Billionaire Louis Bacon’s 5 Long-Term Stock Picks

2. The Allstate Corporation (NYSE:ALL)

Louis Bacon’s Stake Value in Q3 2023: $81.41 Million
First Purchase: 2016 – Q1
Number of Hedge Fund Holders: 35

The Allstate Corporation (NYSE:ALL)  is a financial services company that provides property, casualty and other insurance products. The company offers private passenger auto, home-owners insurance, and other personal line products.

While The Allstate Corporation (NYSE:ALL)  has gained 1.4% year to date, it has more than tripled in value, gaining 340% since Bacon first bought stakes in the company in 2011. In addition, The Allstate Corporation (NYSE:ALL) has rewarded investors with dividends for 28 years and currently offers a 2.63% yield. As one of billionaire Louis Bacon’s long-term stock picks, Moore Global Investments held stakes worth $81.41 million in the company as of Q3 2023.

The Allstate Corporation (NYSE:ALL) was a popular buy among hedge funds at the end of Q3 2023, as 35 hedge funds in Insider Monkey’s database owned stakes in the company. These stakes have a collective value of over $815.11 million.

Diamond Hill Capital made the following comment about The Allstate Corporation (NYSE:ALL) in its Q1 2023 investor letter. Here is what it said:

“Elsewhere in financials, the stocks of two of our insurance holdings – AIG and The Allstate Corporation (NYSE:ALL) – came under pressure we believe due to the negative sentiment in the sector generally. These businesses are very different from banks, and we continue to have strong conviction in their ability to grow intrinsic value over the long term. In fact, Allstate is a new position that we added to the portfolio in Q1. It is one of the largest providers of auto and homeowners’ insurance in the United States. Allstate has a strong brand and significant scale advantages over smaller peers. Recent results have been pressured by rising claims costs across the industry; however, we believe that price changes instituted by the company will drive improvement to more normalized levels over the next couple of years.”

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