In this article, we discuss the top 5 stock picks of Frank Fu’s CaaS Capital. If you want to read our detailed analysis of Fu’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Frank Fu’s CaaS Capital.
5. Enphys Acquisition Corp. (NYSE:NFYS)
CaaS Capital’s Stake Value: $19,788,000
Percentage of CaaS Capital’s 13F Portfolio: 0.81%
Number of Hedge Fund Holders: N/A
Enphys Acquisition Corp. (NYSE:NFYS) was founded as a blank check corporation to execute a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or other similar business combination with one or more enterprises. Jorge de Pablo, Carlos Guimarães, Pär Lindström, and Matas de Buján founded the company on March 3, 2021. While Enphys Acquisition Corp. (NYSE:NFYS) may pursue a business combination target in any industry or geographic location, it plans to concentrate on companies in Ibero-America that have an energy transition and sustainability strategy, particularly renewable energy.
Enphys Acquisition Corp. (NYSE:NFYS) announced the pricing of its initial public offering (IPO) of 30 million shares at $10.00 per unit on October 5, 2021. Enphys Acquisition Corp. (NYSE:NFYS) is one of the top stock picks of Frank Fu as of Q1, with his hedge fund owning 2.05 million shares worth $19.79 million, representing 0.81% of CaaS Capital’s total investments.
4. The Charles Schwab Corporation (NYSE:SCHW)
CaaS Capital’s Stake Value: $21,813,000
Percentage of CaaS Capital’s 13F Portfolio: 0.89%
Number of Hedge Fund Holders: 78
The Charles Schwab Corporation (NYSE:SCHW), a savings and loan holding company, provides wealth management, securities brokerage, banking, asset management, custody, and financial advising services. CaaS Capital added The Charles Schwab Corporation (NYSE:SCHW) to its portfolio in the first quarter by buying 258,720 shares.
Analyst Brian Bedell of Deutsche Bank assigned the stock a Buy rating on May 19 but cut his price objective on The Charles Schwab Corporation (NYSE:SCHW) to $84 from $98. According to Bedell, fresh buying opportunities are emerging in the brokerage, asset management, and exchange sectors despite the stock market’s decline.
The Charles Schwab Corporation (NYSE:SCHW)’s largest investor is Natixis Global Asset Management’s Harris Associates, with 12.04 million shares worth $1.01 billion. During the first quarter of 2022, a poll of 912 hedge funds conducted by Insider Monkey revealed that 78 had held a stake in The Charles Schwab Corporation (NYSE:SCHW), up from 72 in the preceding quarter.
Baron Funds, in its Q1 2022 investor letter, mentioned The Charles Schwab Corporation (NYSE:SCHW). Here is what the fund said:
“Outperformance of the Fund’s investments in Communication Services, Financials, and Industrials and lower exposure to the lagging Consumer Discretionary sector added the most value. Within Financials, higher exposure to this outperforming sector and gains from online brokerage firm The Charles Schwab Corp (NYSE:SCHW) bolstered relative results. Schwab’s shares gained because of the positive impact higher interest rates will have on its future earnings.”
3. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)
CaaS Capital’s Stake Value: $22,298,000
Percentage of CaaS Capital’s 13F Portfolio: 0.91%
Number of Hedge Fund Holders: 27
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is a biopharmaceutical business that develops drugs to cure diseases that are difficult to treat by silencing the genes that cause them. Among the hedge funds tracked by Insider Monkey, 27 funds reported owning stakes worth $221.66 million in Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) at the end of Q1 2022, an increase as compared to 26 funds in the previous quarter, holding stakes in the company valued at approximately $186.38 million.
H.C. Wainwright analyst Patrick Trucchio maintained a Buy rating on Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) and boosted his price objective to $110 from $100 on June 3. According to Trucchio, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) gave helpful information on pulmonary targeted RNA interference therapies candidates for muco-obstructive illnesses, disruptive inflammatory pulmonary diseases, and chronic pulmonary fibrosis.
Marc Schneidman’s Aquilo Capital Management is the biggest shareholder of Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), with 1.05 million shares worth $48.17 million. In addition, Frank Fu initiated a new stake in Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) in the first quarter of 2022, buying 484,849 shares of the bio-pharma company, worth $22.30 million.
Here is what Carillon Tower Advisers has to say about Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) in its Q3 2021 investor letter:
“Arrowhead Pharmaceuticals develops gene silencing medicines used in the treatment of intractable diseases. Shares of the company’s stock fell after the company announced it was immediately pausing its phase 1/2 clinical study of a drug to be used for the treatment of cystic fibrosis, following a preliminary update that showed signs of local lung inflammation in a chronic toxicology study performed on rats.”
2. Constellation Energy Corporation (NASDAQ:CEG)
CaaS Capital’s Stake Value: $27,460,000
Percentage of CaaS Capital’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 47
Constellation Energy Corporation (NASDAQ:CEG) generates, distributes, and sells clean and renewable energy products and solutions. On May 12, Constellation Energy Corporation (NASDAQ:CEG) published earnings for the first quarter of 2022, announcing a revenue of $5.59 million, up 0.5% year over year.
Wells Fargo analyst Neil Kalton decreased his price objective on Constellation Energy Corporation (NASDAQ:CEG) from $75 to $70 on May 13 while maintaining an Overweight rating. Despite lowering his price target, he maintained his optimistic stance in the wake of the first quarter report, advising investors to take advantage of the stock’s low price.
By the end of the first quarter of 2022, Insider Monkey identified 47 hedge funds that had stakes in Constellation Energy Corporation (NASDAQ:CEG). The total value of these stakes was over $1.12 billion. Frank Fu’s hedge fund held 488,181 shares of Constellation Energy Corporation (NASDAQ:CEG) as of the end of the first quarter of 2022, which were worth $27.46 million and represented 1.12% of his portfolio.
1. Albertsons Companies, Inc. (NYSE:ACI)
CaaS Capital’s Stake Value: $33,250,000
Percentage of CaaS Capital’s 13F Portfolio: 1.36%
Number of Hedge Fund Holders: 39
Albertsons Companies, Inc. (NYSE:ACI) operates a grocery and pharmacy chain. Ivan Feinseth, a Tigress Financial analyst, boosted his price objective on Albertsons Companies, Inc. (NYSE:ACI) to $32 from $27 on April 29 and reiterated a Neutral rating on the stock.
Among the hedge funds tracked by Insider Monkey, 39 funds were bullish on Albertsons Companies, Inc. (NYSE:ACI), with collective stakes worth approximately $5.66 billion, up from 29 funds in the prior quarter, holding stakes in the company valued at roughly $4.93 billion.
CaaS Capital held 1 million shares in Albertsons Companies, Inc. (NYSE:ACI) as of the first quarter of 2022. The hedge fund’s investment in the company accounted for 1.36% of its portfolio in the first quarter, up from 0.28% in the fourth quarter of 2021. Also, as of the first quarter of 2022, Cerberus Capital Management is the leading stakeholder of Albertsons Companies, Inc. (NYSE:ACI), with over 151.82 million shares.
You can also take a peek at 10 Stocks to Buy According to GuardCap Asset Management and 9 Stocks to Buy in 2022 According to Mark Massey’s AltaRock Partners
