In this article, we discuss 10 stocks Nicolai Tangen’s AKO Capital is investing in. If you want to skip our detailed analysis of Tangen’s history, investment philosophy, and hedge fund performance, go directly to Nicolai Tangen’s AKO Capital Is Investing In These 5 Stocks.
Norwegian hedge fund manager Nicolai Tangen is the founder of the London-based investment management firm, AKO Capital. Trained in interrogation and Russian translation from the Norwegian Armed Forces School of Intelligence and Security, Nicolai Tangen earned a Bachelor’s degree in Finance from the Wharton School of the University of Pennsylvania (where he now sits on the Board of Overseers), a Masters’ degree in Art History from the Courtauld Institute of Art, and another in Social Psychology from the London School of Economics. Prior to founding AKO Capital in 2005, Nicolai Tangen served as an analyst at Cazenove & Co., before joining Egerton Capital in 1997. In 2013, Tangen founded the AKO Foundation to fund initiatives within arts and education. In September of 2020, Tangen was appointed as chief executive officer of Norges Bank Investment Management, where he was given responsibility for investing in the Norwegian Sovereign Wealth Fund.
Handling capital for many of the world’s leading endowments and charitable foundations, AKO Capital manages more than $9.64 billion in its 13F securities, with about 15.4% of the fund’s portfolio concentrated around the healthcare sector.
Some of the most popular stock picks of Nicolai Tangen’s AKO Capital include Alphabet Inc. (NASDAQ:GOOG), eBay Inc. (NASDAQ:EBAY), Linde plc (NYSE:LIN) and Bookings Holdings Inc. (NASDAQ:BKNG), among others discussed in more detail below.
Photo by Yiorgos Ntrahas on Unsplash
Our Methodology
With this background in mind, here are some of the top stocks Nicolai Tangen’s AKO Capital in investing in. We used AKO Capital’s 13F portfolio for the third quarter of 2021 to rank these stocks. The list was compiled according to the value of each holding in the investment portfolio. We have also added analyst ratings for each company to provide readers with additional context.
Nicolai Tangen’s AKO Capital Is Investing In These 10 Stocks
10. Equifax Inc. (NYSE:EFX)
AKO Capital’s Stake Value: $390.9 million
Percentage of AKO Capital’s 13F Portfolio: 4.05%
Number of Hedge Fund Holders: 37
Equifax Inc. (NYSE:EFX) is the largest multinational consumer credit reporting agency that collects and aggregates information on over 800 million individual consumers worldwide.
On October 22, Argus analyst David Coleman upgraded Equifax Inc. (NYSE:EFX) to Buy from Hold, with a $285 price target on its shares.
Nicolai Tangen’s AKO Capital currently holds over 1.54 million shares in the company, worth more than $390.9 million, representing 4.05% of the investment firm’s portfolio value. Of the 873 elite funds being tracked by Insider Monkey, 37 held stakes in Equifax Inc. (NYSE:EFX) at the end of the second quarter of 2021. The number of hedge funds that held stakes in the company remained unchanged in both the first and second quarters.
Just like Alphabet Inc. (NASDAQ:GOOG), eBay Inc. (NASDAQ:EBAY), Linde plc (NYSE:LIN) and Bookings Holdings Inc. (NASDAQ:BKNG), Equifax Inc. (NYSE:EFX) is a notable stock to in AKO’s portfolio.
In the Q2 2021 investor letter of Palm Capital, the fund mentioned Equifax Inc. (NYSE:EFX). Here is what the fund said:
“We don’t invest in banks. It’s difficult for one established bank to differentiate itself from another. This results in low profit margins. These are not necessarily bad for a defensive business. But for a business such as a bank that has lots of debt, has high fixed costs and is dependent on economic and credit cycles, a small change in interest rates or bad debt has a magnified impact on future profits. The timing and length of these cycles and the bank’s navigation through them are all difficult to predict. There’s therefore high uncertainty around its revenue and profits.
Instead, we do invest in credit data bureaus. Equifax, for example, is a share that we owned for a long time. The data these bureaus have is unique. It takes decades to build up. Their customers can’t make their most important decision – lending – without this data. And the cost of this data is low relative to the value of the loans being made. These factors all result in attractive profit margins and give the bureaus an ability to raise prices above inflation. Furthermore, customers typically get data from more than one bureau to cross check it, so bureaus aren’t incentivized to undercut each other on prices.
Because these businesses are capital light, they need little debt to operate. So, while their revenue is dependent on the economic and credit cycle, low levels of debt, high profit margins and the uniqueness of their business models mean that profits are less easily disrupted and less sensitive than those of banks. Equifax stands apart because it is building up data in other areas such as employment records that reduces its dependence on the credit cycle even further.”
9. Otis Worldwide Corporation (NYSE:OTIS)
AKO Capital’s Stake Value: $394.5 million
Percentage of AKO Capital’s 13F Portfolio: 4.08%
Number of Hedge Fund Holders: 45
Otis Worldwide Corporation (NYSE:OTIS) is a transport company that develops, manufactures and markets elevators, escalators, moving walkways, and related equipment.
On October 4, Barclays analyst Julian Mitchell raised the price target on Otis Worldwide Corporation (NYSE:OTIS) to $89 from $86, and maintained an Equal Weight rating on the shares of the company.
According to the third quarter securities filings, AKO Capital holds over 4.79 million shares of Otis Worldwide Corporation (NYSE:OTIS), amounting to more than $394.5 million in worth and accounting for 4.08% of the fund’s investment portfolio.
Vinit Bodas of Deccan Value Advisors is one of the biggest stakeholders of Otis Worldwide Corporation (NYSE:OTIS) as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 45 funds were bullish on Otis Worldwide Corporation (NYSE:OTIS) by the end of the June quarter, compared to 52 in the previous quarter.
8. Zoetis Inc. (NYSE:ZTS)
AKO Capital’s Stake Value: $418.6 million
Percentage of AKO Capital’s 13F Portfolio: 4.33%
Number of Hedge Fund Holders: 58
The world’s largest producer of medicine and vaccinations for pets and livestock, Zoetis Inc. (NYSE:ZTS) is a drug company that develops, manufactures and provides medicines, vaccines, diagnostic products, and biodevices for livestock farming.
On November 5, Barclays analyst Balaji Prasad raised the firm’s price target on Zoetis to $240 from $235 and kept an Overweight rating on the shares.
As of Q3 2021, Nicolai Tangen’s hedge fund holds over 2.15 million shares of Zoetis Inc. (NYSE:ZTS). These shares are valued at $418.6 million and account for 4.33% of his hedge fund’s portfolio value. As of the end of the second quarter, 58 hedge funds tracked by Insider Monkey reported owning stakes in Zoetis Inc. (NYSE:ZTS). The total worth of these stakes is $2.7 billion. The number of hedge funds that held stakes is the same as the previous quarter.
Out of the hedge funds being tracked by Insider Monkey, New York-based Cantillon Capital Management is among the leading shareholders in Zoetis Inc. (NYSE:ZTS), with over 2.2 million shares worth $428 million.
In the Q2 2021 investor letter of Polen Capital, the fund mentioned Zoetis Inc. (NYSE:ZTS). Here is what they had to say:
“As is usually the case, Portfolio turnover was modest during the quarter. We trimmed Zoetis. The Zoetis trim is simply an acknowledgement of the company’s current valuation, which we assess is elevated.”
7. Alcon Inc. (NYSE:ALC)
AKO Capital’s Stake Value: $448.9 million
Percentage of AKO Capital’s 13F Portfolio: 4.65%
Number of Hedge Fund Holders: 22
Based in Geneva, Switzerland, Alcon Inc. (NYSE:ALC) is a medical company that specializes in eye care products and ophthalmic surgery for the diagnosis and treatment of eye disorders.
Based on the 13F filings for the third quarter of 2021, AKO Capital owns more than 5.54 million shares in Alcon Inc. (NYSE:ALC), worth approximately $448.9 million, representing 4.65% of the investment firm’s total portfolio value.
Of the 873 elite funds tracked by Insider Monkey, 22 were long Alcon Inc. (NYSE:ALC) at the end of June, down from 23 in the first quarter of 2021. Rajiv Jain of GQG Partners is one of the leading stakeholders of the company.
On September 30, Oppenheimer analyst Steven Lichtman initiated coverage of Alcon Inc. (NYSE:ALC) with a Perform rating.
6.eBay Inc. (NASDAQ:EBAY)
AKO Capital’s Stake Value: $512.5 million
Percentage of AKO Capital’s 13F Portfolio: 5.31%
Number of Hedge Fund Holders: 39
eBay Inc. (NASDAQ: EBAY) is a California-based multinational e-commerce company that facilitates consumer and business sales in over 190 markets globally.
Earlier on September 9, the company announced a strategic partnership and investment in bidadoo, a leading online auction company that offers a marketplace of equipment, trucks and capital assets. This will provide buyers on eBay Inc. (NASDAQ:EBAY) access to the used construction equipment, all supported by company’s Business Equipment Protection Program.
Nikolai Tangen’s AKO Capital currently holds 7.35 million shares of eBay Inc. (NASDAQ:EBAY), amounting to $512.5 million in worth and accounting for 5.31% of the fund’s portfolio. At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in eBay Inc. (NASDAQ:EBAY), down from 51 in the preceding quarter worth $3.76 billion.
Among the hedge funds being tracked by Insider Monkey, Seth Klarman’s investment firm Baupost Group is a leading shareholder in eBay Inc. (NASDAQ:EBAY) with 5.98 million shares worth more than $416.8 million.
On October 28, KeyBanc analyst Edward Yruma raised the price target on eBay Inc. (NASDAQ:EBAY) to $90 from $80, and kept an Overweight rating on its shares. The analyst believes that the company’s solid results point to building momentum in key focus categories.
Similar to Alphabet Inc. (NASDAQ:GOOG), Linde plc (NYSE:LIN) and Bookings Holdings Inc. (NASDAQ:BKNG), eBay Inc. (NASDAQ:EBAY) is a famous stock in Tangen’s portfolio.
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Disclosure. None. Nicolai Tangen’s AKO Capital Is Investing In These 10 Stocks is originally published on Insider Monkey.
