In this article, we discuss top 5 stock picks of Alexander West’s hedge fund as of the end of the third quarter and assess their performance over the past 12 months. To see the background and context of this article and read about more stocks, go to Was Alexander West’s Blue Pool Capital Right About These 10 Stocks?
5. Amazon.com, Inc. (NASDAQ:AMZN)
Blue Pool Capital’s Stake Value: $40,800,000
Stock performance over the past 12 months through November 25: -46%
Increasing its position in Amazon.com, Inc. (NASDAQ:AMZN) by 9% during the third quarter, Blue Pool Capital owns a total of 12,420 shares of the company, worth $40.8 million, representing 2.93% of the fund’s Q3 investments.
Monness Crespi analyst Brian White on December 27 stated that Amazon.com, Inc. (NASDAQ:AMZN) shares have trailed this year’s “healthy market rally” after a strong stock performance in 2020, but the company is “uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation.” He has a Buy rating and a $4,500 price target on Amazon.com, Inc. (NASDAQ:AMZN) shares.
Among the hedge funds tracked by Insider Monkey, Fisher Asset Management is one of the largest Amazon.com, Inc. (NASDAQ:AMZN) stakeholders as of Q3 2021, with a $6.3 billion position in the company.
Here is what Davis Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
4. Alphabet Inc. (NASDAQ:GOOG)
Blue Pool Capital’s Stake Value: $41,371,000
Stock performance over the past 12 months through November 25: -31%
Alphabet Inc. (NASDAQ:GOOG) is one of the top stocks in the third quarter portfolio of Blue Pool Capital, with the hedge fund owning 15,522 shares of the company, worth $41.3 million, representing 2.97% of the total 13F investments.
Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $3,540 from $3,185 and reiterated a Strong Buy rating on the shares on December 3. The analyst stated that Alphabet Inc. (NASDAQ:GOOG)’s increasing artificial intelligence-first focus is driving greater product functionality and “significant” growth opportunities.
Here is what Saturna Capital Amana Funds has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter:
“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”
3. Microsoft Corporation (NASDAQ:MSFT)
Blue Pool Capital’s Stake Value: $42,370,000
Stock performance over the past 12 months through November 25: -24%
Microsoft Corporation (NASDAQ:MSFT), one of the Big Five US tech giants, is a prominent holding in Blue Pool Capital’s Q3 portfolio, with the fund owning a $42.3 million stake in the company. The Microsoft Corporation (NASDAQ:MSFT) stock accounts for 3.04% of the fund’s total 13F securities.
Jefferies analyst Brent Thill raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $400 from $375 and kept a Buy rating on the shares on January 6.
Here is what ClearBridge Sustainability Leaders Strategy has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:
“The Strategy modestly outperformed the benchmark; consistent with our fundamental approach that seeks balanced exposure to industries and the growth and value spectrum, performance was driven by companies from diverse sectors. Microsoft, which develops software including the Windows family of products, the Microsoft Office system and the Azure cloud platform, and is a leader in data protection and customer privacy as well as human rights and diversity, contributed strongly as earnings maintained positive sentiment. Microsoft is seeing a number of businesses reach a new, higher level of engagement, adoption and momentum.”
2. Owl Rock Capital Corporation (NYSE:ORCC)
Blue Pool Capital’s Stake Value: $79,240,000
Stock performance over the past 12 months through November 25: -6%
Owl Rock Capital Corporation (NYSE:ORCC) is a specialty finance company that offers direct lending solutions to middle market companies. Blue Pool Capital owns 5.6 million shares of Owl Rock Capital Corporation (NYSE:ORCC) as of September 2021, worth $79.2 million, representing 5.69% of the fund’s total 13F portfolio.
On November 3, Owl Rock Capital Corporation (NYSE:ORCC) declared a quarterly per share dividend of $0.31, offering a forward yield of 8.64%. The dividend is payable on January 31, 2022 to shareholders of record on December 31.
1. Blue Owl Capital Inc. (NYSE:OWL)
Blue Pool Capital’s Stake Value: $947,263,000
Stock performance over the past 12 months through November 25: -24%
Blue Owl Capital Inc. (NYSE:OWL) is a direct lending platform which offers mezzanine loans and equity-related instruments to its clients. Blue Owl Capital Inc. (NYSE:OWL) is the largest holding in Blue Pool Capital’s Q3 portfolio, with the hedge fund owning 60.8 million shares of Blue Owl Capital Inc. (NYSE:OWL), worth $947.2 million, representing 68.12% of the fund’s total investments.
On November 9, Blue Owl Capital Inc. (NYSE:OWL) announced a $0.09 per share quarterly dividend, in line with previous. The dividend was paid on November 30.
Goldman Sachs analyst Alexander Blostein maintained a Buy rating on Blue Owl Capital Inc. (NYSE:OWL) with an unchanged price target of $21 and added the stock to the firm’s Americas Conviction List on January 3.
You can also take a look at 10 Stocks Under Investors’ Radar After Posting Their Financial Results and 10 Top Stock Picks of Mario Gabelli.
