In this article, we will be taking a look at the top 5 stock picks of Zweig-DiMenna Associates. To read our detailed analysis, you can go directly to see Top 10 Stock Picks of Zweig-DiMenna Associates.
5. Southwestern Energy Company (NYSE:SWN)
Zweig-DiMenna Associates’ Stake Value: $14.261 million
Number of Hedge Fund Holders: 35
With a 21% increase in Zweig-DiMenna Associates’ portfolio, Southwestern Energy Company (NYSE:SWN) is one of the top 10 stock picks of Zweig-DiMenna Associates. Southwestern Energy Company (NYSE:SWN) is a natural gas exploration and production company, and has more than 21 trillion cubic feet of natural gas reserves. The company recorded nearly $6.7 billion in revenue in 2021.
Greenlight Capital published its Q1 2022 investor letter, where it mentioned Southwestern Energy Company (NYSE:SWN). Here is what is said:
“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
Zweig-DiMenna Associates’ Stake Value: $15.798 million
Number of Hedge Fund Holders: 271
There is little need to introduce one of the biggest companies in the world, in Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) is rarely out of the news for one thing or the other, though it is often in the news because of its working conditions for employees, or lack thereof.
Just like most tech stocks in 2022, Amazon.com, Inc. (NASDAQ:AMZN) has seen its share price plummet YTD, dropping more than 23%. If Amazon profits continue to grow, however, the stock could increase.
Amazon.com, Inc. (NASDAQ:AMZN) was mentioned by Oakmark Funds in its Q2 2022 investor letter. Here is what it said:
“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
3. Cenovus Energy Inc. (NYSE:CVE)
Zweig-DiMenna Associates’ Stake Value: $17.116 million
Number of Hedge Fund Holders: 44
Another Canadian company that makes the list of top 10 stock picks of Zweig-DiMenna Associates in Cenovus Energy Inc. (NYSE:CVE). Cenovus Energy Inc. (NYSE:CVE) acquired Husky Energy in 2021 for C$3.9 billion.
Cenovus Energy Inc. (NYSE:CVE) has performed brilliantly in 2022, increasing by close to 50% in the year as energy prices have increased.
In its Q4 2021 investor letter, L1 Capital mentioned Cenovus Energy Inc. (NYSE:CVE). Here is what it said:
“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy, (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cashflow generation.”
2. Occidental Petroleum Corporation (NYSE:OXY)
Zweig-DiMenna Associates’ Stake Value: $20.081 million
Number of Hedge Fund Holders: 67
Occidental Petroleum Corporation (NYSE:OXY) is one of the many energy companies which has performed brilliantly in 2022, and is the best performing stock in Zweig-DiMenna’s portfolio, having gained 135% in 2022 YTD.
Occidental Petroleum Corporation (NYSE:OXY) has recently seen Warren Buffet’s Berkshire Hathaway increase its stake to 20% of the total outstanding shares of Occidental Petroleum Corporation (NYSE:OXY).
In its Q3 2021 investor letter, Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY). Here is what it said:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
1. Marathon Oil Corporation (NYSE:MRO)
Zweig-DiMenna Associates’ Stake Value: $21.563 million
Number of Hedge Fund Holders: 43
Topping the list of top 10 stock picks of Zweig-DiMenna Associates is Marathon Oil Corporation (NYSE:MRO), which makes up 4% of the total portfolio, after an increase in holding by 84% in the first quarter. Marathon Oil Corporation (NYSE:MRO) is an exploration and production company which has benefited from higher oil prices.
Carillon Tower Advisers recently published its Q1 2022 investor letter, where Marathon Oil Corporation (NYSE:MRO) was mentioned. Here is what it said:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”
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