In this article, we discuss the top 5 stock picks of Leon Lowenstein’s Lionstone Capital Management. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Leon Lowenstein’s Lionstone Capital Management.
5. S&P Global Inc. (NYSE:SPGI)
Lionstone Capital Management’s Stake Value: $29,402,000
Percentage of Lionstone Capital Management’s 13F Portfolio: 7.69%
Number of Hedge Fund Holders: 71
S&P Global Inc. (NYSE:SPGI) is a New York-based financial services mega corporation that is the parent company to S&P Global Ratings, S&P Global Market Intelligence, S&P Global Platts, and CRISIL. In addition to that, S&P Global Inc. (NYSE:SPGI) also holds a majority stake in S&P Dow Jones Indices.
Lionstone Capital Management as of September this year maintains a steady position in S&P Global Inc. (NYSE:SPGI), with stakes valued at $29.4 million. Chris Hohn’s TCI Fund Management is the largest stakeholder of S&P Global Inc. (NYSE:SPGI), holding a $2.04 stake in the company. Overall, 71 hedge funds were bullish on S&P Global Inc. (NYSE:SPGI) at the end of June.
S&P Global Inc. (NYSE:SPGI) reported solid Q3 results on October 26, posting an EPS of $3.54, beating estimates by $0.39. The $2.09 billion Q3 revenue also exceeded analysts’ consensus estimates by $101.65 million.
Here is what Baron FinTech Fund has to say about S&P Global Inc. (NYSE:SPGI) in its Q1 2021 investor letter:
“S&P Global Inc. provides credit ratings, indexes, data, and analytics to the financial and commodities markets. Shares increased on strong fourth quarter results and 2021 guidance that exceeded Street expectations. Although bond issuance is expected to moderate after two years of exceptional growth, management still expects revenue to grow mid-single-digits this year. Also, shareholders overwhelmingly voted to approve the merger with IHS Markit. We continue to own the stock as we see a long runway for growth and significant competitive advantages for the company.”
4. FirstService Corporation (NASDAQ:FSV)
Lionstone Capital Management’s Stake Value: $29,419,000
Percentage of Lionstone Capital Management’s 13F Portfolio: 7.69%
Number of Hedge Fund Holders: 13
FirstService Corporation (NASDAQ:FSV), a Toronto-based residential real estate company, posted its Q3 earnings on October 26, with EPS for the quarter coming in at $1.50, topping estimates by $0.29. Revenue in the period totaled $849.43 million, up 14.49% year-over-year.
Lowenstein’s Lionstone Capital Management owns 163,006 shares in FirstService Corporation (NASDAQ:FSV), worth $29.4 million, representing 7.69% of the firm’s Q3 portfolio.
The largest FirstService Corporation (NASDAQ:FSV) stakeholder as per Insider Monkey’s database of elite funds is Jim Simons’ Renaissance Technologies, with a $151.1 million stake in the company. Overall, 13 hedge funds were long FirstService Corporation (NASDAQ:FSV) as of June this year.
Alger Weatherbie Specialized Growth Fund mentioned FirstService Corporation (NASDAQ:FSV) in its Q2 2021 investor letter. Here is what the fund said:
“FirstService Corp. was among the top contributors to performance. FirstService is a leading provider of property management services to owners and homeowners associations of community and high-rise properties, as well as branded services such as California Closets and CertaPro Painters for homeowners. FirstService continues to extend its significant scale advantage by using its free cash flow and strong balance sheet to complete value-enhancing acquisitions within the property management industry. We believe its ability to provide a greater breadth of higher quality services has positioned the company to gain significant market share.
The company reported another quarter with mid single-digit revenue growth as expected, while its profit margin improvement exceeded expectations, a result of strong results for its services that support transfer of property ownership during a time period when the company’s amenities services experienced seasonal weakness. Additionally, the company has been building momentum with its branded services such as California Closets as homeowners increasingly embrace do it for me rather than do it yourself. The company also united its restoration subsidiaries under a single brand called ‘First Onsite.’”
3. Black Knight, Inc. (NYSE:BKI)
Lionstone Capital Management’s Stake Value: $34,288,000
Percentage of Lionstone Capital Management’s 13F Portfolio: 8.97%
Number of Hedge Fund Holders: 33
Lionstone Capital Management holds 476,216 shares in Black Knight, Inc. (NYSE:BKI), as of September this year, valued at $34.2 million. The company accounts for 8.97% of the firm’s Q3 portfolio. Black Knight, Inc. (NYSE:BKI) is a Florida-based company that offers tech solutions and data analytics to the mortgage and real estate industries.
Black Knight, Inc. (NYSE:BKI), on November 8, posted its Q3 earnings results. EPS in the period totaled $0.60, beating estimates by $0.03. The $378 million revenue was up 20.92% from the prior-year quarter.
Dan Loeb’s Third Point is the largest stakeholder of Black Knight, Inc. (NYSE:BKI), holding 1.8 million shares worth $129.6 million. Overall, 33 hedge funds in the database of Insider Monkey reported owning stakes in the company, valued at more than $995 million.
2. Alphabet Inc. (NASDAQ:GOOG)
Lionstone Capital Management’s Stake Value: $35,305,000
Percentage of Lionstone Capital Management’s 13F Portfolio: 9.23%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) stock represents 9.23% of Lionstone Capital Management’s Q3 portfolio, with the firm owning 13,246 shares in the tech corporation, worth $35.3 million as of the third quarter of 2021.
Robert Joseph Caruso’s Select Equity Group is the largest Alphabet Inc. (NASDAQ:GOOG) stakeholder as per Insider Monkey’s records, holding a position worth $96.79 billion in the company. Overall, the Q2 database maintained by Insider Monkey suggests that 155 funds were bullish on Alphabet Inc. (NASDAQ:GOOG).
Alphabet Inc. (NASDAQ:GOOG) posted Q3 results on October 26, with an EPS of $27.99, outperforming estimates by $4.75. Similarly, the $65.12 billion revenue exceeded analysts’ consensus estimates by $1.83 billion. As a result of the solid Q3 performance, Jefferies analyst Brent Thill on October 27 raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,500 from $3,325 and kept a Buy rating on the stock.
Here is what Oakmark Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”
1. APi Group Corporation (NYSE:APG)
Lionstone Capital Management’s Stake Value: $41,256,000
Percentage of Lionstone Capital Management’s 13F Portfolio: 10.79%
Number of Hedge Fund Holders: 34
APi Group Corporation (NYSE:APG) is an American company offering safety, specialty, and industrial services in more than 200 locations around the world. Lowenstein’s Lionstone Capital Management holds a $41.2 million stake in the company, with APi Group Corporation (NYSE:APG) being its largest holding, representing 10.79% of Lowenstein’s Q3 portfolio.
As of the second quarter of 2021, 34 hedge funds monitored by Insider Monkey reported owning stakes in APi Group Corporation (NYSE:APG), up from 33 in the preceding quarter. The total value of these stakes is approximately $1.22 billion. The leading APi Group Corporation (NYSE:APG) stakeholder is Andreas Halvorsen’s Viking Global, which owns 33.3 million shares in the company, worth $678.3 million.
APi Group Corporation (NYSE:APG) on November 10 reported its Q3 results. EPS in the quarter totaled $0.35, beating estimates by $0.01. Revenue for Q3 came in at $1.05 billion, beating estimated revenue by $10.53 million.
Here is what Greystone Capital Management has to say about APi Group Corporation (NYSE:APG) in its Q2 2021 investor letter:
“For remaining clients who owned shares in The APi Group, I fully sold out of the position this quarter following a 70% plus price appreciation in order to allocate to potentially higher IRR opportunities that present better risk/rewards. I remain a fan of the business as well as Martin Franklin and team, and believe the future is bright. There is a chance we will again be owners of APG at some point in the future.”
You can also take a look at 10 Stocks That Beat Profit Expectations and Billionaire Stephen Mandel’s Top 10 Stock Picks.
