In this article, we discuss the top 5 stock picks of Dmitry Balyasny’s hedge fund. If you want to read our detailed analysis of Balyasny’s investment philosophy and performance, go directly to the Top 10 Stock Picks of Dmitry Balyasny’s Hedge Fund.
05. Trane Technologies plc (NYSE:TT)
Balyasny Asset Management’s Stake Value: $178.611 million
Percentage of Balyasny Asset Management’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders as of Q2, 2022: 38
Trane Technologies plc (NYSE:TT) was founded in 1885 and is situated in Swords, Ireland. Trane Technologies plc (NYSE:TT), together with its subsidiaries, engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration.
After Trane Technologies plc (NYSE:TT) Q2 earnings beat and narrowed outlook, BMO Capital analyst Joel Tiss, on August 15, raised his price target for the company to $180 from $155 and kept an Outperform rating on the shares. The company’s industry-leading HVAC franchisees and strong management team continue to excite the analyst. According to Tiss, Trane Technologies plc (NYSE:TT) “appears increasingly well suited” to gain from increased efforts toward air-quality tests and retrofits.
In its Q1 2022 investor letter, ClearBridge Investments Sustainability Leaders Strategy mentioned Trane Technologies plc (NYSE:TT) and explained its insights for the company. Here is what the fund said:
“Trane Technologies (NYSE:TT), another energy efficiency play in the industrials sector that should benefit from trends highlighted in the REPowerEU energy security plan, was a top detractor for the quarter, mainly due to continued supply chain headwinds raising costs. We think there is a strong secular tailwind for the cost and emissions savings Trane provides: the company makes products that help reduce energy consumption and emissions for residential and commercial HVAC and transport refrigeration, the minimization of food waste and other perishable goods and the increased productivity for Trane’s customers. Trane estimates ~15%-25% of all greenhouse gas emissions in the world are emitted through HVAC systems and buildings.”
04. The Boeing Company (NYSE:BA)
Balyasny Asset Management’s Stake Value: $178.632 million
Percentage of Balyasny Asset Management’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders as of Q2, 2022: 51
Balyasny Asset Management increased its stake in The Boeing Company (NYSE:BA) during Q2 by 345%, holding 1.3 million shares of The Boeing Company (NYSE:BA), worth $178.632 million. The shares of The Boeing Company (NYSE:BA) continue to have an Overweight rating from Morgan Stanley analyst Kristine Liwag, who raised his price target for the stock from $215 to $233 on September 8.
Meridian Funds discussed The Boeing Company (NYSE:BA) in the second quarter investor letter. Here is what the fund said:
“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”
03. TransDigm Group Incorporated (NYSE:TDG)
Balyasny Asset Management’s Stake Value: $180.966 million
Percentage of Balyasny Asset Management’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders as of Q2, 2022: 66
TransDigm Group Incorporated (NYSE:TDG) was founded in 1993 and is based in Cleveland, Ohio. TransDigm Group Incorporated (NYSE:TDG) designs, produces, and supplies aircraft components in the United States and internationally.
Balyasny Asset Management upped its stake in TransDigm Group Incorporated (NYSE:TDG) during Q2 by 254%. It held 337,202 shares of TransDigm Group Incorporated (NYSE:TDG), at the end of Q2, having a total worth of $180.966 million.
In its Q2 2022 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE:TDG) and explained its insights for the company. Here is what the fund said:
“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”
02. L3Harris Technologies, Inc. (NYSE:LHX)
Balyasny Asset Management’s Stake Value: $191.710 million
Percentage of Balyasny Asset Management’s 13F Portfolio: 0.62%
Number of Hedge Fund Holders as of Q2, 2022: 34
The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. (NYSE:LHX) was founded in 1895 and is based in Melbourne, Florida. L3Harris Technologies, Inc. (NYSE:LHX), an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide.
On September 28, L3Harris Technologies, Inc. (NYSE:LHX) was downgraded by Wells Fargo analyst Matthew Akers to Equal Weight from Overweight with a $238 price target, down from $272. The analyst believes that a considerable increase in U.S. military activity would be required for defense equities to rise above their current levels, which he sees as being unlikely in the foreseeable future. Akers anticipates continued supply chain delays and is unsure of “what might excite investors again” in regards to L3Harris Technologies, Inc. (NYSE:LHX).
Balyasny Asset Management is bullish on L3Harris Technologies, Inc. (NYSE:LHX) during Q2 as it increased its stake by 53%. At the end of Q2, Balyasny Asset Management held 793,174 shares of L3Harris Technologies, Inc. (NYSE:LHX), worth roughly $191.710 million.
01. Raytheon Technologies Corporation (NYSE:RTX)
Balyasny Asset Management’s Stake Value: $226.017 million
Percentage of Balyasny Asset Management’s 13F Portfolio: 0.73%
Number of Hedge Fund Holders as of Q2, 2022: 45
Raytheon Technologies Corporation (NYSE:RTX) is based in Waltham, Massachusetts. Raytheon Technologies Corporation (NYSE:RTX), an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide.
Ken Fisher’s Fisher Asset Management is the leading shareholder of Raytheon Technologies Corporation (NYSE:RTX) during Q2, holding 8.4 million of its shares worth $808.3 million. Hedge fund sentiment around Raytheon Technologies Corporation (NYSE:RTX) has decreased in the second quarter of 2022, with 45 hedge funds long the stock, compared to 51 in Q1 2022. Balyasny Asset Management holds 2.3 million shares of Raytheon Technologies Corporation (NYSE:RTX), valued at $226.017 million.
In its Q1 2022 investor letter, Carillon Eagle Growth & Income Fund mentioned Raytheon Technologies Corporation (NYSE:RTX) and explained its insights for the company. Here is what the fund said:
“Raytheon (NYSE:RTX) outperformed along with other defense contractors on rising geopolitical concerns. Military sales account for more than half of revenue. Key franchise programs include the Patriot Missile and F-35 engine, which have provided visible support through most of the decade.”
You can also take a peek at Top 10 Stock Picks of Roberto Mignone’s Bridger Management and Top 10 Stock Picks of John Hempton’s Bronte Capital.
