In this article, we discuss the top 10 stock picks of Joe Huber’s Huber Capital Management. If you want to skip our detailed analysis of these stocks, go directly to the Top 5 Stock Picks of Joe Huber’s Huber Capital Management.
Joe Huber is the chief executive officer and chief investment officer at Huber Capital Management, which is a California-based investment advisory firm offering its services to institutional investors, high-net worth individuals, and mutual funds. According to the latest 13F filings, Huber manages discretionary assets under management of $328.93 million, and a portfolio valued at $387.1 million.
Joe Huber received his Bachelor’s in statistics and econometrics from Northwestern University, followed by an MBA from the University of Chicago, specializing in accounting and finance. Prior to establishing Huber Capital Management in 2007, he was a principal and director of research for Hotchkis and Wiley Capital Management, where he managed over $40 billion in U.S. asset portfolios. His investment philosophy is based on utilizing fundamental research paired with behavioral psychology to create a value-added investment strategy. Before joining Hotchkis and Wiley, Huber served as the portfolio manager and director for Merrill Lynch Asset Management, as well as the portfolio manager for The Goldman Sachs Group, Inc. (NYSE:GS).
Joe Huber of Huber Capital Management
The investment portfolio at Huber Capital Management is concentrated in the finance, healthcare, information technology, industrials, energy, and consumer discretionary sectors. The most notable stocks in Huber’s Q3 portfolio include Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co. (NYSE:JPM), and Philip Morris International Inc. (NYSE:PM), among others discussed at length ahead.
Our Methodology
We used Joe Huber’s Q3 portfolio to create a list of his top 10 stock picks, and ranked them according to Huber Capital Management’s stake value in each holding.
Top Stock Picks of Joe Huber’s Huber Capital Management
10. BP p.l.c. (NYSE:BP)
Huber Capital Management’s Stake Value: $10,312,000
Percentage of Huber Capital Management’s 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 30
BP p.l.c. (NYSE:BP) is a British multinational oil and gas corporation that is considered to be one of the Big Oil companies. BP p.l.c. (NYSE:BP) is engaged in power generation, exploration of oil and gas, and renewable energy sources like wind, solar, and biofuels. Huber Capital Management, as of the third quarter, owns 377,300 shares in BP p.l.c. (NYSE:BP), worth $10.2 million, representing 2.66% of the firm’s Q3 portfolio.
As of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey were bullish on BP p.l.c. (NYSE:BP), with stakes worth over $1 billion. The leading stakeholder in BP p.l.c. (NYSE:BP) is Ken Fisher’s Fisher Asset Management, with a $345.3 million stake in the company.
BP p.l.c. (NYSE:BP) posted its Q3 results on November 2. EPS in the period came in at $0.99, beating estimates by $0.12. Revenue for the quarter totaled $36.17 billion, exceeding estimated revenue by $4.12 billion.
Morgan Stanley analyst Martijn Rats on November 9 raised the price target on BP p.l.c. (NYSE:BP) to £401 from £388 and kept an Equal Weight rating on the stock.
In addition to Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co. (NYSE:JPM), and Philip Morris International Inc. (NYSE:PM), BP p.l.c. (NYSE:BP) is a notable stock in Huber’s Q3 portfolio.
9. Innospec Inc. (NASDAQ:IOSP)
Huber Capital Management’s Stake Value: $11,463,000
Percentage of Huber Capital Management’s 13F Portfolio: 2.96%
Number of Hedge Fund Holders: 14
Innospec Inc. (NASDAQ:IOSP), an American specialty chemical company, announced its earnings on November 2, with EPS for the period equaling $1.15, beating estimates by $0.19. Revenue for the quarter totaled $376.1 million, up 48.7% year-over-year, exceeding estimated revenue by $29.95 million.
Huber Capital Management holds 136,107 shares in Innospec Inc. (NASDAQ:IOSP) as of September this year. With a total stake value of $11.46 million, Innospec Inc. (NASDAQ:IOSP) represents 2.96% of Huber’s Q3 portfolio.
Chuck Royce’s Royce & Associates is the leading Innospec Inc. (NASDAQ:IOSP) stakeholder, with 1.19 million shares worth $100.8 million. Overall, 14 hedge funds reported owning stakes in the company as of the second quarter, with stakes valued at approximately $114.6 million.
CL King analyst David Silver lowered the price target on October 6 to $110 from $115 and kept a Buy rating on Innospec Inc. (NASDAQ:IOSP), citing the soaring natural gas and power costs.
8. Royal Dutch Shell plc (NYSE:RDS)
Huber Capital Management’s Stake Value: $11,561,000
Percentage of Huber Capital Management’s 13F Portfolio: 2.98%
Number of Hedge Fund Holders: 38
Royal Dutch Shell plc (NYSE:RDS) is an oil and gas supermajor distributing natural gas, petrochemicals, petroleum, liquified natural gas, and lubricants worldwide. Royal Dutch Shell plc (NYSE:RDS) accounts for 2.98% of Joe Huber’s Q3 portfolio, with Huber Capital Management holding an $11.5 million stake in the company.
Scotiabank analyst Paul Cheng on November 17 upgraded Royal Dutch Shell plc (NYSE:RDS) to Outperform from Sector Perform, setting a price target of $56, up from $54. This was in light of the company’s announcement to simplify its share and corporate structure.
On October 28, Royal Dutch Shell plc (NYSE:RDS) announced its Q3 results. EPS in the third quarter equaled -$0.12, missing estimates by -$1.62. The revenue came in at $60.04 billion, also missing analysts’ consensus estimates by -$3.36 billion.
At the end of June this year, 38 hedge funds held stakes in Royal Dutch Shell plc (NYSE:RDS) worth $2.4 billion, up from 36 funds in the previous quarter with a total stake value of $2.19 billion. Pzena Investment Management holds a $179.6 million stake in the company, making it one of the leading Royal Dutch Shell plc (NYSE:RDS) stakeholders.
7. CNO Financial Group, Inc. (NYSE:CNO)
Huber Capital Management’s Stake Value: $11,799,000
Percentage of Huber Capital Management’s 13F Portfolio: 3.04%
Number of Hedge Fund Holders: 21
CNO Financial Group, Inc. (NYSE:CNO) is an American provider of life insurance, health insurance, and annuity. The Indiana-based company serves over 4 million customers in the US. As of Q3 2021, Huber Capital Management owns 501,219 shares in CNO Financial Group, Inc. (NYSE:CNO), valued at $11.79 million, representing 3.04% of the firm’s portfolio.
Paradice Investment Management is one of the largest CNO Financial Group, Inc. (NYSE:CNO) stakeholders, with stakes worth $108.1 million. Overall, 21 hedge funds in the database of Insider Monkey were bullish on CNO Financial Group, Inc. (NYSE:CNO), up from 18 in the preceding quarter.
The Q3 EPS for CNO Financial Group, Inc. (NYSE:CNO) on October 28 came in at $0.72, beating estimates by 20%, owing to lower expenses. However, the $968 million Q3 revenue declined 4.5% year-over-year.
In addition to Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co. (NYSE:JPM), and Philip Morris International Inc. (NYSE:PM), CNO Financial Group, Inc. (NYSE:CNO) is a notable stock in Huber’s Q3 portfolio.
6. First Horizon Corporation (NYSE:FHN)
Huber Capital Management’s Stake Value: $13,957,000
Percentage of Huber Capital Management’s 13F Portfolio: 3.60%
Number of Hedge Fund Holders: 27
First Horizon Corporation (NYSE:FHN) is a bank holding company which operates via its subsidiary, First Horizon. It is the largest bank in Tennessee, offering banking, wealth management, insurance, and trading services. Joe Huber owns a $13.95 million stake in First Horizon Corporation (NYSE:FHN) as of Q3 that accounts for 3.60% of his investment portfolio.
First Horizon Corporation (NYSE:FHN) posted its Q3 results on October 20. EPS in the period came in at $0.50, beating estimates by $0.09. The revenue was down 44.04% from the prior-year quarter, but it exceeded estimates by $15.09 million.
At the end of the second quarter, 27 hedge funds were long First Horizon Corporation (NYSE:FHN), with AQR Capital Management being the largest stakeholder of the company, with a position worth $14.8 million in First Horizon Corporation (NYSE:FHN).
On October 7, Raymond James analyst Michael Rose downgraded First Horizon Corporation (NYSE:FHN) to Outperform from Strong Buy with a price target of $19, down from $20. He stated that the bank holding company would face high near-term expenses.
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Disclosure: None. Top 10 Stock Picks of Joe Huber’s Huber Capital Management is originally published on Insider Monkey.
