This article discusses the top 10 stock picks of Murray Stahl’s Horizon Asset Management at the end of the second quarter. If you are short on time and want to see the funds’ top five stock picks only, please go to the Top 5 Stock Picks of Murray Stahl’s Horizon Asset Management.
Horizon Asset Management’s parent firm, Horizon Kinetics, was established by Murray Stahl in 1985. Prior to that, Stahl worked as a senior portfolio manager and research analyst at Bankers Trust Company for 16 years. Murray Stahl graduated with a B.A., an M.A., and an M.B.A. from Pace University.
Horizon Asset Management is a licensed organization that offers investment advice. The headquarters of Horizon Asset Management is in New York. Their most recent 13F filing for Q2 2022 showed managed 13F securities valued at $4.78 billion with a top 10 holdings concentration of 66.74%. The real estate sector comprises 53.22% of the total 13F securities held. Texas Pacific Land Corporation (NYSE:TPL) is the largest position of Horizon Asset Management, with 1.505 million shares. During the first quarter of 2022, Murray Stahl’s Horizon Asset Management executed a portfolio rebalance, with the investment hedge fund selling out 17 positions, reducing 139 investments and adding 13 new assets and boosting exposure to 81 existing investments.
Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT) were among the top holdings in Murray Stahl’s Horizon Asset Management portfolio at the end of the second quarter of 2022.
Horizon Asset Management has a $2.061 million stake in the tech giant Alphabet Inc. (NASDAQ: GOOG). In the first week of August 2022, Ivan Feinseth, an analyst with Tigress Financial, increased his price target for Alphabet from $183 to $186 and maintained a Strong Buy rating on the stock in light of his belief that the company’s recently released Q2 results demonstrate the resilience of its core businesses in Cloud and Search. Additionally, continuous investments in AI continue to produce “increasingly targeted and beneficial experiences for users and enterprises,” according to Feinseth.
Our Methodology
At Insider Monkey, we track the 13F holdings of over 900 hedge funds. We selected the stocks for this article based on the regulatory filing that Horizon Asset Management submitted with SEC for the quarter ending June 30, 2022. Let’s start our list of Top 10 Stock Picks of Murray Stahl’s Horizon Asset Management.
10. Viper Energy Partners LP (NASDAQ:VNOM)
Horizon Asset Management’s Stake Value: $67.214 million
Number of Hedge Fund Holders as of Q1 2022: 12
Viper Energy Partners LP (NASDAQ:VNOM) was founded in 2013 and is based in Midland, Texas. It is a subsidiary of Diamondback Energy, Inc and it owns, acquires, and exploits oil and natural gas properties in North America.
The value of American reserves is anticipated to rise when Europe gradually stops importing fossil fuels from Russia. Viper Energy Partners LP (NASDAQ:VNOM) has reserves of 127.9 million barrels of oil. A massive 9%+ dividend yield is paid by the stock. It has gained 14.97% in the past six months and 41.35% year to date.
According to Travis Stice, chief executive officer of Viper Energy Partners LP (NASDAQ:VNOM), Viper had a stellar second quarter as oil production increased by 9% quarter over quarter, which, when paired with rising commodity prices and no inflationary cost pressures, led to a 20% rise in cash available for distribution. Importantly, Diamondback’s record 4.8 net wells turned to production during the quarter were the main factor in the production’s considerable increase. Viper is increasing its guidance for oil production for the full year 2022 by 4% at the midpoint due to Diamondback’s consistent focus on developing Viper’s high concentration royalty acreage, primarily in the Northern Midland Basin.
09. Archer-Daniels-Midland Company (NYSE:ADM)
Horizon Asset Management’s Stake Value: $85.786 million
Number of Hedge Fund Holders as of Q1 2022: 42
Archer-Daniels-Midland Company (NYSE:ADM) stock has gained 13.77% in the past six months and 27.56% year to date. In its latest quarter earnings report announced on July 26, the company’s EPS GAAP actual of $2.18 beat the estimate by $0.43, and revenue figure of $27.78 billion beat the estimate by $2.39 billion.
On August 12, Sam Margolin, an analyst with Wolfe Research, began covering Archer Daniels in the month of August 2022, with an Outperform rating and a $117 price target. In a research note, the analyst claims that the stock’s Nutrition business alone provides “very competitive dividend growth.” On the basis of the biofuels policy, Margolin is equally positive about the underlying commodity picture.
Like Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT), Archer-Daniels-Midland Company (NYSE:ADM) is one of the best stocks to buy according to Murray Stahl’s Horizon Asset Management.
08. Civeo Corporation (NYSE:CVEO)
Horizon Asset Management’s Stake Value: $89.875 million
Number of Hedge Fund Holders as of Q1 2022: 9
Civeo Corporation (NYSE:CVEO) is headquartered in Houston, Texas. It provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company serves oil, mining, engineering, and oilfield and mining service companies.
During the second quarter of 2022, EPS GAAP Actual of $0.54 beat the estimates by $0.03, and revenue of $184.95 million beat the estimates by $7.74 million. The stock has gained 25.86% in the past six months and 48.11% year to date.
In July 2022, Civeo Corporation (NYSE:CVEO) announced that with regard to its Wapasu Lodge in the Canadian oil sands, Imperial Oil Resources Limited had renewed its contract with Civeo to continue receiving lodging and other services from the company. Highlights of the contract award include a 12-year, take-or-pay agreement with daily minimum occupancies that balances rate reductions with a number of pre-planned cost-saving efforts. The new deal will go into effect on November 1 of 2022 and last until October 31, 2034. It has over C$500 million in take-or-pay revenues that are guaranteed, as well as a sizable upside above take-or-pay based on current occupancy levels.
07. Cheniere Energy, Inc. (NYSE:LNG)
Horizon Asset Management’s Stake Value: $99.544 million
Number of Hedge Fund Holders as of Q1 2022: 62
Cheniere Energy, Inc. (NYSE:LNG) was incorporated in 1983 and is headquartered in Houston, Texas. Being an energy infrastructure company, it primarily engages in liquefied natural gas (LNG) related businesses in the United States.
On August 5, Cheniere Energy, Inc. (NYSE:LNG) price target was increased by the firm to $167 from $159 by Mizuho analyst Robert Mosca, who also maintained a Buy recommendation on the stock. According to Mosca, the corporation “posted another blowout quarter” for investors.
Over the last twelve months, the company’s finances significantly improved year over year. According to its latest quarter’s earnings report announced recently, the stock has EPS GAAP Actual of $2.90 missing the estimate by $0.50; however, with a revenue figure of $8.01 billion, it has surpassed the estimates by a whooping $1.59 billion. The stock has gained 35.76% in the past six months and 54.83% year to date.
Documents acquired by Reuters show that American regulators expressed concerns about Cheniere Energy, Inc. (NYSE:LNG) choice to erect more polluting gas-fired turbines at its Gulf Coast liquefied natural gas terminals in Texas and Louisiana years before they started running. The records reveal that Cheniere Energy, Inc. (NYSE:LNG), the leading US LNG exporter, may have had a chance to avert its present conflict with impending regulatory limitations on formaldehyde and other hazardous chemical emissions.
06. Intercontinental Exchange, Inc. (NYSE:ICE)
Horizon Asset Management’s Stake Value: $100.194 million
Number of Hedge Fund Holders as of Q1 2022: 60
Atlanta, Georgia serves as the home base for Intercontinental Exchange, Inc. (NYSE:ICE), a company that was established in 2000. The dividend paid by the corporation has increased over the last five years, with a five-year growth rate of 18.65%. Intercontinental Exchange, Inc. (NYSE:ICE) also declared a quarterly dividend of $0.38 per share, payable on September 30 to stockholders with records as of September 15th. The stock has been down 18.12% so far this year and 12.14% over the last six months.
On August 5, while keeping a Buy recommendation for the shares, analyst Brian Bedell from Deutsche Bank raised the company’s price target on the ICE from $114 to $124. Investors are told in a research note by Bedell that the company had a “good” Q2 and that the underlying sales trend estimate has improved.
Just like Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT), Intercontinental Exchange, Inc. (NYSE:ICE) is one of the best stocks to buy according to Murray Stahl’s Horizon Asset Management.
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Disclosure: None. Top 10 Stock Picks of Murray Stahl’s Horizon Asset Management is originally published on Insider Monkey.
