Billionaire Lee Ainslie’s Top 5 Stock Picks

Below are the billionaire Lee Ainslie’s top 5 stock picks. For a comprehensive list see Billionaire Lee Ainslie’s Top 10 Stock Picks.

5. Lam Research Corporation (NASDAQ: LRCX)

The billionaire Lee Ainslie has been showing confidence in Lam Research Corporation (NASDAQ: LRCX) over the years. The Dallas based hedge fund has raised its position by 217% in Lam Research during the September quarter. It is the fifth-largest stock holding of Maverick’s 13F portfolio, accounting for 4.54% of the overall portfolio.

Shares of Lam Research rallied almost 67% in the last twelve months, extending the five years gains to 530%. The company has generated 46% year over year revenue growth in the September quarter while earnings per share grew 18% from the year-ago period.

“Lam generated outstanding results in the September quarter with record revenues and earnings per share,” said Tim Archer, Lam Research’s President, and Chief Executive Officer. “Our strong operational execution is enabling the Company to meet our customers’ critical needs, providing a solid foundation to deliver on our long-term growth objectives.”

4. Microsoft Corporation (NASDAQ: MSFT)

Although Lee Ainslie sold 16% of Microsoft Corporation’s (NASDAQ: MSFT) position in the September quarter, Microsoft still accounts for 4.72% of the overall portfolio. Shares of Microsoft rallied almost 37% in the last twelve months, thanks to robust financial growth.

Brown Advisory, which returned 18.29% for the second quarter, commented on a few stocks including Microsoft Corporation in an investor’s letter. Here is what Brown Advisory stated:

“Software maker Microsoft gained after reporting quarterly results that exceeded expectations. Thanks to its suite of cloud computing services and business workflow applications, the company continued to benefit from the global shift to remote work and distance learning in the current environment.”

3. Humana Inc. (NYSE: HUM)

The managed health care services provider Humana Inc. (NYSE: HUM) is the third-largest stock holding of billionaire Lee Ainslie hedge fund’s 13F portfolio. The firm has reduced its stake in HUM by 14% in the September quarter. Despite that, HUM accounted for 5.12% of the overall portfolio.

Humana was in 61 hedge funds’ portfolios at the end of the third quarter of 2020, down from the all-time high of 75.

VLTAVA Fund, which is a global equity investment fund, commented about a few stocks including Humana in an investor’s letter. Here is what VLTAVA stated:

“Humana is benefitting from a lower number of visits to physicians, which means lower insurance pay-outs for health care. This trend will most probably return gradually to normal by the end of the year.”

2. DuPont de Nemours, Inc. (NYSE: DD)

Billionaire Lee Ainslie has raised its position in DuPont de Nemours, Inc. (NYSE: DD) during the September quarter by 15%. It is the second-largest stock holding of Maverick Capital, accounting for 6.27% of the overall portfolio. Shares of DuPont rallied almost 18% in the last twelve months.  

Although DuPont’s financial numbers remained under pressure throughout 2020, the company is still likely to beat the consensus forecast. It expects full-year earnings per share in the range of $3.17-$3.21 compared to the analyst’s forecast of $3.03.

1. Facebook (NASDAQ: FB)

Despite reducing the stake by 19% in the September quarter, the social media giant Facebook (NASDAQ: FB) is the largest stock holding of Maverick Capital’s 13F portfolio.

The hedge fund held 1.36 million shares of Facebook valued at $356 million, accounting for 6.63% of the overall portfolio. Shares of Facebook grew 29% in the last twelve months. The market analysts are expecting further share price expansion amid prospects for double-digit revenue growth in 2021, thanks to the robust increase in online advertising.

Please also see 10 Best Cheap Stocks To Buy Now and Billionaire Barry Rosenstein’s Top Stock Picks.

Disclosure: None.