In this article, we discuss the top 10 stock picks of Michael Hintze. If you want to see only the very best of the billionaire’s holdings, check out Michael Hintze’s 2022 Portfolio: Top 5 Stock Picks.
Billionaire Michael Hintze, the chief of CQS Cayman, manages a $1.4 billion portfolio of securities for his clients as of the first quarter of 2022. In 2020, the hedge fund lost 34.8% in value amid the pandemic-driven market crash. The next year, CQS Cayman’s flagship fund, CQS Directional Opportunities, gained 21.4%, which replaced some of the losses from 2020. The fund has $21.6 billion in assets under management.
In January 2022, Michael Hintze was one of the far-sighted money managers who warned about China’s zero-Covid policy ahead of time. He told Financial Times in an interview that China’s regulations would set about global supply chain problems and further aggravate the energy transition from fossil fuels to zero carbon. Michael Hintze is a strong advocate of responsible investing, with about 60% of his fund’s investments being compliant with the EU’s Sustainable Finance Disclosure Regulation. The billionaire pointed out opportunities for energy transition apart from China, but observed that they are not being explored due to lack of capital expenditure.
Financial Times reported in June 2022 that Hintze’s portfolio is positioned to combat a selloff in growth equities. The billionaire is strictly against betting on unprofitable technology stocks, unlike the broader market where investors see a buy-the-dip opportunity. Some of the most notable stocks in Michael Hintze’s Q1 2022 portfolio include Activision Blizzard, Inc. (NASDAQ:ATVI), Alphabet Inc. (NASDAQ:GOOG), and Zillow Group, Inc. (NASDAQ:Z).
Our Methodology
We used the Q1 2022 portfolio of Michael Hintze’s CQS Cayman for this analysis, selecting the top 10 holdings of the hedge fund.
Michael Hintze’s 2022 Portfolio: Top Stock Picks
10. Lions Gate Entertainment Corp. (NYSE:LGF-B)
CQS Cayman’s Stake Value: $14,060,000
Percentage of CQS Cayman’s 13F Portfolio: 0.97%
Number of Hedge Fund Holders: 21
Lions Gate Entertainment Corp. (NYSE:LGF-B) was incorporated in 1986 and is headquartered in Santa Monica, California. The company specializes in the film, television, subscription, and entertainment businesses in the United States and Canada. Securities filings for Q1 2022 reveal that Michael Hintze owned 935,431 shares of Lions Gate Entertainment Corp. (NYSE:LGF-B), worth $14 million, representing 0.97% of his fund’s total 13F portfolio value.
Wolfe Research analyst Peter Supino on June 2 initiated coverage of Lions Gate Entertainment Corp. (NYSE:LGF-B) with an ‘Outperform’ rating and a $14 price target given his sum-of-the-parts valuation. According to the analyst, Lions Gate Entertainment Corp. (NYSE:LGF-B) is exploring strategic options for Starz Acquisition, which should generate shareholder value.
According to Insider Monkey’s Q1 data, 21 hedge funds were bullish on Lions Gate Entertainment Corp. (NYSE:LGF-B), with combined stakes of $431.8 million, compared to 23 funds in the earlier quarter, holding stakes in the company valued at $487.8 million. Mark Rachesky’s MHR Fund Management is the leading investor in the company, with 19.25 million shares worth about $313 million.
In addition to Activision Blizzard, Inc. (NASDAQ:ATVI), Alphabet Inc. (NASDAQ:GOOG), and Zillow Group, Inc. (NASDAQ:Z), elite hedge funds are piling into Lions Gate Entertainment Corp. (NYSE:LGF-B).
9. Alphabet Inc. (NASDAQ:GOOG)
CQS Cayman’s Stake Value: $15,368,000
Percentage of CQS Cayman’s 13F Portfolio: 1.06%
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology firm which operates through its Google Services, Google Cloud, and Other Bets segments. As of the first quarter of 2022, Michael Hintze’s hedge fund reported owning 5,525 shares of Alphabet Inc. (NASDAQ:GOOG), worth $15.3 million, representing 1.06% of its total holdings. Alphabet Inc. (NASDAQ:GOOG) was a new arrival in Hintze’s portfolio.
On July 14, Citi analyst Ronald Josey reiterated a ‘Buy’ rating on Alphabet Inc. (NASDAQ:GOOG) but lowered the price target on the stock to $2,900 from $3,175. Ahead of the Q2 earnings and amid macroeconomic headwinds and currency moves, the analyst shifted estimates and target prices on internet names including Alphabet Inc. (NASDAQ:GOOG). Conversations with advertisers suggest a “fluid environment,” the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 160 funds were long Alphabet Inc. (NASDAQ:GOOG) in the first quarter of 2022, up from 158 funds in the previous quarter. Chris Hohn’s TCI Fund Management is the biggest shareholder of the company, with 2.3 million shares worth $6.6 billion.
Here is what Farrer Wealth Advisors said about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
8. Ur-Energy Inc. (NYSE:URG)
CQS Cayman’s Stake Value: $15,597,000
Percentage of CQS Cayman’s 13F Portfolio: 1.07%
Number of Hedge Fund Holders: 5
Ur-Energy Inc. (NYSE:URG) was incorporated in 2004 and is headquartered in Littleton, Colorado. The company develops and acquires uranium mineral properties in the United States. At the end of March 2022, the company had cash and cash equivalents of $46.3 million. Michael Hintze’s CQS Cayman boosted its Ur-Energy Inc. (NYSE:URG) stake by 11% in Q1 2022, holding 9.75 million shares of the company worth about $15.6 million, and representing 1.07% of the value of its 13F portfolio.
Among the hedge funds tracked by Insider Monkey, 5 funds reported owning stakes in Ur-Energy Inc. (NYSE:URG) as of the end of the first quarter of 2022, collectively worth about $16 million, compared to the same number of funds in the earlier quarter, holding stakes in Ur-Energy Inc. (NYSE:URG) valued at $12.6 million.
7. Luminar Technologies, Inc. (NASDAQ:LAZR)
CQS Cayman’s Stake Value: $16,180,000
Percentage of CQS Cayman’s 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 16
Luminar Technologies, Inc. (NASDAQ:LAZR) is a Florida-based automotive technology company that specializes in sensors and software for cars and commercial trucks in North America, the Asia-Pacific, Europe, and the Middle East. The company officially joined the US Russell 2000 Index on June 27. Securities filings for the first quarter of 2022 reveal that CQS Cayman added Luminar Technologies, Inc. (NASDAQ:LAZR) to its portfolio by purchasing over 1 million shares worth $16.18 million, representing 1.11% of the value of its 13F portfolio.
On May 19, Northland analyst Gus Richard reiterated an ‘Outperform’ rating on Luminar Technologies, Inc. (NASDAQ:LAZR) but lowered the price target on the shares to $13 from $23 as he slashed his 2023 estimates because regulations could slow down the adoption of Lidar and Level 3 vehicle autonomy. The analyst pushed out assumptions for Luminar Technologies, Inc. (NASDAQ:LAZR) by three quarters and now estimates a more moderate ramp.
According to Insider Monkey’s data, 16 hedge funds were long Luminar Technologies, Inc. (NASDAQ:LAZR) at the end of Q1 2022, compared to 21 funds in the prior quarter. Their collective stakes decreased to $133.7 million in Q1 2022 from $136 million in Q4 2021.
6. EOG Resources, Inc. (NYSE:EOG)
CQS Cayman’s Stake Value: $18,121,000
Percentage of CQS Cayman’s 13F Portfolio: 1.25%
Number of Hedge Fund Holders: 49
EOG Resources, Inc. (NYSE:EOG) is headquartered in Houston, Texas, and develops and markets crude oil, natural gas, and natural gas liquids. Its primary producing areas are located in New Mexico, Texas, and the Republic of Trinidad and Tobago. In Q1 2022, Michael Hintze’s CQS Cayman strengthened its hold on EOG Resources, Inc. (NYSE:EOG) by 642%. The hedge fund owned 151,975 shares of the company worth $18.12 million, representing 1.25% of the weighting of its 13F portfolio.
On May 5, EOG Resources, Inc. (NYSE:EOG) declared a quarterly dividend of $0.75 per share, in line with previous. The dividend is payable on July 29, to shareholders of the company as of July 15. On June 30, the company also paid a special dividend of $1.80 per share to its shareholders. EOG Resources, Inc. (NYSE:EOG) shares offer a dividend yield of 3.15% as of July 14.
Truist analyst Neal Dingmann on July 12 raised the price target on EOG Resources, Inc. (NYSE:EOG) to $180 from $178 and reiterated a ‘Buy’ rating on the shares. According to the analyst, EOG Resources, Inc. (NYSE:EOG) will probably adhere to its recently introduced payout metrics of at least 60% of free cash flows in the second half of 2022, though it will also possibly attempt buybacks, as the present share price is roughly 30% lower than just over a month ago, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 49 funds were long EOG Resources, Inc. (NYSE:EOG) at the end of March 2022, compared to 51 funds in the December quarter. Harris Associates is the leading stakeholder of the company, with 8.6 million shares worth over $1 billion.
Like Activision Blizzard, Inc. (NASDAQ:ATVI), Alphabet Inc. (NASDAQ:GOOG), and Zillow Group, Inc. (NASDAQ:Z), EOG Resources, Inc. (NYSE:EOG) is one of the notable stocks in the Q1 portfolio of Michael Hintze.
Here is what Oakmark Select Fund had to say about EOG Resources, Inc. (NYSE:EOG) in its Q1 2022 investor letter:
“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
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Disclosure: None. Michael Hintze’s 2022 Portfolio: Top 10 Stock Picks is originally published on Insider Monkey.
