In this article, we discuss the top 5 stock picks of David Dattels’ NewGen Asset Management. If you want to read our detailed analysis of Dattels’ history and hedge fund performance, go directly to Top 10 Stock Picks of NewGen Asset Management.
5. TC Energy Corporation (NYSE:TRP)
NewGen Asset Management’s Stake Value: $7.38 million
Percentage of NewGen Asset Management’s 13F Portfolio: 4.14%
Number of Hedge Fund Holders: 15
TC Energy Corporation (NYSE:TRP) is an energy company that operates natural gas and liquids pipelines across Canada, the United States, and Mexico. The company transports more than 25% of North America’s natural gas through its 57,500 miles of pipeline. The liquids pipeline transports close to 600,000 barrels of crude oil per day through a 3000-mile oil pipeline. The energy sector of TC Energy Corporation (NYSE:TRP) owns facilities that generate more than 6,500 MW through nuclear and natural gas sources.
TC Energy Corporation (NYSE:TRP) recently announced its collaboration with Hyzon Motors Inc. (NASDAQ:HYZN) on the development and operation of hydrogen production facilities across North America. TC Energy Corporation (NYSE:TRP) is set to operate the hubs, which will produce around 20 tons of hydrogen per hub each day.
TC Energy Corporation (NYSE:TRP) represents 4.14% of NewGen Asset Management’s portfolio. The fund owns 153,500 shares of the company, worth $7.38 million.
4. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
NewGen Asset Management’s Stake Value: $8.618 million
Percentage of NewGen Asset Management’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 15
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a Canada-based company that acquires, owns, develops, and operates infrastructure networks across the globe. The company’s core business revolves around transportation and storage of energy, water, freight, and passengers.
For the last 12 months, Brookfield Infrastructure Partners L.P. (NYSE:BIP) has been beating the EPS and revenue estimates by a considerable margin. In the third quarter of 2021, the company’s EPS was $0.72 against the $0.03 estimate. Similarly, Brookfield Infrastructure Partners L.P. (NYSE:BIP) also beat the revenue estimates by 151.98% after generating $2.94 billion compared to $1.17 billion analyst estimates.
On September 9, Brookfield Infrastructure Partners L.P.’s (NYSE:BIP) coverage was resumed with an Outperform rating by BMO Capital analyst Devin Dodge. Dodge raised the company’s price target from $61 to $63 and noted that the liquidity for the company was at record levels.
3. Suncor Energy Inc. (NYSE:SU)
NewGen Asset Management’s Stake Value: $10.37 million
Percentage of NewGen Asset Management’s 13F Portfolio: 5.82%
Number of Hedge Fund Holders: 32
Suncor Energy Inc. (NYSE:SU) is a Canadian integrated energy company. The company’s primary focus is the production of synthetic crude in Canada’s Athabasca oil sands. Additionally, it works with petroleum refining in the USA and Canada. Suncor Energy Inc. (NYSE:SU) is working towards becoming a net-zero greenhouse gas emissions company by 2050.
According to Insider Monkey’s database of 867 hedge funds, the hedge fund sentiment of Suncor Energy Inc. (NYSE:SU) has remained the same in the second and the third quarter of 2021, with 32 funds having a stake in the company.
2. Colliers International Group Inc. (NASDAQ:CIGI)
NewGen Asset Management’s Stake Value: $11.49 million
Percentage of NewGen Asset Management’s 13F Portfolio: 6.45%
Number of Hedge Fund Holders: 16
Colliers International Group Inc. (NASDAQ:CIGI) is an investment management company headquartered in Ontario, Canada. The company’s primary focus is real estate brokerage and management services. Furthermore, Colliers International Group Inc. (NASDAQ:CIGI) works in 68 countries worldwide and employs more than 15,000 people.
On October 26, the company’s price target was raised to $180 from $160 by RBC Capital analyst Matt Logan who kept an Outperform rating on Colliers International Group Inc.’s (NASDAQ:CIGI) shares.
Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management holds the most valuable stake in Colliers International Group Inc. (NASDAQ:CIGI) with 2.475 million shares worth $316.4 million, representing 8.19% of their portfolio.
LRT Capital Management mentioned Colliers International Group Inc. (NASDAQ:CIGI) in their second-quarter 2021 investor letter. Here is what it said:
“Colliers International Group is a commercial real estate brokerage and investment management company founded by Jay S. Hennick in 1976 in Toronto, Canada. From humble beginnings, the company has grown, primarily through acquisitions, to become one of the five largest commercial real estate brokerages in the world (the others being CBRE, Jones Lang LaSalle, Cushman & Wakefield, and Savills). The company today offers a full range of services and reports in the following segments: Outsourcing & Advisory (45% of revenue; this includes Engineering & Design services, Valuation services, and Property Management), Capital Markets (25% of revenue), Commercial Real Estate Leasing (24% of revenue), and Investment Management (6% of revenue). The company believes that about half of its revenue is recurring in nature. The Investment Management segment deserves special attention, as it is the result of an acquisition of the real estate investment management company Harrison Street in 2018. While the segment contributes the smallest part of revenues, it has a very high margin, contributing over 17% of the company’s EBITDA.
Colliers has historically grown by acquisition and we expect it to continue to do so. The real estate services market is highly fragmented outside of North America presenting ample opportunities for Colliers to continue its growth strategy. The company has been a good steward of shareholder capital and spun out FirstService Residential (FSV) in 2014 to maximize the value of that business. This spinout accounts for the drop in revenue in 2014 seen in the chart below.
Shares are +44.34% year-to-date and +133.44% over the past twelve months.”
1. Shaw Communications Inc. (NYSE:SJR)
NewGen Asset Management’s Stake Value: $21.545 million
Percentage of NewGen Asset Management’s 13F Portfolio: 12.09%
Number of Hedge Fund Holders: 21
Shaw Communications Inc. (NYSE:SJR) is a Canada-based telecommunications company founded in 1966. The company provides internet, television, telephone, and mobile services in Canada. On March 15, 2021, Rogers Communications Inc. (NYSE:RCI) announced acquiring Shaw Communications Inc. (NYSE:SJR) for $26 billion.
On October 29, the board of directors of Shaw Communications Inc. (NYSE:SJR) declared monthly dividends of $0.098542 per Class A Participating Share and of $0.09875 per Class B Non-Voting Participating Share payable on December 30, 2021, January 18, and February 25, 2022, to registered owners of the security.
Shaw Communications Inc. (NYSE:SJR) is the most significant investment in NewGen Asset Management’s portfolio. The firm owns 741,900 shares of Shaw Communications Inc. (NYSE:SJR) worth $21.545 million, making up 12.09% of the fund’s portfolio. Compared to the previous quarter NewGen Asset Management has increased its activity by 18% in Shaw Communications Inc. (NYSE:SJR).
You can also take a peek at the Top 10 Stock Picks of Brad Farber’s Atika Capital and 10 Safest Stocks To Buy Now.
