In this article, we will take a look at hedge fund billionaire Mr. Paul Singer’s top ten favorite stocks to buy. If you want to skip over the details and just want to take a look at the top five stocks that are a part of Mr. Singer’s diverse portfolio, then head on over to Billionaire Paul Singer’s Top 5 Stock Picks.
Paul Singer is behind one of the oldest American investment management firms and one of the largest activist investors in the world. In the financial sector, activist firms are those that seek to gain control over weak or struggling companies, with the hopes of turning their fortunes around. Mr. Singer’s investment management firm is called Elliott Management Corporation, and it manages a $12.9 billion portfolio as of the end of the second quarter. The firm was founded in 1977 by Mr. Singer himself and it has propelled its founder to the status of a billionaire, with Mr. Singer having a net worth of $4 billion.
Elliot Management Corporation’s investments are not limited to a specific sector of companies, as it chooses to invest in firms that operate in several different sectors. Some of the top holdings of the fund include Twitter, Inc (NYSE:TWTR), Dropbox, Inc (NASDAQ:DBX), Snap Inc (NYSE:SNAP) and Tesla, Inc (NASDAQ:TSLA).
Paul Singer of Elliott Management
We used Singer’s Q2 portfolio for this analysis.
Why should we pay attention to Paul Singer’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Billionaire Paul Singer’s Top 10 Stock Picks
10. Uniti Group Inc. (NASDAQ:UNIT)
Paul Singer’s Stake Value: $216.8 million
Percentage of Paul Singer’s 13F Portfolio: 1.66%
Number of Hedge Fund Holders: 16
Uniti Group Inc. (NASDAQ:UNIT) is a real estate investment trust (REIT) that is involved in managing, acquiring and building communications infrastructure such as fiber optic cables. It is headquartered in Little Rock, Arkansas, United States. The company boasts of having more than 125,000 miles of fiber optic routes, connecting over a quarter of a million buildings and providing connections to 25,400 customers.
By the end of the second quarter of this year, Paul Singer’s Elliot Management Corporation held more than 20 million shares of Uniti Group Inc. (NASDAQ:UNIT).
9. Peabody Energy Corporation (NYSE:BTU)
Paul Singer’s Stake Value: $229.3 million
Percentage of Paul Singer’s 13F Portfolio: 1.76%
Number of Hedge Fund Holders: 18
Peabody Energy Corporation (NYSE:BTU), headquartered in St. Louis, Missouri, United States is the largest coal provider in the world. It is also one of the oldest companies in the U.S., after being formed during the Gilded Era of the country’s history in 1883 in the city of Chicago.
By the end of the second quarter of this year, Paul Singer’s Elliot Management Capital held 28.9 million shares of the company. These shares are worth $229 million and they represent 1.76% of the investment firm’s overall portfolio. Furthermore, out of the 873 hedge funds polled by Insider Monkey by the end of the second quarter of this year, 18 held a stake in Peabody Energy Corporation (NYSE:BTU).
8. E2open Parent Holdings, Inc. (NYSE:ETWO)
Paul Singer’s Stake Value: $319.5 million
Percentage of Paul Singer’s 13F Portfolio: 2.45%
Number of Hedge Fund Holders: 35
E2open Parent Holdings, Inc. (NYSE:ETWO) is headquartered in Austin, Texas and it is a provider of supply chain management software. It is known for providing its services to some of the largest companies in the world and the company’s offerings include supply chain software as software as a service (SaaS) solutions.
Like Dell Technologies Inc. (NYSE:DELL), Twitter, Inc (NYSE:TWTR) and Howmet Aerospace Inc. (NYSE:HWM), E2open Parent Holdings, Inc. (NYSE:ETWO) also makes its way into Paul Singer’s favorite stocks to own.
Elliot Management Capital held 27.9 million shares of E2open Parent Holdings, Inc. (NYSE:ETWO) by the end of the second quarter with the stake being worth a cool $319 million and representing 2.45% of the investment firm’s portfolio. Out of the 873 hedge funds polled by Insider Monkey by the end of the second quarter, 35 held a stake in the company.
In his investor note initiating coverage of E2open Parent Holdings, Inc. (NYSE:ETWO), Bank of America analyst Andrew Obin set a $14 price target believing that the ongoing supply chain crisis presents unique opportunities for the company.
7. Arconic Corporation (NYSE:ARNC)
Paul Singer’s Stake Value: $370.1 million
Percentage of Paul Singer’s 13F Portfolio: 2.84%
Number of Hedge Fund Holders: 30
Arconic Corporation (NYSE:ARNC) is a young American company that was founded in 2020 in Pittsburg, Pennsylvania. It deals with manufacturing and engineering lightweight metals with its products used across a diverse array of industries such as aerospace, transportation, construction and automotive.
Paul Singer’s Elliot Management Capital held 10.3 million shares of Arconic Corporation (NYSE: ARNC) by the end of the second quarter, with the stake worth $370 million and representing 2.84% of the investment firm’s portfolio. Out of the 73 hedge funds polled by Insider Monkey during the same period, 30 held a stake in the company.
Arconic Corporation (NYSE:ARNC) is one of Elliot Management’s favorite stocks, just like Dell Technologies Inc. (NYSE:DELL), Twitter, Inc (NYSE:TWTR) and Howmet Aerospace Inc. (NYSE:HWM) and E2open Parent Holdings, Inc. (NYSE:ETWO).
Investment bank Goldman Sachs initiated coverage for Arconic Corporation (NYSELARNC) in September and set a $34 price target for the company’s shares.
6. Nielsen Holdings plc (NYSE:NLSN)
Paul Singer’s Stake Value: $409.5 million
Percentage of Paul Singer’s 13F Portfolio: 3.16%
Number of Hedge Fund Holders: 28
Nielsen Holdings plc (NYSE:NLSN) is an analytics firm that is headquartered in New York City and is involved in the processing and analyzing data from several fronts including goods, consumer behavior and the media. Its largest segment is the media analytics division that determines which topics and programs are the hottest among consumers.
As of the second quarter, Elliot Management Capital held 16 million Nielsen Holdings plc (NYSE:NLSN) shares that were worth $409.5 million and represented 3.16% of the investment firm’s stocks. At the same time, 28 of the 873 hedge funds polled by Insider Monkey had a stake in the company.
Citi has a $21 price target for the firm after it was lowered due to troubles associated with the ongoing pandemic.
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Disclosure: None. Billionaire Paul Singer’s Top 10 Stock Picks is originally published on Insider Monkey.
