In this article, we discuss the top 5 stock picks of James Morrow’s Callodine Capital Management. If you want to read our detailed analysis of Morrow’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of James Morrow’s Callodine Capital Management.
5. Radian Group Inc. (NYSE:RDN)
Callodine Capital Management’s Stake Value: $13,992,000
Percentage of Callodine Capital Management’s Portfolio: 4.49%
Number of Hedge Fund Holders: 37
Radian Group Inc. (NYSE:RDN) and its subsidiaries operate in the finance and real estate services industries in the United States. In Q1 2022, Callodine Capital Management held 630,000 shares in Radian Group Inc. (NYSE:RDN), valued at $13.99 million. The company constituted 4.49% of the hedge fund’s portfolio.
Ryan Gilbert, a BTIG analyst, maintained a Buy rating on Radian Group Inc. (NYSE:RDN) but reduced his price target for Radian Group to $26 from $28 on April 12. In addition, to account for lower volumes of mortgages in the first half of this year and a rise in new defaults, the analyst decreased his EPS predictions for the firm.
As of the end of the first quarter, 37 hedge funds in Insider Monkey’s database were bullish on Radian Group Inc. (NYSE:RDN), an increase compared to 35 funds in the preceding quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is Radian Group Inc. (NYSE:RDN)’s most significant stakeholder, with 3.08 million shares worth $68.37 million.
4. Equitable Holdings, Inc. (NYSE:EQH)
Callodine Capital Management’s Stake Value: $14,257,000
Percentage of Callodine Capital Management’s Portfolio: 4.57%
Number of Hedge Fund Holders: 44
Equitable Holdings, Inc. (NYSE:EQH), with its subsidiary companies, provides diversified financial services globally. On May 25, Jimmy Bhullar, an analyst at JPMorgan, raised Equitable Holdings, Inc. (NYSE:EQH) to Overweight from Neutral and a price target of $36.
Callodine Capital Management upped its position in Equitable Holdings, Inc. (NYSE:EQH) by 27% or 96,250 shares. The hedge fund’s total holding of 461,250 shares was worth more than $14.26 million as of March 31. This represented 4.57% of its portfolio.
Equitable Holdings, Inc. (NYSE:EQH) recently saw a decline in hedge fund sentiment. The number of long hedge fund positions decreased to 44 at the end of the first quarter, compared to 45 in the previous quarter.
3. Verizon Communications Inc. (NYSE:VZ)
Callodine Capital Management’s Stake Value: $14,391,000
Percentage of Callodine Capital Management’s Portfolio: 4.62%
Number of Hedge Fund Holders: 69
Verizon Communications Inc. (NYSE:VZ) provides communications, technology, information, and entertainment goods and services to individuals, companies, and governments worldwide through its subsidiaries. On June 28, Scotiabank analyst Maher Yaghi initiated coverage of Verizon Communications, assigning an Outperform rating and a $59 price target.
The hedge fund chaired by Morrow held close to 282,500 shares in Verizon Communications Inc. (NYSE:VZ), worth over $14.39 million. It is the third-largest holding of the Boston-based fund. Callodine Capital Management’s stake in Verizon Communications Inc. (NYSE:VZ) increased by 62% in the first quarter of 2022.
According to Insider Monkey’s database, Verizon Communications Inc. (NYSE:VZ) was part of 69 public hedge fund portfolios as of Q1 2022. The total value of their holdings was $4.13 billion. In the first quarter of 2022, Verizon Communications Inc. (NYSE:VZ)’s largest shareholder was Ken Fisher’s Fisher Asset Management, which owned 16.79 million shares worth $855.16 million. The hedge fund boosted its stake in Verizon Communications Inc. (NYSE:VZ) by 72%.
Weitz Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q4 2021 investor letter. Here is what the firm said:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
2. Sixth Street Specialty Lending, Inc. (NYSE:TSLX)
Callodine Capital Management’s Stake Value: $14,451,000
Percentage of Callodine Capital Management’s Portfolio: 4.63%
Number of Hedge Fund Holders: 9
Sixth Street Specialty Lending, Inc. (NYSE:TSLX) is a corporate development organization. Sixth Street Specialty Lending, Inc. (NYSE:TSLX) issued a $0.41 per share quarterly dividend on May 3, in line with previous. The stock’s dividend yield reached 8.83% as of June 29.
Sixth Street Specialty Lending, Inc. (NYSE:TSLX) is the second-largest holding of James Morrow’s Callodine Capital Management. He began building his stake in Sixth Street Specialty Lending, Inc. (NYSE:TSLX) back in the second quarter of 2020. After purchasing an additional 125,500 shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX) stock in the first quarter, the hedge fund had a $14.45 million stake in the company.
9 out of the 912 hedge funds were long Sixth Street Specialty Lending, Inc. (NYSE:TSLX) in the first quarter of 2022, worth $40.88 million, compared to the same number of funds in the previous quarter, holding stakes in Sixth Street Specialty Lending, Inc. (NYSE:TSLX) totaling $41.94 million.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Callodine Capital Management’s Stake Value: $18,623,000
Percentage of Callodine Capital Management’s Portfolio: 5.97%
Number of Hedge Fund Holders: 70
Bristol-Myers Squibb Company (NYSE:BMY) is an American multinational pharmaceutical company with its headquarters in New York City. On June 5, BofA analyst Geoff Meacham raised his price objective on Bristol-Myers Squibb Company (NYSE:BMY) to $80 from $78 while maintaining a Buy rating on the stock.
According to a statement from Bristol-Myers Squibb Company (NYSE:BMY) Canada, Opdivo was authorized by Health Canada on June 28 as a mono-therapy for the supplementary treatment of adult urothelial carcinoma patients who are at higher risk of recurrence following UC radical resection.
By the end of the first quarter, 70 hedge funds monitored by Insider Monkey were bullish on Bristol-Myers Squibb Company (NYSE:BMY), valued at $2.43 billion. Of the 70 hedge funds, John Overdeck and David Siegel’s Two Sigma Advisors had the most significant stake in Bristol-Myers Squibb Company (NYSE:BMY). As of March 31, the fund’s stake in the company was $18.62 million, covering 5.97% of Callodine Capital Management’s 13F portfolio.
You can also take a peek at Top 10 Stock Picks of Roberto Mignone’s Bridger Management and Top 10 Stock Picks of Alec Litowitz and Ross Laser’s Magnetar Capital.
