Below is the list of unknown billionaire Phill Gross’ top 5 stock picks. For a comprehensive list and the billionaire’s portfolio strategy please see Unknown Billionaire Phill Gross’ Top 10 Stock Picks.
5. Alphabet Inc. (NASDAQ: GOOG/GOOGL)
Phill Gross’ hedge fund added to his Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) stake during the fourth quarter. The class C shares, which are trading with the symbol of GOOG, accounted for 1.22% of the 13F portfolio of Adage. The class A shares represented 1.27% of the portfolio. Investors look bullish over the future fundamentals of Alphabet amid economic reopening.
Weitz Investment Management highlighted a few stocks including Alphabet in their investor letter. Here is what Weitz Investment Management said:
“Despite mounting regulatory scrutiny, Alphabet was the Fund’s largest contributor for the year. The stock rose materially as Google’s digital advertising businesses continued to chug along.”
4. Facebook, Inc. (NASDAQ: FB)
The social media giant Facebook (NASDAQ: FB) has been on the portfolio of Adage Capital since 2013. The firm held 2.6 million shares of social media company at the end of the latest quarter, weighted around 1.57% of the 13F portfolio. The Facebook stock saw significant gains in 2020.
Kinsman Oak Capital Partners Inc., an independent Toronto-based boutique investment firm, highlighted a few stocks including Facebook in its Q4 investor letter. Here’s what Kinsman Oak Capital Partners stated:
“Our view on Facebook (FB) may be somewhat controversial. The bear case for FB boils down to antitrust risk and valuation. Facebook, although to a lesser degree, is a relative value bargain as well. We believe the company possesses an element of platform risk that Alphabet does not but, compared to the rest of the market, the stock still seems undervalued. We compared Facebook to the Russell 2000, an index full of cyclical businesses that are considered no-brainers at the beginning of a recovery and popular re-opening stocks that are poised to go higher after the vaccine is distributed (Appendix E). Facebook is significantly cheaper, growing faster, has a larger economic moat, superior margin profile, and requires less capex.”
3. Amazon.com (NASDAQ: AMZN)
Adage Capital reduced its position in Amazon.com (NASDAQ: AMZN) by 5% in the fourth quarter to 3.37% of the overall portfolio. It is ranked third in the list of unknown billionaire Phill Gross’ top 10 stock picks for 2021. Shares of Amazon underperformed in 2021 following a big gain during the pandemic year.
Saturna Capital Corporation, an investment management firm, stated that Amazon contributed significantly to its returns in 2020. Here is what Saturna Capital Corporation said:
“Technology claimed six of the 10 Largest Contributors for 2020, demonstrating the effect of the pandemic, remote work, and the acceleration of various Technology and Consumer trends. Indeed, a more expansive definition of Technology might include Consumer stock Amazon. Regardless of classification, Amazon was the leading contributor to Fund returns based not only on its dominant e-commerce position but also its leading cloud business, Amazon Web Services.”
2. Microsoft Corporation (NASDAQ: MSFT)
The tech giant Microsoft Corporation is a long-running investment of unknown billionaire Phill Gross’ portfolio. His hedge fund first bought Microsoft stock in 2001. MSFT position accounted for 3.99% of the portfolio at the end of the latest quarter. MSFT has been rewarding shareholders both through dividends and shares price gains.
Bretton Fund, which returned 11.52% for the fourth quarter, highlighted a few stocks including Microsoft in their Q4 investor letter. Here is what Bretton Fund stated:
“Microsoft’s stock also had a great year, returning 42.4% on increased earnings per share of 30%. The main driver of their growth in recent years is their cloud computing business, and while it did see a bump in demand as office workers went remote, most of the growth is from the continued shift of corporate computing systems to “the cloud.” We think this shift is still in its early stages.”
1. Apple Inc. (NASDAQ: AAPL)
The iPhone maker Apple Inc (NASDAQ: AAPL) is the largest stock holding of Phill Gross’ Adage Capital, accounting for 5.17% of the fund’s portfolio. Shares of Apple surged significantly last year, thanks to pandemic-related growth in tech products.
Saturna Capital Corporation, an investment management firm, stated in the Q4 investor letter that the combination of hardware and services will support Apple’s growth momentum in the years ahead. Here is what Saturna Capital Corporation said:
“Technology claimed six of the 10 Largest Contributors for 2020, demonstrating the effect of the pandemic, remote work, and the acceleration of various Technology and Consumer trends. Apple followed closely behind. More than once we have read Apple obituaries, but we believe the company’s combination of hardware and services will continue to drive the business for years to come, and we look forward to improved availability for the iPhone 12 Pro.”
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