Below is the list of top 5 stock picks of billionaire Louis Bacon. For a detailed discussion about Louis Bacon’s investment philosophy and portfolio management strategy please see Top 10 Stock Picks of Billionaire Louis Bacon.
5. ServiceNow, Inc. (NYSE:NOW)
Moore Global Investments’ stake value: $56 million
Percentage of Moore Global Investments’ portfolio: 1.11%
Number of hedge fund holders: 90
During the pandemic year and in the first half of 2021, ServiceNow, Inc. (NYSE:NOW) was one of the best-performing stocks, and Moore Capital benefited from the price surge by holding a large stake in the software company. However, the firm reduced its stake in the company in the past two consecutive quarters to take advantage of the recent share price run.
In the fourth quarter investor letter, ClearBridge Investments, an investment management firm, highlighted its confidence in the company. Here is what the firm stated:
“Offsetting the consumer slowdown, the Strategy benefited from resilience among its disruptive IT and communications holdings serving the enterprise market. ServiceNow is also a strong performer in helping businesses streamline their workflows and enhance customer relationships and marketing.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Moore Global Investments’ stake value: $64 million
Percentage of Moore Global Investments’ portfolio: 1.28%
Number of hedge fund holders: 282
Moore Global saw the dip in Amazon.com, Inc. (NASDAQ:AMZN) stock price as a buying opportunity during the December quarter. The firm lifted its stake in the company by more than 1450%. It is ranked fourth on our list of top 10 stock picks of billionaire Louis Bacon. Shares of the world’s largest e-commerce platform have been under pressure over the past six months amid prospects for slower revenue growth in the post COVID environment.
In the fourth quarter investor letter, ClearBridge Investments, an investment management firm, highlighted the confidence in future prospects of Amazon. Here is what the firm stated:
“With Amazon’s capex build largely done in 2020 and 2021, we believe it is now set up to generate robust revenue growth and margin expansion in all three of its key segments: e-commerce, cloud (AWS), and advertising. Amazon rebounded off post-invasion lows on the strength we experienced in e-commerce.”
3. Capital One Financial Corporation (NYSE:COF)
Moore Global Investments’ stake value: $67 million
Percentage of Moore Global Investments’ portfolio: 1.33%
Number of hedge fund holders: 61
Louis Bacon’s investment firm raised its stake in Capital One Financial Corporation (NYSE:COF) by 79% during the fourth quarter of 2021. It appears that Moore Global saw the dip in its share price as a buying opportunity. Shares of the American bank holding company are falling since it hit a 52-weeks high of $177 a share in September 2021. Interest rate hikes and bearish broader market performance negatively impacted its stock price in the past two quarters. On the positive side, the company continues paying dividends to shareholders. It currently offers a dividend yield of 1.80%.
Of the 924 hedge funds tracked by Insider Monkey, 61 were bullish about Capital One Financial Corporation as of December.
2. Microsoft Corporation (NASDAQ:MSFT)
Moore Global Investments’ stake value: $79 million
Percentage of Moore Global Investments’ portfolio: 1.58%
Number of hedge fund holders: 266
Microsoft Corporation (NASDAQ:MSFT) is among the favorite stocks of Louis Bacon’s hedge fund. The technology giant has generated double-digit financial growth in the past two years due to increasing demand for its products and services. Consequently, its share price appreciated sharply and the company returned hefty cash to shareholders in the form of dividends. Moreover, the company’s fundamentals appear strong with expectations for more than 15% revenue growth in the quarters ahead.
In the fourth quarter investor letter, Motiwala Capital, an investment management firm, mentioned a few stocks including Microsoft. Here is what Motiwala stated:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
1. Fisker Inc. (NYSE:FSR)
Moore Global Investments’ stake value: $132 million
Percentage of Moore Global Investments’ portfolio: 2.61%
Number of hedge fund holders: 21
Fisker Inc. (NYSE:FSR) was the largest stock holding of Moore Global Investments as of December. The huge investment in electric vehicle automakers hints that the billionaire is seeking to capitalize on the world’s move towards electric vehicles. According to a latest update, the Los Angeles-based company received 40,000 orders for its new Fisker Ocean sport utility vehicle, up from the 30,000 orders as of Feb. 14. The company is experiencing strong demand for its Fisker Ocean One launch edition and Fisker Ocean Extreme model, both priced at $68,999.
Bullish hedge fund positions increased in the company recently. It was in 21 portfolios as of December compared to 15 positions in the previous quarter.
You can also take a look at 10 Tech Stocks to Buy Now According to Late Michael Price’s MFP Investors and Consumer Staples Stocks To Buy According To Billionaire Ray Dalio.
