In this article, we discuss the legendary value investor Bill Miller’s top 5 stock picks. If you want to read our detailed analysis of the billionaire’s hedge fund and investment philosophy, go directly to read the Legendary Value Investor Bill Miller’s Top 10 Stock Picks.
5. OneMain Holdings, Inc. (NYSE:OMF)
Miller Value Partners’ Stake Value: $129,910,000
Percent of Miller Value Partners’ 13F Portfolio: 3.09%
Number of Hegde Fund Holders: 41
OneMain Holdings, Inc. (NYSE:OMF) is an American financial service holdings company and operates through Consumer & Insurance and other segments. It ranks fifth on our list of the legendary value investor Bill Miller’s top 10 stock picks.
As of Q2 2021, Miller Value Partners holds over 2.1 million shares in OneMain Holdings, Inc. (NYSE:OMF), valued at over $129.9 million. The company represents 3.09% of the hedge fund’s 13F portfolio.
As of Q2 2021, 41 hedge funds tracked by Insider Monkey have positions in OneMain Holdings, Inc. (NYSE:OMF).
4. Alibaba Group Holdings Limited (NYSE:BABA)
Miller Value Partners’ Stake Value: $131,868,000
Percent of Miller Value Partners’ 13F Portfolio: 3.13%
Number of Hegde Fund Holders: 146
Alibaba Group Holdings Limited (NYSE:BABA) ranks fourth on our list of the legendary value investor Bill Miller’s top 10 stock picks. It is a Chinese multinational technology company specializing in e-commerce, the internet, and retail.
In Q2 2021, Miller Value Partners increased its stake in Alibaba Group Holdings Limited (NYSE:BABA) significantly by 40%. The hedge fund holds 581,480 shares in the company, valued at $131.8 million. The company accounts for 3.13% of the hedge fund’s 13F portfolio.
As of Q2 2021, 146 hedge funds tracked by Insider Monkey have positions in Alibaba Group Holdings Limited (NYSE:BABA), up from 135 in the previous quarter. These stakes are valued at over $16.7 billion.
Polen Capital Management mentioned Alibaba Group Holdings Limited (NYSE:BABA) in its Q2 2021 investor letter. Here is what the firm has to say:
“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Miller Value Partners’ Stake Value: $137,953,000
Percent of Miller Value Partners’ 13F Portfolio: 3.28%
Number of Hegde Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that specializes in e-commerce, cloud computing, retail, and artificial intelligence. The company stands third on our list of the legendary value investor Bill Miller’s top 10 stock picks.
In Q2 2021, Miller Value Partners increased its stake in Amazon.com, Inc. (NASDAQ:AMZN). The hedge fund owns 40,101 shares in the company, valued at $137.9 million. The company represents 3.28% of the hedge fund’s 13F portfolio.
On October 5, JPMorgan listed Amazon.com, Inc. (NASDAQ:AMZN) as one of its attractive long-term stock picks. The firm’s analyst Doug Anmuth noted that the company is an attractive entry point for long-term investors, even though it suffered supply chain disruptions due to Covid-19.
As of Q2 2021, 271 hedge funds tracked by Insider Monkey have positions in Amazon.com, Inc. (NASDAQ:AMZN), up from 243 from the previous quarter. These stakes are valued at over $60.4 billion. Citadel Investment Group is the company’s leading shareholder with shares worth $13.12 billion.
ClearBridge Investments mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its second-quarter 2021 investor letter. Here is what the firm has to say:
“The Strategy’s goal of generating strong risk-adjusted performance while investing in companies that can make a positive impact on society and the environment is often supported by holdings that are companies with significant customer bases, making our engagements with them effective platforms for driving change. This is the case with new holding Amazon.com, the leading retail e-commerce site and provider of web hosting and related cloud services that continues to benefit from the migration of commerce from offline to online. We initiated a position in Amazon based on its strength in several areas, including retail, its Amazon Web Services cloud business and advertising; from a valuation perspective, Amazon has become more attractive as profitability has improved and the stock has gone sideways in an up market.
ClearBridge has been holding interactive engagements with Amazon on several ESG issues for several years, including labor and environmental issues, and we have seen improvements over that time. From a sustainability perspective, Amazon has made meaningful ESG commitments and improved labor practices and it faces fewer regulatory issues than many large tech peers. Labor management remains a key focal point and the company has made
increased commitments to its labor force, including in December 2018, when Amazon increased its minimum wage standard to $15 an hour in the U.S., well above the federal minimum wage standard. Amazon is also taking steps toward environmental sustainability that would put it ahead of peers if goals are achieved. In June 2019, Amazon set new targets to be carbon neutral by 2040 and to use 100% renewable energy by 2030.
Amazon has a long track record of innovation that benefits consumers and third-party sellers and has raised the bar multiple times on delivery and selection within its e-commerce business. In 2018, 58% of Amazon’s gross merchandise value (GMV) was generated by third-party sellers on the Amazon platform.
Given the colossal size of Amazon’s operations — it has over one million employees and ships nearly three billion packages each year — we see Amazon as a significant impact opportunity through continuous improvements in its operations, such as its net-zero carbon by 2040 goal.”
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.”
1. DXC Technology Company (NYSE:DXC)
Miller Value Partners’ Stake Value: $224,298,000
Percent of Miller Value Partners’ 13F Portfolio: 5.34%
Number of Hegde Fund Holders: 30
DXC Technology Company (NYSE:DXC) tops our list of the legendary value investor Bill Miller’s top 10 stock picks. It is an American technology company that provides B2B technology services to its consumers.
As of Q2 2021, Miller Value Partners owns 65,200 shares in DXC Technology Company (NYSE:DXC), valued at $224.2 million. The hedge fund increased its stake by 4% in the company, which now accounts for 5.34% of the fund’s 13F portfolio. This September, BMO Capital lifted its price target on DXC Technology Company (NYSE:DXC) to $385, while keeping a ‘Market Perform’ rating on the shares.
As of Q2 2021, 30 hedge funds tracked by Insider Monkey have positions in DXC Technology Company (NYSE:DXC), up from 28 in the previous quarter. These stakes are valued at $851.2 million.
Miller Value Partners also mentioned DXC Technology Company (NYSE:DXC) in its Q2 2021 investor letter. Here is what the firm has to say:
“DXC Technology Company (DXC) continued to climb higher during the quarter gaining 24.57%. The company reported solid Fiscal Year 4th quarter (FY4Q) results with revenue of $4.385B beating consensus of $4.29B and earnings per share (EPS) of $0.74 ahead of expectations for $0.70. The company guided for fiscal 2022 revenue of $16.6-$16.8B, below the Street at $16.9B and adjusted EPS of $3.45-3.65, ahead of the consensus of $3.43. By FY2024, the company expects organic revenue growth of 1-3%, adjusted earnings before income and taxes (EBIT) margin of 10-11%, adjusted diluted EPS of $5.00-$5.25 and free cash flow (FCF) of $1.5B. Later in the month, the company held an investor day where management highlighted their confidence that they can hit all of their targets while also stressing the progress they have made on their turnaround to date.”
You can also take a look at Larry Robbins’ Top Stock Picks and Billionaire Izzy Englander’s Top 10 Stock Picks
