In this article, we discuss the 10 stocks to consider in the portfolio of Kim Schrier. If you want to skip our detailed analysis of these stocks, go directly to Kim Schrier Stock Portfolio: 5 Stocks To Consider.
Kim Schrier is a physician and politician born in California. She is presently a member of the United States House of Representatives from the eighth congressional district of Washington. Schrier is a member of the Democratic Party. The stock trading activities of the lawmaker have come under the spotlight in recent months after she was fined for missing a deadline to disclose stock trades of her husband, David Gowing, in the summer of 2021. The transaction in this regard took place in July and Schrier reported it in November.
According to an analysis of the trading activity of Schrier, the lawmaker has made a total of 24 stock transactions between January 2021 and January 2022. 22 of these have involved selling of equities while only two have involved purchases. The latter have a worth of more than $1.1 million while the former are worth $788,00. The net spend over the time has been around the $300,000 range. Schrier serves on the House committees on agriculture and energy. Her trading disclosures show a lot of activity related to these sectors.
Some of the top stocks to consider in the portfolio of Kim Schrier include Alphabet Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), and Bristol-Myers Squibb Company (NYSE:BMY), among others discussed in detail below.
Our Methodology
The stocks listed below were picked from the Periodic Transaction Report(s) that Kim Schrier is obliged to file. It is important to clarify that the stocks listed below were picked from the public record of investments Schrier and her family have made in the past few months. The purchases may not have been made by Schrier herself but only disclosed on behalf of her family.
U.S. House Office of Photography/House Creative Services, Public domain, via Wikimedia Commons
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Kim Schrier Stock Portfolio: Stocks To Consider
10. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 17
Brookfield Renewable Partners L.P. (NYSE:BEP) owns and runs renewable power generating facilities. Disclosures made by Kim Schrier in mid-November last year show that the lawmaker sold Brookfield Renewable Partners L.P. (NYSE:BEP) stock worth somewhere between $1,000 and $15,000 on October 28.
Brookfield Renewable Partners L.P. (NYSE:BEP) has started attracting the interest of top hedge funds as investments in clean energy increase. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Brookfield Renewable Partners L.P. (NYSE:BEP) with 72,425 shares worth more than $2.6 million.
Just like Alphabet Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), and Bristol-Myers Squibb Company (NYSE:BMY), Brookfield Renewable Partners L.P. (NYSE:BEP) is one of the stocks that growth investors are buying.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Brookfield Renewable Partners L.P. (NYSE:BEP) was one of them. Here is what the fund said:
“U.S. renewables utility Brookfield Renewable was another detractor. Brookfield Renewable is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”
9. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Holders: 35
Cleveland-Cliffs Inc. (NYSE:CLF) operates as a steel producer. As steel prices remain volatile, hedge funds have been shedding the stock from their portfolios. At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $682 million in Cleveland-Cliffs Inc. (NYSE:CLF), compared to 44 in the preceding quarter worth $1.1 billion.
According to a PTR from Kim Schrier dated November 18, the lawmaker sold Cleveland-Cliffs Inc. (NYSE:CLF) stock worth between $15,000 and $50,000 on October 28. The transaction in this regard was disclosed the next day.
8. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 45
Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing firm. Latest filings reveal that Schrier sold Honeywell International Inc. (NASDAQ:HON) stock worth somewhere between $1,000 and $15,000 on October 28.
Top hedge funds are bullish on the future prospects of Honeywell International Inc. (NASDAQ:HON). At the end of the third quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $927 million in Honeywell International Inc. (NASDAQ: HON).
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Honeywell International Inc. (NASDAQ:HON) was one of them. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included industrials, Honeywell International Inc. (NASDAQ:HON) also lagged in the quarter after previously generating strong returns over extended periods.”
7. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 55
Costco Wholesale Corporation (NASDAQ:COST) owns and runs membership warehouses. It is one of the favorite retail stocks among hedge funds. At the end of the third quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $4.39 billion in Costco Wholesale Corporation (NASDAQ:COST), up from 54 in the preceding quarter worth $4.32 billion.
Mandatory filings show that Schrier sold Costco Wholesale Corporation (NASDAQ:COST) stock worth around $15,000-$50,000 in late October last year. The transaction in this regard was disclosed the day after it was made.
In its Q1 2021 investor letter, Ensemble Capital, an asset management firm, highlighted a few stocks and Costco Wholesale Corporation (NASDAQ:COST) was one of them. Here is what the fund said:
“We saw these dynamics at play in the Fund. Some of the worst-performing stocks this quarter were among our best performers in Q1 2020. Another example was the market’s reaction to Costco Wholesale Corporation (NASDAQ:COST) (1.5% weight in the Fund) during the quarter. From December 31, 2020 to March 8th, Costco shares declined 17% and dropped below their pre-pandemic high. The common rationale offered by sell-side analysts was that Costco would face difficult one-year “comps” (i.e. same-store sales, which compare sales from stores open for at least a year). Because so many consumers rushed to Costco ahead of shelter-in-place and subsequent quarantines, it will be harder for Costco to meaningfully beat those results when compared year-over-year. That may indeed be true, but we struggle to understand how Costco could be “less valuable” than it was a year earlier when it concurrently increased its membership base by over 7%, or 3.9 million members. With membership renewal rates around 90%, the vast majority of the new customers Costco brought in last year will be around for years to come.
Analysts also complained about Costco Wholesale Corporation (NASDAQ:COST) raising its already industry-leading minimum wage to $16/hour, with an average “effective” pay of $23-$24/hour when you include overtime and bonuses. Costco paying its employees “too much” has been a common gripe of Wall Street analysts for at least two decades. While the extra pay does indeed impact short-term profit margins, it also serves to make Costco more durable, as its flywheel (i.e. a virtuous value cycle) starts with happy employees. A 20-year chart of Costco stock price is evidence that this strategy works and we’re confident that it will continue to work.”
6. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 61
CVS Health Corporation (NYSE:CVS) provides healthcare services. As per the latest stock filings of Kim Schrier, the lawmaker sold CVS Health Corporation (NYSE:CVS) stock worth somewhere between $15,000 and $50,000 on October 28 last year.
Major hedge funds have been piling into CVS Health Corporation (NYSE:CVS) stock in recent months. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CVS Health Corporation (NYSE:CVS) with 8 million shares worth more than $685 million.
In addition to Alphabet Inc. (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL), and Bristol-Myers Squibb Company (NYSE:BMY), CVS Health Corporation (NYSE:CVS) is one of the stocks that elite investors have their eye on.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:
“We sold our position in CVS Health Corp. to allocate capital to companies with larger margins of safety. During the five years that we owned CVS Health Corp., the company acquired Aetna. At the time, we also owned Aetna, and we believed the combination of the two companies would create additional value. After the acquisition, its business performance has been disappointing. We reevaluated our assumptions and determined its value has not grown.”
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Disclosure. None. Kim Schrier Stock Portfolio: 10 Stocks To Consider is originally published on Insider Monkey.
