Below is the list of the top 5 stock picks of Philip Best’s Quaero Capital. For a comprehensive list and detailed discussion about Philip Best’s investment strategy, please see the Top 10 Stock Picks of Philip Best’s Quaero Capital.
5. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Quaero Capital’s Stake Value: $6.5 million
Percentage of Quaero Capital’s 13F Portfolio: 4.49%
Number of Hedge Fund Holders: 10
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI), the capital and services provider to the renewable energy and other sustainable infrastructure markets, is one of the best stocks to buy and hold for the long term. Investing in this company could result in strong returns for investors in the form of dividends and share price gains. Its dividends and stock price gains are backed by robust financial numbers. In the third quarter, it generated distributable earnings per share of $0.41 compared to $0.36 for the same period in 2020.
Of the 873 hedge funds tracked by Insider Monkey, 10 were bullish about Hannon Armstrong Sustainable Infrastructure Capital as of June. Philip Best’s Quaero Capital, which is the leading stakeholder in the company, also lifted its existing position by 2% to 122,600 shares.
4. NextEra Energy, Inc. (NYSE:NEE)
Quaero Capital’s Stake Value: $6.63 million
Percentage of Quaero Capital’s 13F Portfolio: 4.54%
Number of Hedge Fund Holders: 59
Philip Best’s Quaero Capital increased its stake in NextEra Energy, Inc. (NYSE:NEE) by 16% to 84,467 shares as of the end of September. NextEra Energy, Inc. (NYSE:NEE) is a great stock for long-term investors who prefer to get steady income in the form of dividends while growing their capital. The company currently offers a dividend yield of around 1.80% and its share price increased by 14% in the last twelve months. NextEra‘s financial numbers are increasing at a solid pace. Its third-quarter adjusted earnings hit $1.48 billion compared to $1.31 billion a year ago. It expects to post full-year 2021 earnings per share in the range of $2.40-$2.54.
NextEra Energy, Inc. (NYSE:NEE) was in 59 hedge funds’ portfolios as of June. Ken Fisher’s Fisher Asset Management and Aequim Alternative Investments were the leading stakeholders in the company.
3. Futu Holdings Limited (NASDAQ:FUTU)
Quaero Capital’s Stake Value: $7 million
Percentage of Quaero Capital’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 31
Futu Holdings Limited (NASDAQ:FUTU), Hong Kong-based online brokerage and wealth management platform, was the third-largest stock holding of Philip Best’s Quaero Capital as of June. The company’s share price plunged sharply in the past couple of months amid regulatory risk. Besides that, the company’s financial metrics are growing at a staggering rate. Its total paying clients increased by 84.0% year-over-year in the June quarter and the number of registered clients grew by 55.4%, resulting in a 164.6% increase in revenue.
Of the 873 elite funds tracked by Insider Monkey, 31 were bullish about Futu Holdings Limited (NASDAQ:FUTU) as of June. Andrew Dalrymple And Barry Mccorkell’s Aubrey Capital Management was the leading stakeholder in the company.
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Quaero Capital’s Stake Value: $7.5 million
Percentage of Quaero Capital’s 13F Portfolio: 5.19%
Number of Hedge Fund Holders: 44
Enphase Energy, Inc. (NASDAQ:ENPH), the seller of home energy solutions for the solar photovoltaic industry, is benefiting from the drive towards clean energy. This is also reflected in its share price rally of close to 100% in the last twelve months. Its third-quarter revenue doubled year over year to a quarterly record of $351.5 million, with expectations for $390-$410 million in revenues for the December quarter.
ClearBridge Investments, an investment management firm, mentioned Enphase Energy in the second quarter investor letter. Here is what ClearBridge Investments stated:
“Also in the solar space, we initiated a position in Enphase Energy (classified in the IT sector), which designs and manufactures microinverters for residential and small commercial solar photovoltaic (PV) systems. Enphase was the first company to commercialize microinverters for residential and small commercial solar PV systems. A microinverter, a type of MLPE, is a small inverter placed directly on the back of each solar module, as opposed to the traditional system of one string inverter on the side of the building.”
1. Albemarle Corporation (NYSE:ALB)
Quaero Capital’s Stake Value: $8.2 million
Percentage of Quaero Capital’s 13F Portfolio: 5.67%
Number of Hedge Fund Holders: 28
As of September, specialty chemical company Albemarle Corporation (NYSE:ALB) was the most significant contributor to Philip Best’s Quaero Capital’s performance. It is also the largest stock holding of Quaero Capital, according to the 13F filings tracked by Insider Monkey. The company’s shares are up 160% in the last twelve months, thanks to rising lithium demand. Albemarle expects full-year 2021 revenue in the range of $3.3 billion to $3.4 billion.
In addition to a whopping share price rally, the company increased its dividend in the past 27 consecutive years. It currently offers a quarterly dividend of $0.39 per share. It was in 28 hedge funds’ portfolios as of June.
You can also take a look at Eric Bannasch Portfolio: 10 Biggest Stock Picks and Dov Gertzulin Portfolio: Top 10 Stocks.
