In this article, we will look at 10 best stocks to buy in 2022 according to billionaire Julian Robertson’s Tiger Management. If you want to skip reading about Julian Robertson’s investment philosophy and his hedge fund’s performance, you can go directly to 5 Best Stocks to Buy in 2022 According to Billionaire Julian Robertson’s Tiger Management.
Julian Robertson is an American billionaire hedge fund manager, and founder of Tiger Management. Mr. Robertson founded Tiger Management in 1980 and has since made a name for himself in the hedge fund industry. His analysis holds credibility and attracts the attention of financial analysts and veteran investors. Forbes estimates Julian Robertson’s real-time net worth as of May 2022 at $4.8 billion. In addition to managing hedge funds, Mr. Robertson owns several properties in New Zealand including lodges, resorts, and golf courses. The legendary investor is also a philanthropist and has donated roughly $1.3 billion of his wealth to charitable causes including funding for medical research, environmental protection initiatives, and charter schools.
Mr. Robertson’s Investment Career
Julian Robertson was a superstar trader back in the 1980s up till 1998. He boasts an average return of 31.7% per year between 1980 and 1998, outperforming the S&P 500’s 12.7% annual return over the same period by 19%. Mr. Robertson has been dubbed the “Wizard of Wall Street” and his key trading strategies revolve around a long-short approach toward stock picking. The veteran investor and billionaire philanthropist retired from actively managing his hedge fund in 2000 and went on to employ and mentor some of the most legendary names in the hedge fund industry including Andreas Halvorsen and Lee Ainslie.
Among Tiger Management’s top 13F holdings we have Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and QUALCOMM, Incorporated (NASDAQ:QCOM).
Our Methodology
To compile the 10 best stocks to buy in 2022 according to billionaire Julian Robertson’s Tiger Management, we reviewed the hedge fund’s 13F portfolio at the end of Q1 2022. We selected Tiger Management’s top 10 stocks that make up the most of its investment portfolio and ranked them in increasing order of stake of the hedge fund.
10 Best Stocks to Buy in 2022 According to Billionaire Julian Robertson’s Tiger Management
10. Ooma, Inc. (NYSE:OOMA)
Tiger Management’s Stake Value: $11,105,000
Percentage of Tiger Management’s 13F Portfolio: 1.83%
Number of Hedge Fund Holders: 16
Ooma, Inc. (NYSE:OOMA) provides communications services and related technologies for businesses and consumers in the United States and Canada. It is the tenth best stock to buy in 2022 according to billionaire Julian Robertson’s Tiger Management. This May, B. Riley analyst Josh Nichols added Ooma, Inc. (NYSE:OOMA) to his firm’s “25 Picks for 22” list. The analyst also reiterated a Buy rating and $27.50 price target on the stock.
As of March 31, Tiger Management owns more than 0.74 million shares of Ooma, Inc. (NYSE:OOMA), that amount to a stake of $11.10 million. The investment covers 1.83% of Julian Robertson’s 13F portfolio.
By the end of the first quarter of 2022, 16 hedge funds were long Ooma, Inc. (NYSE:OOMA) with stakes of $117.85 million. This is compared to 15 hedge funds in the prior quarter with stakes worth $147.85 million.
Mr. Robertson holds sizeable stakes in Ooma, Inc. (NYSE:OOMA). Other stocks that make up the top holdings of Tiger Management’s Q1 2022 investment portfolio include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB) and QUALCOMM Incorporated (NASDAQ:QCOM).
9. SLM Corporation (NASDAQ:SLM)
Tiger Management’s Stake Value: $14,680,000
Percentage of Tiger Management’s 13F Portfolio: 2.42%
Number of Hedge Fund Holders: 19
SLM Corporation (NASDAQ:SLM) provides consumer banking services in the United States. On April 27, the company reported earnings for the fiscal first quarter of 2022. SLM Corporation (NASDAQ:SLM) registered an EPS of $0.46, missing consensus by $0.35. The company’s revenues grew 13.26% year over year and came in at $375.03 million, up from $331.11 million in the comparable quarter last year. On May 2, Citi analyst Arren Cyganovich lowered his price target on SLM Corporation (NASDAQ:SLM) to $21 from $26 but reiterated a Buy rating on the shares.
SLM Corporation (NASDAQ:SLM) is an undervalued dividend player. As of May 24, the stock has a forward PE ratio of 6.23 and a dividend yield of 2.43%. On April 25, the company’s board of directors declared a quarterly cash dividend of $0.11 per share of common stock, payable on June 15 to investors of record on June 3.
SLM Corporation (NASDAQ:SLM) is the ninth-best stock to buy in 2022 according to Tiger Management. As of March 31, Tiger Management’s stakes in the company are valued at $14.68 million which represents 2.42% of its investment portfolio.
SLM Corporation (NASDAQ:SLM) was spotted on 19 hedge fund portfolios at the end of Q1 2022. The total stakes of these hedge funds came in at $757.78 million, down from $819.64 million in the previous quarter with 18 positions.
8. Apollo Global Management, Inc. (NYSE:APO)
Tiger Management’s Stake Value: $15,817,000
Percentage of Tiger Management’s 13F Portfolio: 2.6%
Number of Hedge Fund Holders: 64
Apollo Global Management, Inc. (NYSE:APO) is one of the newest additions to billionaire Julian Robertson’s Tiger Management. In Q1, Tiger Management purchased over 0.25 million shares of Apollo Global Management, Inc. (NYSE:APO) which brought the firm’s stakes in the company to $15.81 million. The investment covers 2.6% of Tiger Management’s 13F portfolio, and the stock is among the top 10 holdings of the hedge fund.
Apollo Global Management, Inc. (NYSE:APO) is another undervalued dividend player liked by Julian Robertson. As of May 24, the stock has a trailing-twelve-month dividend yield of 3.26% and a forward PE ratio of 9.65. On May 5, Apollo Global Management, Inc. (NYSE:APO) declared a quarterly cash dividend of $0.40 per share of the company’s common stock. The dividend is payable on May 31 to investors of record at the close of business on May 18.
Shortly after the company’s latest earnings release, Deutsche Bank analyst Brian Bedell raised his price target on Apollo Global Management, Inc. (NYSE:APO) to $98 from $95 and maintained a Buy rating on the shares.
By the end of Q1 2022, 64 hedge funds held stakes in Apollo Global Management, Inc. (NYSE:APO) worth $2.08 billion. This is compared to 50 positions in the previous quarter with stakes of $2.13 billion.
7. Volaris (NYSE:VLRS)
Tiger Management’s Stake Value: $18,011,000
Percentage of Tiger Management’s 13F Portfolio: 2.96%
Number of Hedge Fund Holders: 15
Volaris (NYSE:VLRS) provides air transportation services for passengers, cargo, and mail in Mexico and internationally. On May 4, the company reported April 2022 traffic results. Volaris (NYSE:VLRS) reported an increased capacity of 28.1% year over year and saw a 31.6% year over year increase in demand in April 2022. The company reported transporting over 2.6 million passengers in April 2022, up 34.6% year over year.
As of March 31, Tiger Management’s stakes in Volaris (NYSE:VLRS) are valued at $18.01 million, which covers 2.96% of the fund’s investment portfolio. The stock is the top eighth holding on Tiger Management’s Q1 2022 investment portfolio.
By the end of the first quarter of 2022, 15 hedge funds were long Volaris (NYSE:VLRS) with stakes worth $337.38 million. This is compared to 16 positions in Q4 2021, with stakes of $305.94 million.
6. Flywire Corporation (NASDAQ:FLYW)
Tiger Management’s Stake Value: $19,487,000
Percentage of Tiger Management’s 13F Portfolio: 3.21%
Number of Hedge Fund Holders: 24
Flywire Corporation (NASDAQ:FLYW) operates as a payments enablement and software company in the United States, Canada, and the United Kingdom, and internationally. As of March 31, Tiger Management owns more than 0.63 million shares of Flywire Corporation (NASDAQ:FLYW) which brings the fund’s stake in the company to $19.48 million. The investment covers 3.21% of Tiger Management’s 13F portfolio.
On May 11, Raymond James analyst John Davis slashed his price target on Flywire Corporation (NASDAQ:FLYW) to $33 from $39 but maintained a Strong Buy rating on the shares. Davis noted that the company reported a strong quarter featuring a 6% revenue upside, a Q2 outlook above expectations, and raised FY 2022 guidance.
Insider Monkey spotted Flywire Corporation (NASDAQ:FLYW) on 24 investment portfolios at the close of Q1 2022. The total stakes of these hedge funds were valued at $389.57 million, up from $319.40 million in the prior quarter with 15 positions. The hedge fund sentiment for the stock is positive.
Among Tiger Management’s most hefty investments we see Flywire Corporation (NASDAQ:FLYW), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and QUALCOMM, Incorporated (NASDAQ:QCOM).
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Disclosure: None. 10 Best Stocks to Buy in 2022 According to Billionaire Julian Robertson’s Tiger Management is originally published on Insider Monkey.
