In this article, we discuss the 10 stocks to consider in the portfolio of Pat Fallon. If you want to skip our detailed analysis of these stocks, go directly to Pat Fallon Stock Portfolio: 5 Stocks To Consider.
Patrick Fallon, often referred to as “Pat” Fallon, is a businessman and politician hailing from Massachusetts. Fallon is a member of the Republican Party and serves on the United States House of Representatives as a member of the fourth congressional district in Texas. Fallon is one of the most active stock traders in the US Congress. According to an analysis of the stock trading disclosures made by Fallon, the lawmaker bought equities worth $9.2 million between January 2021 and January 2022. During the period, he also sold stocks worth $8.6 million.
This equates to a net spend of around $500,000. The filings, mandatory under the Stop Trading on Congressional Knowledge (STOCK) Act of April 2012, show that Fallon made 190 different transactions related to stocks in the past year. 63 of these were buying of some sort while 127 involved selling. Even though he regularly discloses his trades, Fallon has come under fire in the media for failing to disclose stock trades worth as much as $17 million at the proper time. Some trades he made last year were disclosed as much as four months after being made.
Under the law, Fallon is obliged to disclose trades within 30 days of becoming aware of the transaction. Fallon also serves on the House Armed Services Committee and has made trades related to the industry in 2021. Lawmakers in the US have come under increased scrutiny regarding their Wall Street activity in recent months, especially in the context of the COVID-19 pandemic and the impact of important policy decisions on businesses. There have been calls to ban lawmakers from trading stocks altogether.
Some of the top stocks to consider in the portfolio of Pat Fallon include Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ), among others discussed in detail below.
Office of Representative Pat Fallon, Public domain, via Wikimedia Commons
Our Methodology
The stocks listed below were picked from the Periodic Transaction Report(s) that Pat Fallon is obliged to file. It is important to clarify that the stocks listed below were picked from the public record of investments Fallon and his family have made in the past few months. The purchases may not have been made by Fallon himself but only disclosed on behalf of his family.
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Pat Fallon Stock Portfolio: Stocks To Consider
10. Owl Rock Capital Corporation (NYSE:ORCC)
Number of Hedge Fund Holders: 14
Owl Rock Capital Corporation (NYSE:ORCC) is a business development firm. According to a security filing dated December 29, 2021, Fallon purchased shares of Owl Rock Capital Corporation (NYSE:ORCC) on September 28 and November 30 of last year. Both purchases fell in the $50,000 to $100,000 range.
Owl Rock Capital Corporation (NYSE:ORCC) is slowly becoming more popular among hedge funds. At the end of the third quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $180 million in Owl Rock Capital Corporation (NYSE:ORCC), compared to 15 the preceding quarter worth $298 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ), Owl Rock Capital Corporation (NYSE:ORCC) is one of the stocks that elite investors are flocking to.
9. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 30
American Airlines Group Inc. (NASDAQ:AAL) operates as a network air carrier. There is positive hedge fund sentiment around the stock. At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $650 million in American Airlines Group Inc. (NASDAQ:AAL), up from 25 in the preceding quarter worth $620 million.
Mandatory filings by Pat Fallon dated early November last year show that the lawmaker sold American Airlines Group Inc. (NASDAQ:AAL) stock worth somewhere between $1,000 and $15,000 on October 4. The transaction in this regard was disclosed on November 2.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and American Airlines Group Inc. (NASDAQ:AAL) was one of them. Here is what the fund said:
“American Airlines (AAL) : With a $6.5bln market cap & adjusting for the current cash burn & incremental net debt, American currently trades at a higher pro-forma enterprise value than it did at the beginning of the year, while revenues are off 80-90%. The two year notes, AAL 5% 6/2022, currently trade 52 cents on the dollar at a yield to maturity of 46%, implying zero equity value for the common stock. At it’s current projected pace of cash burn, the company will expend its current liquidity before year end. American is one of the most popular stocks among retail investors.”
8. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Holders: 39
Southwest Airlines Co. (NYSE:LUV) is a passenger airline firm. A Periodic Transaction Report from November 30 last year shows that Fallon purchased Southwest Airlines Co. (NYSE:LUV) stock worth $100,000-$250,000 on November 19 and disclosed the transaction in this regard on November 20.
As worries about a resurgent COVID-19 rise, hedge funds have been reducing exposure to Southwest Airlines Co. (NYSE:LUV) stock. At the end of the third quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $729 million in Southwest Airlines Co. (NYSE:LUV), compared to 49 in the preceding quarter worth $926 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Southwest Airlines Co. (NYSE:LUV) was one of them. Here is what the fund said:
“One of our goals as we constantly monitor the portfolio is to see if we can better deploy capital by lowering the probability of being wrong. This motivation drove our swap of Delta Airlines into Southwest Airlines during the quarter. We expect a huge rebound in airline traffic as COVID-19 concerns abate, but we are much more comfortable that it will be led by leisure travel. Conversely, we are more uncertain of the ultimate level and timing of business travel demand. Southwest, with its simple fare strategy and high leisure travel exposure, is better positioned to capture the ongoing traffic rebound without having to answer the business travel demand question on which Delta is more dependent. As a result, we expect Southwest to play serious offense as it gains share in the rebounding travel market and can fully leverage the massive pent-up demand for travel that we expect. In addition, the U.S. lead in vaccination over Europe favors Southwest over Delta, given the domestic focus of Southwest. COVID-19 has changed many things, but humans by their very nature like to move, and many of them will do it on Southwest.”
7. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) is an integrated oil and gas firm based in California. Hedge funds have been piling into the stock as energy prices rise. At the end of the third quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX), up from 50 in the preceding quarter worth $4.2 billion.
Latest filings from Pat Fallon reveal that the lawmaker sold Chevron Corporation (NYSE:CVX) twice in October 2021, once on October 1 and the second time on October 18. The first transaction was worth between $1,000 and $15,000 while the second one was between $100,000 and $250,000.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is a communications technology firm. Filings from February 8 show that Pat Fallon sold Verizon Communications Inc. (NYSE: VZ) stock worth somewhere between $250,000 and $500,000 on January 7 this year.
Hedge funds have also been selling Verizon Communications Inc. (NYSE: VZ) stock. At the end of the third quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $10/3 billion in Verizon Communications Inc. (NYSE: VZ), compared to 63 in the preceding quarter worth $10.9 billion.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), PayPal Holdings, Inc. (NASDAQ:PYPL), and Block, Inc. (NYSE:SQ), Verizon Communications Inc. (NYSE: VZ) is one of the stocks that smart investors are buying.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
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Disclosure. None. Pat Fallon Stock Portfolio: 10 Stocks To Consider is originally published on Insider Monkey.
