Top 10 Stock Picks of John Armitage’s Egerton Capital

Published January 14, 2022 at 11:01 am EST Updated August 19, 2026 at 12:30 pm EDT

In this article, we discuss the top 10 stock picks of John Armitage’s Egerton Capital.

John Armitage is a British-Irish billionaire who founded Egerton Capital in 1994, and currently serves as the portfolio manager and chief investment officer of the London-based hedge fund. With Q3 securities valued at over $21 billion and discretionary assets under management of $27.4 billion, Egerton Capital invests primarily in the transportation, communications, information technology, finance, and consumer discretionary sectors.

After graduating from Pembroke College in 1981, Armitage started his career at Morgan Grenfell the same year, which was a leading London-based investment bank of its time. Armitage remained with Morgan Grenfell for 13 years, and was promoted as the director of the bank’s asset management division. He ventured out in 1994 to start his own hedge fund.

Employing equity long/short and long-only strategies, Egerton Capital chooses a fundamental, research-intensive approach to investing. The most notable stocks in the third quarter portfolio of John Armitage’s fund include Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms, Inc. (NASDAQ:FB).

Top 10 Stock Picks of John Armitage's Egerton Capital

John Armitage of Egerton Capital

Our Methodology

We used the Q3 portfolio of John Armitage’s Egerton Capital to select the fund’s top 10 stock picks. We ranked the securities according to Egerton Capital’s stake value in each holding.

Top Stock Picks of John Armitage’s Egerton Capital

10. Comcast Corporation (NASDAQ:CMCSA)

Egerton Capital’s Stake Value: $910,251,000

Percentage of Egerton Capital’s 13F Portfolio: 4.32%

Number of Hedge Fund Holders: 75

Comcast Corporation (NASDAQ:CMCSA), a multinational American telecommunications conglomerate, is one of the top stock picks of John Armitage’s Egerton Capital, with the hedge fund increasing its stake in Comcast Corporation by 61% in the third quarter. Egerton Capital holds a $910.25 million position in the company, which represents 4.32% of the firm’s Q3 investments.

On October 26, Comcast Corporation declared a quarterly dividend of $0.25 per share, in line with previous, payable on January 26, 2022.

Comcast Corporation reported its Q3 results on October 28, posting earnings per share of $0.87, beating estimates by $0.12. Revenue over the period jumped 18.67% year-over-year to $30.30 billion, exceeding estimates by approximately $425 million.

Citi analyst Michael Rollins downgraded Comcast Corporation on December 15 to Neutral from Buy with a price target of $53, down from $60. The analyst believes the opportunity to unlock Comcast Corporation’s sum-of-parts value has become more difficult over the next 12 months, with pressure on cable multiples from slowing broadband growth.

Among the hedge funds tracked by Insider Monkey in the third quarter, 75 funds were bullish on Comcast Corporation, down from 84 funds in the preceding quarter. First Eagle Investment Management is the biggest Comcast Corporation stakeholder, with more than 29 million shares worth $1.6 billion.

Just like Alphabet Inc. and Meta Platforms, Inc., Comcast Corporation is a notable stock from Egerton Capital’s Q3 portfolio.

Here is what ClearBridge Investments has to say about Comcast Corporation in its Q2 2021 investor letter:

“We funded the shift primarily with trims in Comcast following big gains in this name. Comcast is a long-term holding that has been and remains core holdings. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.

Comcast, like Blackstone, has been a meaningful long-term holding whose stock performance has at times lagged its robust fundamental performance. Over the last nine months the stock price caught up some with the fundamentals and looked like it had more room to run. Our thesis on the name evolved, however, following the May 17 announcement that competitor Discovery was merging its operations with Time Warner. This deal positions the new company as a credible competitor to Netflix, Amazon Prime, Hulu and Disney, and results in Comcast being left without the proverbial dance partner in the evolving pay TV/DTC landscape. While we continue to believe Comcast’s cable systems business is well-positioned and that NBCUniversal remains valuable, the competitive dynamic for NBCUniversal has stiffened. Our reduced position size reflects both our continued enthusiasm for many parts of the franchise and emerging concerns given the evolving pay TV/DTC landscape.”

9. Canadian National Railway Company (NYSE:CNI)

Egerton Capital’s Stake Value: $916,455,000

Percentage of Egerton Capital’s 13F Portfolio: 4.35%

Number of Hedge Fund Holders: 42

Canadian National Railway Company (NYSE:CNI) is a Canadian freight railway organization from Montreal, operating in Canada, the American Midwest, and Southern United States. Egerton Capital acquired a position in Canadian National Railway Company during the third quarter of 2021, buying 7.92 million shares of the company, worth $916.45 million, representing 4.35% of the fund’s Q3 investments.

Canadian National Railway Company announced on November 3 that it is partnering with Renewable Energy Group, Inc. (NASDAQ:REGI), to test advanced renewable fuel blends that will support the company’s sustainability goals. Canadian National Railway Company is aiming for reduced greenhouse gas emissions from its locomotive fleet.

Publishing its Q3 results on October 19, Canadian National Railway Company reported an EPS of $1.23, beating estimates by $0.08. The quarterly revenue equaled $2.90 billion, up 11.81% year-over-year, surpassing estimates by $78.78 million.

Stephens analyst Justin Long raised the price target on Canadian National Railway Company to $132 from $126 and kept an Equal Weight rating on the shares on January 4. He has updated his Q4, 2022, and 2023 estimates ahead of earnings season to reflect reported AAR volumes and adjustments to several expense-related items in the rails group.

Billionaire Chris Hohn’s TCI Fund Management is the largest Canadian National Railway Company stakeholder, with 36.6 million shares, worth $4.24 billion. Overall, 42 hedge funds were long Canadian National Railway Company during the third quarter, with stakes totaling $7.3 billion.

8. CSX Corporation (NASDAQ:CSX)

Egerton Capital’s Stake Value: $989,311,000

Percentage of Egerton Capital’s 13F Portfolio: 4.70%

Number of Hedge Fund Holders: 56

John Armitage owns 33.2 million CSX Corporation (NASDAQ:CSX) shares as of September 2021, worth $989.3 million, representing 4.70% of his fund’s Q3 investments. CSX Corporation is a Florida-based rail transportation and real estate holding company.

CSX Corporation declared a $0.093 per share dividend on October 7, in line with previous. The dividend was paid on December 15, 2021.

In the third quarter earnings report, published on October 20, CSX Corporation announced an EPS of $0.43, beating estimates by $0.05. Revenue for the period gained 24.32% from the prior-year quarter, reaching $3.29 billion, outperforming estimates by roughly $230 million.

Stephens analyst Justin Long raised the price target on CSX Corporation on January 4 to $43 from $39 and kept an Overweight rating on the shares. Moving into 2022, he thinks the focus for rail group investors could shift more towards the industry’s ability to improve service metrics and drive better volume growth.

Of the 56 hedge funds that were bullish on CSX Corporation in the third quarter, Soroban Capital Partners is the largest company stakeholder, holding a total of 39.5 million shares worth $1.17 billion.

7. The Charles Schwab Corporation (NYSE:SCHW)

Egerton Capital’s Stake Value: $1,039,011,000

Percentage of Egerton Capital’s 13F Portfolio: 4.93%

Number of Hedge Fund Holders: 59

The Charles Schwab Corporation (NYSE:SCHW), a California-based multinational financial services company, is one of the top stock picks of John Armitage’s Q3 portfolio. Egerton Capital boosted its stake in The Charles Schwab Corporation by 127% in the third quarter, owning a total of 14.2 million shares worth $1.03 billion, representing 4.93% of the fund’s 13F securities.

The Charles Schwab Corporation, on October 26, declared a $0.18 per share quarterly dividend, in line with previous, paid on November 26.

On October 15, The Charles Schwab Corporation published its Q3 results. The company posted earnings per share of $0.84, exceeding estimates by $0.03. The quarterly revenue came in at $4.57 billion, up 86.68% year-over-year, surpassing estimates by $47.10 million. The Charles Schwab Corporation is expecting balance sheet growth in Q4, and the company’s assets climbed to $7.98 trillion in October.

Deutsche Bank analyst Brian Bedell raised the price target on The Charles Schwab Corporation to $120 from $100 and kept a Buy rating on the shares on December 17. The analyst heads into 2022 “even more constructive than at the start of 2021” on the brokers, asset managers, and exchanges sector.

David Blood and Al Gore’s Generation Investment Management is one of the leading stakeholders of The Charles Schwab Corporation, with 12.9 million shares worth $940.4 million. Overall, 59 hedge funds reported owning stakes worth $4.5 billion in The Charles Schwab Corporation in Q3 2021.

Here is what Ariel Fund & Ariel Appreciation Fund has to say about The Charles Schwab Corporation in its Q3 2021 investor letter:

“Additionally, financial services provider Charles Schwab Corporation (SCHW) was another strong performer in the period. Management has made progress increasing new and existing customer engagement through its multichannel approach and low-cost, high value product offerings—bolstering the company’s competitive positioning. Elevated interest rate expectations have been another driver of performance as SCHW reinvests deposits in securities and earns a spread. In our view, SCHW has the ability to weather various macro-economic and competitive pressures by flexing its scale and customer centric focus in support of the company’s industry leading cost advantage. We also believe the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s market place standing and long-term growth trajectory.”

6. Linde plc (NYSE:LIN)

Egerton Capital’s Stake Value: $1,052,110,000

Percentage of Egerton Capital’s 13F Portfolio: 4.99%

Number of Hedge Fund Holders: 46

Linde plc (NYSE:LIN) is a multinational company specializing in industrial gas production, medical gas and air separation, physical plant engineering, and logistics services, headquartered in Dublin, Ireland. Linde plc (NYSE:LIN) stock represents 4.99% of Egerton Capital’s Q3 portfolio, with the fund owning 3.5 million shares of the company, worth $1.05 billion.

Offering a forward yield of 1.34%, Linde plc (NYSE:LIN) declared a quarterly dividend per share of $1.06, in line with previous. The company paid the dividend on December 16 to shareholders of record on December 3.

Linde plc (NYSE:LIN) published its third quarter financial results on October 28, posting earnings per share of $2.73, beating estimates by $0.07. The $7.67 billion revenue exceeded estimates by $140.09 million.

Societe Generale analyst Peter Clark on January 4 raised the price target on Linde plc (NYSE:LIN) to $400 from $365 and reiterated a Buy rating on the shares. Linde plc (NYSE:LIN) is entering its sixth consecutive year as one of the analyst’s top sector picks, and the company is set for “structurally stronger growth and profitability, and even lower earnings volatility than it currently enjoys.”

46 hedge funds in the Q3 database of Insider Monkey were bullish on Linde plc (NYSE:LIN), down from 55 funds in the preceding quarter. Nicolai Tangen’s Ako Capital is the largest Linde plc (NYSE:LIN) stakeholder, with 3.80 million shares worth $1.12 billion.

In addition to Alphabet Inc. and Meta Platforms, Inc., Linde plc (NYSE:LIN) is a notable stock from John Armitage’s third quarter portfolio.

5. Visa Inc. (NYSE:V)

Egerton Capital’s Stake Value: $1,125,033,000

Percentage of Egerton Capital’s 13F Portfolio: 5.34%

Number of Hedge Fund Holders: 143

Visa Inc. (NYSE:V), a multinational financial services corporation known for electronic fund transfers via debit, credit, and prepaid cards, is one of the top holdings of Egerton Capital. The hedge fund owns more than 5 million shares of Visa Inc., worth $1.12 billion, representing 5.34% of the fund’s total Q3 investments.

Visa Inc. announced on December 15 a new share repurchase authorization of $12 billion, which brings the total funds available for future share repurchases to $13.2 billion. These authorizations do not have an expiration date.

Visa Inc. declared a $0.375 per share quarterly dividend on October 26, up 17.2% from the prior-quarter dividend of $0.320. The dividend was paid on December 7 to shareholders of record on November 12.

Wedbush analyst Moshe Katri lowered the price target on Visa Inc. to $240 from $270 and kept an Outperform rating on the shares on December 20. The analyst observed continued indications of choppy consumer spending, renewed pandemic-driven B&M shutdowns/travel slowdown, and lower spending on non-discretionary items given inflationary pricing pressure on staple goods.

TCI Fund Management is the biggest Visa Inc. stakeholder as of September 2021, with the hedge fund owning almost 20 million shares of the company, worth $4.44 billion. Overall, 143 funds were bullish on the stock during Q3.

Here is what L1 Capital has to say about Visa Inc. in its Q3 2021 investor letter:

“In our view, the payment network company, Visa, remains very well positioned to participate in an ever-expanding market for electronic payments. In time, ‘Buy now, Pay Later’ may have a modest impact on Visa’s transaction volumes, however in aggregate, we believe it will have the greater effect of supporting growth in electronic payments more broadly. Nearer term, we believe the recovery in international travel as the world gradually normalizes and learns to live with COVID-19 will be materially positive for Visa’s financial performance. eCommerce will also remain a positive key driver for Visa growth.”

4. Microsoft Corporation (NASDAQ:MSFT)

Egerton Capital’s Stake Value: $1,135,663,000

Percentage of Egerton Capital’s 13F Portfolio: 5.39%

Number of Hedge Fund Holders: 250

John Armitage owns more than 4 million Microsoft Corporation (NASDAQ:MSFT) shares as of September 2021, worth $1.13 billion, representing 5.39% of his Q3 portfolio.

SMBC Nikko analyst Steve Koenig on December 21 initiated coverage of Microsoft Corporation with an Outperform rating and a $410 price target, citing the company’s successful transition to the cloud, and Microsoft Corporation being “well positioned at the center of the big secular trends in software”.

In the third quarter of 2021, 250 hedge funds were long Microsoft Corporation, with total stakes amounting to $65.8 billion. Fisher Asset Management is the leading Microsoft Corporation stakeholder, holding 25.5 million shares worth $7.19 billion.

Here is what ClearBridge Sustainability Leaders Strategy has to say about Microsoft Corporation in its Q3 2021 investor letter:

“The Strategy modestly outperformed the benchmark; consistent with our fundamental approach that seeks balanced exposure to industries and the growth and value spectrum, performance was driven by companies from diverse sectors. Microsoft, which develops software including the Windows family of products, the Microsoft Office system and the Azure cloud platform, and is a leader in data protection and customer privacy as well as human rights and diversity, contributed strongly as earnings maintained positive sentiment. Microsoft is seeing a number of businesses reach a new, higher level of engagement, adoption and momentum.”

3. Charter Communications, Inc. (NASDAQ:CHTR)

Egerton Capital’s Stake Value: $1,528,358,000

Percentage of Egerton Capital’s 13F Portfolio: 7.26%

Number of Hedge Fund Holders: 74

Charter Communications, Inc. (NASDAQ:CHTR), an American telecommunications and mass media company, is one of the top stock picks of John Armitage’s Egerton Capital. The hedge fund elevated its stake in Charter Communications, Inc. by 21% during Q3 2021, holding a total of 2.1 million shares worth $1.52 billion, representing 7.26% of the 13F securities.

Wolfe Research analyst John Janedis on January 3 downgraded Charter Communications, Inc. to Underperform from Peer Perform with a price target of $621, down from $712, citing his view that cable operators will continue to see slower growth in their core broadband business over both the near and long-term.

As of September 2021, 74 hedge funds were long Charter Communications, Inc., with stakes amounting to $18.79 billion. Berkshire Hathaway is one of the largest Charter Communications, Inc. stakeholders, holding a $3.05 billion position in the company.

Here is what ClearBridge Investments has to say about Charter Communications, Inc. in its Q1 2021 investor letter:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where Charter trailed after generating robust returns earlier in the recovery.”

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 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 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 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 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 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.”

1. Alphabet Inc. (NASDAQ:GOOG)

Egerton Capital’s Stake Value: $2,276,913,000

Percentage of Egerton Capital’s 13F Portfolio: 10.82%

Number of Hedge Fund Holders: 156

Egerton Capital owns 854,277 Alphabet Inc. shares as of the third quarter of 2021, worth $2.27 billion, representing 10.82% of the fund’s 13F securities. Alphabet Inc. is the largest holding in John Armitage’s Q3 portfolio.

Alphabet Inc. announced on January 4 that given Google Cloud’s commitment to advancing invisible security and democratizing security operations for organizations, Alphabet Inc. has acquired Siemplify, a leading security orchestration, automation, and response provider. Siemplify will join Google Cloud’s security team to help companies better manage their threat response.

Observing the company’s increasing focus on artificial intelligence and consequent product innovation, Tigress Financial analyst Ivan Feinseth on December 3 raised the price target on Alphabet Inc. to $3,540 from $3,185 and reiterated a Strong Buy rating on the shares.

156 hedge funds were bullish on Alphabet Inc. in the third quarter, holding stakes worth approximately $35 billion. Harris Associates is one of the leading Alphabet Inc. stakeholders, with a $5 billion position in the company.

On October 26, Alphabet Inc. announced its Q3 earnings, posting an EPS of $27.99, outperforming estimates by $4.75.

Here is what Saturna Capital Amana Funds has to say about Alphabet Inc. in its Q3 2021 investor letter:

“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”

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