In this article, we discuss the top 5 large-cap stock picks of billionaire Leon “Lee” Cooperman. If you want to read our detailed analysis of these stocks, go directly to Billionaire Lee Cooperman’s 10 Large-Cap Stock Picks.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 50
Devon Energy Corporation (NYSE:DVN) is ranked fifth on our list of 10 large-cap stock picks of billionaire Lee Cooperman. The firm operates as an independent energy firm and is headquartered in Oklahoma. According to the latest filings, Omega Advisors owned 3.1 million shares in the company at the end of the second quarter of 2021 worth $91 million, representing 5.11% of the portfolio.
On July 22, investment advisory Piper Sandler maintained an Overweight rating on Devon Energy Corporation (NYSE:DVN) stock and raised the price target to $37 from $34, noting that “de-rate presents another attractive entry opportunity” in the sector.
Out of the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 7.5 million shares worth more than $219 million.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
4. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 63
Cigna Corporation (NYSE:CI) is a Connecticut-based firm that provides insurance and related services. It is placed fourth on our list of 10 large-cap stock picks of billionaire Lee Cooperman. According to securities filings, Omega Advisors owned 425,000 shares in the company at the end of June 2021 worth $100 million, representing 5.65% of the portfolio.
On September 27, investment advisory SVB Leerink initiated coverage of Cigna Corporation (NYSE:CI) stock with a Market Perform rating and a price target of $220. Whit Mayo, an analyst at the firm, issued the ratings update.
Out of 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 1.2 million shares worth more than $304 million.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Cigna Corporation (NYSE:CI) was one of them. Here is what the fund said:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
3. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 72
Fiserv, Inc. (NASDAQ:FISV) is a Wisconsin-based firm that provides payments and financial services. It is ranked third on our list of 10 large-cap stock picks of billionaire Lee Cooperman. Latest data shows that Omega Advisors owned 1 million shares in the company at the end of the second quarter of 2021 worth $110 million, representing 6.18% of the portfolio.
On September 30, investment advisory William Blair initiated coverage of Fiserv, Inc. (NASDAQ:FISV) stock with an Outperform rating and no price target, noting that the firm had developed a “diversified and global business”.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Fiserv, Inc. (NASDAQ:FISV) with 12 million shares worth more than $1.2 billion.
In its Q1 2021 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Fiserv, Inc. (NASDAQ:FISV) was one of them. Here is what the fund said:
“This quarter we researched several new stock ideas, but because of high prices, acted on only one. Thus, a new portfolio name is Fiserv, with corporate headquarters in Brookfield, WI, just down I-94 from us. Fiserv is a technology company serving financial institutions (“FIs”) and retail merchants. It has two main business lines. In the first, it’s a market leader in outsourced IT solutions for banks and credit unions, online and mobile banking technology, digital money movement solutions, and card issuing services. Fiserv’s second core business is merchant acquiring and processing, where it’s a leader in providing a variety of solutions to help all types of merchants accept digital payments. They entered this business through the acquisition of First Data in 2019.
Within the first business, Fiserv’s software is critical to the daily operations of FI clients. Their solutions not only provide the vital central processing systems, but also enable services such as electronic bill pay and digital money transfers at both large institutions and local banks and credit unions alike. As such, it is an incredibly sticky business that is resilient through economic cycles. On the merchant acquiring side of Fiserv, they process trillions of dollars annually for millions of merchant clients. Their solutions cater to all types of merchants and optimize for seamless acceptance and high authorization rates while also limiting fraud. Similar to the IT outsourcing business, Fiserv’s merchant solutions are critical to their customers’ daily operations. Furthermore, we are especially encouraged by their investments in new solutions, particularly Clover and Carat. Clover is a small and midsize business merchant acquiring platform and Carat is an e-commerce acquiring platform. Both these products hit the bullseye in terms of the way people are interacting with the retail industry, and both are growing at above market rates, which we believe will sustain into the future.
In addition to Fiserv’s favorable business characteristics and competitive positioning, the management team, led by CEO Frank Bisignano, has a track record of successfully investing for growth, improving profitability, and intelligently allocating excess capital. We believe these value-creating activities will continue going forward.
Financial institutions are increasingly making investments to digitize their customer facing products and digital payments are increasingly taking share from cash as a form of payment. As a result, demand for Fiserv’s solutions, should continue to grow nicely in the coming years. In our view, Fiserv offers a nice combination of above average growth, high profitability, business resiliency, and shareholder-friendly management. We do not believe these characteristics were fully reflected in Fiserv’s share price when we made our investment during the quarter at a discount to the market’s 2021 price-to-earnings (P/E) multiple, a valuation level well below Fiserv’s historical premium.
An offsetting trade was the sale of Cognizant Technology Solutions, which was sold around the time Fiserv was added to the portfolio. Cognizant had been held since 2018, and we had expected it to perform similarly to another portfolio holding in the same industry, Accenture. Alas, multiple years of below industry growth challenged the investment, and despite our belief that CEO Brian Humphries could materially improve operations, recent metrics regarding elevated employee turnover and still below-average revenue growth led us to conclude that there was more heavy lifting required at the company. We decided that our investors would be better served by being invested in Fiserv rather than Cognizant.”
2. Athene Holding Ltd. (NYSE:ATH)
Number of Hedge Fund Holders: 43
Athene Holding Ltd. (NYSE:ATH) is placed second on our list of 10 large-cap stock picks of billionaire Lee Cooperman. The firm provides retirement services and is based in Bermuda. Government filings show that Omega Advisors owned 1.7 million shares in the company at the end of June 2021 worth $117 million, representing 6.58% of the portfolio.
On July 8, investment advisory Piper Sandler maintained a Neutral rating on Athene Holding Ltd. (NYSE:ATH) stock and raised the price target to $72.72 from $66.10. John Barnidge, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Athene Holding Ltd. (NYSE:ATH), down from 44 in the preceding quarter worth $1.3 billion.
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is ranked first on our list of 10 large-cap stock picks of billionaire Lee Cooperman. The company operates as a technology firm and is headquartered in California. 13F filings reveal that Omega Advisors owned 60,000 shares in the company at the end of the second quarter of 2021 worth $146 million, representing 8.22% of the portfolio.
On September 17, investment advisory Jefferies maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $3,325 from $3,150. Brent Thill, an analyst at the advisory, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.3 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
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