In this article, we discuss the top 5 stock picks of John Bader’s Halcyon Asset Management. If you want to read our detailed analysis of John Bader’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of John Bader’s Halcyon Asset Management.
5. Covanta Holding Corporation (NYSE:CVA)
Halcyon Asset Management’s Stake Value: $26.117 million
Percentage of Halcyon Asset Management’s 13F Portfolio: 4.22%
Number of Hedge Fund Holders: 23
Covanta Holding Corporation (NYSE:CVA) is an American company that provides industrial waste management services. Most of the company’s power plants are fueled by energy from waste and also do metal recovery for recycling. Apart from North America, Covanta Holding Corporation (NYSE:CVA) provides services in Europe and China.
In the third quarter of 2021, Covanta Holding Corporation (NYSE:CVA) had an EPS of $0.22 which was 24.53% over the analyst estimates.
Out of 867 hedge funds tracked by Insider Monkey, 23 of them held stakes in Covanta Holding Corporation (NYSE:CVA) worth $437.19 million.
4. NextDecade Corporation (NASDAQ:NEXT)
Halcyon Asset Management’s Stake Value: $26.37 million
Percentage of Halcyon Asset Management’s 13F Portfolio: 4.26%
Number of Hedge Fund Holders: 12
NextDecade Corporation (NASDAQ:NEXT) is a clean energy company specializing in liquefied natural gas (LNG) development and export. The company is working to decarbonize natural gas from the wellhead to the burner tip.
Billionaire James Dinan’s York Capital Management holds the largest stake in NextDecade Corporation (NASDAQ:NEXT) with 54.3 million shares worth $148.885 million.
3. Willis Towers Watson Public Limited Company (NASDAQ:WLTW)
Halcyon Asset Management’s Stake Value: $32.39 million
Percentage of Halcyon Asset Management’s 13F Portfolio: 5.23%
Number of Hedge Fund Holders: 75
Willis Towers Watson Public Limited Company (NASDAQ:WLTW) is an insurance brokerage and advisory company based in London, United Kingdom.
Willis Towers Watson Public Limited Company’s (NASDAQ:WLTW) coverage was initiated by Jefferies analyst Yaron Kinar on November 18. Yaron Kinar gave the company shares a Hold rating with a price target of $258.
Willis Towers Watson Public Limited Company (NASDAQ:WLTW) was mentioned by Vltava Fund in their third-quarter investor letter. Here is what it said:
“The second position is much larger and was thrown into our hands by an unexpected turn of events. It is the stock of Willis Towers Watson. This is a British company with roots dating back to 1828. WLTW is the third-largest insurance broker in the world. This is a sector with which we are very familiar, as some time ago we held in our portfolio shares of its slightly larger competitor AON.
It was AON in fact that announced last spring it had agreed to merge with WLTW. In the merger, WLTW shareholders would have received AON shares. As is usually the case with such announcements, investors stepped in to conduct what is known as merger arbitrage. In this particular case, they bought WLTW shares and sold short AON shares in order to profit from the fact that the prices of the two stocks did not yet fully reflect the exchange ratio in the merger. Moreover, merger arbitrage commonly makes extensive use of leverage in order to increase profits…” (Click here to see the full text)
2. Kansas City Southern (NYSE:KSU)
Halcyon Asset Management’s Stake Value: $33.04 million
Percentage of Halcyon Asset Management’s 13F Portfolio: 5.33%
Number of Hedge Fund Holders: 59
Kansas City Southern (NYSE:KSU) is a holding company that exclusively deals in transportation. It is headquartered in Kansas, Missouri, and has investments in USA, Mexico, and Panama. The company owns around 6,700 miles of railway track spreading across the United States and Mexico.
In the third quarter of 2021, Halcyon Asset Management owned 122,094 shares of Kansas City Southern (NYSE:KSU) worth $33.04 million. The fund also increased its activity in the company by 588%.
The Investment management firm, Miller/Howard Investments mentioned Kansas City Southern (NYSE:KSU) in their first quarter 2021 investor letter. Here is what it said:
“Canadian Pacific Railway (CP) agreed to acquire Kansas City Southern (KSU) in the largest rail deal in over a decade. The merger will create the first rail network connecting Canada, the US, and Mexico, and it should benefit from the passage of the USMCA Trade Agreement. We initiated a position in KSU in Q4 as we expected it to benefit from growing North American trade and viewed it as a consolidation candidate.”
1. Nuance Communications, Inc. (NASDAQ:NUAN)
Halcyon Asset Management’s Stake Value: $33.99 million
Percentage of Halcyon Asset Management’s 13F Portfolio: 5.49%
Number of Hedge Fund Holders: 61
Nuance Communications, Inc. (NASDAQ:NUAN) is a multinational corporation with computer software technology as its core business. In April 2021, Microsoft Corporation (NASDAQ:MSFT) announced that it will buy Nuance Communications, Inc. (NASDAQ:NUAN) for $19.7 billion.
Matthew Halbower’s Pentwater Capital Management holds the most significant stake in Nuance Communications, Inc. (NASDAQ:NUAN), with 17.565 million shares worth $9.66 million.
Artisan Partners mentioned Nuance Communications, Inc. (NASDAQ:NUAN) in their ‘Artisan Mid Cap Fund’ second quarter 2021 investor letter. Here is what the firm said:
“We ended our campaign in Nuance Communications. Nuance Communications is a leader in automated voice transcription technologies enabling physicians to document patient encounters more efficiently, accurately, and consistently. We believe the company’s DAX product is in the very early stages of its launch with a meaningful profit cycle opportunity ahead. However, the company announced early in Q2 it was being acquired by Microsoft. Thus, we harvested our GardenSM position.”
You can also take a peek at Yale University Stock Portfolio: Top 10 Picks and Top 10 Stock Picks of Brandon Osten’s Venator Capital Management.
