In this article, we discuss the top 5 stock picks of Jacob Rothschild’s RIT Capital Partners. If you want to see more of the hedge fund’s top stocks, click Top 11 Stock Picks of Jacob Rothschild’s RIT Capital Partners.
5. Visa Inc. (NYSE:V)
RIT Capital Partners’ Stake Value: $16,251,000
Percentage of RIT Capital Partners’ 13F Portfolio: 5.75%
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is a California-based multinational financial services company that offers online payment solutions. Jacob Rothschild’s RIT Capital Partners held 75,000 Visa Inc. (NYSE:V) shares, worth $16.25 million, representing 5.75% of the total 13F portfolio.
On April 26, Visa Inc. (NYSE:V) reported its financial results for the first fiscal quarter of 2022. The company announced earnings per share of $1.79, above consensus by $0.14. Revenue for the period climbed 25.5% year-over-year to $7.19 billion, topping market estimates by $366.88 million.
According to Insider Monkey’s Q4 data, 142 hedge funds held long positions in Visa Inc. (NYSE:V), with collective stakes exceeding $29 billion. Chris Hohn’s TCI Fund Management is the biggest shareholder of the company, with a position worth $5 billion.
Piper Sandler analyst Christopher Donat on April 29 downgraded Visa Inc. (NYSE:V) to Neutral from Overweight with a price target of $239, down from $283. The analyst cited macro pressures, especially in Europe, for the downgrade. The analyst sees a European recession in 2023, which would impact payment transactions that drive revenue for Visa Inc. (NYSE:V).
Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American re-engaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparalleled scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
4. IQVIA Holdings Inc. (NYSE:IQV)
RIT Capital Partners’ Stake Value: $22,426,000
Percentage of RIT Capital Partners’ 13F Portfolio: 7.94%
Number of Hedge Fund Holders: 63
IQVIA Holdings Inc. (NYSE:IQV) was founded in 1982 and is headquartered in Durham, North Carolina. The company operates in the life sciences industry, offering advanced analytics, technology solutions, and clinical research services. Securities filings for Q4 2021 reveal that RIT Capital Partners owned a $22.4 million stake in IQVIA Holdings Inc. (NYSE:IQV), representing 7.94% of the total 13F portfolio.
IQVIA Holdings Inc. (NYSE:IQV) reported its Q1 earnings on April 27, posting an EPS of $2.47, beating market estimates by $0.05. The $3.57 billion revenue jumped 4.66% year-over-year, outperforming analysts’ predictions by $29.04 million.
On April 28, Piper Sandler analyst Jeff Garro upgraded IQVIA Holdings Inc. (NYSE:IQV) to Overweight from Neutral with a price target of $255, up from $231, after the company’s Q1 results went live. He believes that there is a strong buying opportunity in IQVIA Holdings Inc. (NYSE:IQV), whose “wide, deep, and global data assets are meaningfully ahead of competitors”, in addition to solid free cash flow and an improved balance sheet.
According to Insider Monkey’s Q4 data, IQVIA Holdings Inc. (NYSE:IQV) was found in the public stock portfolios of 63 hedge funds, with collective stakes in the company worth $4.2 billion. Thomas Steyer’s Farallon Capital is the leading shareholder of the company, with 2.93 million shares worth $826.8 million.
Here is what Cooper Investors has to say about IQVIA Holdings Inc. (NYSE:IQV) in its Q4 2021 investor letter:
“During the quarter, IQVIA held an Investor Relations day. Today IQVIA is a leading provider of technology solutions and clinical research services to the life science industry. The portfolio first invested in the IQVIA predecessor IMS Health in late 2015. IMS Health was taken private by private equity in 2010 and re-listed in 2014. Current CEO Ari Bousbib, a former executive at United Technologies was appointed CEO at its privatization and has been the driving force ever since.
Under Ari’s watch IMS first transformed itself from a drug prescription data business to a broader pharmaceutical services provider and then in 2016 merged with Quintiles, the leading Contract Research Organisation (CRO), a business that runs drug trials for pharmaceutical and biotech companies. This merger created the IQVIA we know today. While this was a merger on the surface it was anything but as IMS effectively took control of Quintiles with no premium paid, another in the long line of savvy moves made by Ari and the team.
Along the journey IQVIA management has consistently increased growth rates and expanded the opportunity set for the company. This is a highly commercial team that has built or sought out great quality businesses in attractive and growing life science markets. IMS was an ex-growth business in 2010 and by the time of the Quintiles merger had accelerated to low-to-mid single digits. With the addition of Quintiles and improvement across all aspects of the business revenue growth has been averaging high-single-digits.
At the IR day management now talked to a double-digit revenue growth opportunity. Their markets are growing as fast as they have ever been as more capital flows into biotech and life sciences development. While we have owned the shares for over six years, the business outlook today is the strongest we’ve ever seen it and IQVIA remains a core position.”
3. Mastercard Incorporated (NYSE:MA)
RIT Capital Partners’ Stake Value: $25,081,000
Percentage of RIT Capital Partners’ 13F Portfolio: 8.88%
Number of Hedge Fund Holders: 144
Mastercard Incorporated (NYSE:MA) is an American multinational fintech corporation that offers Mastercard-branded debit, credit, and prepaid cards to customers worldwide. Jacob Rothschild’s fund added Mastercard Incorporated (NYSE:MA) to its fourth quarter portfolio by buying 69,800 shares worth $25 million.
In its Q1 2022 earnings report, published on April 28, Mastercard Incorporated (NYSE:MA) posted earnings per share of $2.76, beating market consensus by $0.60. The $5.17 billion revenue also outperformed estimates by $267.59 million. Deutsche Bank analyst Bryan Keane on April 29 raised the firm’s price target on Mastercard Incorporated (NYSE:MA) to $440 from $420 and maintained a Buy rating on the shares, citing a “solid” Q1 beat and better than expected guidance.
According to the database of Insider Monkey, 144 hedge funds were long Mastercard Incorporated (NYSE:MA), compared to 146 funds in the preceding quarter. Charles Akre’s Akre Capital Management held the biggest stake in the company, with 5.8 million shares worth $2.10 billion.
Here is what Ensemble Capital has to say about Mastercard Incorporated (NYSE:MA) in its Q1 2022 investor letter:
“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”
2. Keurig Dr Pepper Inc. (NASDAQ:KDP)
RIT Capital Partners’ Stake Value: $67,731,000
Percentage of RIT Capital Partners’ 13F Portfolio: 23.98%
Number of Hedge Fund Holders: 31
Keurig Dr Pepper Inc. (NASDAQ:KDP) is a Massachusetts-based beverage company that operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages divisions. Jacob Rothschild’s RIT Capital Partners held a $67.7 million position in the company as of Q4 2021, representing roughly 24% of the total 13F securities.
On April 28, Keurig Dr Pepper Inc. (NASDAQ:KDP)’s earnings for Q1 2022 were posted. The company reported an EPS of $0.33, in line with consensus estimates. The $3.08 billion revenue grew 6.06% year-over-year and outperformed market predictions by $64.29 million.
Truist analyst Bill Chappell downgraded Keurig Dr Pepper Inc. (NASDAQ:KDP) on March 22 to Hold from Buy with a $40 price target. The analyst noted that the company’s coffee segment experienced an artificial lift over the past two years due to pandemic-driven consumer spending patterns. Heading into 2022, he sees a slowdown in the coffee segment, warning that the decline will be faster than anticipated by the Street.
According to the fourth quarter database of Insider Monkey, 31 hedge funds placed long calls on Keurig Dr Pepper Inc. (NASDAQ:KDP), compared to 33 funds in the prior quarter. Harris Associates is the leading shareholder of the company, with almost 49 million shares worth $1.80 billion.
Here is what ClearBridge Investments has to say about Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q1 2021 investor letter:
“Our underweights in health care and staples contributed to relative performance during the period. We also prefer to act with some caution in a sector where regulatory risks persist. In consumer staples, we are broadly finding valuations uncompelling and sold Keurig Dr Pepper during the quarter.”
1. Coupang, Inc. (NYSE:CPNG)
RIT Capital Partners’ Stake Value: $105,527,000
Percentage of RIT Capital Partners’ 13F Portfolio: 37.37%
Number of Hedge Fund Holders: 29
Coupang, Inc. (NYSE:CPNG) was incorporated in 2010 and is headquartered in Seoul, South Korea, operating as an e-commerce business. Jacob Rothschild’s RIT Capital Partners added Coupang, Inc. (NYSE:CPNG) to its Q4 2021 portfolio by purchasing 3.5 million shares worth $105.5 million. The stock represents 37.37% of the total 13F securities and is the biggest holding in the portfolio.
On April 7, Goldman Sachs analyst Eric Cha upgraded Coupang, Inc. (NYSE:CPNG) to Conviction Buy from Buy but lowered the price target to $37 from $52. The negative factors that have impacted the share price since the second half of 2021 include rising rates, industry growth deceleration on high comps, and the pandemic-driven capacity issues. However, the analyst also believes that the market is underestimating Coupang, Inc. (NYSE:CPNG)’s operating leverage potential, which he told investors has been hidden under COVID-19 induced expenditure.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were bullish on Coupang, Inc. (NYSE:CPNG) at the end of December 2021, down from 45 funds in the preceding quarter. Neil Mehta’s Greenoaks Capital is the biggest stakeholder of the company, with 115.8 million shares worth $3.40 billion.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire David Harding and 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.
