In this article, we discuss the 10 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins.

Jeffrey Talpins is the Chief Investment Officer of Element Capital Management. The hedge fund, founded in 2005, is based in New York. To take advantage of opportunities in the global economy and limit potential losses, Jeffrey Talpins uses options trading strategies. He holds degrees from Yale University in applied mathematics and economics with a concentration in finance. Talpins, a former trader for Citigroup and Goldman Sachs, makes investments in bonds, currencies, and equities. As of September 26, Jeffrey Talpins has a net worth of $3.3 billion, according to Forbes. Since its establishment in 2005, Element Capital Management has ranked among the top hedge funds, with yearly returns of more than 20%. Element, however, had its worst-ever year in 2021 and experienced a 2.7% decline in January—a month when a majority of other macro managers saw gains. According to those with knowledge of the situation, as reported by Bloomberg, the fund fell by around 9% in 2021.

Element’s last reported 13F filing for Q2 2022 included $199.297 million in managed 13F securities and a top 10 holdings concentration of 40.31%. Some of the notable stocks owned by the fund during the second quarter included Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE) and salesforce.com, inc. (NYSE:CRM).

Our Methodology

At Insider Monkey, we cover the portfolios of 895 hedge funds, closely tracking the stocks they buy and sell. We selected the ten stocks discussed in this article based on the 13F regulatory filing submitted by Element Capital Management with the SEC for the quarter ending June 30. The stocks are ranked according to Element Capital’s stake value in each company.

Best Stocks to Buy Now According to Billionaire Jeffrey Talpins

10. The Coca-Cola Company (NYSE:KO)

Element Capital’s Stake Value: $3.386 million

Percentage of  Element Capital’s 13F portfolio: 1.69%

Number of  Hedge Fund Holders: 60

Analyst Carlos Laboy with HSBC recently increased his price target for The Coca-Cola Company (NYSE:KO) from $72 to $76 while maintaining a Buy recommendation on the shares. Laboy informs investors in a research note that Coke has new revenue drivers in Latin America as it makes its hitherto exclusive sales and distribution system available to other brands.

A total of 60 hedge funds had interests in The Coca-Cola Company (NYSE:KO) at the end of the second quarter of 2022, valued at $28.3 billion. The Coca-Cola Company’s (NYSE:KO) position held by Element Capital was valued at $3.386 million as of June 30. The investment comprises 1.69% of the 13F portfolio owned by Jeffrey Talpins. The hedge fund increased its stake by 50% in Q2 2022, as compared to the previous quarter. Just like Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE), and salesforce.com, inc. (NYSE:CRM), The Coca-Cola Company (NYSE:KO) is one of the best stocks to buy, according to Jeffrey Talpins.

09. Johnson & Johnson (NYSE:JNJ)

Element Capital’s Stake Value: $3.860 million

Percentage of  Element Capital’s 13F portfolio: 1.93%

Number of  Hedge Fund Holders: 83

With a history spanning more than 135 years, Johnson & Johnson (NYSE:JNJ) is one of the biggest healthcare corporations in the world. Several healthcare items are developed, produced, and sold by Johnson & Johnson (NYSE:JNJ).

One of the most popular stocks among the 895 hedge funds that Insider Monkey tracks is Johnson & Johnson (NYSE:JNJ). A total of 83 hedge funds had shares of Johnson & Johnson (NYSE:JNJ) worth $6.8 billion as of Q2 2022. Element Capital contributed $3.86 million of those $6.8 billion investments. Johnson & Johnson (NYSE:JNJ) largest stakeholder, GQG Partners, owns 6.6 million shares worth $1.2 billion.

Here is what Mayar Capital had to say about Johnson & Johnson (NYSE:JNJ) in its second-quarter 2022 investor letter:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…” (Click here to see the full text)

08. Alphabet Inc. (NASDAQ:GOOG)

Element Capital’s Stake Value: $4.683 million

Percentage of  Element Capital’s 13F portfolio: 2.34%

Number of  Hedge Fund Holders: 153

According to Insider Monkey’s database, 153 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) at the close of Q2 2022. The total stakes of these hedge funds amounted to $22.29 billion. Of those, $4.683 million were from Element Capital Management. Element Capital upped its stake in Alphabet Inc. (NASDAQ:GOOG) by 51% during Q2. The investment covers 2.34% of Jeffrey Talpins’s 13F portfolio.

Various analysts are bullish on Alphabet Inc. (NASDAQ:GOOG) stock. On July 27, Morgan Stanley analyst Brian Nowak maintained a buy-side Overweight rating on Alphabet Inc. (NASDAQ:GOOG) and increased his price target from $140 to $145. Ivan Feinseth, an analyst with Tigress Financial, restated his Strong Buy rating and increased his price target for Alphabet Inc. (NASDAQ:GOOG) to $186 on August 3.

Madison Funds discussed Alphabet Inc. (NASDAQ:GOOG) in the second quarter investor letter. Here is what the fund said:

“Alphabet Inc. (NASDAQ:GOOG) continues to perform well, but the price-to-earnings multiple contracted considerably due to concerns about the potential for revenue to be more economically sensitive than it has been historically given the vast size of the business today. Similarly, Adobe and Accenture continue to report strong sales growth, but performance has moderated a bit relative to the extremely robust results generated over the last year or so. In all three cases, we think that the longer-term outlook remains excellent.”

07. Mastercard Incorporated (NYSE:MA)

Element Capital’s Stake Value: $4.810 million

Percentage of  Element Capital’s 13F portfolio: 2.41%

Number of  Hedge Fund Holders: 137

Technology firm Mastercard Incorporated (NYSE:MA) works in the global payments sector. In order to facilitate the adoption of electronic payment methods, the company links customers, financial institutions, merchants, governments, digital partners, corporations, and other organizations across the globe.

Charles Akre’s Akre Capital Management was the largest shareholder of Mastercard Incorporated (NYSE:MA) during Q2, holding 5.86 million of its shares, having a total value of $1.849 billion. At the end of the second quarter of 2022, 137 hedge funds owned shares of Mastercard Inc. (NYSE:MA). These stakes were worth a total of $14.9 billion. A total of 136 hedge funds owned shares of the company during the previous quarter. Jeffrey Talpins’s Element Capital increased its stake during Q2 by 51%. It holds 15,248 shares of Mastercard Incorporated (NYSE:MA), worth roughly $4.810 million.

In its Q2 2022 investor letter, Baron Fintech Fund mentioned Mastercard Incorporated (NYSE:MA) and explained its insights for the company. Here is what the fund said:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Mastercard Incorporated (NYSE:MA) added the most value. These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

06. Visa Inc. (NYSE:V)

Element Capital’s Stake Value: $5.348 million

Percentage of  Element Capital’s 13F portfolio: 2.68%

Number of  Hedge Fund Holders: 166

A total of 166 hedge funds were invested in Visa Inc. (NYSE:V) at the end of the second quarter of 2022. The stock’s largest shareholder in Q2 was TCI Fund Management, which amassed shares of Visa Inc. (NYSE:V) valued at about $3.9 billion. Since Q1 2022, TCI Fund Management has held the same amount of stock. Jeffrey Talpins’s Element Capital owns 27,161 shares of Visa Inc. (NYSE:V), accounting for 2.68% of its 13F portfolio. The hedge fund increased its stake by 51% in Q2 2022, as compared to the previous quarter.

Here is what Baron Fintech Fund has to say about Visa Inc. (NYSE:V) in its Q2 2022 investor letter:

“The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.”

Just like Microsoft Corporation (NASDAQ:MSFT), Adobe Inc. (NASDAQ:ADBE) and salesforce.com, inc. (NYSE:CRM), Visa Inc. (NYSE:V) is one of the best stocks to buy, according to Jeffrey Talpins.

05. Pfizer Inc. (NYSE:PFE)

Element Capital’s Stake Value: $5.568 million

Percentage of  Element Capital’s 13F portfolio: 2.79%

Number of  Hedge Fund Holders: 70

At the end of the second quarter of 2022, 70 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Pfizer Inc. (NYSE:PFE), compared to 79 in the preceding quarter worth $4.1 billion. During Q2 2022, Element Capital increased its stake in the company by 51% to $5.568 million, which represented 2.79% of its 13F portfolio. With a position worth $533.91 million, AQR Capital Management was the largest hedge fund holder in the company during Q2.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pfizer Inc. (NYSE:PFE) was one of them. Here is what the fund said:

“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer Inc. (NYSE:PFE) vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. (…read more)

04. CME Group Inc. (NASDAQ:CME)

Element Capital’s Stake Value: $6.141 million

Percentage of  Element Capital’s 13F portfolio: 3.08%

Number of  Hedge Fund Holders: 56

Based in Illinois CME Group Inc. (NASDAQ:CME) is one of the biggest exchanges for financial derivatives in the world. As of the end of Q2 2022, Element Capital owned $6.141 million worth of shares, accounting for 3.08% of the fund’s 13F portfolio. As a result, CME Group Inc. (NASDAQ:CME) is ranked #4 in our list of Talpins’s top stock picks.

On September 6, analyst Gautam Sawant of Credit Suisse maintained a Neutral rating on the shares of CME Group while lowering his price target on the stock from $216 to $210. According to Insider Monkey’s Q2 2022 database, CME Group Inc. (NASDAQ:CME) was owned by 56 hedge funds. These holdings had a combined worth of almost $2.74 billion. GuardCap Asset Management has the largest investment in the company during Q2, with a holding of around $858.72 million.

In its Q1 2022 investor letter, Baron Durable Advantage Fund mentioned CME Group Inc. (NASDAQ:CME) and explained its insights for the company. Here is what the fund said:

“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”

03. UnitedHealth Group Incorporated (NYSE:UNH)

Element Capital’s Stake Value: $7.849 million

Percentage of  Element Capital’s 13F portfolio: 3.93%

Number of  Hedge Fund Holders: 91

UnitedHealth Group Incorporated (NYSE:UNH), a global managed healthcare and insurance corporation with operations in Minnetonka, Minnesota, was established in 1977. Jeffrey Talpins’s Element Capital’s portfolio had 15,281 shares of UnitedHealth Group Incorporated (NYSE:UNH) at the end of June 2022, worth $7.849 million, representing 3.93% of the total holdings. In the second quarter of 2022, 91 of the hedge funds monitored by Insider Monkey were long UnitedHealth Group Incorporated (NYSE:UNH), down from 103 funds in the prior quarter. With 3.11 million shares worth $1.60 billion, Rajiv Jain’s GQG Partners is UnitedHealth Group Incorporated’s (NYSE:UNH) largest shareholder.

On September 22, Raymond James analyst John Ransom maintained a Strong Buy rating and increased his price target for the stock from $620 to $635. Ransom informs investors in a research note that the court supervising the UnitedHealth/Change Healthcare (CHNG) trial with the DOJ will permit the deal to go forward, putting an end to a 21-month conflict between UnitedHealth and authorities. Even though there is a slight chance of an appeal and additional delay, the deal is anticipated to close within 10 days of the judge’s ruling, adds Ransom.

Baron Funds, an asset management firm, mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2022 investor letter. Here is what the fund said:

“UnitedHealth Group Incorporated is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and health care services arm, Optum, which offers care delivery and other services. Shares increased 1.1% on strong first quarter results (revenues were up 14% year-over-year), and the company increased its annual guidance.

The performance was driven by Optum as a result of a growing adoption of value-based solutions. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”

02. Microsoft Corporation (NASDAQ:MSFT)

Element Capital’s Stake Value: $10.413 million

Percentage of  Element Capital’s 13F portfolio: 5.22%

Number of  Hedge Fund Holders: 258

As of Q2, Microsoft Corporation (NASDAQ:MSFT) comprises 5.22% of Element Capital’s 13F portfolio. The fund holds 40,544 Microsoft Corporation (NASDAQ:MSFT) shares worth roughly $10.413 million. For Q2, Ken Fisher’s Fisher Asset Management is the largest shareholder holding 28.69 million Microsoft Corporation (NASDAQ:MSFT) shares valued at $7.36 billion. At the end of the second quarter of 2022, 258 hedge funds in the database of Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT) worth roughly $56 billion, compared to 259 in the preceding quarter worth around $66 billion.

On August 11, Guggenheim analyst John DiFucci started following Microsoft Corporation (NASDAQ:MSFT) with a Neutral rating and a $292 price target. While he believes that Azure and Office Commercial 365 have room to grow and will support Microsoft Corporation’s (NASDAQ:MSFT) revenue and free cash flow, he also believes that the number of Windows users is continuing to fall, which is “not fully reflected in consensus estimates.”

In its Q2 2022 investor letter, Baron Durable Advantage Fund mentioned Microsoft Corporation (NASDAQ:MSFT) and explained its insights for the company. Here is what the fund said:

“Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.

As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.”

01. Albertsons Companies, Inc. (NYSE:ACI)

Element Capital’s Stake Value: $26.992 million

Percentage of  Element Capital’s 13F portfolio: 13.54%

Number of  Hedge Fund Holders: 37

After receiving $1.25 billion from investors for its initial public offering (IPO), Albertsons Companies, Inc. (NYSE:ACI) began trading publicly in June 2020. Numerous grocery stores are operated by Albertsons Companies, Inc. (NYSE:ACI) under a variety of brand names, primarily in the northeastern and western parts of the US. Additionally, it runs a large number of supermarkets and associated businesses that sell their goods mostly offline.

Element Capital Management is extremely bullish on Albertsons Companies, Inc. (NYSE:ACI) as it increased its stake by 3857% during Q2, holding 1.010 million of its shares worth roughly $26.992 million. At the end of the second quarter of 2022, 37 of the 895 hedge funds we track had a long position in Albertsons Companies, Inc. (NYSE:ACI), down from 39 funds in the previous quarter.

You can also take a look at the Top 10 Stock Picks of Mark Kleiman’s Factorial Partners and Top 10 Stock Picks of Minerva Advisors.

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Disclosure: None. 10 Best Stocks to Buy Now According to Billionaire Jeffrey Talpins is originally published on Insider Monkey.