In this article, we discuss the top 5 stock picks of Alec Litowitz and Ross Laser’s Magnetar Capital. If you want to read our detailed analysis of Litowitz and Laser’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Alec Litowitz and Ross Laser’s Magnetar Capital.
5. Change Healthcare Inc. (NASDAQ:CHNG)
Magnetar Capital’s Stake Value: $163,082,000
Percentage of Magnetar Capital’s 13F Portfolio 1.74%
Number of Hedge Fund Holders: 50
By the end of the first quarter, Insider Monkey found Change Healthcare Inc. (NASDAQ:CHNG) to be a part of 50 hedge fund portfolios. The total stakes these funds had in the company are worth $1.81 billion, up from $1.60 billion in the prior quarter with 48 positions.
Change Healthcare Inc. (NASDAQ:CHNG) is working on a healthcare technology platform that provides data and analytics-driven solutions. David Abrams’ Abrams Capital Management is the most significant stakeholder of Change Healthcare Inc. (NASDAQ:CHNG) as of the first quarter of this year, holding 16.98 million shares worth almost $370.13 million.
Citi analyst Daniel Grosslight boosted his price objective on Change Healthcare Inc. (NASDAQ:CHNG) to $27.75 from $25.75 on June 6 and retained his Buy rating on the stock. According to the analyst, the company’s Q4 earnings were better than expected.
Magnetar Capital owns more than 7.48 million shares in Change Healthcare Inc. (NASDAQ:CHNG), worth over $163.08 million, representing close to 1.74% of their portfolio. The hedge fund has trimmed its stake in the firm by 12% in the first quarter.
4. First Horizon Corporation (NYSE:FHN)
Magnetar Capital’s Stake Value: $172,402,000
Percentage of Magnetar Capital’s 13F Portfolio: 1.83%
Number of Hedge Fund Holders: 44
First Horizon Corporation (NYSE:FHN) is a financial holding company that provides consumers and companies with checking accounts, savings products, mortgage banking, lending, and financing. First Horizon Corporation (NYSE:FHN) is one of the latest acquisitions of Magnetar Capital in Q1 2022. The hedge fund held shares worth over $172.40 million in the company, representing 1.83% of its 13F portfolio.
On May 31, First Horizon Corporation (NYSE:FHN) announced that The Toronto-Dominion Bank (NYSE:TD) had gained shareholder approval to buy First Horizon. The acquisition is scheduled to conclude in the first quarter of TD’s fiscal year 2023, subject to regulatory approvals in the United States and Canada and the satisfaction of other closing conditions.
Insider Monkey’s Q1 database shows that First Horizon Corporation (NYSE:FHN) remained popular among elite funds, with 44 hedge funds owning stakes in the Tennessee-based company, up from 24 in the previous quarter. These stakes hold an aggregate value of roughly $1.05 billion.
3. Activision Blizzard, Inc. (NASDAQ:ATVI)
Magnetar Capital’s Stake Value: $181,259,000
Percentage of Magnetar Capital’s 13F Portfolio: 1.93%
Number of Hedge Fund Holders: 80
Activision Blizzard, Inc. (NASDAQ:ATVI) is a Santa Monica, California-based video game holding corporation.
Activision Blizzard, Inc. (NASDAQ:ATVI) said on April 28 that its investors had accepted Microsoft Corporation (NASDAQ:MSFT)’s acquisition bid. On January 18, Microsoft revealed intentions to purchase Activision Blizzard in an all-cash transaction for $95.00 per share. The proposed deal is scheduled to conclude in Microsoft’s fiscal year ending June 30, 2023, subject to usual closing conditions and regulatory approval.
According to Insider Monkey’s Q1 2022 database, 80 hedge funds held stakes in Activision Blizzard, Inc. (NASDAQ:ATVI), compared with 70 hedge funds a quarter earlier. These stakes are collectively valued at over $9.48 billion, up from $3.66 billion worth of stakes held by hedge funds in Q4 2021.
Legendary investor and billionaire Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of Activision Blizzard, Inc. (NASDAQ:ATVI) out of the 912 hedge funds tracked by Insider Monkey, as of the end of the first quarter. The Oracle of Omaha owns 64.32 million shares of the company, worth $5.15 billion.
Baron Partners Fund mentioned Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q4 2021 investor letter. Here is what the fund said:
“The Fund’s Core Growth investments were negatively impacted by the market rotation to value-oriented businesses. Fundamentals for most of our Core Growth holdings remain strong. We exited two positions in this space, which included Activision Blizzard, Inc. We believe ESG concerns at Activision could be a negative for the company in the coming years.
Shares of Activision Blizzard, Inc., a leading video game publisher, detracted from performance. The company reported solid earnings results and maintained guidance for fiscal year 2021. However, the stock fell primarily due to a combination of increased concern around an employee lawsuit alleging sexual harassment and timing delays for two key Blizzard games (Diablo IV and Overwatch 2). We sold our position.”
2. Coherent, Inc. (NASDAQ:COHR)
Magnetar Capital’s Stake Value: $185,480,000
Percentage of Magnetar Capital’s 13F Portfolio: 1.97%
Number of Hedge Fund Holders: 36
Coherent, Inc. (NASDAQ:COHR) is a laser and optics company that serves optoelectronics, life sciences, industrial production, scientific and aerospace, and defense industries. Pentwater Capital Management held the most significant position in Coherent, Inc. (NASDAQ:COHR) in Q1, with stakes worth nearly $211.58 million.
Overall, 36 hedge funds in Insider Monkey’s database reported owning stakes in Coherent, Inc. (NASDAQ:COHR) at the end of March 2022, compared to 38 in the previous quarter. The total value of these stakes is roughly $1.54 billion.
II‐VI Incorporated (NASDAQ:IIVI), a Saxonburg, Pennsylvania-based maker of engineered materials and optoelectronic components, and Coherent, Inc. (NASDAQ:COHR), in close collaboration with II-VI, refiled their Premerger Notification and Report Form with the Federal Trade Commission and the US Department of Justice on May 3.
In the first quarter, Magnetar Capital decreased its stake in Coherent, Inc. (NASDAQ:COHR) by 4,510 shares, reducing its position by 1%. The hedge fund first invested in Coherent, Inc. (NASDAQ:COHR) in the second quarter of 2020. Magnetar Capital owns 678,519 shares of the company, worth more than $185.48 million as of Q1 2022.
Here is what Appleseed Fund said about Coherent, Inc. (NASDAQ:COHR) in its Q1 2021 investor letter:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Coherent (COHR). During the quarter, Coherent announced that it was being acquired, after which several other bidders emerged. Between the takeover announcement and the bidding war among Coherent suitors, the shares rallied strongly during the quarter.”
1. Cerner Corporation (NASDAQ:CERN)
Magnetar Capital’s Stake Value: $186,241,000
Percentage of Magnetar Capital’s 13F Portfolio: 1.98%
Number of Hedge Fund Holders: 64
Cerner Corporation (NASDAQ:CERN) provides health information technology services, systems, and hardware in the United States. Oracle Corporation (NYSE:ORCL) and Cerner Corporation (NASDAQ:CERN) announced an all-cash tender offer on December 20 for Oracle to purchase Cerner Corporation (NASDAQ:CERN) for $95.00 per share, or around $28.3 billion in equity value.
Magnetar Capital started its position in Cerner Corporation (NASDAQ:CERN) with shares worth $2.27 million in the fourth quarter of 2010. At the end of Q1 2022, the hedge fund held stakes worth roughly $186.24 million in the company, which represented 1.98% of its portfolio. Millennium Management, with approximately 5.53 million shares worth $517.05 million, is the largest shareholder of Cerner Corporation (NASDAQ:CERN) as of Q1.
On June 14, Jefferies analyst Brent Thill increased his price target on Oracle Corporation (NYSE:ORCL) from $75 to $80 while keeping his Hold rating.
As of Q1 2022, the hedge funds tracked by Insider Monkey remained bullish on Cerner Corporation (NASDAQ:CERN), as the company was a part of 64 portfolios, up from 61 a quarter earlier. These hedge funds held consolidated value of stakes stood at $4.17 billion.
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