In this article, we will take a look at the Top 10 Stock Picks of Michael Doheny’s Freshford Capital. You can skip our detailed analysis of Michael Doheny’s history, investment philosophy, and hedge fund performance and go directly to the Top 5 Stock Picks of Michael Doheny’s Freshford Capital.
Michael G. Doheny is the founder of Freshford Capital Management, a New York-based hedge fund. Doheny worked at Kensico Capital for eight years before founding Freshford Capital Management in 2008. Currently, he owns 50% to 75% of the stakes in Freshford Capital Management.
The investment portfolio of Freshford Capital is valued at $701.6 million, according to September 2021 filings. The portfolio has increased by 21% in value from $577 million as reported in the same quarter last year.
The investment philosophy of Michael Doheny is based on investing in public equity markets and using a long/short investment strategy. He takes long positions on companies that he believes are underpriced and short positions on companies which he thinks are overvalued and have unsustainable business models. The hedge fund focuses on low market cap companies working in either technology or services sector.
Some of the notable picks of the firm include video platform Vimeo Inc (NASDAQ:VMEO), broadband service provider Viasat, Inc. (NASDAQ:VSAT) and discount shops company Dollar Tree, Inc. (NASDAQ:DLTR).
Our Methodology
These are the top 10 stock picks of Freshford Capital Management. We used the fund’s 13F portfolio data as of the third quarter of 2021 for this analysis. The number of hedge funds, out of the 873 tracked by Insider Monkey, having stakes in each company as of the second quarter are also mentioned.
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Top 10 Stock Picks of Michael Doheny’s Freshford Capital
10. Alphabet Inc. (NASDAQ:GOOG)
Freshford Capital’s Stake Value: $36.87 million
Percent of 13F Portfolio: 5.25%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is a US-based holding company that provides online marketing and internet products like Google, Ads, Maps, and YouTube.
Freshford Capital Management held 13,791 shares worth $36.87 million in Alphabet Inc. (NASDAQ:GOOG) in the third quarter of 2021. This accounts for 5.25% of the 13F portfolio.
According to the Insider Monkey database, 155 hedge funds have stakes valued at $33.79 billion in Alphabet Inc. (NASDAQ:GOOG) as of the second quarter of 2021.
In the third-quarter earnings report, Alphabet Inc. (NASDAQ:GOOG) reported an EPS of $27.99, beating the market consensus by $4.72. On November 02, 2021, Morgan Stanley raised its price target to $3,200 from $3,000 and kept an “Overweight” rating on the shares.
9. Valvoline Inc. (NYSE:VVV)
Freshford Capital’s Stake Value: $37.34 million
Percent of 13F Portfolio: 5.32%
Number of Hedge Fund Holders: 26
With 1.198 million shares valued at $37.34 million, Valvoline Inc. (NYSE:VVV) accounts for 5.32% of the Q3 13F portfolio of Freshford Capital Management. Valvoline Inc. (NYSE:VVV) is based in Lexington and specializes in the development and sales of automotive lubricants and motor oils. The company has worldwide operations.
Insider Monkey tracked that 26 hedge funds had stakes in Valvoline Inc. (NYSE:VVV) in the June quarter of 2021, up from 23 hedge funds from the previous quarter. These stakes are valued at $644 million in the June quarter of 2021. In the third quarter, the company reported an EPS of $0.5, beating the market consensus of $0.47.
On November 11, 2021, Goldman Sachs kept a “Buy” rating on the share and raised the price target to $53 from $45.
8. Covetrus, Inc. (NASDAQ:CVET)
Freshford Capital’s Stake Value: $39.83 million
Percent of 13F Portfolio: 5.67%
Number of Hedge Fund Holders: 18
Covetrus, Inc. (NASDAQ:CVET) is based in Maine and provides IT solutions to the animal health and veterinary industry.
On November 18, Morgan Stanley initiated its coverage of Covetrus, Inc. (NASDAQ:CVET) with an “Equal-Weight” rating and a price target of $19.
According to Insider Monkey, 18 hedge funds have stakes in Covetrus, Inc. (NASDAQ:CVET), valued at $144 million in the second quarter of 2021. The number of hedge funds has increased from 17 as recorded in the previous quarter.
Covetrus, Inc. (NASDAQ:CVET) reported an EPS of $0.23, beating the market consensus by $0.03, in the third quarter of 2021.
7. KBR, Inc. (NYSE:KBR)
Freshford Capital’s Stake Value: $45.89 million
Percent of 13F Portfolio: 6.54%
Number of Hedge Fund Holders: 36
KBR, Inc. (NYSE:KBR) is a Texas-based company providing technology and consulting solutions to the construction industry. With 1.164 million shares valued at $45.89 million in the third quarter, KBR, Inc. (NYSE:KBR) accounts for 6.54% of the 13F portfolio of Michael Doheny.
36 hedge funds have stakes in KBR, Inc. (NYSE:KBR), valued at $1.04 billion, as of the second quarter of 2021, according to Insider Monkey database. The number of hedge funds having stakes has increased from 31 as of the end of March quarter of 2021.
In the third quarter filings, KBR, Inc. (NYSE:KBR) reported an EPS of $0.64, beating the market consensus of $0.57. Citi has raised its price target on KBR, Inc. (NYSE:KBR) to $45 from $38 and kept a “Buy” rating on the shares.
Like KBR, Inc. (NYSE:KBR), Freshford Capital has notable stakes in the online video platform Vimeo Inc (NASDAQ:VMEO), mobile broadband service provider Viasat, Inc. (NASDAQ:VSAT), and Dollar Tree, Inc. (NASDAQ:DLTR).
6. Vonage Holdings Corp. (NYSE:VG)
Freshford Capital’s Stake Value: $47.04 million
Percent of 13F Portfolio: 6.7%
Number of Hedge Fund Holders: 29
Vonage Holdings Corp. (NYSE:VG), headquartered in New Jersey, provides communication services through cloud-connected devices. The company has operations in business and consumer segments.
In the September quarter of 2021, Vonage Holdings Corp. (NYSE:VG) posted an EPS of $0.04. On November 05, 2021, JPMorgan updated its price target on EQT Corporation (NYSE:EQT) to $26 and upgraded its rating to “Overweight” from “Neutral” on the stock.
As of the end of the third quarter of 2021, Freshford Capital Management held 2.92 million shares of the company worth $47.04 million.
According to the database of Insider Monkey tracking 873 hedge funds in Q2 2021, 29 were bullish on Vonage Holdings Corp. (NYSE:VG), having stakes worth $708 million.
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Disclosure. None. Top 10 Stock Picks of Michael Doheny’s Freshford Capital is originally published on Insider Monkey.
