In this article, we’ll explore Leon Cooperman’s stock portfolio and look at his firm’s top 12 picks.
Omega Advisors, Inc., an investment firm based in New York, specializes in providing advisory and portfolio management services. The firm focuses on domestic public equity and employs hedging strategies to protect its investments. Leon Cooperman, the chairman and CEO, follows a value-oriented investment strategy that emphasizes value equities and utilizes a top-down approach to select sectors for investment. His methodology integrates fundamental analysis to manage both long and short positions, which helps in constructing diversified portfolios. These portfolios are assessed against the S&P 500 index to gauge their performance effectively.
Leon G. Cooperman is a billionaire investor known for his significant contributions to the investment landscape. He is the first in his family to earn a college degree, graduating from Hunter College, where he was active in the Alpha Epsilon Pi fraternity. After completing his education, Cooperman began his career as a quality control engineer at Xerox in 1965 and later earned an MBA from Columbia Business School in 1967. He is also a Chartered Financial Analyst (CFA), which reflects his deep knowledge of investment analysis and portfolio management.
Leon Cooperman Warns of Rising National Debt
In a recent CNBC interview on September 25, Leon Cooperman expressed significant concerns about two main issues affecting the economy. He highlighted the national debt, which has surged from $20 trillion in 2017 to $34 trillion in 2024, growing at a rate that far outpaces the economy. He warns that this increase could lead to serious problems in the future, especially since candidates running for office are not addressing the deficit.
“I’m very concerned about two things. One is the debt buildup. We have two candidates running for office, and neither one talks about the deficit or the buildup of debt. In 2017, I think our national debt was $20 trillion. Seven years later, it’s $34 trillion. That’s a growth rate far in excess of the growth rate of the economy, and it’s going to be a problem one day.”
When asked if the Fed’s rate cuts have led him to invest more in stocks, Leon Cooperman replied that he is already fully invested, primarily in various assets. He has allocated about 20% of his portfolio to bonds and believes the government’s conduct is disappointing. Additionally, he has around 15% in energy investments, seeing potential in that sector due to current events in the Middle East. He noted that while the Fed is cutting short-term rates, he anticipates long-term rates will rise, particularly for ten-year bonds.
Cooperman was also asked about the Fed’s rate cuts and their impact on the economy. He responded that short-term rates are currently too high compared to historical standards. He explained that the yield on the ten-year government bond should align with GDP growth, which he estimates at around 5% (2.5% real growth plus 2.5% inflation). He believes that at a 5% yield, the ten-year bond is undervalued and anticipates rates will rise.
Leon Cooperman Thinks “Stocks Are The Place To Be”
Leon Cooperman expressed concerns about the potential future problems with government debt, suggesting that issues may arise unexpectedly. At 81 years old, he reflected on his experience during past market bubbles in 2000 and 1972, emphasizing his belief that stocks remain the best investment choice while avoiding bonds.
“I may be too old. Take me out behind the barn and shoot me. I’m 81 years old. I’ve been through a couple of bubbles—the 2000 bubble and the 1972 bubble… I think stocks are the best place to be. I would avoid bonds.”
With that, let’s take a look at the top 12 stocks picks of Leon Cooperman’s Omega Advisors
Our Methodology
This article reviews the top 12 stock holdings of Omega Advisors as of the second quarter of 2024, highlighting the number of hedge funds also invested in these companies. The stocks are organized in ascending order based on Omega Advisors’ stake as of June 30, 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Leon Cooperman Stock Portfolio: Top 12 Picks
12. Mirion Technologies Inc. (NASDAQ:MU)
Total Number of Shares Owned: 8,000,000
Total Value of Shares Owned: $85,920,000
Number of Hedge Fund Holders: 20
Mirion Technologies Inc. (NASDAQ:MU) is showing promising potential as an investment opportunity, supported by strong financial results and strategic partnerships. In its Q2 2024 earnings report, Mirion Technologies Inc. (NASDAQ:MU) announced revenues of $207.1 million, a 5% increase compared to the previous year. Additionally, Mirion Technologies Inc. (NASDAQ:MU) achieved an adjusted EBITDA of $48.8 million, reflecting a 10.2% rise and a healthy adjusted EBITDA margin of 23.6%. These results highlight Mirion’s effective cost management and operational efficiency.
A significant development for Mirion Technologies Inc. (NASDAQ:MU) is its new partnership with EDF, which is recognized as the world’s largest operator of nuclear power plants. This collaboration is expected to bolster Mirion Technologies Inc. (NASDAQ:MU)’s presence in the nuclear sector and drive future growth. The company is well-positioned to capitalize on the growing demand for its services in various markets, including healthcare and technology.
Analysts are optimistic about Mirion Technologies Inc. (NASDAQ:MU)’s long-term prospects, with several raising their price targets following the favorable Q2 earnings. Mirion Technologies Inc. (NASDAQ:MU) has also revised its guidance for 2024, now expecting organic revenue growth between 4% and 6%, with adjusted EBITDA projected to be in the range of $195 million to $205 million. These positive indicators suggest a solid foundation for Mirion Technologies Inc. (NASDAQ:MU) as it continues to expand and innovate within its industry.
11. The Cigna Group (NYSE:CI)
Total Number of Shares Owned: 270,655
Total Value of Shares Owned: $89,470,423
Number of Hedge Fund Holders: 66
The Cigna Group (NYSE:CI) has showcased impressive performance in Q2 2024, reinforcing a positive outlook for The Cigna Group (NYSE:CI). The total revenue for the quarter reached $60.5 billion, marking a 25% increase compared to the same period last year. This growth was largely driven by significant advancements in the Evernorth Health Services segment, which also saw adjusted revenues increase by 30%.
The success of The Cigna Group (NYSE:CI)’s strategic initiatives has played a crucial role in this upward trend. Additionally, adjusted earnings per share (EPS) climbed to $6.72, reflecting a 10% rise from the prior year and exceeding analyst expectations. In terms of profitability, The Cigna Group (NYSE:CI) reported adjusted income from operations of $1.9 billion, slightly up from $1.8 billion in Q2 2023. Although the total number of medical customers decreased to 19 million, the company is focused on improving profitability through strategic pricing adjustments.
Furthermore, The Cigna Group (NYSE:CI) has updated its projections for the full year 2024, now expecting adjusted revenues of at least $235 billion and adjusted EPS of at least $28.40. This forecast signals strong confidence in The Cigna Group (NYSE:CI)’s operational efficiency and market position. Recent developments include the launch of an interchangeable biosimilar for Humira, which aims to lower costs for patients, as well as an expansion of The Cigna Group (NYSE:CI)’s healthcare services to meet increasing demand.
Additionally, The Cigna Group (NYSE:CI) is actively engaged in share repurchases, committing about $5 billion to buy back 14.7 million shares so far this year, demonstrating management’s dedication to enhancing shareholder value.
