In this article, we discuss the top 10 stock picks of Gregg Moskowitz’s Interval Partners. If you want to skip our detailed analysis of these companies, go directly to the Top 5 Stock Picks of Gregg Moskowitz’ Interval Partners.
Gregg Moskowitz has been the managing partner at Interval Partners since October 2011, where he oversees over $2.42 billion in managed 13F securities. Moskowitz’s portfolio comprises stocks from the information technology, finance, industrials, consumer staples, transport, and communications sectors, with a top ten holdings concentration of 26.06%.
Before joining the New York-based investment management firm, Moskowitz was the managing director at Bascom Hill Partners, an investment advisory firm, where he served for two years, from 2009 to 2011. Previously, he was a research analyst at the Galleon Group, one of the largest hedge funds of its time, from 2003 to 2008. He graduated from the University of Wisconsin with a Bachelor’s in business administration and management.
At the end of the second quarter of 2021, Moskowitz’ 13F portfolio consisted of some extremely noteworthy stocks such as Amazon.com, Inc. (NASDAQ:AMZN), Walmart Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), and Southwest Airlines Co. (NYSE:LUV), among others.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here are the top 10 stock picks of Gregg Moskowitz’ Interval Partners. We used Interval Partners’ 13F portfolio for the second quarter of 2021 to rank these stocks. The list was compiled according to the value of each holding in the investment portfolio.
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Top Stock Picks of Gregg Moskowitz’ Interval Partners
10. The AZEK Company Inc. (NYSE:AZEK)
Interval Partners’ Stake Value: $30,506,000
Percentage of Interval Partners’ 13F Portfolio: 1.25%
Number of Hedge Fund Holders: 37
The AZEK Company Inc. (NYSE:AZEK) is a building and construction company, which designs outdoor living spaces with sustainable methods and building materials, focusing on designs that are modern and made of 100% recycled and repurposed materials. They have diverted millions of pounds of waste from landfills since 2020, saved over 3 million trees by replacing wood as a primary material in construction. The AZEK Company Inc. (NYSE:AZEK) is one of the top stock picks of Gregg Moskowitz’ Interval Partners.
Interval Partners owns 718,459 shares in The AZEK Company Inc. (NYSE:AZEK), valued at $30.5 million, representing 1.25% of Gregg Moskowitz’s Q2 portfolio.
At the end of Q2, 37 hedge funds tracked by Insider Monkey held stakes in The AZEK Company Inc. (NYSE:AZEK), up from 29 in the previous quarter.
Here is what Baron Funds has to say about The AZEK Company Inc. (NYSE:AZEK) in its Q2 2021 investor letter:
“The AZEK Company Inc.: AZEK is a leading manufacturer of outdoor, non-wood building products including decking, railing, trim, and other leading outdoor products. 95% of cash flow is generated from the U.S. residential housing market. We believe the company has a compelling multi-year strategic growth plan that should result in strong share price appreciation in the next few years.”
9. Texas Roadhouse, Inc. (NASDAQ:TXRH)
Interval Partners’ Stake Value: $32,567,000
Percentage of Interval Partners’ 13F Portfolio: 1.34%
Number of Hedge Fund Holders: 37
Texas Roadhouse, Inc. (NASDAQ:TXRH) is an American steakhouse, specializing in Texan and Southwestern cuisines, headquartered in Louisville, Kentucky. Texas Roadhouse, Inc. (NASDAQ:TXRH) has steakhouses in 666 locations across 49 US states, as of 2021. It is also located in 29 international locations in 10 countries. Texas Roadhouse, Inc. (NASDAQ:TXRH) is one of the top stocks in Gregg Moskowitz’ Q2 portfolio.
Interval Partners’ owns 338,538 shares in Texas Roadhouse, Inc. (NASDAQ:TXRH), worth $32.56 million, accounting for 1.34% of the firm’s 13F portfolio.
Wells Fargo analyst Jon Tower kept an Equal Weight rating on Texas Roadhouse, Inc. (NASDAQ:TXRH), lowering the price target from $106 to $97 on October 18. He stated that the rising costs, as well as the COVID-19 Delta variant and Hurricane Ida would make demand unpredictable.
8. Caterpillar Inc. (NYSE:CAT)
Interval Partners’ Stake Value: $33,808,000
Percentage of Interval Partners’ 13F Portfolio: 1.39%
Number of Hedge Fund Holders: 62
Caterpillar Inc. (NYSE:CAT) is a Fortune 100 company operating in the US industrial sector. Caterpillar Inc. (NYSE:CAT) is engaged in manufacturing machinery, engines, financial products, and insurance. It is the largest manufacturer of construction equipment in the world. Caterpillar Inc. (NYSE:CAT) is a Dow Jones Industrial Average Index Component, and it is one of the top stock picks by Gregg Moskowitz.
Interval Partners owns 155,344 shares in Caterpillar Inc. (NYSE:CAT), amounting to $33.8 million, making up 1.39% of the firm’s 13F portfolio.
At the end of June, 62 hedge funds monitored by Insider Monkey were long Caterpillar Inc. (NYSE:CAT), with stakes roughly worth $5.26 billion, up from 53 in Q1, with a total stake value of almost $4.95 million. Ken Fisher’s Fisher Asset Management is the leading stakeholder in Caterpillar Inc. (NYSE:CAT), with 6.83 million shares valued at $1.31 billion.
Here is what Oakmark Funds has to say about Caterpillar Inc. (NYSE:CAT) in its Q2 2021 investor letter:
“Having followed the company closely for north of a decade, Caterpillar is a name we know well. For much of its history, the operating efficiency of the company left much to be desired, but its underlying competitive position was rarely in doubt. A series of actions over the past decade (e.g., LEAN implementation, improved service mix, optimized manufacturing footprint) helped to narrow the gap between Caterpillar’s potential and its realized results, driving material margin expansion and strong share price performance. In our view, the company remains among the highest quality industrials in the market, but its underlying business is cyclical, which can translate to large swings in both performance and investor sentiment over short time periods. Our ability to focus on the long-term, sustainable earnings power of a business (rather than getting distracted by near-term fluctuations) is our most significant edge when investing in cyclical businesses. Due to the inherent volatility in Caterpillar’s end markets and operating performance, we suspect we’ll have a future opportunity to own this high-quality business at a more attractive price once the cycle turns and today’s enthusiasm wears off.”
7. Eaton Corporation plc (NYSE:ETN)
Interval Partners’ Stake Value: $34,774,000
Percentage of Interval Partners’ 13F Portfolio: 1.43%
Number of Hedge Fund Holders: 40
Eaton Corporation plc (NYSE:ETN) is an Irish multinational power management company, with operational headquarters in Ohio. Eaton Corporation plc (NYSE:ETN) is engaged in several products and services, including electrical, industrial, aerospace, hydraulics, filtration, e-mobility, and vehicle sectors. Eaton Corporation plc (NYSE:ETN) is one of the top stocks according to Gregg Moskowitz.
Interval Partners owns 234,671 shares in Eaton Corporation plc (NYSE:ETN), worth $34.77 million, making up 1.43% of Moskowitz’ 13F portfolio.
On August 3, Eaton Corporation plc (NYSE:ETN) reported an EPS of $1.72 for the second quarter, exceeding analysts’ expectations by $0.15. Eaton Corporation plc (NYSE:ETN)’s revenue was $5.21 billion, beating estimates by $223.16 million.
Here is what ClearBridge Investments has to say about Eaton Corporation plc (NYSE:ETN) in its Q2 2021 investor letter:
“One secular consumer trend we are increasingly investing in is electric vehicles (EVs). In addition to owning Aptiv and NXP, leading component suppliers for EVs, we initiated a new position in the second quarter in Eaton, a global manufacturer of electrical, power management and hydraulics components and equipment. Eaton is a critical player in supporting the increasing electrification of the global economy with opportunities in areas ranging from utility generation and distribution infrastructure to EV charging stations, solar power systems and electricity supply for data centers. Eaton has transformed itself over the last decade from a heavy industrial company into a diverse set of businesses levered to the more attractive secular growth of electrification. We anticipate this focus will allow electrical products’ revenue to grow in the mid-to-high single digits and support margin improvement.”
6. Amazon.com, Inc. (NASDAQ:AMZN)
Interval Partners’ Stake Value: $37,611,000
Percentage of Interval Partners’ 13F Portfolio: 1.55%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a highly sought-after tech stock by hedge funds, and it is one of the top stock picks of Gregg Moskowitz’ Interval Partners. The American tech multinational offers services like e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five United States tech companies, and is the most valuable global brand.
Moskowitz’ Interval Partners owns 10,933 shares in Amazon.com, Inc. (NASDAQ:AMZN), worth $37.61 million, making up 1.55% of the firm’s 13F portfolio for the second quarter.
At the end of June, of the hedge funds tracked by Insider Monkey, 271 funds were long Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the previous quarter.
Here is what Polen Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
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Disclosure: None. Top 10 Stock Picks of Gregg Moskowitz’s Interval Partners is originally published on Insider Monkey.
