In this article, we discuss the Top 10 Stock Picks of Claar Advisors. If you want to skip our detailed and comprehensive analysis of Claar Advisors’ history and its investment strategy, go directly to Top 5 Stock Picks of Claar Advisors.
Claar Advisors LLC is an investment management company, which was founded by Gary Claar. From 2001 to 2012, Gary Claar was a founding partner and co-portfolio manager at JANA Partners LLC. This was an investment firm, which made its name in activism and special situation investing. Before founding JANA Partners LLC, Mr. Gary Claar was the founding member of Marathon Advisors LLC, an investment management firm. His career started as a corporate attorney with Schulte Roth & Zabel LLP.
Claar Advisors LLC uses a variety of methods to make sound investment decisions. Its investment strategy uses a combination of fundamental security-level research and experience of investment professionals who work as portfolio managers. The company reviews numerous qualitative and quantitative factors including company’s leadership team, financial statements, outlook, current valuation, position against its peers, etc. Claar Advisors LLC invests in companies having attractive fundamentals and reliable catalysts for appreciation.
Claar Advisors LLC’s investment portfolio appreciated around 0.75% in the second quarter of 2022 against the preceding quarter. At the end of Q2 2022, its portfolio value came at $255.4 million. Its top 10 holdings make up around 61.01% of the total investment portfolio.
At the end of the second quarter, Claar Advisors LLC’s top 10 stock picks included Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
At the end of the second quarter, Insider Monkey was tracking the portfolios of 895 hedge funds. We made use of Claar Advisors’ 13F portfolio to assess and analyze the Top 10 Stock Picks of Claar Advisors.
Top 10 Stock Picks of Claar Advisors
10. Nomad Foods Limited (NYSE:NOMD)
Claar Advisors LLC’s Stake Value: $8.79 million
Percentage of Claar Advisors LLC’s 13F Portfolio: 3.44%
No. of Hedge Fund Holders: 23
Nomad Foods Limited (NYSE:NOMD) is a packaged foods company, which manufactures and distributes branded frozen foods in Western Europe. It manufactures and markets frozen food products including fish, vegetables, poultry, and ready meals.
On 10th August, Nomad Foods Limited (NYSE:NOMD) released its Q2 2022 and H1 2022 financial results. While its reported revenue grew 17.0% to €697 million, organic revenue declined 3.2%. The market share of the company was steady in a dynamic pricing environment. It continues to adjust the business well to inflationary pressures and believes that supply chains continue to normalize.
Nomad Foods Limited (NYSE:NOMD) updated its adjusted EPS guidance to a range of €1.65-€1.71 from the previous range of €1.71-€1.75 for FY22, exhibiting high-single digit adjusted EPS growth. It assumes high-single-digit growth in revenue, low-single-digit organic revenue growth, and the inclusion of Fortenova’s frozen food business.
On 15th August, Credit Suisse Group covered Nomad Foods Limited (NYSE:NOMD) and lowered their price objective on shares of the company to $25.00.
Like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), Nomad Foods Limited (NYSE:NOMD) is one of the top 10 stock picks of Claar Advisors.
9. Mastercard Incorporated (NYSE:MA)
Claar Advisors LLC’s Stake Value: $10.2 million
Percentage of Claar Advisors LLC’s 13F Portfolio: 4%
No. of Hedge Fund Holders: 137
Mastercard Incorporated (NYSE:MA) is a technology company operating in the global payments industry. The company connects consumers, financial institutions, merchants, governments, digital partners, businesses, and other organizations worldwide and enables them to use electronic forms of payment.
Mastercard Incorporated (NYSE:MA) saw strong revenue and earnings growth in the second quarter of 2022, as overall consumer spending remained strong and cross-border volumes went up by 58% year-over-year. The company’s business model is well-diversified, and it has demonstrated the ability to report strong operating margins through up and down cycles. During the second quarter of 2022, Mastercard Incorporated (NYSE:MA) repurchased 6.9 million shares worth $2.4 billion and paid $477 million in the form of dividends.
According to Mastercard SpendingPulseTM, which evaluates in-store and online retail sales across all forms of payment, retail spending in the US, excluding automotive, grew 11.2% year-over-year in July, with retail sales (excluding automotive and gas) rising 9.0%.
JPMorgan Chase & Co. recently covered Mastercard Incorporated (NYSE:MA) and lowered its price target from $430.00 to $425.00. This coverage was done on 20th July.
Macquarie analyst Paul Golding also reduced the price objective on the shares of the company to $410 from $440 and maintained “Outperform” rating. The analyst noted that the company delivered strong Q2 2022 results, despite the impact of suspending Russia operations in March.
At the close of Q2 2022, 137 hedge funds held stakes in Mastercard Incorporated (NYSE:MA). The total value of these stakes was $14.9 billion. In the preceding quarter, 136 hedge funds held stakes in the company.
Investment management company Ave Maria recently released its second quarter 2022 investor letter and mentioned Mastercard Incorporated (NYSE:MA). Here is what the fund said:
“Mastercard Incorporated (NYSE:MA) is a global technology company in the payments industry. Mastercard benefits from the secular migration away from cash to electronic payments and from the recovery in travel.”
8. Agilent Technologies, Inc. (NYSE:A)
Claar Advisors LLC’s Stake Value: $10.4 million
Percentage of Claar Advisors LLC’s 13F Portfolio: 4.09%
No. of Hedge Fund Holders: 41
Agilent Technologies, Inc. (NYSE:A) was incorporated in Delaware in May 1999, and is a global leader in life sciences, diagnostics, and applied chemical markets. The company provides application-focused solutions including instruments, software, services, and consumables for the entire laboratory workflow. The stock ranks 8th on our list of top 10 stock picks of Claar Advisors.
Agilent Technologies, Inc. (NYSE:A) has acquired Polymer Standards Service GmbH (PSS), which is engaged in providing solutions in the field of polymer characterization. As a result of this acquisition, Agilent Technologies, Inc. (NYSE:A) has broadened and extended its product portfolio and customer offerings, primarily in the chemical and biopharmaceutical industries.
In the fiscal year 2022, the company expects revenue of $6.75 billion to $6.775 billion, while Q4 2022 revenue is expected between $1.75 billion to $1.775 billion.
Evercore ISI covered Agilent Technologies, Inc. (NYSE:A), and increased their price objective on the shares of the company to $145.00 on 22nd August.
Agilent Technologies, Inc. (NYSE:A) saw a decline in hedge fund interest. It was in 41 hedge fund portfolios at the end of Q2 2022. There were 43 hedge funds in our database with the holdings of Agilent Technologies, Inc. (NYSE:A) at the end of Q1 2022.
7. Copart, Inc. (NASDAQ:CPRT)
Claar Advisors LLC’s Stake Value: $11.6 million
Percentage of Claar Advisors LLC’s 13F Portfolio: 4.56%
No. of Hedge Fund Holders: 50
Copart, Inc. (NASDAQ:CPRT) is the leading provider of online auctions and vehicle remarketing services. Its operations are spread across the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain.
The company has reported financial results for the third quarter of fiscal 2022, with revenues coming at $939.9 million and gross profit at $436.3 million. Recent investments in capital expenditures made by the company exhibit that Copart, Inc. (NASDAQ:CPRT) is optimistic. Operating cash flow for the third quarter grew $48 million year-over-year to reach $417 million, primarily led by stronger earnings. The company invested $79 million in capital expenditures in the third quarter of fiscal 2022, with more than 80% of this amount going into capacity expansion.
The company’s director Matt Blunt sold 10,000 shares of the firm’s stock on 6thJune. The transaction was done at an average price of $115.72, resulting in a total value of $1,157,200.00. Analysts at Guggenheim reduced their target objective on shares of Copart, Inc. (NASDAQ:CPRT) to $151.00 on 20th May.
Hedge funds continue to pile into Copart, Inc. (NASDAQ:CPRT). At the end of Q2 2022, 50 hedge funds held stakes in the company worth $929.9 million compared to 44 positions in the previous quarter with stakes totaling $864.9 million.
6. Avantor, Inc. (NYSE:AVTR)
Claar Advisors LLC’s Stake Value: $12.3 million
Percentage of Claar Advisors LLC’s 13F Portfolio: 4.81%
No. of Hedge Fund Holders: 51
Avantor, Inc. (NYSE:AVTR) provides products and services to biopharma, healthcare, education and government, and advanced technologies and applied materials industries.
Avantor, Inc. (NYSE:AVTR) has already reported its Q2 2022 financial results, with net sales coming at $1.91 billion, exhibiting 2.8% growth. It saw core organic net sales growth of 6.4%. The results were led by 20%+ core organic growth in bioproduction, highlighting the business model’s strength and resilience. For the second half of 2022, Avantor, Inc. (NYSE:AVTR) expects momentum in its core business to continue. A strong order book for its proprietary products gives the company confidence in achieving full-year growth.
On 24th August, Credit Suisse analyst Dan Leonard initiated coverage of the shares of Avantor, Inc. (NYSE:AVTR). The analyst gave a “Neutral” rating and a price objective of $32. He has a positive view of the company’s long-term opportunity to scale in the tools industry. However, there are concerns that any growth acceleration will likely take longer than expected.
Our database shows that 51 hedge funds held stakes in Avantor, Inc. (NYSE:AVTR) as of the end of the second quarter of 2022, versus 57 funds in the first quarter of 2022.
Like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Amazon.com, Inc. (NASDAQ:AMZN), Avantor, Inc. (NYSE:AVTR) is one of the top 10 stock picks of Claar Advisors.
Click to continue reading and see Top 5 Stock Picks of Claar Advisors.
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Disclosure: None. Top 10 Stock Picks of Claar Advisors is originally published on Insider Monkey.
