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Jeffrey Talpins’ Top Stock Picks

Nina Zdinjak

If you are looking for the best ideas for your portfolio you may want to consider some of Jeffrey Talpins’ third quarter top stock picks. For those of you who never heard of Jeffrey Talpins, we’ll provide some basic background. He is the founder and portfolio manager of one of the biggest hedge funds that apply global macro investing strategy, Element Capital Management. In 2017, Jeffrey Talpins earned his place among one of the highest earning hedge fund managers, according to Forbes;  more details about his fund’s investment strategy and returns you can find in our article Element Capital Management Return, AUM, and Holdings. Prior to starting his own investment management firm, Jeffrey Taplins sharpened his investment wisdom as a Head Trader at Citigroup’s Fixed Income Options franchise, and at the Mortgage Backed Securities Department at Goldman Sachs.

The Wall Street Journal recently wrote about Jeffrey Talpins in the article called Jeffrey Talpins Is the Hedge-Fund King You’ve Never Heard Of, naming him “the hottest investor on Wall Street”. In this article, writers Gregory Zuckerman and Rachael Levy pose an interesting concept, by which Jeffrey Talpins can expect some challenging times. This is based upon the idea that the more his fund grows, the tougher will be for it to continue to outperform the market. And, his fund has grown quite a lot, managing around $6 billion assets as of last year, and what’s more, it has set high prerequisites to its investors - $50 million minimum investment. To make things even more interesting it is also charging its investors much more than the average fund  “with one share class levying a 2.5% annual management fee along with a 25% performance fee, according to Element marketing documents”. In contrast, the average fund charges a 17% performance fee, and a 1.4% annual management fee.  Of course, the average fund doesn’t come close to the Element Capital Management’s performance, which brought back 26.8% through October and reported an average return of almost 21% since its inception, not counting a single down year.

Jeffrey Talpins’ Top Stock Picks

Jeffrey Talpins, a hedge fund manager who doesn’t like exposure, and who is often regarded as a math genius hooked on his business, made a fantastic investment move last year – “In late winter of 2017, for example, Mr. Talpins anticipated that Congress would pass a corporate-tax deal. Element loaded up on options on the S&P 500, a move that cost the fund for much of the year, but led to huge gains when the deal came together and stocks climbed.”

Now it’s time to count its top 5 stock picks from the third quarter ended on September 30.

5. Medtronic PLC (NYSE:MDT)

The fifth largest addition to the Element Capital Management’s equity portfolio during the third quarter was one of the biggest medical device companies Medtronic PLC (NYSE:MDT). The fund purchased its 492,970 outstanding shares, making an investment worth around $48.49 million. Smart money investors from Insider Monkey’s database are also becoming more bullish on the stock, with the number of hedge fund long the stock climbing in the third quarter to 53 from 35 in the previous quarter.

On the next page you can read about the rest of Element Capital Management's top stock picks in the third quarter.

4. Autodesk, Inc. (NASDAQ:ADSK)

During the third quarter, the fund acquired 334,683 Autodesk’s shares, valued $52.25 million, making this the fourth biggest new position in its portfolio in the third quarter. 66 investors from our table were long this American multinational software corporation on September 30, which is by six more than in the previous quarter.

3. Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com has attracted 13 net new investors during the third quarter, ending up being in 150 hedge funds’ portfolios on September 30. Among those new investors was also Element Capital Management, which has 30,536 Amazon’s shares, making an investment in this electronic commerce and cloud computing company that was worth around $61.16 million.

2. First Hawaiian Inc (NASDAQ:FHB)

Element Capital Management gained interest for a Honolulu-based bank holding company, First Hawaiian, Inc., during the third quarter, establishing a position in it that was valued $74.9 million, and counted 2.75 million shares. Hedge funds from Insider Monkey’s table have also become more optimistic about this stock in the recent period, with 28 investors long the company at the end of the third quarter, up by 8 from the previous quarter.

1. Kraft Heinz Co (NASDAQ:KHC)

The most valuable new position in the third quarter, Element Capital Management set up in an American food company, by acquiring 2.41 million shares, worth $132.95 million. This is another company that has seen an increase in enthusiasm from smart money managers in Insider Monkey’s database in the recent period, counting 37 investors long the stock on September 30, up from 27 investors in the previous quarter.

Disclosure:None. This article was originally published at Insider Monkey.