In this article, we will look at the stocks Jacob Rothschild’s RIT Capital Partners is selling. You can skip our detailed analysis of Rothschild’s history, investment philosophy, and hedge fund performance and go directly to Jacob Rothschild’s RIT Capital Partners is Selling These 5 Stocks.
Jacob Rothschild is a millionaire and investment banker from the United Kingdom. He became chairman of RIT Capital Partners, one of the largest British investment trusts, in 1971.
RIT Capital Partners is a London-based hedge fund formed to grow and protect its owners’ capital. Since 1988, when the fund was initially listed on the London Stock Exchange, its investors have had an annual return of 11.7%.
The hedge fund’s 13F public equity portfolio is worth $296.52 million in the second quarter of 2021. Currently, the fund’s top 10 holdings account for 95.09% of the portfolio. IQVIA Holdings Inc. (NYSE:IQV) is the top holding of RIT Capital, accounting for 19.53% of its portfolio.
Some of the top investments in the portfolio of RIT Capital Partners at the end of the second quarter of 2021 were Visa Inc. (NYSE:V), The Walt Disney Company (NYSE:DIS), and T-Mobile US, Inc. (NASDAQ:TMUS) among others.
RIT Capital Partners owns 222,000 shares in Visa Inc. (NYSE:V), worth $51.94 million. On August 17, JPMorgan analyst Tien-Tsin Huang raised his price target on Visa Inc. (NYSE:V) to $267 from $249 and kept an “Overweight” rating on the shares. Visa Inc. (NYSE:V) currently has a market capitalization of $482.11 billion.
Based on the latest 13F holdings for the second of 2021, RIT Capital Partners owns 169,000 shares in The Walt Disney Company (NYSE:DIS), after decreasing its holding by 16% from the first quarter of 2021.
Jacob Rothschild also owns 283,500 shares in T-Mobile US, Inc. (NASDAQ:TMUS), worth $41.06 million. On September 9, Loop Capital analyst Stephan Bisson initiated coverage of T-Mobile US, Inc. (NASDAQ:TMUS) with a “Buy” rating setting his price target at $160. T-Mobile US, Inc. (NASDAQ:TMUS) currently has a $159.86 billion market capitalization. It delivered a 12.65% return in the past 12 months.
Jacob Rothschild – RIT Capital
Why should we care about Rothschild’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 more than 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.
Here is a list of 10 stocks Jacob Rothschild’s RIT Capital Partners is selling in 2021. We used Rothschild’s 13F portfolio for Q2 2021 for this analysis.
RIT Capital Partners sold off its entire stakes in the companies mentioned below in the second quarter of 2021.
Jacob Rothschild’s RIT Capital Partners is Selling These Stocks
10. VG Acquisition Corp. (NYSE:VGAC)
Number of Hedge Fund Holders: 32
VG Acquisition Corp. (NYSE:VGAC) is a special purpose acquisition business. VG Acquisition Corp. aimed to achieve a merger, amalgamation, share exchange, asset acquisition, reorganization, share purchase, or similar business combination with more than one firm. Sir Richard Branson, the creator of VGAC, is on the management team. In 2020, Branson founded VG Acquisition Corp., which raised $480 million in an initial public offering.
SPAC VG Acquisition Corp. (NYSE:VGAC) merged with famous home-genetics testing firm 23andMe Holding Co. (NASDAQ:ME). 23andMe Holding Co is the name of the united firm. On August 16, Credit Suisse analyst Tiago Fauth initiated coverage of 23andMe Holding Co. (NASDAQ:ME) with an “Outperform” rating and $13 price target.
As of the second quarter of 2021, 25 hedge funds have positions in 23andMe Holding Co. (NASDAQ:ME). Jim Simons’ Euclidean Capital is the biggest shareholder of 23andMe Holding Co. (NASDAQ:ME), with 10.24 million shares worth $119.74 million.
Unlike Visa Inc. (NYSE:V), The Walt Disney Company (NYSE:DIS), and T-Mobile US, Inc. (NASDAQ:TMUS), VG Acquisition Corp. (NYSE:VGAC) is one of the stocks Jacob Rothschild’s RIT Capital Partners is selling.
9. Thoma Bravo Advantage (NYSE:TBA)
Number of Hedge Fund Holders: 32
Thoma Bravo Advantage (NYSE:TBA) is a special purpose acquisition company (SPAC) that is connected with Thoma Bravo and was created to effect a merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. ironSource Ltd. (NYSE:IS) entered into a formal agreement to merge with Thoma Bravo Advantage (NYSE: TBA) to deliver a highly profitable and scalable corporation that provides a comprehensive business platform for app developers public markets. The combined company is ironSource Ltd. (NYSE:IS), which currently has a market capitalization of $11.4 billion.
On September 24, Citi analyst Jason Bazinet raised his price target on ironSource Ltd. (NYSE:IS) to $14 from $10.50 and maintained a “Buy” rating on the shares. On September 23, ironSource Ltd. (NYSE:IS) collaborated with Vodafone Group Plc (NASDAQ:VOD) to deploy the ironSource Aura solution suite across all devices in Europe, including the United Kingdom, Italy, Spain, and Germany, to provide consumers with a rich and optimized content experience.
Tiger Global Management LLC is a leading shareholder in ironSource Ltd. (NYSE:IS), with 20.50 million shares worth $215.25 million. There were 32 hedge funds in our database that held stakes in ironSource Ltd. (NYSE:IS) at the end of the second quarter, compared to 52 funds in the previous quarter.
8. Tencent Music Entertainment Group (NYSE:TME)
Number of Hedge Fund Holders: 35
Tencent Music Entertainment Group (NYSE:TME) is a Chinese company that creates music streaming services. QQ Music, Kugou, Kuwo, and WeSing are among Tencent Music’s applications, with over 800 million active users and 120 million paid customers.
On September 13, Loop Capital analyst Rob Sanderson downgraded Tencent Music Entertainment Group (NYSE:TME) to “Hold” from “Buy” setting his price target at $10, down from $17. Although Sanderson believes there is still a much-untapped possibility in the music industry, he thinks the stock will be anchored for some time due to difficulties with the social entertainment firms and new licensing regulations.
Tencent Music Entertainment Group (NYSE:TME) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 35 at the end of the second quarter compared to 63 positions in the previous quarter. Gil Simon’s SoMa Equity Partners is the leading shareholder of Tencent Music Entertainment Group (NYSE:TME) with 12.50 million shares, worth $193.50 million.
In its second-quarter 2021 investor letter, Worm Capital LLC mentioned Tencent Music Entertainment Group (NYSE:TME). Here is what the fund said:
“Another position we mostly exited over the quarter was Tencent Music (TME). We’ve long admired Tencent Music—China’s largest music streaming company—because of its similarities to SPOT and its dominant status in the audio industry. It’s a company with roughly 840 million users with 72 million paid users (growing at ~30% YoY).We like the multiple monetization opportunities it presents, from live virtual events to audiobooks to premium membership. At its core, it’s a healthy, growing business.
Unfortunately, the market is filled with curveballs. During Q2, TME and many other Chinese technology firms (IQ, VIPS, etc.) got swept up in the liquidation of Archegos Capital, which severely impacted their share prices. (There were also increased regulatory concerns coming from the Chinese government.) Both factors have made investing in Chinese equities more complicated, at least in the short-term. TME was a relatively small position for us, but we decided to exit the equity position in May (although we kept our LEAPs) to focus capital elsewhere until we can get more clarity on the situation. In general, much like March 2020, when we lose visibility on a position, we like to reduce our exposure, which limits our risk.”
7. Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX)
Number of Hedge Fund Holders: 21
Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) is a global player in the vitro diagnostics industry.
On August 5, JPMorgan analyst Tycho Peterson raised his price target on Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) to $28 from $25 and kept an “Overweight” rating on the shares after the second-quarter results. In the second quarter, Ortho Clinical Diagnostics Holdings plc’s (NASDAQ:OCDX) EPS came in at $0.16, beating the analysts’ expectations by $0.02.
Anand Parekh’s Alyeska Investment Group is Diagnostics Holdings plc’s (NASDAQ:OCDX) most significant stakeholder, with 2.44 million shares worth $52.16 million. As of the second quarter of 2021, 21 hedge funds have positions in Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX), compared with 23 in the previous quarter.
Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) is one of the stocks Jacob Rothschild’s RIT Capital Partners is eliminating, unlike Visa Inc. (NYSE:V), The Walt Disney Company (NYSE:DIS), and T-Mobile US, Inc. (NASDAQ:TMUS).
6. Northern Star Acquisition Corp. (NYSE:STIC)
Number of Hedge Fund Holders: 21
Northern Star Acquisition Corp. (NYSE:STIC) is a special purpose acquisition company with a management team and Board of Directors comprised of seasoned executives and entrepreneurs from the consumer, retail, technology, media, and finance industries. Northern Star Acquisition Corp. (NYSE:STIC) merged with Barkbox, Inc., the world’s top dog food company. The Original BARK Company (NYSE:BARK) is the combined company’s new name, which currently has a market capitalization of $1.15 billion.
In June, Citi analyst Nicholas Jones initiated coverage of The Original BARK Company (NYSE:BARK) with a “Buy” rating and gave his price target of $16.
D E Shaw is the most significant shareholder of The Original BARK Company (NYSE:BARK) with 1.23 million shares worth $13.57 million. As of the second quarter of 2021, 21 hedge funds have positions in The Original BARK Company (NYSE:BARK).
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Disclosure: None. Jacob Rothschild’s RIT Capital Partners is Selling These 10 Stocks is originally published on Insider Monkey.
