Below is the list of Josh Friedman’s favorite stock picks. For a detailed discussion about Josh Friedman’s investment philosophy and portfolio management strategy please see Josh Friedman’s Canyon Capital Portfolio: Top 10 Stock Picks.
5. Nobel Corporation (NYSE:NE)
Canyon Capital’s stake value: $58 Million
Josh Friedman’s Canyon Capital has been holding a big stake in Nobel Corporation (NYSE:NE) over the past few quarters and it appears that the firm has been benefiting from its position. This is because shares of the energy giant rallied 15% in the past twelve months alone.
4. Tenet Healthcare Corporation (NYSE:THC)
Canyon Capital’s stake value: $99 Million
Canyon Capital first initiated a position in Tenet Healthcare Corporation (NYSE:THC) early in 2021 and added to its existing stake in the following quarters of the year. As of the end of March, Tenet was ranked fourth in the list of Canyon Capital’s top 10 stock picks. The company appears in a solid position to generate healthy returns for shareholders. Its second-quarter earnings per share of $1.50 beat a consensus of $0.83 and the company expects full-year net revenue in the range of $19.4 billion.
The number of long hedge fund positions increased in the company in the past three straight quarters. As of the end of March, Tenet was in 57 hedge fund portfolios compared to 52 in the previous quarter. Larry Robbins Glenview Capital was the leading stakeholder in the company.
3. Shaw Communications Inc. (NYSE:SJR)
Canyon Capital’s stake value: $163 Million
Canyon Capital lifted its stake in Shaw Communications Inc. (NYSE:SJR) by 45% in the March quarter to 5.74% of the overall portfolio. In the June quarter, the hedge fund increased its hold in the company by 11%. The company is in news amid a potential merger with Rogers Communications (NYSE:RCI) by the end of this year for $15.8 billion. It operates as a connectivity company in North America and works through wireline and wireless segments. The company’s shares are under pressure over the past couple of months due to regulatory challenges. However, the market participants expect its shares to rally once regulators approve the merger with Rogers Communications.
Event-driven hedge funds raised their stake in the company recently. As of the end of March, Shah Communications was in 23 hedge fund portfolios compared to 19 positions in the previous quarter.
2. Berry Global Group, Inc. (NYSE:BERY)
Canyon Capital’s stake value: $150 Million
Berry Global Group, Inc. (NYSE:BERY) is the third largest holding of Canyon Capital’s 13F portfolio with a stake worth $150 million. The firm decreased its stake in the company by 3% in the second quarter. On the other hand, the company is likely to extend the double-digit revenue growth momentum in the quarters ahead and expects full-year free cash flow in the range of $900 million to $1 billion.
Of the 912 hedge funds tracked by Insider Monkey, Berry Global was in 42 portfolios as of the end of March. Skylands Capital and Bailard Inc were among the leading stakeholders in the company.
1. CBL & Associates Properties, Inc. (NYSE:CBL)
Canyon Capital’s stake value: $197 Million
Josh Friedman’s Canyon Capital looks optimistic about the future fundamentals of CBL & Associates Properties, Inc. (NYSE:CBL) as the firm lifted its stake in the company by 91% to 10.22% of the overall portfolio during the March quarter. In the second quarter, the hedge fund made no changes to its stake. CBL owns and manages a portfolio of market-dominant properties located in growing communities. The company filed for chapter 11 bankruptcy and is currently working on restructuring efforts to stabilize its balance sheet.
As of the end of March, 18 hedge funds were bullish about the company.
You can also take a look at the Billionaire Dan Loeb is Adding These 9 Stocks in his Portfolio and Jim Cramer Is Talking About These 10 Stocks.
