In this article, we discuss the 10 stocks that billionaire Leon Cooperman is buying. If you want to skip our detailed analysis of these stocks, go directly to Billionaire Leon Cooperman Is Buying These 5 Stocks.
Leon Cooperman oversees Omega Advisors, a New York-based hedge fund with a portfolio value of more than $1.8 billion at the end of the third quarter of 2021. The top holdings of the fund are concentrated in the basic materials, services, and healthcare sectors. The top ten stocks in value comprise over 56% of the total portfolio. Latest filings reveal that the fund made no changes to its stakes in seven of the top ten holdings between June and September. Cooperman has a personal net worth of $2.5 billion.
As the chief of Omega Advisors, founded in the 1990s, Cooperman has risen to prominence in the finance world with record returns in the past three decades. The life story of the billionaire is very inspiring. He was born in a working-class household in New York and worked as a Xerox quality control engineer for years before joining the Columbia Business School for a post-graduate degree. Thereafter, he went to Goldman Sachs as a stock analyst, steadily rising ranks until he became the CEO of the asset management department of the firm.
After retiring, he opened Omega Advisors. Some of the top stocks in the investment portfolio of Omega Advisors at the end of the third quarter of 2021 included Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT), among others discussed in detail below.
Our Methodology
These were picked from the investment portfolio of Omega Advisors at the end of the third quarter of 2021. Companies in which the fund increased stake in the third quarter by more than 5%, when compared to filings for the second quarter, were preferred.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Billionaire Leon Cooperman Is Buying These Stocks
10. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: N/A
Percentage Increase in Stake During Q3: 3,482%
Coterra Energy Inc. (NYSE:CTRA) is an independent oil and gas firm. It has a market cap of $16 billion and posted $1.4 billion in revenue last year. The stock has rallied in the past few months as record high prices of oil and gas, amid increasing demand and production deadlocks, lift energy firms after a torrid 2020.
Latest data shows that Omega Advisors owned 3 million shares of Coterra Energy Inc. (NYSE:CTRA) at the end of the third quarter of 2021 worth $66 million, representing 3.51% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, Sydney-based investment firm Antipodes Partners is a leading shareholder in Coterra Energy Inc. (NYSE:CTRA) with 8.3 million shares worth more than $180 million.
9. DiaMedica Therapeutics Inc. (NASDAQ:DMAC)
Number of Hedge Fund Holders: 10
Percentage Increase in Stake During Q3: 300%
DiaMedica Therapeutics Inc. (NASDAQ:DMAC) is a clinical-stage biotech firm focusing on the development of treatments for neurological and kidney diseases. According to regulatory filings, Omega Advisors owned 200,000 shares in the company at the end of September 2021 worth $802,000, representing 0.04% of the portfolio.
In September, Roth Capital analyst Elemer Piros kept a Buy rating on DiaMedica Therapeutics Inc. (NASDAQ:DMAC) stock with a price target of $24, noting that a private placement for the firm had helped remove a financial overhang.
Among the hedge funds being tracked by Insider Monkey, Texas-based investment firm Ikarian Capital is a leading shareholder in DiaMedica Therapeutics Inc. (NASDAQ:DMAC) with 311,041 shares worth more than $1.2 million.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $8 million in DiaMedica Therapeutics Inc. (NASDAQ:DMAC), down from 11 in the preceding quarter worth $35 million.
8. Cigna Corporation (NYSE:CI)
Number of Hedge Fund Holders: 63
Percentage Increase in Stake During Q3: 6%
Cigna Corporation (NYSE:CI) provides insurance and related services. At the end of the third quarter of 2021, Omega Advisors owned 450,000 shares in the company worth $90 million, representing 4.77% of the portfolio.
Seaport Global analyst Joseph France recently initiated coverage of Cigna Corporation (NYSE:CI) stock with a Buy rating and a price target of $270, noting that the business of the firm was strong and growing at a fast pace.
Among 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.”
7. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Fund Holders: 45
Percentage Increase in Stake During Q3: 264%
Bausch Health Companies Inc. (NYSE:BHC) makes and sells pharmaceutical products. Omega Advisors owned 2.5 million shares in the company at the end of September 2021 worth $69 million, representing 3.69% of the portfolio of the fund.
JPMorgan analyst Chris Schott recently maintained an Overweight rating on Bausch Health Companies Inc. (NYSE:BHC) stock with a price target of $38, noting that investors could take advantage of a post-earnings sell-off and grab shares of the firm at favorable prices.
At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $3.9 billion in Bausch Health Companies Inc. (NYSE:BHC), up from 42 in the preceding quarter worth $4 billion.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Icahn Capital LP is a leading shareholder in Bausch Health Companies Inc. (NYSE:BHC) with 34 million shares worth more than $949 million.
In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Bausch Health Companies Inc. (NYSE: BHC) was one of them. Here is what the fund said:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
6. Surgalign Holdings, Inc. (NASDAQ:SRGA)
Number of Hedge Fund Holders: 15
Percentage Increase in Stake During Q3: 39%
Surgalign Holdings, Inc. (NASDAQ:SRGA) is a medical technology company based in Illinois. In August, the company was awarded a patent covering the use of artificial intelligence technology for automated segmentation of a three-dimensional bony structure in medical images.
Latest securities filings reveal that Omega Advisors owned 1.5 million shares in Surgalign Holdings, Inc. (NASDAQ:SRGA) at the end of the third quarter of 2021 worth $1.6 million.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $23 million in Surgalign Holdings, Inc. (NASDAQ:SRGA), the same as in the preceding quarter worth $27 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Eversept Partners is a leading shareholder in Surgalign Holdings, Inc. (NASDAQ:SRGA) with 3.5 million shares worth more than $3.8 million.
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Disclosure. None. Billionaire Leon Cooperman Is Buying These 10 Stocks is originally published on Insider Monkey.
