In this article, we discuss the top 10 stock picks of Peter Avellone’s Cartenna Capital based on Q2 holdings of the fund. If you want to skip our detailed analysis of Avellone’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stock Picks of Peter Avellone’s Cartenna Capital.
Peter Avellone founded Cartenna Capital in December 2019. He is the currently CIO at Cartenna Capital. Previously he worked for several multi-strategy businesses, including Millennium Management and Citadel. Peter Avellone also worked as the Portfolio Manager and Research Analyst at Point 72 Asset Management for six years.
Cartenna Capital’s 13F portfolio value as of the second quarter of 2021 stands at $349.74 million.
As of the second quarter, Cartenna Capital holds significant stakes in several companies including United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX).
In United Parcel Service, Inc. (NYSE: UPS), Peter Avellone owns 48,600 shares worth $10.11 million. The investment covers 2.88% of the fund’s portfolio. On August 2, Credit Suisse analyst Brian Wright initiated coverage of United Parcel Service, Inc. (NYSE: UPS) with an “Outperform” rating and gave a price target of $240.
Based on the latest 13F holdings for the second quarter of 2021, Cartenna Capital owns 30,200 shares in Mastercard Incorporated (NYSE: MA), worth $11.03 million. The stock is a new arrival on Peter Avellone’s portfolio. On August 17, JPMorgan analyst Tien-Tsin Huang raised the price target on Mastercard Incorporated (NYSE: MA) to $430 from $427 and kept an “Overweight” rating on the shares.
Cartenna Capital also has a $14.59 million stake in Raytheon Technologies Corporation (NYSE: RTX). On August 11, Morgan Stanley analyst Kristine Liwag raised the price target on Raytheon Technologies Corporation (NYSE: RTX) to $110 from $97 and maintained an “Overweight” rating on the shares.
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Here are some of the stock picks of Peter Avellone’s Cartenna Capital. We picked these stocks from the Q2 portfolio of Avellone’s hedge fund.
Top Stock Picks of Peter Avellone’s Cartenna Capital
10. KBR, Inc. (NYSE: KBR)
Avellone’s Stake Value: $10,473,000
Percentage of Peter Avellone’s 13F Portfolio: 2.99%
Number of Hedge Fund Holders: 36
KBR, Inc. (NYSE: KBR) offers scientific, technological, and engineering solutions globally. It was founded in 1998, and it stands tenth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. KBR, Inc. (NYSE: KBR) shares have returned 48.97% to investors over the course of the past 12 months.
On August 31, PKN ORLEN awarded KBR, Inc. (NYSE: KBR) a feasibility study contract to assess plastics recycling projects in Central Europe using KBR’s Hydro-PRTSM technology. On August 23, Johnson Matthey, or JM, struck an alliance deal with KBR, Inc. (NYSE: KBR) to license the Formox Integrated UFC Technology. For higher-grade urea, the new method will make it simpler to generate UFC at a low cost.
Cartenna Capital holds 274,520 shares in KBR, Inc. (NYSE: KBR), worth over $10.47 million, representing 2.99% of their portfolio. In the second quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes in KBR, Inc. (NYSE: KBR), up from 31 the preceding quarter.
Like United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX), KBR, Inc. (NYSE: KBR) is one of the notable stocks gaining investors’ attention in 2021.
9. Mastercard Incorporated (NYSE: MA)
Avellone’s Stake Value: $11,026,000
Percentage of Peter Avellone’s 13F Portfolio: 3.15%
Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE: MA) is a technology firm, which provides transaction processing and other payment-related products and services. It was incorporated in 1966 and is placed ninth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Mastercard Incorporated (NYSE: MA) currently has a $344.95 billion market capitalization.
On July 29, Mastercard Incorporated (NYSE: MA) posted earnings for the second quarter of 2021. It reported earnings per share of $1.95, beating the estimates by $0.20. Revenue over the period was $4.5 billion, up 36.4% YoY, surpassing the expectations by $130 million.
The hedge fund managed by Peter Avellone holds 30,200 shares in Mastercard Incorporated (NYSE: MA), worth $11.03 million, representing 3.15% of their portfolio. Akre Capital Management is the most significant stakeholder in Mastercard Incorporated (NYSE: MA), with 5.87 million shares of the company worth $2.14 billion. Hedge fund sentiment increased for Mastercard Incorporated (NYSE: MA) in the second quarter. Insider Monkey’s data shows that 156 elite hedge funds held stakes in the company in the second quarter of 2021, up from 151 funds a quarter earlier.
In addition to United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX), Dynatrace, Inc. (NYSE:DT) is one of the notable stocks gaining investors’ attention in 2021.
8. Allegion plc (NYSE: ALLE)
Avellone’s Stake Value: $11,870,000
Percentage of Peter Avellone’s 13F Portfolio: 3.39%
Number of Hedge Fund Holders: 37
Allegion plc (NYSE: ALLE) is a global manufacturer and distributor of mechanical and electrical security devices and systems. The company was founded in 2013, and it ranks eighth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Allegion plc (NYSE: ALLE) currently has a $12.97 billion market capitalization and was able to deliver a 45.41% return in the past 12 months.
On September 1, Allegion plc (NYSE: ALLE) declared a quarterly dividend of $0.36 per share, in line with the previous. On July 23, Barclays analyst Julian Mitchell raised the price target on Allegion plc (NYSE: ALLE) to EUR 176 from EUR 165 and kept an “Overweight” rating on the shares.
The hedge fund chaired by Peter Avellone holds 85,212 shares in Allegion plc (NYSE: ALLE), worth $11.87 million, representing 3.39% of their portfolio. In the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth in Allegion plc (NYSE: ALLE), up from 27 the preceding quarter.
7. Mohawk Industries, Inc. (NYSE: MHK)
Avellone’s Stake Value: $13,645,000
Percentage of Peter Avellone’s 13F Portfolio: 3.9%
Number of Hedge Fund Holders: 44
Mohawk Industries, Inc. (NYSE: MHK) creates, produces, sources, distributes, and promotes flooring materials for residential and commercial remodeling and new construction. It was incorporated in 1988 and is placed seventh on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.
On August 2, RBC Capital analyst Michael Dahl raised the price target on Mohawk Industries, Inc. (NYSE: MHK) to $170 from $154 and maintained an “Underperform” rating on the shares. On July 29, Mohawk Industries, Inc. (NYSE: MHK) posted earnings for the second quarter of 2021. It declared earnings per share of $4.45, beating the estimates by $0.76. Revenue for the second quarter of 2021 was $2.95 billion, up 43.9% YoY, surpassing the predictions by $200 million.
Cartenna Capital holds 71,000 shares in Mohawk Industries, Inc. (NYSE: MHK), worth $13.65 million, representing 3.9% of their portfolio. The company is also getting the attention of the smart money, as 44 hedge funds tracked by Insider Monkey reported owning stakes in Mohawk Industries, Inc. (NYSE: MHK) in the second quarter of 2021, up from 36 funds a quarter earlier.
Like United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX), Mohawk Industries, Inc. (NYSE: MHK) is one of the notable stocks gaining investors’ attention in 2021.
6. Amphenol Corporation (NYSE: APH)
Avellone’s Stake Value: $13,764,000
Percentage of Peter Avellone’s 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 39
Amphenol Corporation (NYSE: APH) and its subsidiaries principally design, manufacture, and sell electrical, electronic, and fiber-optic connectors. The company was founded in 1932, and it stands sixth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.
On August 5, Amphenol Corporation (NYSE: APH) declared a quarterly dividend of $0.145 per share, in line with the previous. While on August 3, Cowen analyst Joseph Giordano raised the price target on Amphenol Corporation (NYSE: APH) to $80 from $75 and maintained an “Outperform” rating on the shares.
Peter Avellone’s Cartenna Capital holds 201,200 shares of Amphenol Corporation (NYSE: APH), worth $13.76 million. The hedge fund increased its stake in the firm by 249% in the second quarter of 2021. There were 39 hedge funds in our database that held stakes in Amphenol Corporation (NYSE: APH) in the second quarter of 2021, compared to 42 funds in the first quarter of 2021.
In addition to United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX), Amphenol Corporation (NYSE: APH) is one of the notable stocks gaining investors’ attention in 2021.
Richie Capital Group LLC, in its fourth–quarter 2020 investor letter, mentioned Amphenol Corporation (NYSE: APH). Here is what the fund said:
“Amphenol (APH – Up 18.7%) – In December, our high-speed, specialty connector manufacturer announced the acquisition of MTS Systems Corp for $1.7B to enhance their sensor products catalog. Having completed more than a dozen acquisitions since 2016, growth through acquisition is a key tenet of their business strategy and we view this transaction as business as usual. You can read more about our investment thesis for Amphenol here.”
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Disclosure: None. Top 10 Stock Picks of Peter Avellone’s Cartenna Capital is originally published on Insider Monkey.
