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Billionaire Ken Griffin is Selling These 10 Stocks in 2022

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·9 min read
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In this article, we discuss the 10 stocks billionaire Ken Griffin is selling in 2022. If you want to skip our detailed analysis of Griffon’s investment philosophy, hedge fund returns, and history, go directly to Billionaire Ken Griffin is Selling These 5 Stocks in 2022.

Kenneth C. Griffin is the founder and Chief Executive Officer of Citadel Investment Group, a global alternative investment firm. He began his journey into investment from his dorm room at Harvard in 1987, where he installed a satellite dish on the roof to receive real-time stock quotes. During his undergraduate studies, he founded Citadel under the belief that his integration of exceptional talent, advanced quantitative analytics, and cutting-edge technology would be able to generate consistent, strong long-term performance.

In an interview at the Bloomberg Intelligence Market Structure conference in New York, the billionaire hedge fund manager gave his thoughts on current market trends. Here is what Ken Griffin said:

Markets are really afraid of the inflation story because that ties back to the Fed's path and how higher real rates are going to go. And what we're seeing is a rotation from growth stocks with earnings very far in the future towards value stocks with earnings here in the present. And this reflects the fact that real rates, for the first time in a very long time, are likely to go positive in 2023. And that freaks out the markets.

Amid a brutal market rout and extreme volatility in 2022, Ken Griffin's hedge fund surprised the whole of Wall Street, with major market outperformance earlier this April. During that period, Citadel Investment Group's multi-strategy flagship fund Wellington rallied 7.5%, bringing its year-to-date performance to 12.7%. Additionally, the hedge fund's Citadel Equities is up 6.46% for the first five months of the year, while its Global Fixed Income fund is up 14.35%, and its Tactical Trading portfolio has risen 9.85% since January.

Since its inception in 1990, Citadel Investment Group has generated remarkable returns for its investors. Using sophisticated quantitative research and a wide array of trading strategies, stemming from Ken Griffin's love for mathematics, the hedge fund deploys its assets across multiple asset classes and markets, seeking “high risk adjusted returns” for its clients.

As of the fiscal first quarter of 2022, Ken Griffin manages $484.45 billion in 13F securities through his hedge fund. Citadel Investment Group invests heavily in the Technology, Consumer Goods, Services, and Basic Materials sectors. Some of the top stocks in the portfolio of Ken Griffin at the end of March 2022 included Meta Platforms, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and AT&T Inc. (NYSE:T).

Billionaire Ken Griffin is Selling These 10 Stocks in 2022
Billionaire Ken Griffin is Selling These 10 Stocks in 2022

Ken Griffin of Citadel Investment Group

Our Methodology

For this list, we picked stocks that were sold off in the first quarter by Citadel Investment Group.

10. Canopy Growth Corporation (NASDAQ:CGC)

Number Of Hedge Fund Holders: 14

Canopy Growth Corporation (NASDAQ:CGC), formerly known as Tweed Marijuana Inc., is a Canadian cannabis company engaged in the production and distribution of cannabis and hemp-based products for recreational and medical uses in Canada, the United States, and Germany. Ken Griffin sold off his stakes in the company by the end of March 2022.

On June 8, Barclays analyst Gaurav Jain lowered the price target on Canopy Growth Corporation (NASDAQ:CGC) to $3.50 from $6 and kept an Underweight rating on the shares. According to the analyst, the company recorded another loss-making quarter in Q4 with "shrinking" Canadian cannabis revenue and slowing consumer revenue. He updated his model for Canopy Growth Corporation (NASDAQ:CGC) to reflect the "continued market share loss it has been suffering."

At the end of the first quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $71.86 million in Canopy Growth Corporation (NASDAQ:CGC), compared to 15 in the preceding quarter worth $62 million.

Unlike Meta Platforms, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and AT&T Inc. (NYSE:T), Canopy Growth Corporation (NASDAQ:CGC) is a stock that Citadel Investment Group dumped in 2022.

9. BHP Group Limited (NYSE:BHP)

Number Of Hedge Fund Holders: 19

BHP Group Limited (NYSE:BHP), known simply as BHP, is a diversified resources company which extracts, processes and markets metals, minerals, coal, iron ore and petroleum products to global markets. BHP Group Limited (NYSE:BHP) was among the many stocks that Ken Griffin sold off in Q1.

BHP Group’s (NYSE:BHP) annual revenue for 2021 stood at $60.8 billion, jumping by 41.66% from its 2020 revenue of $42.9 billion. Shares of the company have risen by 4.65% year-to-date.

On June 7, Jefferies analyst Christopher LaFemina upgraded BHP Group Limited (NYSE:BHP) to Buy from Hold with a price target of $82, up from $72. In a research note to investors, he states that macro risks are elevated and mining shares "should be volatile," with the sector being undervalued and poised to outperform as China recovers. The analyst raised his iron ore and coal price forecasts and upgraded a handful of names in the group.

As of the end of the first quarter, 19 hedge funds were bullish on BHP Group (NYSE:BHP), with combined stakes worth $2.24 billion. This is in comparison to 25 hedge funds in the previous quarter. Fisher Asset Management was the firm’s largest Q1 shareholder, with a $1.3 billion stake consisting of 16.9 million shares.

8. Dolby Laboratories, Inc. (NYSE:DLB)

Number Of Hedge Fund Holders: 22

Dolby Laboratories, Inc. (NYSE:DLB) is an American company specializing in audio noise reduction, audio encoding/compression, spatial audio, and HDR imaging. The company's products are used in content creation, distribution, and playback to enhance image and sound quality.

Earlier this May, Rosenblatt analyst Steve Frankel initiated coverage of Dolby Laboratories, Inc. (NYSE:DLB) with a Buy rating and $90 price target. According to the analyst, the company's "dominant" market position, high margins and consistent cash flow present an "excellent safe harbor in turbulent seas." He views current share levels as an attractive entry point for a "high quality franchise with best-in-class margins and cash flow."

According to its Q1 earnings report, Dolby Laboratories, Inc. (NYSE:DLB) registered an EPS of $0.92, beating market estimates by $0.10. Additionally, the company announced revenues of $334.37 million, surpassing forecast estimates by $1.86 million.

At the end of the first quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $408 million in Dolby Laboratories, Inc. (NYSE:DLB), compared to 26 in the previous quarter worth $572 million.

In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Dolby Laboratories, Inc. (NYSE:DLB) was one of them. Here is what the fund said:

“Founded in 1965 and headquartered in San Francisco, Dolby Laboratories, Inc. (NYSE:DLB) designs and manufactures audio and visual products. Its technology makes images brighter, colors further refined and the audio experience more immersive by providing an enhanced ability to pinpoint the placement and volume of specific sounds. Products that utilize Dolby’s technology span both commercial and home theaters, televisions, sound bars, computers and mobile devices.

The company partners with music artists, movie directors and other content creators, teaching them how to properly leverage Dolby’s suite of products to create next-generation productions. Dolby Laboratories, Inc. (NYSE:DLB) generates revenue by licensing its technologies to software vendors and over 500 electronics manufacturers, the likes of which include Sony (SONY), Microsoft (MSFT), Samsung (OTC:SSNLF) and Apple (AAPL). The company’s end markets consist of Broadcast (39% of licensing revenue), Mobile (22%), Consumer Electronics (15%), PC (12%) and Other (12%). (Click here to read full text)

7. 10x Genomics, Inc. (NASDAQ:TXG)

Number Of Hedge Fund Holders: 22

10x Genomics, Inc. (NASDAQ:TXG) is a California-based biotechnology company that designs and develops gene sequencing technology utilized in scientific research. As of Q1 2022, Citadel Investment Group completely sold its stakes in the company. Earlier this May, Citi analyst Patrick Donnelly lowered the price target on 10x Genomics, Inc. (NASDAQ:TXG) to $100 from $150 and maintained a Buy rating on the shares post the Q1 results. The analyst cites high growth peer multiple contraction for the target drop. 10x Genomics, Inc. (NASDAQ:TXG) reported its Q1 results on May 4, posting an EPS of -$0.14, beating estimates by $0.19. The company's $114.50 million revenue also surpassed market consensus estimates by approximately $1.17 million. A total of 22 hedge funds held long positions in 10x Genomics, Inc. (NASDAQ:TXG) in the first quarter of 2022, the same as the preceding quarter. 12 West Capital Management is a prominent shareholder of the company, with more than 2 million shares worth $298.5 million.

6. Dine Brands Global, Inc. (NYSE:DIN)

Number Of Hedge Fund Holders: 24

Dine Brands Global, Inc. (NYSE:DIN) is an American food and dining company based in California that manages and operates the famous brands, Applebee’s and IHOP. Ken Griffin’s Citadel Investment Group pulled out of Dine Brands Global, Inc. (NYSE:DIN) in Q1 2022, selling off his Q4 2021 stakes worth $4.24 million.

On June 9, Barclays analyst Jeffrey Bernstein lowered the price target on Dine Brands Global, Inc. (NYSE:DIN) to $88 from $93 and kept an Overweight rating on the shares. Restaurants fall within consumer discretionary and with recessionary odds rising, some investors will view restaurants as "uninvestable," and while the analyst understands the sentiment, he does not believe it to be accurate.

The number of hedge funds tracked by Insider Monkey that reported holding stakes in Dine Brands Global, Inc (NYSE:DIN) declined to 24 in Q1 2022, from 28 in the previous quarter. The total value of these stakes is valued at approximately $218.8 million. Glen Furhman's MSD Capital is one of the most notable investors in Dine Brands Global, Inc. (NYSE:DIN) with over 740,545 shares worth more than $57.7 million.

As opposed to Meta Platforms, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and AT&T Inc. (NYSE:T), Dine Brands Global, Inc. (NYSE:DIN) is one of the stocks Ken Griffin dropped in Q1 2022.

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Disclose. None. Billionaire Ken Griffin is Selling These 10 Stocks in 2022 is originally published on Insider Monkey.