Top 5 Stock Picks of John Armitage’s Egerton Capital

2. Canadian Pacific Railway Limited (NYSE:CP)

Egerton Capital’s Stake Value: $1,870,961,000

Percentage of Egerton Capital’s 13F Portfolio: 8.89%

Number of Hedge Fund Holders: 38

Canadian Pacific Railway Limited (NYSE:CP) is primarily a freight railway company that owns over 20,000 kilometers of railway tracks in Canada and the United States. Egerton Capital, as of Q3 2021, boosted its position in Canadian Pacific Railway Limited (NYSE:CP) by 47%, holding 28.75 million shares worth $1.87 billion, representing 8.89% of the fund’s total Q3 portfolio. 

Canadian Pacific Railway Limited (NYSE:CP) declared a C$0.19 per share quarterly dividend on October 19, payable on January 31, 2022 to shareholders of record on December 31. 

Citi analyst Christian Wetherbee raised the price target on Canadian Pacific Railway Limited (NYSE:CP) on January 5 to $84 from $80 and kept a Buy rating on the shares. The analyst reduced Q4 estimates for the rails but generally expects results to be in line with consensus, since yields are supposed to be “quite good,” offsetting weaker than expected volumes. This could be a source of upside relative to estimates.

Billionaire Andreas Halvorsen’s Viking Global is one of the leading Canadian Pacific Railway Limited (NYSE:CP) stakeholders from Q3 2021, with a $224.3 million position in the company. Overall, 38 hedge funds were bullish on the stock in the third quarter. 

Here is what ClearBridge Investments has to say about Canadian Pacific Railway Limited (NYSE:CP) in its Q1 2021 investor letter:

“We reoriented the portfolio for a more cyclical market in the fourth quarter and saw good performance in these areas from structural growth companies like Canadian Pacific Railway, which we repurchased during the quarter. Canadian Pacific pared gains after announcing the acquisition of Kansas City Southern that will create the first rail operator connecting the U.S., Mexico and Canada.”