In this article, we discuss the billionaire Michael Platt’s stunning performance in 2021 and his top 5 stock picks. If you want to read our detailed analysis of these stocks, go directly to Billionaire Michael Platt’s Stunning Performance in 2021 and His Top 10 Stock Picks.
5. New Frontier Health Corporation (NYSE:NFH)
Number of Hedge Fund Holders: 16
Gain in Share Price in 2021: 29%
New Frontier Health Corporation (NYSE:NFH) owns and runs healthcare facilities. A growing number of hedge funds have turned bullish on New Frontier Health Corporation (NYSE:NFH) stock in the past few months. At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $403 million in New Frontier Health Corporation (NYSE:NFH)
Platt first bought a stake in New Frontier Health Corporation (NYSE:NFH) in the first quarter of 2021, purchasing over a million shares at an average price of $10.16 per share. He then more than doubled that stake between March and June before adding 30% to the second quarter position during the third quarter. The fund now holds close to 3.5 million shares of New Frontier Health Corporation (NYSE:NFH) worth $39 million, representing 1.05% of the portfolio.
4. Mr. Cooper Group Inc. (NASDAQ:COOP)
Number of Hedge Fund Holders: 27
Gain in Share Price in 2021: 37%
Mr. Cooper Group Inc. (NASDAQ:COOP) provides servicing and transaction services to family residences. The stock is a new addition to the portfolio of BlueCrest Capital Management. Platt bought a stake in Mr. Cooper Group Inc. (NASDAQ:COOP) during the third quarter of 2021, purchasing 544,388 shares worth more than $22 million, representing 0.6% of the portfolio.
Mr. Cooper Group Inc. (NASDAQ:COOP) also features on the portfolios of many other top hedge funds. At the end of the third quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $670 million in Mr. Cooper Group Inc. (NASDAQ:COOP).
3. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 74
Gain in Share Price in 2021: 43%
Danaher Corporation (NYSE:DHR) is a Washington-based conglomerate with interests in professional, medical, industrial, and commercial products and services. It is one of the favorite stocks among elite hedge funds. At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Danaher Corporation (NYSE: DHR).
As investors prepare themselves for a rise in interest rates, Danaher Corporation (NYSE:DHR) is the preferred choice as a value entity due to strong fundamentals and a growing dividend. The hedge fund led by Platt owns 48,431 shares of Danaher Corporation (NYSE:DHR) worth $14.7 million, representing 0.39% of the portfolio.
In its Q2 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and Danaher Corporation (NYSE:DHR) was one of them. Here is what the fund said:
“During the quarter the Fund’s largest holding Danaher Corporation (NYSE:DHR) made a notable acquisition, spending US$9bn (~5% of its market cap) to buy privately held Aldevron, a leading player in the fast growing field of genomic medicine. Over the years Danaher Corporation (NYSE:DHR) has built up a unique portfolio of life science and diagnostic assets. Their key life sciences businesses involve providing the tools and services to research, develop and manufacture biotech drugs. For example, they are a key provider to over 400 COVID vaccine and therapeutic projects globally.
Aldevron expands Danaher’s capability into gene therapy. Aldevron is a supplier of key ingredients for the next generation of therapies, namely cell and gene therapy and mRNA vaccines. Aldevron is the leader in these fields and this deal puts Danaher Corporation (NYSE:DHR) in pole position to participate in the wave of innovation occurring in this space.
The acquisition multiple is high – Danaher Corporation (NYSE:DHR) are paying US$9bn for what today is a US$500m revenue business but growing 30% a year with 40% operating margins, in our view justifying the high price. Importantly, management can see an investment return in line with recent acquisitions. As a reminder Danaher’s history and skill set is acquiring businesses, it is how the company has been successfully built over 35 years. The shares were up 4% on the news and have gained nearly 20% for the quarter. Most companies would be sold down off the back of an announcement like this but Danaher has a long multidecade track record of successful acquisitions and this fits a similar enough pattern.
The opportunity is to grow Aldevron into a multibillion dollar business given the growth in genomics and RNA innovation that’s occurring and as more of these types of therapeutics become approved. Overall as a key supplier with deep global networks across life sciences and medical research Danaher Corporation (NYSE:DHR) is very well placed to continue growing with the innovation in biotech and diagnostic markets. It remains an incredibly well run company and a high conviction investment in the Fund.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Gain in Share Price in 2021: 44%
Tesla, Inc. (NASDAQ:TSLA) operates an electric vehicle and clean energy firm. At the end of September, BlueCrest Capital Management owned 8.268 shares in Tesla, Inc. (NASDAQ:TSLA) worth more than $6.4 million, representing 0.17% of the portfolio. Tesla, Inc. (NASDAQ:TSLA) has intermittently featured in the portfolio of Platt since the second quarter of 2016.
Even as inflation rises and Tesla, Inc. (NASDAQ:TSLA) stock becomes more volatile, institutional investors continue to back the company for the long-term. At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ:TSLA), the same as in the previous quarter worth $9 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. Tesla, Inc. (NASDAQ:TSLA) stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
1. McAfee Corp. (NASDAQ:MCFE)
Number of Hedge Fund Holders: 31
Gain in Share Price in 2021: 50%
McAfee Corp. (NASDAQ:MCFE) provides cybersecurity services. The company has witnessed a flurry of hedge fund activity in recent months. At the end of the third quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $330 million in McAfee Corp. (NASDAQ:MCFE), up from 18 in the previous quarter worth $125 million.
Platt is also bullish on McAfee Corp. (NASDAQ:MCFE). At the end of September 2021, BlueCrest Capital Management owned 815,00 shares of McAfee Corp. (NASDAQ:MCFE) worth more than $18 million, representing 0.48% of the portfolio.
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