In this article, we discuss 5 stocks that Thomas Steyer’s Farallon Capital is buying. If you want to see some more of his latest stock picks, check out Thomas Steyer’s Farallon Capital is Buying These 10 Stocks.
5. Bruker Corporation (NASDAQ:BRKR)
Number of Hedge Fund Holders: 30
Bruker Corporation (NASDAQ:BRKR) is a manufacturer and distributor of scientific instruments and diagnostic solutions in the United States and internationally. Thomas Steyer’s Farallon Capital owns 745,266 shares of Bruker Corporation (NASDAQ:BRKR) as of Q4 2021, worth $62.5 million, representing 0.33% of the total 13F holdings.
In 2021, Bruker Corporation (NASDAQ:BRKR)’s revenue for the year stood at $2.4 billion, compared to $1.9 billion in the prior year. Net income in 2021 came in at $277.1 million, versus an income of $157.8 million in 2020.
On February 18, Bruker Corporation (NASDAQ:BRKR) declared a $0.05 per share quarterly dividend, a 25% increase from its prior dividend of $0.04. The dividend was distributed on March 18, to shareholders of the company as of March 1.
Among the hedge funds tracked by Insider Monkey, 30 funds were bullish on Bruker Corporation (NASDAQ:BRKR) at the end of the fourth quarter of 2021, with combined stakes of $462.3 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the leading position in the company, with 755,939 shares worth $63.4 million.
4. Global Blood Therapeutics, Inc. (NASDAQ:GBT)
Number of Hedge Fund Holders: 30
Global Blood Therapeutics, Inc. (NASDAQ:GBT) was incorporated in 2011 and is headquartered in South San Francisco, California. The biopharmaceutical company develops treatments for sickle cell disease. Global Blood Therapeutics, Inc. (NASDAQ:GBT) is a new addition to Thomas Steyer’s Farallon Capital portfolio. The hedge fund purchased 86,454 shares of the company in Q4 2021, worth $2.5 million.
On March 28, Wedbush analyst Andreas Argyrides assumed coverage of Global Blood Therapeutics, Inc. (NASDAQ:GBT) with an Outperform rating but slashed the price target on the shares to $71 from $138. The analyst believes increased awareness of real-world benefit could help reaccelerate sales of Oxbryta, a prescription medicine for the treatment of sickle cell disease. Further, high switch rate and low discontinuations drive prescriber and patient adoption of Oxbryta, the analyst contended.
According to Insider Monkey’s Q4 data, Joseph Edelman’s Perceptive Advisors is the biggest shareholder of Global Blood Therapeutics, Inc. (NASDAQ:GBT), with a position worth approximately $101 million. Overall, 30 hedge funds were bullish on the stock at the end of December 2021.
3. United Therapeutics Corporation (NASDAQ:UTHR)
Number of Hedge Fund Holders: 46
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology firm that researches and develops therapeutics for chronic and life threatening diseases in the United States and internationally. Thomas Steyer’s fund added United Therapeutics Corporation (NASDAQ:UTHR) to its Q4 portfolio by buying 320,760 shares worth $69.3 million, representing 0.36% of the total 13F holdings.
In 2021, United Therapeutics Corporation (NASDAQ:UTHR) reported a full-year revenue of $1.68 billion, an increase of 13.63% compared to the prior year. However, the company’s net income shrank from $514.8 million in 2020 to $475.8 million in 2021.
Wedbush analyst Liana Moussatos on February 28 reiterated an Outperform rating on United Therapeutics Corporation (NASDAQ:UTHR) but lowered the firm’s price target on the shares to $236 from $276.
According to Insider Monkey’s database of 924 elite hedge funds, United Therapeutics Corporation (NASDAQ:UTHR) was found in the public stock portfolios of 46 hedge funds. They collectively held stakes in the company worth $2.6 billion. Kurt Von Emster’s VenBio Select Advisor is the biggest position holder in United Therapeutics Corporation (NASDAQ:UTHR), with more than 3 million shares valued at $655.8 million.
2. Zendesk, Inc. (NYSE:ZEN)
Number of Hedge Fund Holders: 57
Zendesk, Inc. (NYSE:ZEN) is a software company providing SaaS solutions to solve customer support tickets and enhance customer service. Farallon Capital owns 430,000 shares of Zendesk, Inc. (NYSE:ZEN) as of Q4 2021, worth $44.8 million, representing 0.23% of the total 13F securities. Zendesk, Inc. (NYSE:ZEN) is a new arrival in Thomas Steyer’s latest portfolio.
On April 19, it was reported by Bloomberg that Zendesk, Inc. (NYSE:ZEN)’ new advisor, Qatalyst Partners, is exploring a possible sale of the company. Zendesk, Inc. (NYSE:ZEN) is meeting with potential buyers, including software companies and private equity firms. A final decision has yet to be made and the company could remain independent as well.
Wolfe Research analyst Alex Zukin downgraded Zendesk, Inc. (NYSE:ZEN) on February 14 to Peer Perform from Outperform. The analyst cited Zendesk, Inc. (NYSE:ZEN)’s Q4 results that came with lower beat margins and the 2022 guidance for decelerating growth and margin contraction, as well as execution uncertainty, for the downgrade.
Barry Rosenstein’s JANA Partners is the biggest stakeholder of Zendesk, Inc. (NYSE:ZEN), with 2.3 million shares worth roughly $249 million. Overall, 57 hedge funds were bullish on the stock at the end of the December quarter.
Here is what Carillon Tower Advisers has to say about Zendesk, Inc. (NYSE:ZEN) in its Q3 2021 investor letter:
“Zendesk provides customer support software solutions. After successfully navigating the early stages of the pandemic in 2020, the firm has seen its stock cool off on the threat of increased competition from low-cost alternatives. We do not believe that the competitive dynamics have been altered. In fact, the company’s annual revenue growth rate has accelerated in 2021 from the second half of 2020. The shares also currently trade at a deep discount to other cloud-based software vendors.”
1. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 94
Adobe Inc. (NASDAQ:ADBE) is a California-based diversified software company that operates via three segments – Digital Media, Digital Experience, and Publishing and Advertising. Thomas Steyer’s Farallon Capital added Adobe Inc. (NASDAQ:ADBE) to its fourth quarter portfolio by purchasing a $213.2 million stake in the company.
Adobe Inc. (NASDAQ:ADBE) posted earnings for the first quarter of 2022 on March 22, announcing an EPS of $3.37, beating analysts’ consensus estimates by $0.03. The $4.26 billion revenue also outperformed market forecasts by $23.79 million.
On March 28, Argus analyst Joseph Bonner lowered the price target on Adobe Inc. (NASDAQ:ADBE) to $575 from $764 but kept a Buy rating on the shares. The stock’s valuation has reduced sharply amid the broader technology selloff and is now at the bottom of historical ranges, the analyst told investors in a research note. He added that while Adobe Inc. (NASDAQ:ADBE)’s revenue growth is slowing from the higher than 20% era of FY21, the company’s product lines and innovation engine “remain solid”.
According to Insider Monkey’s Q4 data, 94 hedge funds were long Adobe Inc. (NASDAQ:ADBE), with combined stakes valued at $10.4 billion. Fisher Asset Management held the biggest position in the company, with 6.7 million shares worth $3.8 billion.
Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter. Here is what the fund has to say:
“Adobe Inc. (NASDAQ:ADBE) (up 24.8%) – In the last 15 years, Adobe Inc. (NASDAQ:ADBE) has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, Adobe Inc. (NASDAQ:ADBE) sells a full suite of software products through a recurring subscription model. Adobe Inc. (NASDAQ:ADBE) transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. Adobe Inc. (NASDAQ:ADBE) achieved $13B in revenue in 2020 with 88% Gross Margins.”
You can also take a look at 10 Biotech Stocks to Buy Today According to Ken Fisher’s Fisher Asset Management and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
