In this article, we discuss the top 5 stock picks of Gregg Moskowitz’ Interval Partners. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Gregg Moskowitz’ Interval Partners.
5. Expedia Group, Inc. (NASDAQ:EXPE)
Interval Partners’ Stake Value: $42,991,000
Percentage of Interval Partners’ 13F Portfolio: 1.77%
Number of Hedge Fund Holders: 87
Expedia Group, Inc. (NASDAQ:EXPE) is a travel technology company, which facilitates private and small business travel. Through its websites and travel metasearch engines like expedia.com, Vrbo, hotels.com, hotwire.com, Orbitz, and Travelocity, among others, Expedia Group, Inc. (NASDAQ:EXPE) acts as a fare aggregator for users.
Interval Partners owns 262,603 shares in Expedia Group, Inc. (NASDAQ:EXPE), amounting to $42.99 million, representing 1.77% of Moskowitz’ 13F portfolio.
By the end of June, 87 hedge funds were long Expedia Group, Inc. (NASDAQ:EXPE), up from 86 in the previous quarter.
Here is what ClearBridge Investments has to say about Expedia Inc. in its Q1 2021 investor letter:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
4. Acuity Brands, Inc. (NYSE:AYI)
Interval Partners’ Stake Value: $52,883,000
Percentage of Interval Partners’ 13F Portfolio: 2.18%
Number of Hedge Fund Holders: 33
Acuity Brands, Inc. (NYSE:AYI) is one of the top stock picks of Gregg Moskowitz’ Interval Partners. It is a lighting and building management company from Georgia, which operates in North America, Europe, and Asia. Acuity Brands, Inc. (NYSE:AYI) is also the largest manufacturer of lighting in North America. The commercial and industrial lighting mega company is an S&P 400 Component.
Moskowitz’ Interval Partners owns 282,749 shares in Acuity Brands, Inc. (NYSE:AYI), with an approximate stake value of $52.88 million. Acuity Brands, Inc. (NYSE:AYI) represents 2.18% of Moskowitz’ 13F portfolio for Q2.
At the end of Q2, 33 hedge funds in Insider Monkey’s database were bullish on Acuity Brands, Inc. (NYSE:AYI), up from 31 in Q1.
3. Walmart Inc. (NYSE:WMT)
Interval Partners’ Stake Value: $56,365,000
Percentage of Interval Partners’ 13F Portfolio: 2.32%
Number of Hedge Fund Holders: 71
Walmart Inc. (NYSE:WMT) is an American multinational retail mega corporation, with hypermarkets, discount departmental stores, and grocery chains across the United States and Canada, as well as subsidiaries in multiple countries including Mexico, India, and Central America. Walmart Inc. (NYSE:WMT) has 10,524 stores in 24 countries, operating under 48 different brand names as of July 2021. Walmart Inc. (NYSE:WMT) is one of Gregg Moskowitz’ top stock picks.
Interval Partners owns stakes worth $56.36 million in Walmart Inc. (NYSE:WMT) as of the end of June, and the retail giant makes up 2.32% of the investment firm’s 13F portfolio.
On October 25, KeyBanc analyst Edward Yruma kept an Overweight rating on the stock, with a price target of $180. The analyst said that Walmart Inc. (NYSE:WMT) is positioned to grow further via e-commerce and digital advertising, since these channels present monetization opportunities.
At the end of Q2, 71 hedge funds were long Walmart Inc. (NYSE:WMT), up from 58 in the previous quarter. Fisher Asset Management is the leading stakeholder in Walmart Inc. (NYSE:WMT), with 12.6 million shares worth $1.78 billion.
2. Builders FirstSource, Inc. (NYSE:BLDR)
Interval Partners’ Stake Value: $57,433,000
Percentage of Interval Partners’ 13F Portfolio: 2.37%
Number of Hedge Fund Holders: 60
Builders FirstSource, Inc. (NYSE:BLDR) manufactures and supplies building materials, and it is the largest supplier of building products, prefabricated components and value-added services in the United States. The main clientele for Builders FirstSource, Inc. (NYSE:BLDR) belongs to the residential construction sector, as well as individuals invested in repair and remodeling. Operating in 550 locations across 40 states in the US, Builders FirstSource, Inc. (NYSE:BLDR) is one of the top stocks in Gregg Moskowitz’ 13F portfolio.
Interval Partners owns 1.34 million shares in Builders FirstSource, Inc. (NYSE:BLDR) as of Q2, amounting to $57.43 million, representing 2.37% of Moskowitz’ 13F portfolio.
Ken Fisher’s Fisher Asset Management owns 190,754 shares in Builders FirstSource, Inc. (NYSE:BLDR), valued at $9.87 million. Overall, 60 hedge funds tracked by Insider Monkey were long Builders FirstSource, Inc. (NYSE:BLDR) at the end of Q2, up from 48 in Q1.
Here is what Merion Road Capital Management has to say about Builders FirstSource, Inc. in its Q3 2021 investor letter:
“I added to our position in Builders FirstSource (“BLDR”) during the quarter. BLDR is the largest national supplier of structural building products and value-added components to the residential construction market. They have been active in consolidating the industry, most notably with the merger of BMC earlier this year. Like other distributors, BLDR benefits from scale advantages that afford them a robust product offering, enhanced purchasing power, and fixed cost leverage. They will continue to acquire smaller competitors and have announced 5 new deals so far this year.
I view the strategic benefit of these acquisitions in three different buckets. There are the core tuck-in acquisitions of facilities and customer lists that increase scale and geographic reach. An example would be the company’s May acquisition of John’s Lumber, a lumber and specialty product distributor serving the Detroit MSA, at 0.5x revenue. There are product acquisitions that leverage their platform to increase distribution and improve the product offering. For instance, last month BLDR announced the acquisition of California TrusFrame, a designer and manufacturer of prefabricated components like trusses and wall panels, at 1.3x revenue. And lastly BLDR has begun investing in software and services. In June they spent $450mm on the purchase of WTS Paradigm, a software company that addresses the complexity around building configuration, estimating, and manufacturing, at 9.0x revenue. By utilizing software in the planning process, WTS Paradigm cuts down on material and labor waste, ensures an optimal fit of product and design, and eases the contractor’s workload. BLDR has followed this up with a much smaller software acquisition in September.
BLDR is in the very early innings of their software investment, so it is difficult to pinpoint exactly how it will impact the company in the coming years. Management believes that there is a lot of low hanging fruit, pointing to a McKinsey study ranking the construction industry as second to last on overall digitization. If anyone has had any work done to their house, I am sure they can anecdotally attest to this. BLDR plans to leverage WTS Paradigm to increase internal productivity (i.e. improved estimating leading to fewer visits to the job site), cross-sell the software to existing clients, and drive greater adoption of value-added products. So thinking a few years out I think the goal would be to have higher margins on their commodity business, a greater mix of revenue coming from value added products, a stronger relationship with their customer, and an enhanced competitive advantage…” (Click here to see the full text)
1. CSX Corporation (NASDAQ:CSX)
Interval Partners’ Stake Value: $71,801,000
Percentage of Interval Partners’ 13F Portfolio: 2.96%
Number of Hedge Fund Holders: 56
An American holding company offering rail transportation and real estate services in North America, CSX Corporation (NASDAQ:CSX) is the top stock pick of Gregg Moskowitz’ Interval Partners. CSX Corporation (NASDAQ:CSX) is a Fortune 500 Company, operating railroads in the Eastern US and the Canadian provinces of Quebec and Ontario.
At the end of June, 56 hedge funds were bullish on CSX Corporation (NASDAQ:CSX), up from 53 in the previous quarter.
Deutsche Bank analyst Amit Mehrotra raised the price target on CSX Corporation (NASDAQ:CSX) from $38 to $41, and he kept a Buy rating on the stock.
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