In this article, we will discuss billionaire investor Mason Hawkins’ top 5 stock picks. To see our detailed analysis of Hawkins’ investment philosophy and his hedge fund’s performance over the years, go directly to read Mason Hawkins Net Worth, Performance and Portfolio.
5. FedEx Corporation (NYSE:FDX)
Southeastern Asset Management’s Q1 2023 Stake: $149.04 million
FedEx Corporation (NYSE:FDX), formerly Federal Express Corporation and later FDX Corporation, is an American multinational conglomerate holding company focused on transportation, e-commerce, and business services based in Memphis, Tennessee. On April 5, FedEx Corporation (NYSE:FDX) declared a 10% hike in its quarterly dividend to $1.26 per share, marking the company’s third consecutive year of dividend growth. The stock has a dividend yield of 1.92%, as of July 12.
Southeastern Asset Management initiated its position in FedEx Corporation (NYSE:FDX) more than a decade ago during the fourth quarter of 2010, at an average quarterly share price $89.94. Currently, the company represents 5.03% of Mason Hawkins’ portfolio.
The number of hedge funds having a stake in FedEx Corporation (NYSE:FDX) increased from 48 in Q4 2022 to 55 in Q1 2023. Citadel Investment Group was the leading hedge fund investor in the company, with a stake worth over $467 million during the first quarter of the year.
The London Company Large Cap Strategy made the following comment about FedEx Corporation (NYSE:FDX) in its first quarter 2023 investor letter:
“FedEx Corporation (NYSE:FDX) – FDX shares rebounded in Q1 following weakness in 2022. FDX was able to exceed lowered earnings expectations on better cost containment including trimming management ranks. We continue to own FDX shares reflecting its global parcel and freight networks, as well as the company’s potential to improve operating results to peer levels that would create significant shareholder value.”
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4. Warner Bros. Discovery Inc. (NASDAQ:WBD)
Southeastern Asset Management’s Q1 2023 Stake: $149.38 million
Warner Bros. Discovery Inc. (NASDAQ:WBD) is an American multinational mass media and entertainment conglomerate headquartered in New York City. It was formed from the spin-off of WarnerMedia by AT&T, and its merger with Discovery, Inc. on April 8, 2022. The firm operates a number of television networks, including popular channels such as CNN, TNT, TBS, Cartoon Network, and HBO. Billionaire Mason Hawkins reportedly holds $149.38 million worth of shares in the company at the close of Q1 2023.
On April 14, Wells Fargo reiterated an Overweight rating and a $20 price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares ahead of the company’s upcoming Q1 report.
According to Insider Monkey’s first quarter database, 63 hedge funds were bullish on Warner Bros. Discovery, Inc. (NASDAQ:WBD), compared to 60 funds in the prior quarter.
Smead Value Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its first quarter 2023 investor letter:
“Our best-performing stocks in the quarter were Warner Bros. Discovery, Inc. (NASDAQ:WBD), NVR (NVR) and Lennar (LEN). Warner was our worst performer in Q4 2022 and bounced back from tax selling. The home builders fooled everyone by growing their market share and making good money in the violent Fed tightening of 2022-2023.”
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3. Hyatt Hotels Corporation (NYSE:H)
Southeastern Asset Management’s Q1 2023 Stake: $167.5 million
Hyatt Hotels Corporation (NYSE:H), commonly known as Hyatt Hotels & Resorts, is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels, resorts, and vacation properties.
Hyatt Hotels Corporation (NYSE:H) was one of Mason Hawkins’ largest resorts position given Southeaster Asset Management’s stake value of over $167.5 million at the end of March 2023.
Out of the 943 hedge funds tracked by Insider Monkey, 24 hedge funds reported owning stakes in Hyatt Hotels Corporation (NYSE:H) at the close of Q1 2023. The total value of these stakes was $601 million. The firm’s biggest shareholder during this period was Robert Joseph Caruso’s Select Equity Group which owns a $246.69 million stake in the firm.
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2. Mattel, Inc. (NASDAQ:MAT)
Southeastern Asset Management’s Q1 2023 Stake: $207.4 million
Mattel, Inc. (NASDAQ:MAT) is an American multinational toy manufacturing and entertainment company founded in Los Angeles by Harold Matson and the husband-and-wife duo of Elliot and Ruth Handler in January 1945. The company’s first-quarter revenue of $814.6 million beat Street estimates by $73.86 million. It generated over $206 million in operating cash flow, showing an increase of $63 million from the prior-year quarter. Southeaster Asset Management reported holding more than 11.2 million MAT shares at the close of Q1 2023.
During the month of April, DA Davidson reaffirmed its Buy rating on Mattel, Inc. (NASDAQ:MAT) while assigning a price target of $23. The investment firm specifically emphasized the potential of Mattel’s direct-to-consumer segment.
The number of hedge funds tracked by Insider Monkey owning stakes in Mattel, Inc. (NASDAQ:MAT) grew to 31 in Q1 2023, from 27 in the previous quarter. These stakes have a collective value of roughly $984 million. Ken Griffin Citadel Investment Group is one of the firm’s biggest shareholders with stakes worth approximately $82.32 million
Ariel Investments mentioned Mattel, Inc. (NASDAQ:MAT) in its Q4 2022 investor letter. Here is what the firm has to say:
“Toy manufacturer, Mattel, Inc. (NASDAQ:MAT) also weighed on relative returns in the quarter. Although sales came in slightly lower than expectations, strong gross margins drove a solid earnings beat. MAT maintained its full-year revenue outlook but lowered its EPS guide to account for Fx headwinds and greater promotions and discounts on high price-point items. We remain encouraged by management’s execution on its strategy to grow market share, improve profitability and generate higher levels of cash flow. We continue to view MAT as an undervalued asset with attractive growth prospects, particularly with the reintroduction of the Disney Princess and Frozen toy lines, Trolls, the global launch of Monster High, and product support around the highly anticipated Barbie movie in 2023.”
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1. CNX Resources Corporation (NYSE:CNX)
Southeastern Asset Management’s Q1 2023 Stake: $220.4 million
Headquartered in Pittsburgh, CNX Resources Corporation (NYSE:CNX) is a notable natural gas company with a strong presence in the Appalachian Basin. Its operations primarily focus on the extraction of natural gas from the Marcellus Shale and Utica Shale formations across Pennsylvania, Ohio, and West Virginia. In addition to its natural gas endeavors, CNX Resources also engages in the development of coalbed methane properties in Virginia.
At the close of Q1 2023, CNX Resources Corporation (NYSE:CNX) was held by 26 hedge funds. These funds held collective stakes worth $387.2 million in the company. This is compared to 30 hedge funds in the previous quarter with stakes worth $392.98 million. As of March 31, Southeastern Asset Management is the top investor in CNX Resources Corporation (NYSE:CNX) and has disclosed a position worth $193.3 million in the company. Following Mason Hawkins’ hedge fund, Sander Gerber’s Hudson Bay Capital Management is another prominent hedge fund that holds shares in the company.
Here is what Longleaf Partners had to say about CNX Resources Corporation (NYSE:CNX) in its fourth-quarter 2022 investor letter:
“CNX Resources Corporation (NYSE:CNX) – CNX was the top contributor for the year, but we were surprised it wasn’t an even larger one. Its value per share strongly outgrew its price performance for the year. While all energy companies saw a boost from higher prices, CNX had previously done more price hedging than peers. This decision held back near-term reported earnings, which remain the market’s focus. This helped relative returns at unhedged and more leveraged companies that were hoping for higher prices. CNX has been taking advantage of a widening price-to-value gap for itself as the year went on by continuing to be one of our largest share repurchasers. When you combine strong capital allocation like this with geopolitical conflict solidifying the long-term value of North American natural gas while hedges roll off with the passage of time, we remain excited about CNX’s future.”
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Disclosure: None. You can also take a look at 15 Most Profitable Drugs In The World and 10 Best Small-Cap Growth Stocks to Buy Now.
