In this article, we discuss the top 10 stock picks of Rob Cope’s Columbus Point. If you want to skip our detailed analysis of Cope’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stock Picks of Rob Cope’s Columbus Point.
Rob Cope joined Lazard Asset Management in 1996 as an analyst. In 2003, Rob co-founded Cantillon Capital Management. He was the Global Equity Strategist at Cantillon from 2005 to June 2016. In 2017, Rob Cope founded Columbus Point.
Columbus Point is a global equities hedge fund located in London. The Columbus Point Global Equity Strategy is the firm’s only product. The hedge fund has a history of making money by investing in firms with strong long-term growth potential.
As of the third quarter, Columbus Point holds significant stakes in several top companies, including Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Spotify Technology S.A. (NYSE:SPOT).
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Here is a list of top 10 stock picks of Rob Cope’s Columbus Point. We used Cope’s 13F portfolio for Q3 2021 for this analysis.
Top Stock Picks of Rob Cope’s Columbus Point
10. UnitedHealth Group Incorporated (NYSE:UNH)
Columbus Point Stake Value: $11,040,000
Percentage of Columbus Point’s 13F Portfolio: 5.25%
Number of Hedge Fund Holders: 95
UnitedHealth Group Incorporated (NYSE:UNH) is a Minneapolis-based health insurance firm that offers private and public-sector organizations and individuals health benefit plans and services and Medicare programs.
Columbus Point added UnitedHealth Group Incorporated (NYSE:UNH) to its portfolio in the third quarter of 2021 by purchasing 28,253 shares. On December 20, Mizuho analyst Ann Hynes boosted her price objective on UnitedHealth Group Incorporated (NYSE:UNH) to $550 from $500 and kept a “Buy” rating on the shares.
At the end of the third quarter of 2021, 95 hedge funds in the database of Insider Monkey held stakes worth $11.71 billion in UnitedHealth Group Incorporated (NYSE:UNH), down from 105 in the preceding quarter worth $13.12 billion.
Like Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Spotify Technology S.A. (NYSE:SPOT), UnitedHealth Group Incorporated (NYSE:UNH) is one of the top stock picks of Rob Cope’s Columbus Point.
Third Point Management, in its third-quarter 2021 investor letter, mentioned UnitedHealth Group Incorporated (NYSE:UNH). Here is what the firm has to say:
“UnitedHealth is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty.
We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership…” (Click here to see the full text)
9. Nasdaq, Inc. (NASDAQ:NDAQ)
Columbus Point Stake Value: $13,196,000
Percentage of Columbus Point’s 13F Portfolio: 6.28%
Number of Hedge Fund Holders: 21
Nasdaq, Inc. (NASDAQ:NDAQ) is a holding firm that provides trading, clearing, exchange technology, regulation, securities listing, and information services to public and private companies. On December 22, Piper Sandler analyst Richard Repetto boosted his price target on Nasdaq, Inc. (NASDAQ:NDAQ) to $220 from $200 and maintained an “Overweight” rating on the shares.
With a $203.91 million stake in Nasdaq, Inc. (NASDAQ:NDAQ), Ric Dillon’s Diamond Hill Capital is the most significant shareholder of the company. In addition, our database shows that 21 hedge funds held stakes in Nasdaq, Inc. (NASDAQ:NDAQ) as of the end of the third quarter, versus 23 funds in the second quarter.
Artisan Partners mentioned Nasdaq, Inc. (NASDAQ:NDAQ) in its first-quarter 2021 investor letter. Here is what the fund said:
“We started new investment campaigns in Nasdaq. Nasdaq is the second-largest diversified global exchange and a technology provider for US and European capital markets. While the company is well-known for its US stock exchange, the current management team is transitioning Nasdaq away from this more mature and volatile business and toward faster-growing software and information service models. Most recently, the company’s acquisition of Verafin makes it a leader in software to help financial institutions detect financial crime (fraud, money laundering, etc.)—an increasingly critical regulatory challenge for customers. Over time, we think management can achieve its target of 70%-80% recurring revenues while increasing its revenue growth rate and margin profile.”
8. Canadian National Railway Company (NYSE:CNI)
Columbus Point Stake Value: $13,259,000
Percentage of Columbus Point’s 13F Portfolio: 6.31%
Number of Hedge Fund Holders: 42
Canadian National Railway Company (NYSE:CNI) and its subsidiaries are involved in the rail and related transportation industries. Canadian National Railway Company (NYSE:CNI) is the latest addition in Rob Cope’s Columbus Point portfolio, as the hedge fund bought 114,440 shares of the company, worth $13.26 million.
On December 16, National Bank analyst Cameron Doerksen increased his price target on Canadian National Railway Company (NYSE:CNI) to C$170 from C$153 and reiterated a “Sector Perform” rating on the shares.
In the third quarter, hedge fund sentiment increased for Canadian National Railway Company (NYSE:CNI). Insider Monkey’s data shows that 42 elite hedge funds held stakes in the company at the end of the third quarter, up from 40 funds a quarter earlier.
7. PayPal Holdings, Inc. (NASDAQ:PYPL)
Columbus Point Stake Value: $13,391,000
Percentage of Columbus Point’s 13F Portfolio: 6.37%
Number of Hedge Fund Holders: 123
PayPal Holdings, Inc. (NASDAQ:PYPL) is a worldwide financial technology firm based in the United States that operates an online payment system. Terry Smith’s Fundsmith LLP is PayPal Holdings, Inc.’s (NASDAQ:PYPL) most significant stakeholder, with 12.29 million shares worth $3.20 billion.
In December, Wedbush analyst Moshe Katri decreased his price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $220 from $240 and maintained an “Outperform” rating on the shares. According to the analyst, there is still evidence of erratic consumer spending, continued pandemic-related B&M shutdowns/travel slowdown, and likely decreased non-discretionary expenditures due to an inflationary price increase on essential goods.
Overall, 123 hedge funds monitored by Insider Monkey were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL) in the third quarter. The stakes of these funds are valued at $12.88 billion.
Baron Funds, in its third-quarter 2021investor letter, discussed PayPal Holdings, Inc. (NASDAQ:PYPL). Here is what the fund said:
“PayPal Holdings, Inc. – PayPal Holdings, Inc. (NASDAQ:PYPL) first caught consumers’ attention as a peer-to-peer digital payment application, particularly as a convenient and trustworthy way for eBay buyers to pay eBay sellers in the early days of online shopping. Over the years it expanded to become a nearubiquitous online retail payments platform, while also offering other shopping tools and digital services, such as digital wallet, bill pay, Buy Now-Pay Later, crypto-currency, in-store retail, and more. According to PayPal Holdings, Inc. (NASDAQ:PYPL)’s CEO, these new acts enabled the company to increase the TAM it “play[s] in” by “over six times in the last three years.” PayPal has 403 million active accounts today and is on its way towards its 750 million target by 2025 and 1 billion longer term, for a total TAM sized at over $1 trillion.”
6. VeriSign, Inc. (NASDAQ:VRSN)
Columbus Point Stake Value: $13,908,000
Percentage of Columbus Point’s 13F Portfolio: 6.62%
Number of Hedge Fund Holders: 40
VeriSign, Inc. (NASDAQ:VRSN) is a registrar of domain names and internet infrastructure providers. Columbus Point holds 67,840 shares in VeriSign, Inc. (NASDAQ:VRSN), worth $13.91 million. This represents 6.62% of their portfolio. The hedge fund’s stake in VeriSign, Inc. (NASDAQ:VRSN) decreased by 4% in the third quarter of 2021.
As of the end of the third quarter, 40 hedge funds in Insider Monkey’s database of 867 funds held stakes in VeriSign, Inc. (NASDAQ:VRSN), compared to 41 funds in the second quarter.
Just like Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Spotify Technology S.A. (NYSE:SPOT), VeriSign, Inc. (NASDAQ:VRSN) is gaining the attention of Rob Cope’s Columbus Point.
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Disclosure: None. Top 10 Stock Picks of Rob Cope’s Columbus Point is originally published on Insider Monkey.
