In this article, we discuss the top 10 stocks to buy today according to Kerr Neilson’s Platinum Asset Management. If you want to see the top five holdings of the hedge fund, go directly to Top 5 Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management.
Kerr Neilson is an Australian investment manager and the co-founder of Platinum Asset Management. He is often dubbed as “Australia’s Warren Buffett” due to his stock-picking strategies and consistent fund performance. Platinum Asset Management specializes in managed funds, listed investment companies, ASX quoted managed funds, investment bonds, and offshore products.
Kerr Neilson co-founded Platinum Asset Management in 1994 along with Andrew Clifford. Neilson currently serves as a non-executive director of the hedge fund, whereas Clifford is the CEO and CIO. Neilson focused his fund’s investments in misunderstood companies without geographical or index weighting restrictions. These companies were mired with management issues, mispricing, or intuitive biases applied by market investors, which were later fixed by Platinum Asset Management. Kerr Neilson handed over the position of managing director and CEO to Andrew Clifford on 1 July 2018.
The hedge fund’s Q4 2021 portfolio is worth over $3.5 billion, with investments concentrated in the communications, materials, information technology, industrials, healthcare, finance, and consumer discretionary sectors. In the December quarter of 2021, Kerr Neilson’s Platinum Asset Management bought 11 new stocks, made additional purchases in 42 securities, sold out of 13 equities, and reduced holdings in 36 companies.
Some of the most notable stocks in Kerr Neilson’s Platinum Asset Management portfolio include Booking Holdings Inc. (NASDAQ:BKNG), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), among others discussed in detail below.
Kerr Neilson of Platinum Asset Management
Our Methodology
We used the Q4 2021 portfolio of Kerr Neilson’s Platinum Asset Management for this analysis, selecting the hedge fund’s top 10 stock picks.
Top Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management
10. Lam Research Corporation (NASDAQ:LRCX)
Platinum Asset Management’s Stake Value: $96,331,000
Percentage of Platinum Asset Management’s 13F Portfolio: 2.68%
Number of Hedge Fund Holders: 62
Lam Research Corporation (NASDAQ:LRCX) was incorporated in 1980 and is headquartered in Fremont, California. The company manufactures and markets semiconductor processing equipment used in the creation of integrated circuits. Kerr Neilson’s Platinum Asset Management owns 133,951 shares of Lam Research Corporation (NASDAQ:LRCX), worth $96.3 million, representing 2.68% of the total 13F portfolio.
Lam Research Corporation (NASDAQ:LRCX) reported financial results for Q1 2022 on April 20, posting earnings per share of $7.40, missing estimates by $0.11. The $4.06 billion revenue grew 5.53% year-over-year but fell short of analysts’ predictions by roughly $184 million.
On April 22, Jefferies analyst Mark Lipacis maintained a Buy rating on the shares but lowered the price target on Lam Research Corporation (NASDAQ:LRCX) to $670 from $869. The analyst noted that Lam Research Corporation (NASDAQ:LRCX) missed targets in the March quarter and gave a lower than expected June quarter guidance, but he thinks the bad news is embedded in the stock and he would “buy the concession”. He continues to view the company as a secular growth story due to bigger chips, increasing manufacturing complexity, and “semi-nationalization”.
According to Insider Monkey’s Q4 data, 62 hedge funds were bullish on Lam Research Corporation (NASDAQ:LRCX), compared to 47 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the biggest shareholder of the company, with 1.80 million shares worth about $1.30 billion.
In addition to Booking Holdings Inc. (NASDAQ:BKNG), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), Lam Research Corporation (NASDAQ:LRCX) is a notable stock to buy today according to Kerr Neilson’s Platinum Asset Management.
Here is what Vulcan Value Partners Large Cap Fund has to say about Lam Research Corporation (NASDAQ:LRCX) in its Q4 2021 investor letter:
“Lam Research Corp. was a material contributor during the quarter. The company designs and manufactures equipment used in the fabrication of semiconductors. Consolidation and key shifts within the industry have improved the company’s competitive position in the industry and are driving demand for more complex capital equipment. The company’s near-term outlook improved during the quarter as customers announced plans to increase capital spending.”
9. Intercontinental Exchange, Inc. (NYSE:ICE)
Platinum Asset Management’s Stake Value: $101,315,000
Percentage of Platinum Asset Management’s 13F Portfolio: 2.81%
Number of Hedge Fund Holders: 56
Intercontinental Exchange, Inc. (NYSE:ICE) is a Georgia-based company that manages regulated exchanges, clearing houses, and listings venues for commodity, fixed income, and capital markets in the United States, the United Kingdom, the European Union, Singapore, Israel, and Canada.
Securities filings for Q4 2021 reveal that Kerr Neilson’s Platinum Asset Management held 740,770 shares of Intercontinental Exchange, Inc. (NYSE:ICE), worth $101.3 million, representing 2.81% of the total 13F portfolio. The hedge fund trimmed its Intercontinental Exchange, Inc. (NYSE:ICE) stake by 2% in the December quarter.
On April 13, Citi analyst Ben Herbert reiterated a Buy recommendation on Intercontinental Exchange, Inc. (NYSE:ICE) but lowered the firm’s price target on the stock to $152 from $160. The analyst reduced multiples on the U.S. exchanges to account for higher geopolitical and macro uncertainty into the Q1 results.
Among the hedge funds tracked by Insider Monkey, Intercontinental Exchange, Inc. (NYSE:ICE) was found in the public stock portfolios of 56 hedge funds, compared to 48 funds in the preceding quarter. William Von Mueffling’s Cantillon Capital Management is the leading shareholder of the company, with 3.85 million shares worth $526.5 million.
Here is what Oakmark Funds has to say about Intercontinental Exchange, Inc. (NYSE:ICE) in its Q2 2021 investor letter:
“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”
8. Ciena Corporation (NYSE:CIEN)
Platinum Asset Management’s Stake Value: $104,089,000
Percentage of Platinum Asset Management’s 13F Portfolio: 2.89%
Number of Hedge Fund Holders: 32
Ciena Corporation (NYSE:CIEN) was founded in 1992 and is headquartered in Hanover, Maryland. The company provides telecommunications networking equipment and software services. Kerr Neilson’s fund owned 1.35 million shares of Ciena Corporation (NYSE:CIEN) in Q4 2021, worth $104 million, representing 2.89% of the total 13F securities.
Morgan Stanley analyst Meta Marshall on April 12 slashed the firm’s price target on Ciena Corporation (NYSE:CIEN) to $67 from $74 and maintained an Equal Weight rating on the shares. The analyst also lowered her view on the Telecom & Networking Equipment sector to Cautious from In-Line. Although the analyst still expects equipment and storage companies to “sound good” after their Q1 results given their backlog, she is now starting to see signs of weakness.
According to the fourth quarter database of Insider Monkey, 32 hedge funds held long positions in Ciena Corporation (NYSE:CIEN), compared to 28 funds in the earlier quarter. The total stakes held in Q4 2021 amounted to $467.2 million, up from $387 million. Ken Griffin’s Citadel Investment Group owned a significant stake in the company, with 814,564 shares worth $62.6 million.
Here is what Giverny Capital Asset Management has to say about Ciena Corporation (NYSE:CIEN) in its Q4 2021 investor letter:
“As for purchases, in the fourth quarter we established a new position in Ciena Corp. The logic behind our purchase of Ciena is similar to II-VI. Whereas a large chunk of II-VI’s business is in network communications, Ciena is entirely oriented to the sector. It makes optical equipment that transports voice and data on Internet and telecom networks. Ciena has been a technological leader for a long time, but for many years the industry itself was challenging. First, domestically Ciena relied heavily on two customers: Verizon and AT&T. The customers had negotiating power and drove hard bargains. Second, Ciena competed globally against Huawei, the Chinese state-owned telecom components manufacturer. Huawei might be described as caring more about market share than profit and it was hard for Ciena to make money competing against it.”
7. Alibaba Group Holding Limited (NYSE:BABA)
Platinum Asset Management’s Stake Value: $127,548,000
Percentage of Platinum Asset Management’s 13F Portfolio: 3.55%
Number of Hedge Fund Holders: 96
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology that specializes in e-commerce, cloud computing, artificial intelligence, entertainment, mobile commerce, and the internet retail sector. China is planning to pause its months-long campaign against technology companies, which is a positive indication for Alibaba Group Holding Limited (NYSE:BABA). However, the Chinese government is considering pushing the biggest tech companies to allow 1% equity positions to the state, so they can directly participate in corporate decisions.
13F filings for the fourth quarter of 2021 reveal that Kerr Neilson’s Platinum Asset Management owned more than 1 million shares of Alibaba Group Holding Limited (NYSE:BABA), worth $127.5 million, accounting for 3.55% of the total securities.
UBS analyst Jerry Liu reiterated a Buy recommendation on Alibaba Group Holding Limited (NYSE:BABA) but lowered the price target on the shares to $140 from $150 on April 11. The analyst is slashing his Q4 estimates to account for the incremental COVID-19 headwinds, in addition to the regulatory and macro impacts from 2021. However, he expects the company will control costs this year, and focus on efficiency improvements in its domestic operations, community group buying, and on-demand delivery initiatives. Shifting Alibaba Group Holding Limited (NYSE:BABA)’s Hong Kong listing to a primary one could also be an additional catalyst, the analyst told investors in a research note.
According to Insider Monkey’s Q4 data, 96 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA), compared to 115 funds in the earlier quarter. Alkeon Capital Management is a notable shareholder of the company, with a position worth $540.4 million.
Here is what Altron Capital Management has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2021 investor letter:
“The negative headlines surrounding Alibaba seemingly have no end and have certainly tested our conviction in this investment over the past half year or so. The company’s latest earnings report brought lower margins, partially because of slowdown in China and partially because of increased investment into its businesses. Alibaba also lowered its guidance for the coming year, adding even more pressure to the share price. Furthermore, the Chinese government’s talk of “common prosperity” and Alibaba’s USD 15.5 billion ‘investment’ toward the cause has not helped turn around short-term sentiment for Alibaba investors. Fellow tech giant Didi has also announced that they would delist from New York, sparking fears that Alibaba may be next. Despite all the negative press, we still maintain our bullish position in Alibaba. While increased government regulation will likely result in lower long-term margins and/or increased effective tax rates, we still believe the current share price drastically undervalues the company. The company’s core commerce business is still growing at double-digit rates, as are its cloud business and international ecommerce platform. The cloud business, once at scale, should provide high-margin growth offsetting some of the negatives of new regulations. With Alibaba currently trading at a low-teens multiple of future earnings, we see no reason to sell even though our estimate of the company’s fair value has certainly decreased since we first purchased shares in the company. The issues surrounding Alibaba are complex and addressing each issue surrounding the company would take up far too much space in these letters than we would like. However, any clients that have concerns about our investment in Alibaba that have not been addressed in previous letters or discussions are encouraged to contact us with your questions.
6. Barrick Gold Corporation (NYSE:GOLD)
Platinum Asset Management’s Stake Value: $135,620,000
Percentage of Platinum Asset Management’s 13F Portfolio: 3.77%
Number of Hedge Fund Holders: 46
Barrick Gold Corporation (NYSE:GOLD) is a Toronto-based company that explores, develops, and sells gold and copper properties. The company’s gold mines are located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States.
Securities filings for Q4 2021 report that Kerr Neilson’s Platinum Asset Management held over 7 million Barrick Gold Corporation (NYSE:GOLD) shares, worth $135.6 million, representing 3.77% of the total 13F portfolio.
On April 13, Barrick Gold Corporation (NYSE:GOLD) revealed plans to develop one of the world’s largest undeveloped copper and gold deposits – the Reko Diq deposit in Pakistan. This represents a $7 billion investment over two phases, and the project could deliver gold in 5-6 years.
Bernstein analyst Bob Brackett on April 25 downgraded Barrick Gold Corporation (NYSE:GOLD) to Market Perform from Outperform with a C$27 price target. The stock’s leverage to the gold price is at unsustainable levels, the analyst told investors. Gold is an insurance policy against dovish policy, but the 10-year TIPS yield has jumped “radically towards positive and is likely to increase”, which means the gold price will fall, bringing the gold equities down with it, said the analyst.
According to Insider Monkey’s Q4 database, Barrick Gold Corporation (NYSE:GOLD) was found in the public portfolios of 46 hedge funds, compared to 41 funds in the preceding quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 26.8 million shares worth $510.6 million.
Just like Booking Holdings Inc. (NASDAQ:BKNG), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), Barrick Gold Corporation (NYSE:GOLD) is on the radar of elite hedge funds.
Here is what ClearBridge Investments International Growth EAFE Strategy has to say about Barrick Gold Corporation (NYSE:GOLD) in its Q1 2022 investor letter:
“Also within the structural bucket, we have selectively added to our commodity exposure with the purchase of Barrick Gold (NYSE:GOLD). Canadian mining company Barrick Gold is a play on operating improvements. The company has aggressively delevered its balance sheet and reduced capex spending to a lower level more permanently, directing its healthy free cash flow to dividends and buybacks.”
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Disclosure: None. Top 10 Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management is originally published on Insider Monkey.
