In this article, we shall discuss 10 of Ken Fisher’s best picks under $30 from his latest portfolio.
Kenneth Lawrence Fisher is an American billionaire, investment analyst, author, and currently serves as Executive Chairman and Co-Chief Investment Officer at Fisher Investments, an independent money management firm which he founded in 1979. He also served as the firm’s Chief Executive Officer for nearly 37 years until July 2016. As of the second quarter of 2022, Fisher Investments has garnered a total portfolio value of over $141.3 billion, increasing by 0.83% with respect to the preceding quarter. As of Q2 2022, Fisher Investments and its subsidiaries manage more than $165 billion in assets globally.
As of the second quarter of 2022, Fisher Investments has an incredibly diversified portfolio with large investments in the technology, services, healthcare, and basic material sectors. Fisher’s 13F portfolio value decreased in Q2 2022 from $165 billion to $141 billion. The number of holdings decreased from 1087 to 1066. Significantly large positions decreased from 70 to 66, with the top five individual stock positions accounting for 21% of the investment company’s 13F portfolio. As of Q2 2022, Fisher Investments manages more than 100,000 clients with a total of $197 billion assets-under-management. Apart from the stocks mentioned below, Fisher owns large stakes in Apple Inc. (NASDAQ:AAPL), Microsoft Inc. (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG). In this article, however, we shall only be going through the 10 of Fisher’s best picks under $30.
Our Methodology
For this article, we picked the top ten stocks in Ken Fisher’s 13F investment portfolio with a share price of $30 or less. The price of each stock was noted on September 15.
Ken Fisher’s Latest Portfolio: 10 Best Picks Under $30
10. Vale S.A. (NYSE:VALE)
Fisher Investments’ Stake Value: $324.5M
Percentage of Fisher Investments’ 13F Portfolio: 0.22%
Number of Hedge Fund Holdings: 28
Share Price (As of September 15): $12.99
Based in Rio de Janeiro, Vale S.A. (NYSE:VALE) is a Brazilian multinational corporation engaged in metals and mining and is one of the largest logistics operators in Brazil. Vale S.A. is the largest producer of iron ore and nickel in the world. As of the second quarter of 2022, hedge fund sentiment around Vale S.A. has slightly increased, with 28 hedge funds long the stock in Q2 2022, as compared to 27 hedge funds in the preceding quarter. As of Q2 2022, Fisher Investments is the largest stakeholder in the stock, owning more than 22.1 million shares worth $324.5 million.
In Q2 2022, the company posted an EPS of $1.32, beating estimates of $0.81 by $0.51. This meant that Vale S.A. achieved a surprise percentage of 63%. Furthermore, the company reported a total revenue of $2.1 billion in Q2 2022.
As investors flee tech stocks like Apple Inc. (NASDAQ:AAPL), Microsoft Inc. (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), metals and mining companies like VALE are gaining traction in 2022.
Grantham Mayo Van Otterloo & Co. LLC mentioned Vale S.A. in their Q1 2022 investor letter. This is what they said:
“Let’s look at Vale S.A., the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. 4 What did the company do with all that cash? Last year, Vale S.A. paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”
9. Banco Santander S.A (NYSE:STD)
Fisher Investments’ Stake Value: $420.4M
Percentage of Fisher Investments’ 13F Portfolio: 0.29%
Number of Hedge Fund Holdings: 15
Share Price (As of September 15): $2.65
Based in Boadilla del Monte, Spain, Banco Santander (NYSE:STD) is a Spanish multinational financial services company. The company maintains a strong presence in all global financial centers as the 16th largest banking institution in the world. As of the second quarter of 2022, investor interest in Banco Santander has remained the same in Q1 2022 and Q2 2022, with 15 hedge funds long the stock in both quarters. As of Q2 2022, Fisher Investments is the largest shareholder in the stock, owning more than 150.1 million shares worth at around $420.4 million. A result of Fisher increasing his hold over the stock by 9%, Banco Santander makes up for 0.29% of Fisher’s 13F investment portfolio. Other prominent hedge funds to hold stakes in the company are Millennium Management and Citadel Investment Group.
On August 11, Deutsche Bank analyst Alfredo Alonso lowered the price target on Banco Santander to $4 from $4.20 and kept a Buy rating on the shares. As of the second quarter of 2022, Banco Santander posted a total revenue of $12.6 billion.
Unlike Apple Inc. (NASDAQ:AAPL), Microsoft Inc. (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Banco Santander is a relatively unknown name in Fisher’s portfolio.
8. JD.com Inc. (NASDAQ:JD)
Fisher Investments’ Stake Value: $477.6M
Percentage of Fisher Investments’ 13F Portfolio: 0.33%
Number of Hedge Fund Holdings: 62
Share Price (As of September 15): $28.41
JD.com Inc. (NASDAQ:JD) is a Chinese e-commerce company based in Beijing. It is one of the two massive B2C online retailers in China by transaction volume and revenue, and a member of the Fortune Global 500. JD.com Inc. is partly owned by Tencent (NYSE:TME), which has a 20% stake in the company. As of the second quarter of 2022, the company posted an EPS of $0.59, beating estimates of $0.39 by $0.2. Moreover, JD.com Inc. reported an total revenue of $38.3 billion in Q2 2022.
Hedge fund sentiment around JD.com Inc. has increased favorably in the second quarter of 2022, with 62 hedge funds long the stock, as compared to 59 hedge funds in the preceding quarter. As of Q2 2022, Tiger Global Management LLC is the largest shareholder in the stock, owning more than 30.5 million shares worth $1.96 billion.
On September 13, Susquehanna analyst Shyam Patil raised the firm’s price target on JD.com Inc. to $62 from $55, maintaining a Neutral rating on the shares.
7. ABB Ltd. (NYSE:ABB)
Fisher Investments’ Stake Value: $534.7M
Percentage of Fisher Investments’ 13F Portfolio: 0.37%
Number of Hedge Fund Holdings: 17
Share Price (As of September 15): $27.09
Headquartered in Zurich, Switzerland, ABB Ltd. (NYSE:ABB) is a multinational corporation which specializes in robotics and automation technology. It is ranked 341st in the Fortune Global 500 list of 2018 and has been a global Fortune 500 company for at least 24 years. Up until 2020, ABB Ltd. was Switzerland’s largest industrial employer. Hedge fund sentiment around ABB Ltd. has remained the same in Q1 and Q2 of 2022, with 17 hedge funds featuring ABB Ltd. in their portfolios for both quarters. As of the second quarter of 2022, Fisher Investments is the largest shareholder in the company, owning more than 20 million shares valued at $534.7 million. A result of Fisher increasing his hold over the stock by 5%, ABB Ltd. makes up for 0.37% of Ken Fisher’s investment portfolio. Other prominent hedge funds to hold stakes in the company are D.E. Shaw and Arrowstreet Capital. As of September 15, the share price of ABB Ltd. is $27.09.
On July 11, Citi analyst Martin Wilkie downgraded ABB Ltd. to Neutral from Buy, conferring the stock with a price target of $30.04, down from $36.26.
This is what Artisan Partners, a high value-added investment management firm, had to say about ABB Ltd. in their Q2 2021 investor letter:
“ABB is a Swiss-based industrial conglomerate. Last year, new management launched a process to improve performance and focus company resources, and it’s paying off. During the quarter, the company reported terrific results exhibiting improvements over both last year’s depressed figures and over the 2019 revenue and profit run rate. Further, management announced plans to simplify the company’s structure by selling off or separately listing several of the company’s non-core businesses.”
6. ING Groep N.V. (NYSE:ING)
Fisher Investments’ Stake Value: $556.3M
Percentage of Fisher Investments’ 13F Portfolio: 0.39%
Number of Hedge Fund Holdings: 10
Share Price (As of September 15): $9.82
Based in Amsterdam, the ING Groep N.V. (NYSE:ING) is a Dutch multinational banking and financial services corporation which specializes in retail, direct, commercial, investment, wholesale, and private banking. The company also offers services like asset management and insurance. With a total revenue of $4.8 billion in Q2 2022, it is one of the biggest banks in the world, and consistently ranks among the top 30 largest banks globally. It is among the top ten largest European companies by revenue. ING Groep N.V. met EPS estimates of $0.33 in Q2 2022.
Investor interest around ING Groep N.V. has slightly declined, with 10 hedge funds long the stock in Q2 2022, as compared to 11 hedge funds in Q1 2022. As of the second quarter of 2022, Fisher Investments is the largest shareholder in the company, owning more than 56 million shares valued at $556.3 million. Fisher strengthened his hold over the stock by 9%, leading ING Groep N.V. to account for 0.39% of Fisher’s 13F investment portfolio.
Here is what Artisan Partners had to say about ING Groep N.V. in their Q4 2021 investor letter:
“While European bank stocks generally did well in 2021, ING performed exceptionally well—up almost 70% in euros. ING is the largest domestic lender in the Benelux and also has fintech operations with strong market positions in major markets including Australia, Germany, Spain, France, Italy and several Eastern European markets. ING is profitable, and it operates with significant excess capital that it’s accumulated over several years through retained earnings. The pandemic’s onset led to a regulatory moratorium on distributions to shareholders, who reacted by pushing the share price down to levels last seen during the 2008 financial crisis. Back in 2008, ING was thinly capitalized, overdiversified and losing money—a very different profile from its profitable and overcapitalized position in 2020. We saw this as an opportunity and increased our position, and the price rebounded 60% from the 2020 bottom. Even after that impressive gain, the shares remained cheap, trading at 58% of book value—though even that simple statistic understates the undervaluation. At the time, the bank carried an estimated €12 billion of excess capital on a market cap of €30 billion. Net of that excess capital, the shares traded at 4.6X our estimate of normalized earnings. In 2021, conditions changed. The pandemic receded, leading to relaxed regulatory restrictions on shareholder distributions. In addition, profits boomed as provisions set aside for pandemic-era credit losses proved unnecessary. Additionally, a new CEO appointed in July 2020 has done a great job focusing the business on profitable geographies. Changes to the business have both improved profitability and increased the company’s already overcapitalized balance sheet. The share price has rebounded close to book value—a much more reasonable valuation.”
5. CSX Corp. (NYSE:CSX)
Fisher Investments’ Stake Value: $567.6M
Percentage of Fisher Investments’ 13F Portfolio: 0.4%
Number of Hedge Fund Holdings: 63
Share Price (As of September 15): $29.49
Headquartered in Jacksonville, Florida, CSX Corp. (NYSE:CSX) is an American holding company focused on rail transportation and real estate in North America, among other industries. As of September 15, the company is down by 20.47% year-to-date. In the second quarter of 2022, CSX Corp. posted an EPS of $0.5, beating estimates of $0.47 by $0.03. Furthermore, in Q2 2022, the company reported a total revenue of $3.82 billion.
Hedge fund sentiment around CSX Corp. declined significantly in Q2 2022, with 63 hedge funds having a collective stake of $5.1 billion. This was down from 72 hedge funds having a cumulative stake value of $6.3 billion in the first quarter of 2022.
Clearbridge Investments mentioned CSX Corporation in their Q4 2021 investor letter. This is what they had to say:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operators CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”
4. Toyota Motors Corp. (NYSE:TM)
Fisher Investments’ Stake Value: $817.6M
Percentage of Fisher Investments’ 13F Portfolio: 0.57%
Number of Hedge Fund Holdings: 12
Share Price (As of September 15): $14.12
Based in Aichi, Japan, Toyota Motors (NYSE:TM) is a Japanese multinational automotive manufacturer.
Investor interest around the stock has increased significantly, with 12 hedge funds long the stock in Q2 2022, up from 9 hedge funds in Q1 2022. As of the second quarter of 2022, Fisher Investments is the largest shareholder in the stock, owning more than 5.3 million shares in Toyota Motors.
This is what Baron Funds had to say about Toyota Motors in their Q1 2022 investor letter, a copy of which can be obtained here:
“Toyota’s “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplates disruptive change that will dramatically lower costs and improve quality.”
3. GlaxoSmithKline plc. (NYSE:GSK)
Fisher Investments’ Stake Value: $851.8M
Percentage of Fisher Investments’ 13F Portfolio: 0.6%
Number of Hedge Fund Holdings: 34
Share Price (As of September 15): $29.8
Headquartered in London, GlaxoSmithKline plc. (NYSE:GSK) is a British multinational pharmaceutical and biotechnology company. It is the tenth largest pharmaceutical company in the world by revenue of ranks at #294 on the 2022 Fortune Global 500.
On September 5, Credit Suisse analyst Johanna Walton upgraded GlaxoSmithKline plc. (NYSE:GSK) to Neutral from Underperform, conferring it with a price target of $1633.
2. Freeport-McMoRan Inc. (NYSE:FCX)
Fisher Investments’ Stake Value: $1.52B
Percentage of Fisher Investments’ 13F Portfolio: 1.07%
Number of Hedge Fund Holdings: 56
Share Price (As of September 15): $29.33
Based in Phoenix, Arizona, Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company, and is a major producer of molybdenum, copper and gold. It operates the world’s largest gold mine, the Grasberg mine in Papua, Indonesia. On August 15, RBC Capital analyst Sam Crittenden lowered the price target on Freeport-McMoRan Inc. to $35 from $46, maintaining a Sector Perform rating on the shares.
As of Q2 2022, Fisher Investments is the largest shareholder in the stock, owning more than 52 million shares worth at around $1.52 billion.
Here is what Carillon Tower Advisors had to say about Freeport-McMoRan Inc. in their Q1 2022 investor letter, a copy of which can be obtained here:
“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”
1. Alibaba Group Holding Ltd. (NYSE:BABA)
Fisher Investments’ Stake Value: $1.65B
Percentage of Fisher Investments’ 13F Portfolio: 1.16%
Number of Hedge Fund Holdings: 106
Share Price (As of September 15): $11.01
Based in Hangzhou, Zhejiang, Alibaba Group (NYSE:BABA) is a Chinese multinational technology company which specializes in e-commerce, retail, IoT, and technology. The company also provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via web portals, as well as electronic payment services, shopping search engines, and cloud computing services
Investor interest around Alibaba Group has skyrocketed in the second quarter of 2022, with 106 hedge funds long the stock, as compared to 100 in the preceding quarter. As of Q2 2022, Fisher Investments in the largest shareholder in the company, with a total stake value of $1.65 billion.
Artisan Partners, an asset management firm, mentioned Alibaba Group in their Q2 2022 investor letter. This is what they had to say:
“Alibaba rose 4% during the quarter. We would love to say the share price performance was due to strong operational performance. Unfortunately, that was not the case. The most recent earnings results showed its core e-business still had not returned to growth, primarily due to the difficult retail environment caused by the government’s zero-COVID policy. Alibaba also appears to be losing market share due to its product mix tilted toward apparel and cosmetics, categories currently stalled in this environment. The share price performance this quarter was largely a function of exogenous items—specifically, government actions in the form of stimulus to support the economy and less regulations.
Despite the poor recent results, Alibaba remains a powerful economic engine. It is a global leader in e-commerce and cloud computing, both of which should grow nicely over time. Management has started taking actions to improve profitability, which has been burdened by significant investment in loss-making business ventures. The financial results should improve significantly when China’s economy starts to recover from COVID-19 outbreaks. The shares are incredibly cheap and have some of the highest upside potential in the portfolio. Even embedding significant losses from new ventures, we estimate they are trading at 11X-12X unlevered earnings. In our view, the shares could double, and they still would not be expensive.”
You can also take a peek at 15 Best Gourmet Coffee Brands in the world and 11 Best Lithium and Battery Stocks To Buy.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Long-Term Stocks to Buy During Recessions
- 13 Best Semiconductor Stocks to Buy Now
- 12 Best Reddit Stocks to Invest In
This article is originally published at Insider Monkey.
