In this article, we discuss the top 11 stock picks of Jacob Rothschild’s RIT Capital Partners. If you want to see more of the hedge fund’s top stocks, click Top 5 Stock Picks of Jacob Rothschild’s RIT Capital Partners.
Jacob Rothschild is a British investment banker and a notable member of the Rothschild banking family. His alma mater is Christ Church, Oxford, and his family established Rothschild Investment Trust in 1961, which is now known as RIT Capital Partners. Jacob Rothschild chaired RIT Capital Partners from 1988 till September 2019, when he formally retired from the position. He remains the honorary president and a significant stakeholder of the hedge fund, with his family owning a 21% position.
The Q4 2021 portfolio of RIT Capital Partners is concentrated with investments in the consumer discretionary, consumer staples, healthcare, and finance sectors. The $282 million portfolio is now managed by Sir James Leigh-Pemberton, the non-executive chairman of the fund, and Francesco Goedhuis, the chief executive officer of RIT Capital Partners.
The hedge fund made 4 new purchases in the fourth quarter of 2021, sold out of 2 securities, and reduced positions in 3 equities. The most notable stocks in the Q4 portfolio of Jacob Rothschild’s RIT Capital Partners include Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V), among others discussed in detail below.
Our Methodology
We used the fourth quarter portfolio of Jacob Rothschild’s RIT Capital Partners to analyze the hedge fund’s top 11 stock picks. We have mentioned the analyst ratings and hedge fund sentiment for all companies. The list is ranked according to the RIT Capital Partners’ stake value in each holding.
Top Stock Picks of Jacob Rothschild’s RIT Capital Partners
11. Hippo Holdings Inc. (NYSE:HIPO)
RIT Capital Partners’ Stake Value: $815,000
Percentage of RIT Capital Partners’ 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 29
Hippo Holdings Inc. (NYSE:HIPO) is a California-based company that offers home protection insurance in the United States and the District of Columbia. Jacob Rothschild’s RIT Capital Partners owned 287,968 shares of Hippo Holdings Inc. (NYSE:HIPO) in the fourth quarter of 2021, worth $815,000, representing 0.28% of the total 13F securities.
On February 9, JMP Securities analyst Matthew Carletti initiated coverage of Hippo Holdings Inc. (NYSE:HIPO) with an Outperform rating and a $4 price target. The analyst is positive on the way Hippo Holdings Inc. (NYSE:HIPO) “re-thinks” homeowners insurance coverage, stating that its “modern, proactive” approach, paired with its omni-channel distribution and strong customer retention will lead to robust growth for several years.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were long Hippo Holdings Inc. (NYSE:HIPO) at the end of December 2021, with collective stakes worth about $52 million, compared to 23 funds in the previous quarter, holding stakes in the company valued at $88 million. Scott W. Clark’s Darlington Partners Capital is the leading shareholder of the company, with a position worth $8.49 million.
In addition to Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V), Hippo Holdings Inc. (NYSE:HIPO) is a notable stock in the Q4 portfolio of RIT Capital Partners.
10. NerdWallet, Inc. (NASDAQ:NRDS)
RIT Capital Partners’ Stake Value: $3,888,000
Percentage of RIT Capital Partners’ 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 13
NerdWallet, Inc. (NASDAQ:NRDS) was founded in 2009 and is based in San Francisco, California. The company operates a digital platform that offers personal finance advice by connecting individuals and corporate customers with providers of financial products and services.
In the fourth quarter of 2021, Jacob Rothschild’s RIT Capital Partners acquired 250,000 shares of NerdWallet, Inc. (NASDAQ:NRDS), worth $3.8 million, representing 1.37% of the total holdings. NerdWallet, Inc. (NASDAQ:NRDS) is a new addition in the hedge fund’s 13F portfolio. According to Insider Monkey’s Q4 data, 13 hedge funds were bullish on NerdWallet, Inc. (NASDAQ:NRDS), with collective stakes amounting to more than $46 million.
On March 15, Citi analyst Peter Christiansen maintained a Buy rating on NerdWallet, Inc. (NASDAQ:NRDS) but lowered the price target on the stock to $15 from $30. The analyst cited “tough external conditions” for the reduced price target, but told investors that his bullish thesis remains intact. He believes that NerdWallet, Inc. (NASDAQ:NRDS) should be a “strong rebounder” if the macro backdrop stabilizes.
9. NovaGold Resources Inc. (NYSE:NG)
RIT Capital Partners’ Stake Value: $4,494,000
Percentage of RIT Capital Partners’ 13F Portfolio: 1.59%
Number of Hedge Fund Holders: 18
NovaGold Resources Inc. (NYSE:NG) is based in Vancouver, Canada, exploring for and developing gold mineral properties in the United States. Jacob Rothschild’s RIT Capital Partners held 656,971 shares of NovaGold Resources Inc. (NYSE:NG) in Q4 2021, worth $4.49 million, representing 1.59% of the total 13F portfolio.
On April 5, NovaGold Resources Inc. (NYSE:NG) reported a FQ1 GAAP loss per share of $0.03, in line with analysts’ predictions. At the conclusion of the first quarter of 2022, the company’s cash and term deposits amounted to $155.1 million. The company expects an expenditure of $46 million in 2022, including corporate costs, withholding tax, expenditures at the Donlin Gold project, the 2022 drill program, external affairs, and project planning and fieldwork.
RBC Capital analyst Michael Siperco assumed coverage of NovaGold Resources Inc. (NYSE:NG) on February 7 with a Sector Perform rating and an $8 price target. The analyst was positive on the high quality deposits and the potential for more than 1 million ounces annual production over a course of 30+ years for the company’s Donlin project. However, he had a “more conservative” long-term gold price forecast around $1,500 per oz.
According to Insider Monkey’s Q4 data, 18 hedge funds reported long positions in NovaGold Resources Inc. (NYSE:NG), up from 16 funds in the prior quarter. John Paulson’s Paulson & Co is the leading shareholder of the company, with 22.2 million shares worth $152.4 million.
8. Panacea Acquisition Corp. II (NASDAQ:PANA)
RIT Capital Partners’ Stake Value: $8,721,000
Percentage of RIT Capital Partners’ 13F Portfolio: 3.08%
Number of Hedge Fund Holders: N/A
Panacea Acquisition Corp. II (NASDAQ:PANA) was incorporated in 2021 and is based in San Francisco, California. It operates as a special purpose acquisition company that aims to effect a merger, share exchange, asset acquisition, corporate reorganization, or similar business combinations with one or more firms in the biotechnology sector.
Securities filings for Q4 2021 reveal that Jacob Rothschild’s RIT Capital Partners held 900,000 shares of Panacea Acquisition Corp. II (NASDAQ:PANA), worth $8.72 million, representing 3.08% of the total 13F securities.
7. Meta Platforms, Inc. (NASDAQ:FB)
RIT Capital Partners’ Stake Value: $12,511,000
Percentage of RIT Capital Partners’ 13F Portfolio: 4.43%
Number of Hedge Fund Holders: 224
Meta Platforms, Inc. (NASDAQ:FB) is one of the Big Five American tech giants. Meta Platforms, Inc. (NASDAQ:FB)’s Reality Labs segment provides augmented and virtual reality products, making the company one of the leading metaverse contenders.
According to 13F filings for Q4 2021, Jacob Rothschild’s hedge fund acquired 37,200 Meta Platforms, Inc. (NASDAQ:FB) shares, worth $12.5 million, accounting for 4.43% of the total 13F holdings.
On April 27, Meta Platforms, Inc. (NASDAQ:FB) reported its Q1 2022 financial results, posting earnings per share of $2.72, above consensus by $0.21. Revenue for the period grew 6.64% from the prior-year quarter to $27.91 billion, but fell short of analysts’ predictions by approximately $314 million.
Evercore ISI analyst Mark Mahaney on April 28 reiterated an Outperform rating on Meta Platforms, Inc. (NASDAQ:FB) but lowered the firm’s price target on shares to $325 from $350. He observed three main concerns – ad platform impairment due to Apple’s privacy changes, monetization challenges due to Reels, and the competition from TikTok. However, he remains increasingly confident that Meta Platforms, Inc. (NASDAQ:FB) can successfully address these overhangs. Although he trimmed his price target, the analyst views the reward/risk outlook for Meta Platforms, Inc. (NASDAQ:FB) shares as “truly compelling” at present levels.
According to Insider Monkey’s database of elite funds, Meta Platforms, Inc. (NASDAQ:FB) was found in the public stock portfolios of 224 hedge funds, compared to 248 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a significant shareholder of the company, with a position worth $3.2 billion.
Here is what Bireme Capital has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q1 2022 investor letter:
“During the quarter we reinvested in Facebook. This is not the first time we’ve held a position in the company, which operates the largest and most profitable social media business in the world. We first bought shares in Q4 2018, after the Cambridge Analytica scandal caused the stock to drop to less than 20x earnings.
That investment was successful, with users and advertisers largely shrugging off the scandal and causing revenues to grow from $40b in 2017 to $86b in 2020. EPS rose from $6 to more than $10 in 2020, and we sold our shares between $250 and $300 in mid-2020 to reinvest in stocks that had seen share price dislocations due to the COVID-19 pandemic.
In Q1, Facebook investors once again got spooked, with shares falling almost 50% to under $200 per share. Today, shares trade at their lowest valuation ever: 12x earnings net of cash. We think the core business remains one of the best in the world and that issues surrounding TikTok competition, Zuckerberg’s investments in virtual reality, and changes to iOS tracking policies are largely overblown or over-discounted in today’s price. For our full thoughts on Facebook, please see our blog post here.”
6. Ribbit LEAP, Ltd. (NYSE:LEAP)
RIT Capital Partners’ Stake Value: $14,925,000
Percentage of RIT Capital Partners’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 23
Ribbit LEAP, Ltd. (NYSE:LEAP) is a blank check company that was incorporated in 2020 and is based in Palo Alto, California. It does not have significant operations as of now. In the fourth quarter of 2021, Jacob Rothschild’s RIT Capital Partners held 1.50 million shares of Ribbit LEAP, Ltd. (NYSE:LEAP), worth approximately $15 million, representing 5.28% of the total 13F holdings.
According to the fourth quarter database of Insider Monkey, 23 hedge funds were bullish on Ribbit LEAP, Ltd. (NYSE:LEAP), with combined stakes worth $219 million. Daniel Sundheim’s D1 Capital Partners is the biggest shareholder of the company, with 3 million shares worth roughly $30 million.
Elite investors are piling into Ribbit LEAP, Ltd. (NYSE:LEAP), just like Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V).
Click to continue reading and see Top 5 Stock Picks of Jacob Rothschild’s RIT Capital Partners.
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Disclosure: None. Top 11 Stock Picks of Jacob Rothschild’s RIT Capital Partners is originally published on Insider Monkey.
