In this article, we discuss the top 5 stock picks of billionaire Michael Hintze. If you want to read our detailed analysis of Hintze’s history, investment philosophy, and hedge fund performance, go directly to Billionaire Michael HintzePortfolio: Top 10 Stock Picks.
5. Under Armour, Inc. (NYSE:UA)
CQS Cayman LP Stake Value: $28,080,000
Percentage of CQS Cayman LP’s 13F Portfolio: 1.6%
Number of Hedge Fund Holders: 48
Under Armour, Inc. (NYSE:UA) manufactures, markets, and sells branded performance clothes, footwear, and accessories for men, women, and youth in North America, Europe, the Middle East, Africa, Asia-Pacific, and Latin America, through its subsidiaries. In November, Telsey Advisory analyst Cristina Fernandez upgraded Under Armour, Inc. (NYSE:UA) to “Outperform” from “Market Perform” with a price target of $32, up from $25.
Michael Hintze, via CQS Cayman LP, holds a $28.08 million stake in Under Armour, Inc. (NYSE:UA), which accounts for 1.6% of his Q3 investment portfolio.
A total of 48 hedge funds tracked by Insider Monkey were bullish on Under Armour, Inc. (NYSE:UA) in the third quarter, with stakes amounting to $1.64 billion.
4. BHP Group (NYSE:BHP)
CQS Cayman LP Stake Value: $29,645,000
Percentage of CQS Cayman LP’s 13F Portfolio: 1.69%
Number of Hedge Fund Holders: 18
BHP Group (NYSE:BHP) is a mining company that specializes in iron ore, metallurgical coal, and copper exploration, development, production, and processing. In the third quarter of 2012, CQS Cayman LP began building its stake in BHP Group (NYSE:BHP), and it currently holds 549,703 shares worth $29.65 million. In addition, the hedge fund has increased its stake in the firm by 386% in the third quarter of 2021.
In November, BHP Group (NYSE:BHP) announced that it had inked a share sale and purchase agreement to sell its 80% stake in BHP Mitsui Coal, a Queensland-based operated metallurgical coal joint venture.
Overall, 18 hedge funds in the Q3 database of Insider Monkey reported owning stakes in BHP Group (NYSE:BHP). The stakes of these funds are valued at $899.84 million.
Harding Loevner, an investment management firm, in its first-quarter 2021 investor letter, mentioned BHP Group (NYSE:BHP). Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
3. Citigroup Inc. (NYSE:C)
CQS Cayman LP Stake Value: $36,440,000
Percentage of CQS Cayman LP’s 13F Portfolio: 2.08%
Number of Hedge Fund Holders: 79
Citigroup Inc. (NYSE:C) is a holding corporation that provides consumer banking services, such as checking and savings accounts, credit cards, mortgage loans, and small business services, through its primary subsidiary Citibank. Citigroup Inc. (NYSE:C) applied for a securities license in China on December 3, following the footsteps of JPMorgan Chase & Co. (NYSE:JPM) and The Goldman Sachs Group, Inc. (NYSE:GS) in establishing their own securities firm in the world’s second-largest economy.
On December 10, UBS analyst Erika Najarian initiated coverage of Citigroup Inc. (NYSE:C), with a “Neutral” rating and gave a price target of $67.
Citigroup Inc. (NYSE:C) was in 79 hedge funds’ portfolios in the third quarter of 2021. At the end of the previous quarter, there were 87 hedge funds in our database with Citigroup holdings.
In its first-quarter 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks, and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:
“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
2. Liberty Global plc (NASDAQ:LBTYA)
CQS Cayman LP Stake Value: $41,173,000
Percentage of CQS Cayman LP’s 13F Portfolio: 2.35%
Number of Hedge Fund Holders: 34
Liberty Global plc (NASDAQ:LBTYA) is a global television and internet company specializing in high-speed Internet access. Seth Klarman’s Baupost Group is the leading stakeholder of Liberty Global plc (NASDAQ:LBTYA), with a $1.59 billion stake.
CQS Cayman LP owns 1.38 million shares of Liberty Global plc (NASDAQ:LBTYA), worth $41.17 million, accounting for 2.35% of its Q3 investment portfolio.
1. Fox Corporation (NASDAQ:FOX)
CQS Cayman LP Stake Value: $74,020,000
Percentage of CQS Cayman LP’s 13F Portfolio: 4.22%
Number of Hedge Fund Holders: 25
Michael Hintze’s CQS Cayman LP holds a $74.02 million position in Fox Corporation (NASDAQ:FOX) as of Q3 2021, accounting for 4.22% of the fund’s total investments. The hedge fund increased its stake in Fox Corporation (NASDAQ:FOX) by 61% in the third quarter.
Fox Corporation (NASDAQ:FOX) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 32 at the end of the third quarter compared to 35 positions in the previous quarter.
In its fourth-quarter 2020 investor letter, Silver Ring Value Partners mentioned Fox Corp (NASDAQ:FOX). Here is what the fund said:
“I sold our investment in FOX during the quarter at a small loss and redeployed the proceeds into shares of Discovery Communications and Mednax. The main reason for my sale was a new competitive threat, which widened the range of likely company outcomes. Furthermore, it added a competitive threat to the existing threat of secular decline that the industry is already battling to overcome. The probability of being right on having two independent things work out for the company is much lower than of it overcoming just one problem.
Fox Corp gets a substantial majority of its profits from Fox News. This is a network with very inelastic demand which has appeal to the ~45% of the country with conservative political views. With President Trump having lost the election, he began to agitate his supporters to switch viewership to more right-wing news outlets that were being more supportive of him and his claims about the election. Furthermore, there has been talk of him launching or backing a competing network, fracturing the conservative audience.…”(Click here to see the full text)
You can also take a peek at Top 10 Stock Picks of David Halpert’s Prince Street Capital Management and Top 10 Stock Picks of Shashin Shah’s Think Investments
