In this article, we discuss the top 4 stock picks of Jacob Rothschild’s RIT Capital Partners. If you want our detailed analysis of these stocks, go directly to the Top 9 Stock Picks of Jacob Rothschild’s RIT Capital Partners.
4. T-Mobile US, Inc. (NASDAQ:TMUS)
RIT Capital Partners’ Stake Value: $36,211,000
Percentage of RIT Capital Partners’ 13F Portfolio: 14.13%
Number of Hedge Fund Holders: 89
Based in Seattle, T-Mobile US, Inc. (NASDAQ:TMUS) is the second largest wireless network operator in the United States, after Verizon Communications Inc. (NYSE:VZ). RIT Capital Partners owns 283,500 shares in T-Mobile US, Inc. (NASDAQ:TMUS), valued at $36.2 million as of Q3, representing 14.13% of the firm’s portfolio.
T-Mobile US, Inc. (NASDAQ:TMUS) posted on November 2 its Q3 earnings. EPS for the quarter came in at $1.31, beating estimates by $0.82. The $19.62 billion revenue missed estimates by $593.78 million. As of Q3 2021, T-Mobile US, Inc. (NASDAQ:TMUS) reported 106.9 million subscribers.
Morgan Stanley analyst Simon Flannery raised the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $152 from $148 and kept an Overweight rating on the shares, following a Q3 earnings beat. T-Mobile US, Inc. (NASDAQ:TMUS) remained a top stock pick of the analyst due to its solid growth history, paired with expanding margins and free cash flow from merger synergies.
Andreas Halvorsen’s Viking Global is the largest T-Mobile US, Inc. (NASDAQ:TMUS) stakeholder, with over 10 million shares valued at $1.3 billion. Insider Monkey reported a total of 89 hedge funds who were bullish on T-Mobile US, Inc. (NASDAQ:TMUS) as of Q3 2021, down from 100 in the preceding quarter. The total stakes owned by the Q3 funds amounted to $6.92 billion.
Here is what ClearBridge Investments had to say about T-Mobile US, Inc. (NYSE:TMUS) in its Q1 2021 investor letter:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”
3. IQVIA Holdings Inc. (NYSE:IQV)
RIT Capital Partners’ Stake Value: $38,079,000
Percentage of RIT Capital Partners’ 13F Portfolio: 14.85%
Number of Hedge Fund Holders: 66
IQVIA Holdings Inc. (NYSE:IQV) is the largest human data science technology company, working in collaboration with pharmaceutical companies to carry out clinical trials and clinical research. Jacob Rothschild, via RIT Capital Partners, holds a $38 million position in IQVIA Holdings Inc. (NYSE:IQV), which accounts for 14.85% of the firm’s Q3 portfolio of investments.
At the end of September, 66 hedge funds monitored by Insider Monkey were long IQVIA Holdings Inc. (NYSE:IQV), with a total stake value of $3.75 billion. This is compared to 69 funds holding stakes in the company in Q2, with stakes valued at $3.8 billion. The leading IQVIA Holdings Inc. (NYSE:IQV) stakeholder is Thomas Steyer’s Farallon Capital, with 2.7 million shares worth $647.6 million.
On October 27, the Q3 EPS for IQVIA Holdings Inc. (NYSE:IQV) totaled $2.17, beating estimates by $0.05. Revenue for the period equaled $3.39 billion, up 21.72% year-over-year, outperforming estimates by $40.36 million.
Mizuho analyst Ann Hynes on November 18 raised the price target on IQVIA Holdings Inc. (NYSE:IQV) to $290 from $282 and kept a Buy rating on the shares. The analyst stated that the company’s earnings visibility remains high in the near to mid-term.
2. Visa Inc. (NYSE:V)
RIT Capital Partners’ Stake Value: $49,426,000
Percentage of RIT Capital Partners’ 13F Portfolio: 19.28%
Number of Hedge Fund Holders: 143
Facilitating electronic transfer of funds via Visa credit, debit, and prepaid cards, Visa Inc. (NYSE:V) is one of the most well known US financial services companies. As of Q3, 143 hedge funds reported owning stakes in Visa Inc. (NYSE:V), worth over $26 billion. This is compared to 162 hedge funds in the preceding quarter, with a total stake value of $27.6 billion. Chris Hohn’s TCI Fund Management is the leading Visa Inc. (NYSE:V) stakeholder, with 19.9 million shares valued at $4.44 billion.
RIT Capital Partners owns 222,000 shares in Visa Inc. (NYSE:V), as of the third quarter, worth $49.4 million, representing 19.28% of the firm’s stock portfolio. UBS analyst Rayna Kumar assumed coverage of Visa Inc. (NYSE:V) with a Buy rating and a $275 price target on November 17.
Visa Inc. (NYSE:V) posted Q3 earnings on October 26, with EPS in the quarter being $1.62, beating estimates by $0.08. The revenue came in at $6.65 billion, up 28.58% year-over-year, outperforming estimates by $45.89 million.
Here is what L1 Capital has to say about Visa Inc. (NYSE:V) in its Q3 2021 investor letter:
“In our view, the payment network company, Visa, remains very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. Nearer term, we believe the recovery in international travel as the world gradually normalises and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”
1. Keurig Dr Pepper Inc. (NASDAQ:KDP)
RIT Capital Partners’ Stake Value: $79,081,000
Percentage of RIT Capital Partners’ 13F Portfolio: 30.85%
Number of Hedge Fund Holders: 33
As the largest holding in Jacob Rothschild’s Q3 portfolio, Keurig Dr Pepper Inc. (NASDAQ:KDP) represents 30.85% of his fund’s total investments. Rothschild, via RIT Capital Partners, holds 2.31 million shares in Keurig Dr Pepper Inc. (NASDAQ:KDP), worth over $79 million. Keurig Dr Pepper Inc. (NASDAQ:KDP) is an American beverage corporation with more than 125 signature brands under its domain, including Gloria Jean’s Coffees, Krispy Kreme Doughnuts, Cinnabon, Tully’s Coffee, 7Up, Dr. Pepper, and Snapple, among others.
Keurig Dr Pepper Inc. (NASDAQ:KDP) posted its Q3 results on October 28. EPS in the period amounted to $0.44, in line with analysts’ consensus estimates. The revenue was up 7.62% as compared to the previous-year quarter at $3.25 billion, outperforming estimates by $90.96 million.
JPMorgan analyst Andrea Teixeira on October 4 lowered the price target on Keurig Dr Pepper Inc. (NASDAQ:KDP) to $40 from $42, and kept an Overweight rating on the shares. She stated that the company had strong growth potential, even though cost pressures would impact 2022 earnings.
Harris Associates is the leading Keurig Dr Pepper Inc. (NASDAQ:KDP) stakeholder as of September this year, holding a $1.61 billion position in the company. Overall, 33 hedge funds were bullish on Keurig Dr Pepper Inc. (NASDAQ:KDP) in the third quarter, up from 28 funds in the previous quarter.
Here is what ClearBridge Investments has to say about Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q1 2021 investor letter:
“Our underweights in health care and staples contributed to relative performance during the period. We also prefer to act with some caution in a sector where regulatory risks persist. In consumer staples, we are broadly finding valuations uncompelling and sold Keurig Dr Pepper during the quarter.”
You can also take a look at Retirement Stock Portfolio: 10 Safe Dividend Stocks To Consider and 11 Best Cryptocurrency Stocks To Buy According To Hedge Funds.
