Goldman Sachs Stock Portfolio: Top 5 Large-Cap Stock Picks

2. S&P Global Inc. (NYSE:SPGI)

Number of Hedge Fund Holders: 84

S&P Global Inc. (NYSE:SPGI) is a New York-based credit rating and data analytics company which operates through six divisions – S&P Global Ratings, S&P Dow Jones Indices, S&P Global Commodity Insights, S&P Global Market Intelligence, S&P Global Mobility, and S&P Global Engineering Solutions. S&P Global Inc. (NYSE:SPGI) reaffirmed its expectation to conclude its accelerated share repurchase program of $12 billion by the end of this year.

On November 1, Argus analyst John Eade reiterated a Buy rating on S&P Global Inc. (NYSE:SPGI) but slashed the firm’s price target on the shares to $365 from $420. The analyst believes S&P Global management can navigate the rising inflation and high interest rate environment well.

According to Insider Monkey’s data, 84 hedge funds were bullish on S&P Global Inc. (NYSE:SPGI) at the end of June 2022, compared to 97 funds in the last quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 8.76 million shares worth approximately $3 billion. 

Here is what Baron Durable Advantage Fund has to say about S&P Global Inc. (NYSE:SPGI) in its Q2 2022 investor letter:

“Another example is S&P Global (NYSE:SPGI), the leading rating agency and data provider, whose stock declined 29.0% year-to-date and 17.5% during the second quarter as a result of growing investor concerns over the slowdown in debt issuance. While debt issuance volumes have seen a dramatic decline – the worst quarterly decline in a decade (down 41% year-over-year in the second quarter based on Goldman Sachs estimates), – and this led management to withdraw its 2022 guidance in early June, we do not believe it would result in a permanent loss of capital.

First, ratings represent only about 30% of S&P Global’s total revenues. Second, despite inherent volatility in quarterly or annual issuance, over the long-term issuance volumes follow the trends in levels of debt outstanding, which has compounded in the mid-single digits for many years. Lastly, we believe that S&P Global’s strong competitive positioning will enable it to continue benefiting from pricing power, while taking advantage of secular tailwinds such as the growth in passive and ESG investing, international expansion, and the growing demand for data analytics.”