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Billionaire Rob Citrone is Selling These 10 Stocks

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·10 min read
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In this article, we will be discussing the 10 stocks that billionaire Rob Citrone is selling. You can skip our detailed analysis of Citrone's hedge fund returns, investment philosophy, and history, and go directly to Billionaire Rob Citrone is Selling These 5 Stocks.

Rob Citrone is an American hedge fund manager and the co-founder of the Connecticut-based investment fund Discovery Capital Management. After earning his bachelor's degree from Hampden-Sydney College, and his M.B.A from the Darden School of Business, Robert Citrone began his career as a corporate bond analyst at Fidelity Investments in 1990, resigning from there shortly thereafter in 1995 to join Tiger Management, working under the tutelage of the legendary investor, Julian Robertson. In 1999, Rob Citrone left the firm and founded Discovery Capital Management.

Rob Citrone's investment strategy focuses on liquidity, valuation multiples, and potential growth when scouting for stocks to invest in. Discovery Capital Management is known for making macro analysis and risk assessment management, thus investing in emerging markets. In 2013, Citrone's Discovery Global Opportunity Partners fund returned 27.5%, and Discovery Capital's annualized returns since 1999 value at 17%.

According to the most recent 13F filings, Discovery Capital Management, as an investment management firm, oversees more than $1.54 billion in its investment portfolio. The fund’s portfolio is diversified across 11 leading sectors, with the Technology sector being the largest one. A majority of the companies in the fund’s investment portfolio consist of large-cap companies with stocks scaling up to more than $10 billion in market capitalization, making up 36% of the fund’s total value.

Some of the top stocks present in the investment portfolio of Discovery Capital Management at the end of the second quarter of 2021 include Micron Technology, Inc. (NASDAQ:MU), Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) and Intel Corporation (NASDAQ:INTC), among others.

Billionaire Rob Citrone is Selling These 10 Stocks
Billionaire Rob Citrone is Selling These 10 Stocks

Our Methodology

With this background in mind, let us now look towards the 10 stocks billionaire Rob Citrone is selling. We made use of Discovery Capital Management's 13F portfolio for the second quarter for this analysis. The following list consists of stocks that the hedge fund sold off completely in the second quarter of 2021.

Why should we pay attention to Robert Citrone's stocks? 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 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.

Billionaire Rob Citrone is Selling These 10 Stocks

10. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 31

Carnival Corporation & plc (NYSE:CCL), the largest leisure company in the world, operates as a British-American cruise company. Ranked tenth on the list of the 10 stocks billionaire Rob Citrone is selling, Carnival Corporation & plc has a market capitalization of $28.57 billion.

Discovery Capital Management sold its entire stake in Carnival Corporation & plc (NYSE:CCL) by the end of the second quarter period.

In the second quarter of 2021, Carnival Corporation & plc (NYSE:CCL) reported an EPS of -$1.80, missing estimates by $0.19. The company’s revenue in the quarter, was $50 million, falling short of the revenue estimates by $148.97 million.

At the end of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth over $456 million in Carnival Corporation & plc (NYSE:CCL). This is compared to 44 hedge funds in the previous quarter with stakes worth approximately $593.6 million.

Unlike Micron Technology, Inc. (NASDAQ:MU), Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) and Intel Corporation (NASDAQ:INTC), Carnival Corporation & plc (NYSE:CCL) is a stock that Robert Citrone is selling.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, commented on Carnival Corporation & plc (NYSE:CCL)'s probable gain in pricing power. Here is what the fund said:

“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Carnival was the actions the company took to extend out their balance sheets until travel resumed. Both should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”

9. Commscope Holding Company Inc (NASDAQ:COMM)

Number of Hedge Fund Holders: 36

Commscope Holding Company Inc (NASDAQ:COMM) is a North Carolina-based provider of infrastructure solutions for communication and entertainment networks, with operations in over 130 countries. The company is ranked ninth on the list of the 10 stocks billionaire Rob Citrone is selling.

By the end of the second quarter, Discovery Capital Management sold off its entire stake in the company.

In the second quarter of 2021, Commscope Holding Company Inc (NASDAQ:COMM) had an actual EPS of $0.43, beating estimates by $0.01. The company also reported revenues amounting to $2.19 billion, beating estimates by $12.94 million.

By the end of the second quarter of 2021, 36 hedge funds out of the 873 tracked by Insider Monkey held stakes in Commscope Holding Company Inc (NASDAQ:COMM) worth roughly $1.02 billion. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $757.9 million.

On July 6, Morgan Stanley analyst Meta Marshall raised the price target on Commscope Holding Company Inc (NASDAQ:COMM) to $24 from $19, and kept an Overweight rating on the shares.

8. Qualtrics International, Inc. (NASDAQ:XM)

Number of Hedge Fund Holders: 37

Based in Provo, Utah, Qualtrics International, Inc. (NASDAQ:XM) is a software company engaged in the design and development of application software. The company provides an experience management platform for companies and organizations to design, manage, and operate their businesses. The software company ranks eighth on our list of the 10 stocks billionaire Rob Citrone is selling.

By the end of the second quarter of 2021, 37 hedge funds out of the 873 tracked by Insider Monkey held stakes in Qualtrics International, Inc. (NASDAQ:XM) worth roughly $2.4 billion. The number of hedge funds that held stakes within the company remained the same for the first and second quarters of 2021.

The company issued its quarterly earnings report for the second quarter of 2021 on July 20, with reported earnings per share at $0.04, crossing market estimates by $0.06. Additionally, the reported revenues came in at $249.34 million, surpassing the predicted revenues by $7.69 million.

On July 21, Deutsche Bank analyst Patrick Colville raised his price target on Qualtrics International, Inc. (NASDAQ:XM) to $45 from $43, and restated a Buy rating on the shares of the company.

In its Q2 2021 investor letter, ClearBridge Investments stated that they could not keep a sufficient position in Qualtrics International Inc. (NASDAQ: XM). Here is what the fund said:

“On the sell side, we closed out of Qualtrics, an experience management software company, where we were unable to build a sufficient position following its successful IPO.”

7. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Number of Hedge Fund Holders: 43

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a leading American cruise company based in Florida. The company offers a number of travel itineraries to its customers across North America and the Caribbean, among other locations. Ranked seventh on the list of the 10 stocks billionaire Rob Citrone is selling, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) has a market capitalization of $10.19 billion.

Robert Citrone's hedge fund sold its entire stake in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in the second quarter of 2021.

The company last released its earnings report on August 6, 2021, with a reported earning of -$1.93 per share on an adjusted basis, beating the consensus forecast of -$2.00 per share by $0.07. The company also reported a revenue of $4.37 million for that quarter, falling short of the estimated revenue by $4.77 million.

At the end of the second quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $606.6 million in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), up from 34 hedge funds in the previous quarter with stakes worth more than $576 million.

On August 20, Deutsche Bank analyst Chris Woronka raised his price target on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) to $26 from $25, and kept a Hold rating on the shares.

Unlike Micron Technology, Inc. (NASDAQ:MU), Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) and Intel Corporation (NASDAQ:INTC), Norwegian Cruise Line Holding Ltd. (NYSE:NCLH) is among the stocks that Robert Citrone is selling.

In its Q4 2020 investor letter, Brown Capital Management Mid Company Fund explained why Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is no longer part of the fund's portfolio. Here is what they said:

“Norwegian Cruise Line Holdings (NCLH) is a diversified operator of leading global cruise lines spanning market segments from contemporary to luxury under the Norwegian Cruise Line, Oceanic Cruises and Regent Seven Seas Cruises brands. These brands operate a combined 28 ships. Norwegian was eliminated from the portfolio, as we no longer believe it meets our definition of an Exceptional Growth Company, as discussed in our first quarter letter. There are still many unknowns as to when we will see a fully normalized operating environment with a high degree of confidence.”

6. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 61

The Goldman Sachs Group, Inc. (NYSE:GS) is placed sixth on our list of the 10 stocks billionaire Rob Citrone is selling. The firm operates as a financial services company headquartered in New York, and provides investment management, asset management, and securities, among other services.

With a 100% reduction in stakes in the second quarter, Discovery Capital Management sold off all the shares it held of The Goldman Sachs Group, Inc. (NYSE:GS).

On October 1, Citi analyst Keith Horowitz raised the price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $440 from $410, and kept a Buy rating on the shares.

On July 13, The Goldman Sachs Group, Inc. (NYSE:GS) released its quarterly earnings report for the second quarter of 2021, with a reported EPS at $15.02, beating estimates by $4.84. The firm also declared revenues of $15.39 billion, surpassing forecast estimates by $2.99 billion.

At the end of the second quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $5.18 billion in The Goldman Sachs Group, Inc. (NYSE:GS), down from 77 hedge funds in the previous quarter with stakes worth approximately $5.05 billion.

Ariel Investments, an investment management firm, praised The Goldman Sachs Group, Inc. (NYSE:GS)'s excellent quarterly results and asset management in its Q2 investor letter. Here is what the fund said:

“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”

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Disclosure: None. Billionaire Rob Citrone is Selling These 10 Stocks is originally published on Insider Monkey.