In this article, we discuss the top 5 stock picks of Cinctive Capital Management. If you want to check out a detailed analysis of the fund’s investment philosophy and current portfolio allocation strategies, go directly to Top 10 Stock Picks of Cinctive Capital Management.
5. General Motors Company (NYSE:GM)
Cinctive Capital Management’s Stake Value: $26,479,000
Percentage of Cinctive Capital Management’s 13F Portfolio: 0.98%
Number of Hedge Fund Holders: 76
General Motors Company (NYSE:GM) is an automobile manufacturer. It has been attempting to increase the number of electric vehicles it offers over the past couple of years. Volcon, Inc. (NASDAQ:VLCN) declared on August 12 that it would use General Motors Company (NYSE:GM)’s proven and tested electric propulsion systems in all of its off-road utility terrain vehicles. Volcon, Inc. (NASDAQ:VLCN) is the first all-electric off-road power sports firm.
Among the hedge funds being tracked by Insider Monkey, Ric Dillon’s Diamond Hill Capital is a significant shareholder of General Motors Company (NYSE:GM), with a $358.63 million stake in the company. At the end of the first quarter, 76 hedge funds were bullish on General Motors Company (NYSE:GM), compared to 90 in the previous quarter.
On July 27, Wedbush analyst Daniel Ives maintained an ‘Outperform’ rating while lowering his price objective on General Motors Company (NYSE:GM) from $50 to $42. The analyst said that a number of supply chain issues contributed to General Motors’ inconsistent Q2 results and hindered the Detroit-based giant’s performance, which he believed to be a short-term roadblock.
Though Cinctive Capital Management reduced its stake in General Motors Company (NYSE:GM) by 2% during the first quarter, the company remained the fund’s fifth-largest holding. Rich Schimel and Lawrence Sapanski’s Cinctive Capital Management owned 605,363 shares of General Motors Company (NYSE:GM) in Q1 2022, worth about $26.48 million.
In its first-quarter 2022 investor letter, Diamond Hill Capital mentioned General Motors Company (NYSE:GM). Here is what the fund said:
“General Motors—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”
4. Vistra Corp. (NYSE:VST)
Cinctive Capital Management’s Stake Value: $27,598,000
Percentage of Cinctive Capital Management’s 13F Portfolio: 1.02%
Number of Hedge Fund Holders: 40
Texas-based Vistra Corp. (NYSE:VST), a Fortune 275 integrated retail electricity and power-producing firm, announced a quarterly dividend of $0.184 per share, up 4% from its previous dividend of $0.177. For the fiscal second quarter of 2022, Vistra Corp. (NYSE:VST) reported a revenue of $1.59 billion, down 37.9% year over year.
On July 26, BofA’s analyst Julien Dumoulin-Smith removed Vistra Corp. (NYSE:VST) from Bank of America’s US1 List but maintained a ‘Buy’ rating and a price target of $28. The company, which was trading at an appealing 25%+ free cash flow, was one of the best options for benefiting from the commodities cycle’s favorable trends.
Cinctive Capital Management began building its stake in Vistra Corp. (NYSE:VST) in the fourth quarter of 2019. In the first quarter of 2022, it held 1.19 million shares of Vistra Corp. (NYSE:VST). These were worth $27.60 million and accounted for 1.02% of its portfolio. Vistra Corp. (NYSE:VST) is the fourth-largest holding of Rich Schimel and Lawrence Sapanski’s Cinctive Capital Management.
According to Insider Monkey’s Q1 data, 40 hedge funds were bullish on Vistra Corp. (NYSE:VST), with combined stakes of $1.64 billion, compared to the same number of funds in the earlier quarter, holding stakes in the company valued at $1.55 billion.
3. CenterPoint Energy, Inc. (NYSE:CNP)
Cinctive Capital Management’s Stake Value: $30,319,000
Percentage of Cinctive Capital Management’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 23
In the second quarter earnings published on August 2 by CenterPoint Energy, Inc. (NYSE:CNP), a holding company for public utilities, the EPS totaled $0.31, beating estimates by $0.04. In the first quarter of 2022, Cinctive Capital Management held 989,530 shares of CenterPoint Energy, Inc. (NYSE:CNP), which amounted to $30.32 million. CenterPoint Energy, Inc. (NYSE:CNP) occupied 1.12% of the hedge fund’s total portfolio.
Jim Simons’ Renaissance Technologies held a significant stake in CenterPoint Energy, Inc. (NYSE:CNP) at the end of the first quarter of 2022, equaling $21.83 million. Insider Monkey spotted 23 hedge funds that were long CenterPoint Energy, Inc. (NYSE:CNP) at the end of Q1 2022. The collective stakes of these hedge funds totaled $234.93 million, compared to $165.94 million a quarter ago with 25 positions.
Barclays analyst Eric Beaumont maintained an ‘Overweight’ rating on CenterPoint Energy, Inc. (NYSE:CNP) on July 18 while lowering his price objective to $33 from $36. Analysts revised their pricing predictions for the North American power and utilities segment to indicate a lower group multiple than originally assumed.
In its Q3 2021 investor letter, Miller Howard Investments highlighted a few stocks, and CenterPoint Energy, Inc. (NYSE:CNP) was one of them. Here is what the fund said:
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. Additionally, we trimmed CenterPoint Energy, Inc. (NYSE:CNP) after periods of relative strength. We had previously increased our positions in late 2020 and February 2021, respectively, after periods of relative weakness.”
2. Antero Midstream Corporation (NYSE:AM)
Cinctive Capital Management’s Stake Value: $37,696,000
Percentage of Cinctive Capital Management’s 13F Portfolio: 1.4%
Number of Hedge Fund Holders: 17
Antero Midstream Corporation (NYSE:AM) is an oil and gas transportation and storage company that operates via its Gathering and Processing and Water Handling divisions. With about 1.95 million shares valued at $21.2 million, Shah Capital Management is a prominent shareholder of Antero Midstream Corporation (NYSE:AM) as of Q1 2022.
On July 20, Barclays analyst Marc Solecitto reduced his price objective on Antero Midstream Corporation (NYSE:AM) to $9 from $10 and maintained an ‘Underweight’ rating on the stock. The analyst predicted strong Q2 midstream earnings and believed the business would do better than other energy subsectors under challenging trade conditions.
On July 27, Antero Midstream Corporation (NYSE:AM) posted earnings for the second quarter, reporting earnings per share of $0.20, missing market estimates by $0.03. In addition, revenue for the quarter was $228.91 million, below the analysts’ forecast by $9.37 million.
17 hedge funds reported having bullish bets on Antero Midstream Corporation (NYSE:AM) as of the end of the first quarter, with aggregate stakes worth $115.89 million. According to its 13F filings for the first quarter of 2022, Cinctive Capital Management held over 3.47 million shares of Antero Midstream Corporation (NYSE:AM), amounting to more than $37.70 million and representing 1.4% of the fund’s 13F portfolio. In addition, the hedge fund increased its stake in the firm by 11% during Q1.
1. Phillips 66 (NYSE:PSX)
Cinctive Capital Management’s Stake Value: $49,788,000
Percentage of Cinctive Capital Management’s 13F Portfolio: 1.85%
Number of Hedge Fund Holders: 41
Phillips 66 (NYSE:PSX) is one of the significant American refiners, with a crude throughput capacity of 2 million bpd. Its four business segments are Midstream, Chemicals, Refining, Marketing, and Specialties. According to Insider Monkey’s first quarter database, 41 hedge funds placed long bets on Phillips 66 (NYSE:PSX). The total stakes owned in the first quarter amounted to $1.38 billion.
On July 29, Phillips 66 (NYSE:PSX) announced an increase in second-quarter earnings as the American refiner benefited from soaring demand for gasoline and refined goods in the face of limited supply. As a result, realized refining margins increased from $10.55 per barrel in the first quarter to $28.31 per barrel in the second quarter. In addition, Phillips 66 (NYSE:PSX)’s EPS came in at $6.77, beating the market predictions by $1.01.
Jim Simons’ Renaissance Technologies is a prominent shareholder of Phillips 66 (NYSE:PSX), with 2.29 million shares worth approximately $187.81 million. In addition, Cinctive Capital Management loaded up on Phillips 66 (NYSE:PSX) in the first quarter, increasing its hold on the company by an impressive 246%. The hedge fund owns 576,315 shares of the company, worth $49.79 million.
On July 6, Theresa Chen of Barclays boosted her price objective on Phillips 66 (NYSE:PSX) from $95 to $113 while maintaining an ‘Overweight’ rating. The analyst raised her Q2 earnings per share prediction to $6.11, above the consensus of $4.81, owing mostly to a much larger contribution from refining.
You can also take a peek at Top 10 Stock Picks of Mark Gallogly’s Centerbridge Partners and Top 10 Stock Picks of Eli Casdin’s Casdin Capital.
