net income growth despite higher R&D spend on late-stage pipeline products and manufacturing spend. Zoetis, which is growing 100 to 200 basis points above the industry’s 4% to 5% CAGR, should benefit from expanding demand for animal health products, driven by increasing consumption of animal proteins and the humanization of pets. Five key catalysts include products for osteoarthritis pain, parasiticides, dermatology, diagnostics, and emerging markets. Longer term, Zoetis should be able to achieve double-digit earnings growth on consistent revenue increases and an improving cost structure due to a more favorable product/species mix and manufacturing efficiencies. Strong operating cash flow helps facilitate capital deployment opportunities to supplement expansion.”

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