In this article, we discuss the top 5 stock picks of Joseph Samuels’s Islet Management as of the end of the second quarter of 2021 and assess their performance over the past 12 months. If you want to read our detailed analysis of the hedge fund, its investment philosophy, and hedge fund performance, go directly to Was Joseph Samuels’s Islet Management Right About These 10 Stocks?
5. XPO Logistics, Inc. (NYSE:XPO)
Islet Management’s Stake Value: $42,132,000
Stock performance over the past 12 months through November 27: -16%
XPO Logistics, Inc. (NYSE:XPO) is one of the world’s top 10 global logistics providers. The Greenwich, Connecticut-based company is in the business of providing less-than-truckload (LTL) and truck brokerage services in 18 countries through 744 locations and 40,000 employees.
In September, Patrick Tyler Brown at Raymond James maintained an Outperform rating on the stock but lowered the price target from $155 to $100 to reflect the impact of the GXO Logistics spin-off.
Adestella Investment Management emphasized its views on XPO Logistics, Inc. (NYSE:XPO) in its Q4 2020 investor letter. Here’s what the firm said:
“XPO Logistics (XPO) – the XPO thesis was very simple, but it proved very successful. As the stock irrationally sold off in the spring and made only a tepid recovery in the following months, we were able to buy into a well-operated business with plenty of growth drivers at a compelling price. Sentiment surrounding the company improved thanks to a strong earnings, the resumption of asset sale plans that had been shelved in the spring, and the announcement of a spinoff to unlock the SOTP value. As the stock approached our estimate of a $115 fair value, we exited with more than a clean double from our cost basis.”
4. International Flavors & Fragrances Inc. (NYSE:IFF)
Islet Management’s Stake Value: $44,073,000
Stock performance over the past 12 months through November 27: -31%
International Flavors & Fragrances Inc. (NYSE:IFF) is a provider of value-added ingredients to the food and beverage, fragrance, home, and personal care industries for the creation of the end product for their consumers.
On November 10, Michael Sison at Wells Fargo increased the target price on International Flavors & Fragrances Inc. (NYSE:IFF) from $160 to $170 and kept an Overweight rating on the stock.
3. Pioneer Natural Resources Company (NYSE:PXD)
Islet Management’s Stake Value: $44,693,000
Stock performance over the past 12 months through November 27: +38%
Pioneer Natural Resources Company (NYSE:PXD) is an Irving, Texas-based oil and gas exploration and production (E&P) company with a focus on the Permian Basin. To focus on its high margin assets in the Permian basin, Pioneer Natural Resources Company (NYSE:PXD) disposed of its holdings of 92,000 net acres with daily production of 50,000 barrels of oil equivalent (BOE) in the Delaware Basin for $3.25 billion in cash to Continental Resources, Inc. (NYSE:CLR) on November 3.
On October 26, Vincent Lovaglio at Mizuho increased the target price on Pioneer Natural Resources Company (NYSE:PXD) from $231 to $263. The analyst anticipates “unconventional oil growth” in the US during the second half of next year, which will result in the outperformance of the Energy sector led by the E&P industry.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Islet Management’s Stake Value: $68,803,000
Stock performance over the past 12 months through November 27: -47%
On November 10, Ivan Feinseth at Tigress Financials increased the price target on Amazon.com, Inc. (NASDAQ:AMZN) from $4,370 to $4,460 and reiterated a Buy rating. This reflects an upside potential of over 26% from the current stock price. The analyst believes that Amazon.com, Inc. (NASDAQ:AMZN) is in a position to face the supply chain headwinds during the 2021 holiday season and still deliver impeccable numbers after the expected record-breaking season. To further build on this, Amazon.com, Inc. (NASDAQ:AMZN) is also expected to deliver strong sales growth in 2022 as well.
Polen Capital discussed its views on Amazon.com Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
1. Colfax Corporation (NYSE:CFX)
Islet Management’s Stake Value: $74,230,000
Stock performance over the past 12 months through November 27: -28%
Colfax Corporation (NYSE:CFX) is a diversified technology corporation involved in the creation and supply of state-of-the-art medical devices and services targeted towards improving orthopedic mobility and performance through DJO Global Inc. DJO was acquired by Colfax Corporation (NYSE:CFX) in 2019 and has 12 facilities globally.
The company was mentioned in the Q3 2021 investor letter of Alphyn Capital Management. Here’s what the investment management firm said about Colfax Corporation (NYSE:CFX):
“I discussed my reasons for initiating a starter position in Colfax in the 2021 Q1 letter. In August, Mitch Rales, founder of both Danaher and Colfax, purchased $11.5m of shares on the open market at approximately $46 per share, and I increased our position size soon after.
I continue to believe Colfax’s prospects are attractive over the long term as the company demonstrates its ability to execute. For example, the MedTech business expanded its shoulder/knee line with the acquisition of Mathys, opening the European market to the rest of the company. It also created a new business focused on the fast-growing foot and ankle segment through three further acquisitions. Meanwhile, the ESAB welding business increased EBTIDA margins from 15% to 18% through the application of the Colfax Business System processes.”
You can also take a peek at the 9 Stocks Better than Apple and 10 Best Junior Silver Mining Stocks.
