In this article, we discuss the 5 stocks Nicolai Tangen’s AKO Capital is investing in. If you wish to see 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 10 Stocks.
5. Alphabet Inc. (NASDAQ:GOOG)
AKO Capital’s Stake Value: $576.6 million
Percentage of AKO Capital’s 13F Portfolio: 5.97%
Number of Hedge Fund Holders: 155
Multinational technology conglomerate Alphabet Inc. (NASDAQ:GOOG) climbed past $3,000 for the first time before hitting an all-time high of $3.011.41 on November 5, putting its market capitalization on the brink of $2 trillion.
On November 2, Morgan Stanley analyst Brian Nowak raised the price target on Alphabet Inc. (NASDAQ:GOOG) shares to $3,200 from $3,000, and kept an Overweight rating on the shares of the company.
Based on our Q3 data, Nicolai Tangen’s AKO Capital holds 216,343 shares of Alphabet Inc. (NASDAQ:GOOG), worth approximately $576.6 million, accounting for 5.97% of the fund’s investment portfolio.
Of the 873 elite funds tracked by Insider Monkey, 155 were long Alphabet Inc. (NASDAQ:GOOG) at the end of June, down from 159 in the first quarter of 2021. Chris Hohn of TCI Fund Management is the leading stakeholder of the company.
Alger, an investment management firm, in its third-quarter 2021 investor letter, mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing it and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”
4. Thermo Fisher Scientific Inc. (NYSE:TMO)
AKO Capital’s Stake Value: $652.7 million
Percentage of AKO Capital’s 13F Portfolio: 6.76%
Number of Hedge Fund Holders: 87
Thermo Fisher Scientific Inc. (NYSE:TMO) is a Massachusetts-based provider of scientific instrumentation, reagents, consumables, and software services. The company recently acquired PPD, Inc., a leading global provider of clinical research, in a $17.4 billion total cash purchase deal.
On October 28, SVB Leerink analyst Puneet Souda maintained an Outperform rating on Thermo Fisher Scientific Inc. (NYSE:TMO) stock and raised the price target to $685 from $675.
AKO Capital currently holds over 1.14 million shares of Thermo Fisher Scientific Inc. (NYSE:TMO). These shares amount to more than $576.6 million and represent 6.76% of the investment firm’s total portfolio value. Of the 873 elite funds being tracked by Insider Monkey, 87 held stakes in the company at the end of the second quarter of 2021, worth $7.39 billion.
Out of the hedge funds in our database, Ken Fisher’s Fisher Asset Management is the biggest stakeholder in Thermo Fisher Scientific Inc. (NYSE:TMO), with 2.01 million shares worth approximately $1.14 billion.
In its Q2 2021 investor letter, ClearBridge Investments mentioned Thermo Fisher Scientific Inc. (NYSE:TMO). Here is what they said:
“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”
3. Accenture Plc (NYSE:ACN)
AKO Capital’s Stake Value: $718.7 million
Percentage of AKO Capital’s 13F Portfolio: 7.44%
Number of Hedge Fund Holders: 52
Accenture Plc (NYSE:ACN) is a Dublin-based multinational professional services company that specializes in IT services and consulting. The company operates through its Communications, Media and Technology Financial Services Health and Public Service Products, and Resources segments.
According to the third quarter 13F filings, Nicolai Tangen’s AKO Capital holds over 2.24 million shares of Accenture Plc (NYSE:ACN), amounting to over $718.7 million in worth and representing 7.44% of the fund’s total portfolio value.
On September 27, Barclays analyst Ramsey El-Assal raised his price target on Accenture Plc (NYSE:ACN) to $384 from $335, and kept an Overweight rating on the shares of the company.
Fiduciary Management, in their Q1 2021 investor letter, mentioned Accenture plc (NYSE:ACN). Here is what the fund had to say:
“Even great companies can get too expensive. In early January, we sold our long-standing position in Accenture PLC after the company’s valuation exceeded 30 times next 12 months (NTM) earnings per share (EPS). We originally invested in Accenture at the launch of the FMI International strategy at a valuation below 15 times NTM EPS and held the stock for over ten years. We added to the holding numerous times in the early years, growing the position size to as high as 5.5% in late 2014, before dialing it back in recent years as the valuation became less compelling. It is one of the world’s largest information technology services firms, specializing in helping complex, global businesses navigate disruption, and focusing on next-generation services like digital, cloud, and security. For years, the investment allowed FMI to capture the inherently higher growth of technology-related industries (GDP+) without investing directly in pure “invention-oriented” technology companies. Through Accenture we were able to avoid some of the shortfalls of tech investing: technology obsolescence, short product cycles, and subpar return on invested capital (ROIC). It grew steadily, was solidly profitable, capital-light, and generated high returns, all while maintaining a rock-solid balance sheet. It compounded its business value for many years, outperforming the MSCI EAFE indices by over 450% during our holding period. Unfortunately, the market increasingly recognized the company’s positive attributes, and the stock’s discount to intrinsic value slowly evaporated. Despite our admiration for the business, it exceeded our valuation threshold. We will continue to follow the company closely for future opportunities.”
2. Booking Holdings Inc. (NASDAQ:BKNG)
AKO Capital’s Stake Value: $910.18 million
Percentage of AKO Capital’s 13F Portfolio: 9.43%
Number of Hedge Fund Holders: 100
Headquartered in Norwalk, Connecticut, Booking Holdings Inc. (NASDAQ:BKNG) offers hotels, bed and breakfasts, hostels, apartments, vacation rentals, and other types of lodging services.
According to the Q3 securities filings, AKO Capital holds 383,420 shares in Bookings Holdings Inc. (NASDAQ:BKNG), amounting to more than $910.18 million. At the end of the second quarter of 2021, 100 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in Booking Holdings Inc. (NASDAQ:BKNG), down from 103 in the previous quarter worth $6.8 billion.
Among the hedge funds tracked by Insider Monkey, Illinois-based investment firm Harris Associates is the leading shareholder in Booking Holdings, with 668,053 shares valued at $1.58 billion.
On October 12, Cowen analyst Kevin Kopelman raised his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2950 from $2700, and maintained an Outperform rating on the shares.
Ensemble Capital, an investment management firm, in its third-quarter 2021 investor letter mentioned Booking Holdings Inc. (NASDAQ:BKNG). Here is what the fund said:
“Booking : On the March 20, 2020 conference call we referenced at the beginning of this letter, we discussed our assessment of online travel agent Booking Holdings during the initial phase of the pandemic. At that time, we explained why we continued to hold a position in the company. We highlighted that while we fully expected demand to collapse and be slow to recover, our analysis indicated that they were very well positioned to survive the pandemic even if it lasted much longer than expected. And we said that companies that survived the pandemic would be well positioned to thrive on the other side
The key for us to holding the stock was our belief that traveling is hardwired into human DNA. While we could not know how long the pandemic would last, we were certain that when it was once again safe to travel, business would boom once again.
Today, more than 18 months later, travel has come roaring back despite the pandemic still not having come to an end. There continues to be significant barriers to travel, such as severe restrictions on international travel and the general health concerns of travelers. But in areas where people are allowed to
travel, such as domestically within the United States, leisure travel has boomed…” (Click here to see the full text)
1. Linde plc (NYSE:LIN)
AKO Capital’s Stake Value: $1.12 billion
Percentage of AKO Capital’s 13F Portfolio: 11.63%
Number of Hedge Fund Holders: 55
Linde plc (NYSE:LIN) is an Ireland-based global multinational chemicals company that engages in the provision and distribution of Industrial gas, operating as one of the world’s leading suppliers of hydrogen fuel cell infrastructure.
Latest data shows that AKO Capital owned 3.8 million shares in the company at the end of the third quarter of 2021, worth $1.12 billion and representing 11.63% of the fund’s investment portfolio. Of the 873 elite funds tracked by Insider Monkey, 55 were long Linde plc (NYSE:LIN) at the end of June, up from 43 in the first quarter of 2021. John Armitage of Egerton Capital Limited is among the leading stakeholders of the company.
On October 29, Deutsche Bank analyst David Begleiter raised the price target on Linde plc (NYSE:LIN) to $360 from $350, and kept a Buy rating on the shares of the company following the Q3 earnings beat.
You can also take a look at 10 Best Undervalued Dividend Stocks to Buy Now and 10 Stocks that Released Solid Quarterly Earnings
