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10 New Stock Picks of Billionaire Ken Fisher

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·8 min read
In this article:
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  • PBI
  • CPRT
  • PHEC
  • NVTA
  • MSFT
  • AMZN

In this article, we discuss the 10 new stock picks of billionaire Ken Fisher. If you want to skip our detailed analysis of these stocks, go directly to the 5 New Stock Picks of Billionaire Ken Fisher.

Ken Fisher oversees Fisher Asset Management, a hedge fund based in Washington that had a portfolio value of more than $160 billion at the end of the third quarter of 2021, according to the latest 13F filings. Between June and September, the fund grew the portfolio by $1 billion, largely through new purchases in 78 stocks, selling out of 61 equities, and making additional purchases in 434 stocks. The fund also reduced holdings in 371 stocks over this period. The top ten holdings of the portfolio, one of the most diverse on Wall Street, comprise 31% of the total.

Fisher has earned legendary status on Wall Street — his personal net worth is close to $7 billion — by pioneering an investment strategy that places an emphasis on supply and demand as some of the most important factors in the pricing of equities. Over the years, this has helped Fisher earn handsome returns on his investments.

Those who want to follow in the footsteps of Fisher should check out some of the top stocks in the investment portfolio of Fisher Asset Management at the end of the third quarter of 2021 that included Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), among others discussed in detail below.

Our Methodology

These were picked from the investment portfolio of Fisher Asset Management at the end of the third quarter of 2021. All the stocks listed below were added to the portfolio of the fund between June and September this year.

The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

10 New Stock Picks of Billionaire Ken Fisher
10 New Stock Picks of Billionaire Ken Fisher

New Stock Picks of Billionaire Ken Fisher

10. Western Asset Mortgage Capital Corporation (NYSE:WMC)

Number of Hedge Fund Holders: 12

Western Asset Mortgage Capital Corporation (NYSE:WMC) is a real estate investment trust. The stock stands to benefit as rents across the United States surge. The company has a market cap of $148 million and was founded in 2009.

Latest data shows that Fisher Asset Management owned 27,000 shares of Western Asset Mortgage Capital Corporation (NYSE:WMC) at the end of the third quarter of 2021 worth $70,000 in value.

At the end of the second quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $14 million in Western Asset Mortgage Capital Corporation (NYSE:WMC), up from 8 the preceding quarter worth $15 million.

Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), Western Asset Mortgage Capital Corporation (NYSE:WMC) is one of the stocks attracting the attention of elite investors.

9. Copart, Inc. (NASDAQ:CPRT)

Number of Hedge Fund Holders: 44

Copart, Inc. (NASDAQ:CPRT) provides vehicle marketing and online auction services. According to regulatory filings, Fisher Asset Management owned 1,522 shares in the company at the end of September 2021 worth $211,000.

On September 10, investment advisory Truist reiterated a Buy rating on Copart, Inc. (NASDAQ:CPRT) stock and raised the price target to $160 from $145, appreciating the solid earnings beat of the firm in the fourth fiscal quarter results.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Praesidium Investment Management Company is a leading shareholder in Copart, Inc. (NASDAQ:CPRT) with 992,272 shares worth more than $130 million.

In its Q2 2021 investor letter, Merion Road Capital Management, an asset management firm, highlighted a few stocks and Copart, Inc. (NASDAQ:CPRT) was one of them. Here is what the fund said:

“Many of our companies reported very strong earnings back in April. The market shrugged these off as it pondered how much growth would be sustainable, are inflationary trends transitory, and when interest rates will rise. While a slow-down in the broader economic recovery would hurt our portfolio, I remain positive on our position’s market positioning and longer term trends.

For instance, Copart reported 33% YoY revenue growth with EBIT margins expanding to 45%, an all-time high. While the company benefitted from inflation (an interesting hedge the market largely ignored earlier in the year), sustainable increases in ASPs and service offerings bode well for revenue per vehicle growth. Management noted that traffic is still down 20% or more as non-US markets are several months behind the United States on reopening and vaccinations. This volume boost should provide good tailwinds in the coming months.”

8. Pitney Bowes Inc. (NYSE:PBI)

Number of Hedge Fund Holders: 23

Pitney Bowes Inc. (NYSE:PBI) is a technology company that markets commerce solutions. It recently announced the acquisition of Cresco Data, a Singapore-based commerce firm. The company has also signed a partnership with Kyndryl, an IT service management firm, for the implementation of a new cloud infrastructure that will help modernize operations.

The hedge fund of billionaire Ken Fisher owned over 1 million shares of Pitney Bowes Inc. (NYSE:PBI) at the end of the third quarter of 2021 worth more than $7.5 million, representing a very small portion of the total portfolio of the fund.

At the end of the second quarter of 2021, 23 hedge funds in the database of Insider Monkey held stakes worth $126 million in Pitney Bowes Inc. (NYSE:PBI), up from 21 in the previous quarter worth $130 million.

In its Q3 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Pitney Bowes Inc. (NYSE:PBI) was one of them. Here is what the fund said:

“Pitney Bowes (PBI) was also a recent laggard off nearly 20% during the quarter. The company has been building out an E-commerce business for the past 10 years that is approaching $2B in revenue and growing revenues longer-term at a double digit pace. With the E-commerce segment approaching scale, management has significant new initiatives underway to help improve the segment’s profitability to normalized levels (8-12% EBIT margins) over the next couple of years. Success on achieving normalized profitability for the segment would dramatically enhance Pitney Bowes earnings (>$1 in EPS) and annual free cash flow generation (>$250M). Last quarter we highlighted, the digital service business within Pitney’s E-commerce segment and the significant embedded value that was suggested by recent acquisition of a direct competitor Stamps.com at 8x revenue. However, another recent market transaction suggests the E-commerce business has even greater embedded value. At the end of the second quarter, Global-e (GLBE), a UK company that focuses on cross-border business came public at $25/share or approx. $4B market capitalization. The initial IPO price suggested, 2021 Enterprise value to Revenue >20x. Since the IPO, GLBE has climbed to greater than $50/share. Within Pitney Bowes’s E-commerce segment there is a much larger cross border business representing approximately $500M in revenue. The current valuation of Global-e suggests Pitney’s cross border business is worth significantly more than the company’s current market cap. With the marketplace valuing many businesses in excess of 10x revenue, we believe that Pitney Bowes shares remain significantly mispriced at only .35x of revenue and >30% normalized earnings and free cash flow yield. In our opinion, the shares are becoming increasing attractive as their E-commerce segment appears to be significantly undervalued and has the potential to unlock significant equity value over the next couple of years.”

7. Invitae Corporation (NYSE:NVTA)

Number of Hedge Fund Holders: 31

Invitae Corporation (NYSE:NVTA) is a medical genetics firm based in California. Fisher Asset Management owned 833,946 shares in the company at the end of September 2021 worth $24.7 million, representing 0.01% of the portfolio of the fund.

Cowen recently transferred the coverage of Invitae Corporation (NYSE:NVTA) stock to analyst Dan Brennan. The analyst maintained an Outperform rating on the stock with a price target of $40.

At the end of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in Invitae Corporation (NYSE:NVTA), down from 34 in the preceding quarter worth $2.7 billion.

6. Phillips Edison & Company, Inc. (NASDAQ:PECO)

Number of Hedge Fund Holders: N/A

Phillips Edison & Company, Inc. (NASDAQ:PECO) is a real estate investment trust with core focus in grocery-anchored shopping centers. The company has a solid dividend history and recently declared a monthly dividend of $0.09 per share, in line with previous.

Latest securities filings reveal that Fisher Asset Management owned 9,326 shares in Phillips Edison & Company, Inc. (NASDAQ:PECO) at the end of the third quarter of 2021 worth $286,000.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Balyasny Asset Management is a leading shareholder in Copart, Inc. (NASDAQ:CPRT) with 507,049 shares worth more than $15 million.

Along with Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), Copart, Inc. (NASDAQ:CPRT) is one of the stocks that hedge funds are buying.

Click to continue reading and see 5 New Stock Picks of Billionaire Ken Fisher.

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Disclosure. None. 10 New Stock Picks of Billionaire Ken Fisher is originally published on Insider Monkey.