Billionaire Investors Are Betting Big On These Defense Stocks

On par with Textron is Rockwell Collins, Inc. (NYSE:COL), the provider of communications and aviation systems. According to Insider Monkey’s billionaire database, Rockwell Collins could be found in the portfolios of 7 elite fund managers at the end of September, up from just 2 a quarter before. Ken Griffin’s Citadel Investment Group is leading the way again, having indicated ownership of 809,062 shares of Rockwell Collins in its latest 13F filing. Billionaire James Dinan was optimistic about the prospects of Rockwell Collins, Inc. (NYSE:COL) with his fund, York Capital Management, having reported a fresh stake in the company that amounted to 761,664 shares.

Rockwell Collins, Inc. (NYSE:COL) is currently the subject of takeover efforts by United Technologies Corporation (NYSE:UTX). Back in September 2017, United Technologies agreed to acquire Rockwell Collins for $30 billion or $140 per share in a cash and stock deal. With Rockwell Collins currently trading around the $135 level, there could be some potential for merger arbitrage.

Next up is General Dynamics Corporation (NYSE:GD), which, at the end of September, could be found in the portfolios of 8 billionaire fund managers. Jim Simons’ Renaissance Technologies was leading the pack, having reported ownership of 320,917 shares in its latest 13F filing. Not far behind was billionaire David Harding. His fund, Winton Capital Management, reportedly held 270,946 shares of General Dynamics Corporation (NYSE:GD) at the end of September.

Although General Dynamics Corporation (NYSE:GD) was betting on a substantial increase in revenue after the US government pledged to increase military spending, results failed to materialize in 2017. The company’s management is still upbeat and believes the windfall of revenue has only been delayed. General Dynamics is looking to generate sales between $32.35 billion and $32.45 billion in 2018, which would imply an increase of 4.4% to 4.8% compared to 2017.