Billionaire Louis Bacon’s 5 Long-Term Stock Picks

In this article, we discuss billionaire Louis Bacon’s 5 long-term stock picks. To read the details about Mr. Bacon’s life, portfolio performance, and investment strategy, go directly to Billionaire Louis Bacon’s 15 Long-Term Stock Picks.

5. Capital One Financial Corporation (NYSE:COF)

Louis Bacon’s Stake Value in Q3 2023: $20.29 Million
First Purchase: 2021 – Q2
Number of Hedge Fund Holders: 49

Capital One Financial Corporation (NYSE:COF) is a financial service holding company that provides various financial products and services. Capital One Financial Corporation (NYSE:COF) offers checking accounts, money market deposits, savings, and time deposits. 

Moore Global Investments has held stakes in Capital One Financial Corporation (NYSE:COF) since the second quarter of 2021, making it one of billionaire Louis Bacon’s long-term stock picks. Capital One Financial Corporation (NYSE:COF) is up by 43% year to date and offers a 1.82% yield. The hedge fund held stakes worth $20.29 million in the company as of the end of Q3 2023. 

In the third quarter of the current year, 49 hedge funds among the 910 analyzed by Insider Monkey actively acquired and held shares of Capital One Financial Corporation (NYSE:COF). Notably, Harris Associates  of Natixis Global Asset Management emerged as the largest shareholder, boasting a significant $1.8 billion stake in the company.

[/company-follow-email]

4. Luminar Technologies, Inc. (NASDAQ:LAZR)

Louis Bacon’s Stake Value in Q3 2023: $35.67 Million
First Purchase: 2021 – Q2
Number of Hedge Fund Holders: 11

Luminar Technologies, Inc. (NASDAQ:LAZR) is a consumer cyclical play in Moore Global Investments and one of billionaire Louis Bacon’s long-term stock picks. The automotive company provides sensor technologies and software for passenger cars and commercial trucks. Luminar Technologies, Inc. (NASDAQ:LAZR) also designs, manufactures, and sells laser imaging detection and ranging sensors in Lidars. 

Bacon has been buying and selling shares in Luminar Technologies, Inc. (NASDAQ:LAZR) since the second quarter of 2022. Moore Global Investments held stakes worth $35.67 million as of the end of Q3 2023.

At the close of the third quarter of 2023, 11 hedge funds were eager on Luminar Technologies, Inc. (NASDAQ:LAZR) and held collective positions worth $ 44.11 million in the company. 

[/company-follow-email]

3. Fisker Inc. (NYSE:FSR)

Louis Bacon’s Stake Value in Q3 2023: $67.85 Million
First Purchase: 2020 – Q4
Number of Hedge Fund Holders: 14

Fisker Inc. (NYSE:FSR) is a consumer cyclical investment play in Moore Global Investments and one of billionaire Louis Bacon’s long-term stock picks. Fisker Inc. (NYSE:FSR)  develops, manufactures, markets, leases, and sells electric cars. It also offers flexible platform agnostic design, a process that helps design and develop electric vehicles.

Moore Global Investments has been buying and selling shares in Fisker Inc. (NYSE:FSR)  since Q4 2020. The hedge fund held stakes worth $67.85 million as of the end of Q3 2023. 

At the conclusion of the third quarter in 2023, it was observed that 14 out of the 910 hedge funds included in Insider Monkey’s database had invested in shares of Fisker Inc. (NYSE:FSR).

[/company-follow-email]

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.”

[/company-follow-email]

1. Ally Financial Inc. (NYSE:ALLY)

Louis Bacon’s Stake Value in Q3 2023: $111.57 Million
First Purchase: 2020 – Q3
Number of Hedge Fund Holders: 43

Ally Financial Inc. (NYSE:ALLY) is a digital financial services company that provides various digital financial products and services. Ally Financial Inc. (NYSE:ALLY) offers automotive financing services, including retail instalment sales contracts, loans, operating leases, term loans to dealers, financing dealer floorplans, and other lines of credit. 

Ally Financial Inc. (NYSE:ALLY) is up by about 45% for the year, affirming why it is one of billionaire Louis Bacon’s long-term stock picks. Moore Global Investments has held stakes in Ally Financial Inc. (NYSE:ALLY) since the third quarter of 2020, valued at $111.57 million as of Q3 2023. 

As of the conclusion of Q3 2023, 43 out of the 910 hedge funds tracked by Insider Monkey had a position in Ally Financial Inc. (NYSE:ALLY). The largest stake among them is held by Warren Buffett’s Berkshire Hathaway, valued at $773 million.

[/company-follow-email]

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on These Stocks under $10 Are Poised To Explode and 15 Best Dividend Stocks to Buy According to Warren Buffett.