Billionaire Marc Lasry’s Top 5 Stock Picks

In this piece, we will take a look at billionaire Marc Lasry’s top five stock picks. If you want to take a deeper look at the hedge fund investor and how his approach might be suited to the current stock market climate, then check out Billionaire Marc Lasry’s Top 10 Stock Picks.

5. Frontier Communications Parent, Inc. (NASDAQ:FYBR)

Avenue Capital’s Q2 2023 Investment: $1.2 million

Number of Hedge Fund Investors in Q2 2023: 39

Frontier Communications Parent, Inc. (NASDAQ:FYBR) is an American telecommunications company headquartered in Norwalk, Connecticut. The firm is seeing a bit of divergence when it comes to analyst sentiment, as JPMorgan rated the shares as Overweight in September but Morgan Stanley rated them as Underweight during the same month.

As of Q2 2023, 39 out of the 910 hedge funds surveyed by Insider Monkey had held a stake in Frontier Communications Parent, Inc. (NASDAQ:FYBR). Out of these, the firm’s largest shareholder is Stephen Feinberg’s Cerberus Capital Management since it owns 24 million shares that are worth $448 million.

4. Alexander’s, Inc. (NYSE:ALX)

Avenue Capital’s Q2 2023 Investment: $7.1 million

Number of Hedge Fund Investors in Q2 2023: 5

Alexander’s, Inc. (NYSE:ALX) is a real estate investment trust with a small presence in New York City. Since it’s a REIT, the firm is mandated to pay out most of its earnings as dividends in order to receive certain tax exemptions. Looking at this dividend, Alexander’s, Inc. (NYSE:ALX) pays out a $4.5 quarterly dividend, which gives it a high dividend yield of 10.13% based on the latest share price.

By the end of this year’s second quarter, five out of the 910 hedge funds part of Insider Monkey’s research were the firm’s shareholders. Alexander’s, Inc. (NYSE:ALX)’s biggest investor in our database is Frank Brosens’s Taconic Capital due to its $25.1 million stake.

3. Sitio Royalties Corp. (NYSE:STR)

Avenue Capital’s Q2 2023 Investment: $13.3 million

Number of Hedge Fund Investors in Q2 2023: 20

Sitio Royalties Corp. (NYSE:STR) is a small royalty company headquartered in Denver, Colorado. It collects a portion of earnings from the sales of natural resources extracted from properties in which Sitio Royalties Corp. (NYSE:STR) holds royalty interests. High oil prices in 2022 bode well for the firm as it beat analyst EPS estimates during the third and fourth quarters. 2023 has seen a mixed bag of performance as Sitio Royalties Corp. (NYSE:STR) missed EPS estimates. However, EPS takes the back foot when valuing royalty interest companies since they bear few expenses apart from administrative overheads and employee salaries.

20 out of the 910 hedge funds polled by Insider Monkey for 2023’s June quarter had invested in Sitio Royalties Corp. (NYSE:STR). Out of these, the largest shareholder is Howard Marks’ Oaktree Capital Management courtesy of a $339 million investment that comes via 12.9 million shares.

2. Amplify Energy Corp. (NYSE:AMPY)

Avenue Capital’s Q2 2023 Investment: $17.3 million

Number of Hedge Fund Investors in Q2 2023: 15

Amplify Energy Corp. (NYSE:AMPY) is the second energy royalty company on our list with a similar operations base as Sitio Royalties. Seems like Marc Lasry and Avenue Capital believe there might be potential for these firms to grow in the future since the energy royalty sector is the only one with two companies on our list of Marc Lasry’s top stock picks.

Insider Monkey scoured through 910 hedge fund portfolios for their second quarter of 2023 investments to find 15 Amplify Energy Corp. (NYSE:AMPY) investors. Marc Lasry’s Avenue Capital holds the largest stake among these, which is worth $17.3 million.

1. Seadrill Limited (NYSE:SDRL)

Avenue Capital’s Q2 2023 Investment: $27.8 million

Number of Hedge Fund Investors in Q2 2023: 30

Seadrill Limited (NYSE:SDRL) is the third energy company on our list of Marc Lasry’s top stock stock picks. His hedge fund owned a $27.8 million stake that came via 676,266 shares held as of Q2 2023 end. However, Avenue Capital is not Seadrill Limited (NYSE:SDRL)’s largest hedge fund investor. Instead, the largest investor out of the 3o that own the firm’s shares is activist investor Paul Singer’s Elliott Management which owns a sizeable $291 million stake in the company.

Seadrill Limited (NYSE:SDRL) is headquartered in Hamilton, Bermuda and it offers offshore oil drilling products and services to some of the biggest oil companies in the world. This leaves the firm’s growth contingent on global oil demand, with higher prices naturally leading to more oil supply and drilling. Additionally, Seadrill Limited (NYSE:SDRL) is the perfect investment for Avenue Capital’s portfolio since the firm has recently emerged from financial turmoil that also resulted in a delisting from the New York Stock Exchange.

Disclosure: None. You can also take a look at 12 Most Undervalued Blue Chip Stocks to Buy According to Hedge Funds and 20 Biggest Augmented Reality And VR Companies In The World.

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