Feared Activist Investor Paul Singer’s Top 5 Stocks for 2022

1. Howmet Aerospace Inc. (NYSE:HWM)

Value of Elliott Management‘s 13F Position: $1.48 billion

Number of Hedge Fund Shareholders (as of March 31): 45

Elliott Management’s top stock pick for the second straight quarter is Howmet Aerospace Inc. (NYSE:HWM), which it owned over 41 million shares of as of March 31, unchanged quarter-over-quarter. Two of the top performing funds in recent memory, Ray Dalio’s Bridgewater Associates, and John Overdeck and David Siegel’s Two Sigma Advisors, each built small stakes in HWM during Q1.

Howmet Aerospace Inc. (NYSE:HWM) has been a part of Elliott’s portfolio in some capacity dating back to 2016, when he owned a stake in Arconic Corporation (NYSE:ARNC) The two sides engaged in a somewhat acrimonious tilt as Elliott sought to overthrow Arconic’s leadership. In January 2017, the company’s board came out in support of chairman and CEO Klaus Kleinfeld, asserting that many of Elliott’s allegations against the company and its leadership were either misleading or unsubstantiated. Just three months later however, Kleinfeld resigned from his roles with the company, with the backing of the board.

Howmet Aerospace Inc. (NYSE:HWM) was split off from Arconic in 2020. Elliott sold out of the remainder of its stake in ARNC in the first quarter after selling off the majority of the position in Q4. Howmet grew its adjusted earnings per share by 41% year-over-year in the first quarter. While the company’s defense aerospace growth is expected to stumble this year, the commercial transportation and industrial gas turbine markets are forecast to grow throughout 2022.

For more on the latest trades made by some of the biggest hedge fund managers in the world, check out Hedge Funds Were Right About MicroStrategy Incorporated (MSTR) and 9 Other Tech Stocks and 10 Best Stocks to Buy in 2022 According to Billionaire Mario Gabelli.

Disclosure: None.

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