Legendary Value Investor Bill Miller’s Top 5 Stock Picks

2. ADT Inc. (NYSE:ADT)

Miller Value Partners’ Stake Value: $147,396,000
Percent of Miller Value Partners’ 13F Portfolio: 3.5%
Number of Hegde Fund Holders: 21

ADT Inc. (NYSE:ADT) stands second on our list of the legendary value investor Bill Miller’s top 10 stock picks. It is an American company that provides electronic security to residential areas and small businesses. The company also provides alarm monitoring services throughout the U.S. 

As of Q2 2021, 21 hedge funds tracked by Insider Monkey have positions in ADT Inc. (NYSE:ADT), up from 16 in the previous quarter. These stakes are valued at $417.8 million. 

Ariel Investments is the company’s leading shareholder, with over 15.3 million shares. The firm also mentioned ADT Inc. (NYSE:ADT) in its Q2 2021 investor letter. Here is what the firm has to say:

“During the quarter, we initiated a position in ADT, Inc. (ADT) in Ariel Fund and Ariel Appreciation Fund. Buying the same position across both strategies is rare but shows our enthusiasm for the name. Here, we have a 140-year old company that has been in and out of public ownership and as a result, everyone has looked right past it. In our view, ADT’s brand and national presence in the security industry is unmatched, resulting in leading market share, a high recurring revenue base and attractive free cash flow generation. While some are concerned do-it-yourself competition will erode the installation and technology-driven moat around the business, we believe the company is well-positioned to benefit from the secular growth of smart home adoption along with strategic partnerships with companies including Google.”