Billionaire Izzy Englander’s 5 Favorite Stocks Heading Into 2021

Below are the billionaire Izzy Englander’s 5 favorite stocks heading into 2021. For a comprehensive list please see Billionaire Izzy Englander’s 10 Favorite Stocks Heading Into 2021.

5. SPDR S&P 500 Trust ETF (NYSEARCA: SPY)

The billionaire Izzy Englander looks bullish about the US stock market fundamentals. The hedge fund increased its position by 107% in the SPDR S&P 500 Trust ETF (NYSEARCA: SPY). It now accounts for 0.34% of the overall portfolio, up from 0.17% in the previous quarter. This position has to be part of a pairs trade or a cash alternative. No hedge fund investor would like to pay a hedge fund huge fees so that they buy a low cost index fund with their capital.

The price of SPDR S&P 500 Trust ETF grew 15% in the last twelve months. SPDR ETFs seek to track the performance of the S&P 500 Index. In addition to price gains, investors like to invest in the SPDR S&P 500 Trust ETF in order to generate a steady stream of income. SPDR S&P 500 Trust ETF offers a dividend yield of 1.56%.

4. PayPal Holdings, Inc. (NASDAQ:PYPL)

A technology platform and digital payments company PayPal Holdings, Inc. (NASDAQ: PYPL) is one of the favorite stocks of Millennium Management. The hedge fund increased its position in PayPal by 4% in the latest quarter.

Other hedge funds are also bullish on PayPal Holdings. It was in 150 hedge funds’ portfolios at the end of September, up from a previous all-time high of 144. PayPal also ranks 8th among the 30 most popular stocks among hedge funds.

Polen Capital Management, which has generated a 9.09% return gross of fees, commented about PayPal in the investor’s letter. Here is what Polen Capital Management stated:  

“We continue to have high conviction in MasterCard and Visa, which we trimmed last quarter, and chose to rebalance our weights as we added to our position in PayPal. PayPal’s value proposition to merchants and consumers continues to expand in the current environment, and we believe this will have a lasting positive impact on the business. At the end of the quarter, our collective position in Visa, MasterCard, and PayPal was more than 13%, an increase in our aggregate weight from the start of the year.”

3. Facebook, Inc. (NASDAQ:FB)

The billionaire Izzy Englander’s hedge fund increased position by 122% in the social media giant Facebook, Inc. (NASDAQ: FB) in the latest quarter. FB now accounts for 0.39% of the overall portfolio compared to 0.17% in the previous quarter. Shares of Facebook rallied 33% this year.

Facebook is one of the favorite stocks of hedge funds. It was in 230 hedge funds’ portfolios at the end of the third quarter of 2020, up sharply from the previous all-time high of 213.

Wedgewood Partners has also been bullish on Facebook’s fundamentals. Here is what Wedgewood Partners stated about Facebook in an investor’s letter.

“Facebook reported 32% growth in constant currency ad revenue, along with expectations for 50-55% growth in expenses as the Company continued with their telegraphed plan to accelerate investments in privacy and security across their social platforms. The Federal Trade Commission (FTC) also approved a $5 billion fine for violating a 2012 FTC order by misrepresenting users’ ability to control data privacy. While this removed an overhang dating back to early 2018, continued pressure from politicians and regulators kept Facebook’s earnings multiple in check.”

2. Microsoft Corporation (NASDAQ:MSFT)

The technology giant Microsoft Corporation (NASDAQ: MSFT) is one of the favorite stocks of billionaire Izzy Englander. The hedge fund has raised its position in MSFT by 100% in the latest quarter to 0.41% of the overall portfolio.

Several hedge funds are bullish on Microsoft Corporation. MSFT was in 234 hedge funds’ portfolios at the end of September, shy slightly from the all-time high of 235. MSFT ranks #2 among the 30 most popular stocks among hedge funds.

RiverPark Advisors also looks bullish over the future performance of the tech giant. Here is what RiverPark Advisors stated about Microsoft in the investor’s letter:

“We believe that cloud-based services can become the company’s largest revenue and earnings producer and expect Microsoft to generate significant and growing free cash flow ($11 billion last quarter, up 19% year-over-year). The company should deliver at least mid-to-high teens EPS growth, with upside from deploying its $134 billion cash balance ($7 billion was returned to shareholders in the quarter through dividends and share buybacks). We trimmed our position on strength, and Microsoft remains a top five position in the Fund.”  

1. Amazon.com (NASDAQ:AMZN)

Billionaire Izzy Englander’s Millennium Management increased its position in the world’s largest e-commerce giant Amazon.com (NASDAQ: AMZN) by 55% in the latest quarter. The hedge fund currently holds 134,378 shares of Amazon valued at $423 million, accounting for 0.52% of the overall portfolio.

Shares of Amazon rallied 75% in the last twelve months, thanks to consumers’ shift towards online platforms amid pandemic. The company has generated $96 billion in the September quarter revenue, with expectations that December quarter revenue will reach $119 billion.           

Please also see: Here’s How Billionaire Lee Cooperman Is Preparing For Massive Inflation and 10 Best Dow Stocks To Buy Now.

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