In this article, we discuss 5 stocks affected by sanctions on Russia. If you want to read our detailed analysis of these stocks, go directly to Sanctions on Russia Are Affecting These 10 Stocks.
5. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 43
Pioneer Natural Resources Company (NYSE:PXD) is an independent oil and gas firm. Elite hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Pioneer Natural Resources Company (NYSE:PXD), with 1.6 million shares worth more than $298 million.
The invasion of Ukraine by Russia has sent global energy prices to new highs. Companies like Pioneer Natural Resources Company (NYSE:PXD) are benefiting from this mini-boom but have warned that a sustained absence of Russian oil from markets could send prices “significantly” higher in the coming weeks.
4. The Estée Lauder Companies Inc. (NYSE:EL)
Number of Hedge Fund Holders: 44
The Estée Lauder Companies Inc. (NYSE:EL) markets personal care and cosmetics products. JPMorgan recently named Estée Lauder among a basket of stocks that have over 4% of revenue exposure to the Russian market, forecasting that these firms will underperform the wider market in the coming weeks amid US sanctions on Russia.
The Estée Lauder Companies Inc. (NYSE:EL) is one of the top personal care stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in The Estée Lauder Companies Inc. (NYSE:EL), with 7.1 million shares worth more than $2.6 billion.
3. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 53
Spotify Technology S.A. (NYSE:SPOT) provides audio streaming services. Top hedge funds remain bullish on the stock. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Spotify Technology S.A. (NYSE:SPOT), with 2.5 shares worth more than $603 million.
Amid calls for Spotify Technology S.A. (NYSE:SPOT) to suspend operations in Russia completely, the company recently announced that it would be shutting down the Russia office indefinitely and also removing content linked to Russian news platforms like RT and Sputnik. However, the company categorically dismissed calls to suspend services in Russia, noting that it was “critically important to keep services operation for global flow of information”.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Spotify Technology S.A. (NYSE:SPOT) was one of them. Here is what the fund said:
“At the current share price, Spotify Technology S.A. (NYSE:SPOT) basically only represents a fraction of the value they will be able to unlock in the growing market of audio entertainment. The key for Spotify Technology S.A. (NYSE:SPOT) is to change a variable cost base into a fixed cost base just like Netflix has. As the market share of the big labels, measured by the daily hours of engagement of the big labels, is declining, Spotify Technology S.A. (NYSE:SPOT) will be able to adjust its business model and create enormous operational leverage meaning that profitability will grow faster than expenses.
The music catalogue is not the business model. The value lies in the machine learning that drives discovery and engagement, the original content from people like Michelle Obama, Kim Kardashian, and Joe Rogan, the data analytics and distribution for artists, the direct and social relations artists can have with fans through music and videos. We believe that Spotify will be worth at least five times more in 2030.”
2. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 57
McDonald’s Corporation (NYSE:MCD) owns and runs fast food restaurants. The company generates over 9% of its revenue from restaurants based in Russia, but Bank of America has warned that the spillover effects of the Ukraine war would result in limited upside and threaten traffic for American fast food chains in Europe overall as the war continues.
McDonald’s Corporation (NYSE:MCD) is one of the top fast food stocks in the hedge fund universe. At the end of the fourth quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in McDonald’s Corporation (NYSE:MCD), compared to 58 the preceding quarter worth $3.3 billion.
1. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 60
PepsiCo, Inc. (NASDAQ:PEP) makes and sells beverages and convenient foods. At the end of the fourth quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in PepsiCo, Inc. (NASDAQ:PEP), compared to 61 in the previous quarter worth $4.4 billion.
PepsiCo, Inc. (NASDAQ:PEP) has faced calls to ban operations in Russia as Russia bombs Ukrainian cities. The company, which generates over 2% of total revenue from the Russian market, has so far not heeded these calls. However, the pressure is mounting as the US moves to ban Russian energy exports as well, risking a surge in oil prices and indicative of a tougher policy stance against the war.
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