In this article, we discuss the top 5 stock picks of Rob Cope’s Columbus Point. If you want to read our detailed analysis of Cope’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Rob Cope’s Columbus Point.
5. Becton, Dickinson and Company (NYSE:BDX)
Columbus Point Stake Value: $13,999,000
Percentage of Columbus Point’s 13F Portfolio: 6.66%
Number of Hedge Fund Holders: 51
Becton, Dickinson and Company (NYSE:BDX) specializes in medical technologies.
In December, Piper Sandler analyst Jason Bednar downgraded Becton, Dickinson and Company (NYSE:BDX) to “Neutral” from “Overweight” with a price target of $260, down from $285. Over the next six months, the analyst anticipates a lack of events for shares, as well as lingering doubts about Becton, Dickinson and Company’s (NYSE:BDX) ability to meet consensus profitability expectations later this year.
In its second-quarter 2021 investor letter, Madison Funds mentioned Becton, Dickinson and Company (NYSE:BDX). Here is what the fund said:
“Becton, Dickinson and Company (“BD”) is one of the world’s largest medical supply, devices, laboratory equipment, and diagnostic products manufacturers. We like BD because it is a leader in the medical and life science industries with a durable mid-single digit growth profile and attractive returns on capital. They generate about 85% of revenue from consumables and 15% from equipment, and each year, they manufacture billions of needles,
syringes, catheters, tubes, and medical devices which results in significant economies of scale that can be matched by few competitors. Their Life Sciences segment produces products that provide diversity in the steadily growing diagnostic testing and life sciences research fields.
Regarding the short-term issues, it’s been a challenging past 18 months for the company. In February 2020, they announced the FDA required an updated 510(k) clearance for their Alaris infusion pump. As a result, BD had to suspend selling new pumps until the updated regulatory filing received FDA clearance. In addition to the regulatory headwind, BD’s business was negatively impacted by the COVID-19 pandemic as individuals postponed doctor office visits and hospitals deferred non-emergency medical procedures. We believe these postponements are just now normalizing. Lastly, while BD’s Life Sciences business swiftly brought COVID-19 tests to market, there is uncertainty over the magnitude and duration of these revenues.…” (Click here to see the full text)
4. Adobe Inc. (NASDAQ:ADBE)
Columbus Point Stake Value: $17,135,000
Percentage of Columbus Point’s 13F Portfolio: 8.15%
Number of Hedge Fund Holders: 95
On December 20, Citi analyst Tyler Radke reduced his price target on Adobe Inc. (NASDAQ:ADBE) to $611 from $678 and maintained a “Neutral” rating on the shares. Radke advises investors in a research note that the company’s headline growth indicators for Q4 were below expectations, marking the second quarter of weak performance due to seasonality challenges.
There were 95 hedge funds in our database that held stakes in the company at the end of the third quarter, compared to 89 funds in the previous quarter.
In its second-quarter 2021 investor letter, Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE). Here is what the fund said:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Columbus Point Stake Value: $20,367,000
Percentage of Columbus Point’s 13F Portfolio: 9.69%
Number of Hedge Fund Holders: 94
Thermo Fisher Scientific Inc. (NYSE:TMO) makes analytical instruments, equipment, reagents and consumables, software, and diagnostics for research, analysis, and discovery. On December 14, Wells Fargo analyst Dan Leonard boosted his price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $700 from $625 and reiterated an “Equal Weight” rating on the shares.
In the third quarter, hedge fund sentiment increased for Thermo Fisher Scientific Inc. (NYSE:TMO). Insider Monkey’s data shows that 94 elite hedge funds held stakes in the company at the end of the third quarter, up from 87 funds a quarter earlier.
L1 Capital, in its third-quarter 2021 investor letter, mentioned Thermo Fisher Scientific Inc. (NYSE:TMO). Here is what the fund said:
“Included in these adjustments, in early July 2021, we divested our remaining small investment in Thermo Fisher Scientific (Thermo Fisher), the world leader in the provision of equipment, consumables, and services to the Life Sciences industry. Thermo Fisher has benefited from elevated demand for its products and services associated with COVID-19 and we sold our residual investment at a gain of more than 70% compared to our average investment cost. Thermo Fisher subsequently held an Investor Day and positively surprised many people, including us, with very strong medium-term growth targets, notwithstanding a headwind from normalisation of COVID-19-related business. Thermo Fisher is a high-quality business and remains on our ‘Bench’ for potential reinvestment.”
2. Fiserv, Inc. (NASDAQ:FISV)
Columbus Point Stake Value: $21,414,000
Percentage of Columbus Point’s 13F Portfolio: 10.19%
Number of Hedge Fund Holders: 65
Fiserv, Inc. (NASDAQ:FISV) specializes in financial technology. Columbus Point started building its position in Fiserv, Inc. (NASDAQ:FISV) in the fourth quarter of 2020 and currently holds 197,367 shares in the company, valued at $21.41 million. The company represents 10.19% of the hedge fund’s 13F portfolio.
On December 16, Edward Jones analyst Logan Purk upgraded Fiserv, Inc. (NASDAQ:FISV) to “Buy” from “Hold.”
At the end of the third quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $3.95 billion in Fiserv, Inc. (NASDAQ:FISV), down from 72 the preceding quarter worth $2.66 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Columbus Point Stake Value: $26,096,000
Percentage of Columbus Point’s 13F Portfolio: 12.42%
Number of Hedge Fund Holders: 250
Ken Fisher’s hedge fund Fisher Asset Management is the leading shareholder of Microsoft Corporation (NASDAQ:MSFT) with 25.52 million shares worth $7.20 billion.
Overall, hedge funds are loading up on Microsoft Corporation (NASDAQ:MSFT), as 250 out of the 867 funds tracked by Insider Monkey held stakes in the tech giant, compared to 238 funds out of the 873 funds a quarter earlier.
Baron Funds, in its third-quarter 2021 investor letter, mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”
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