In this article, we discuss the 10 best stocks under $20 according to British billionaire Chris Rokos. If you want to skip our detailed analysis of Rokos’ history, investment philosophy, and hedge fund performance, go directly to 5 Best Stocks Under $20 According to British Billionaire Chris Rokos.
Chris Rokos is the chief investment officer and founder of Rokos Capital Management, managing a portfolio worth more than $5 billion. The portfolio has grown by 0.75% this year under Rokos’ carefully constructed investment strategies. Rokos Capital Management is an alternative hedge fund aiming for stable long-term returns within a controlled risk framework. The London-based hedge fund was founded in 2015, and the investment strategy revolves around macro asset classes across developed and emerging markets. The clientele at Rokos Capital Management consists mostly of institutional investors who are interested in different global markets. The hedge fund has around $16 billion in assets under management.
After graduating from Pembroke College, Oxford University, Rokos started his career with UBS Group AG in London, and switched to Goldman Sachs after a year. In 1998, after three successful years at Goldman Sachs, Rokos was invited to join Credit Suisse as a proprietary trader. Rokos resigned from Credit Suisse to start his own hedge fund called Brevan Howard. Rokos soon became the most influential trader at Brevan Howard, and it became one of the most successful European hedge funds.
Rokos retired from Brevan Howard in 2012, and after managing his own wealth for a while, he eventually founded Rokos Capital Management in 2015 to get back to trading.
The top ten holdings comprise 58.02% of the portfolio with investments concentrated in healthcare, finance, information technology, and communication sectors. According to Q2 filings, the London-based fund made new purchases in 70 stocks, bought additional stakes in 8, reduced holdings in 31 stocks, and sold out of 47 equities during the second quarter of 2021.
The largest holding in Rokos’ portfolio is Alibaba Group Holding Limited (NYSE:BABA), with the hedge fund owning more than 4.5 million shares worth over $1.03 billion.
Some of the notable stocks in Rokos’ Q2 2021 portfolio include Alibaba Group Holding Limited (NYSE:BABA), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Netflix, Inc. (NASDAQ:NFLX) among others.
Why should we pay attention to Rokos’ stock picks? 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 more than 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.
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Our Methodology
With this context in mind, here are the 10 best stocks under $20 according to British billionaire Chris Rokos. We used Rokos Capital Management’s 13F portfolio for the second quarter of 2021 to rank these stocks.
Best Stocks Under $20 According to British Billionaire Chris Rokos
10. LifeStance Health Group, Inc. (NASDAQ:LFST)
Rokos’ Stake Value: $5,722,000
Percentage of Rokos’ 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 22
The tenth stock on our list of the 10 best stocks under $20 according to British billionaire Chris Rokos is LifeStance Health Group, Inc. (NASDAQ:LFST), which is a healthcare company offering in-person and online support for mental health conditions. The company has over 4000 registered therapists, psychiatrists, and psychologists who are serving across 31 states in the USA. LifeStance Health Group, Inc. (NASDAQ:LFST) offers a variety of services including adult psychiatry, psychotherapy, child and adolescent therapy, TMS, and couples therapy. The company has a market capitalization of $5.519 billion.
Rokos Capital Management owns 200,000 shares in LifeStance Health Group, Inc. (NASDAQ:LFST), amounting to $5.7 million, and making up 0.11% of Rokos’ 13F portfolio.
At the end of the second quarter of 2021, 22 hedge funds in Insider Monkey’s database held stakes worth over $187.4 million in LifeStance Health Group, Inc. (NASDAQ:LFST).
Out of the hedge funds being tracked by Insider Monkey, Maryland-based Rock Springs Capital Management is the leading shareholder in LifeStance Health Group, Inc. (NASDAQ:LFST) with 1.5 million shares worth more than $41.7 million.
On August 16, Morgan Stanley maintained an Equal-Weight rating on LifeStance Health Group, Inc. (NASDAQ:LFST), raising the price target to $21.17 from $14.75.
Like Alibaba Group Holding Limited (NYSE:BABA), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Netflix, Inc. (NASDAQ:NFLX), LifeStance Health Group, Inc. (NASDAQ:LFST) is a notable stock in Rokos’ Q2 portfolio.
9. Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH)
Rokos’ Stake Value: $6,250,000
Percentage of Rokos’ 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 18
The ninth stock on our list of the 10 best stocks under $20 according to British billionaire Chris Rokos is Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), which is a healthcare company focusing on home health and hospice, private nursing, pediatric therapy, and innovative medical solutions to enhance patient care. The company has a market capitalization of $1.449 billion.
Rokos Capital Management owns 500,000 shares in Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), amounting to $6.25 million, and making up 0.12% of Rokos’ 13F portfolio.
At the end of the second quarter of 2021, 18 hedge funds in Insider Monkey’s database held stakes worth over $168.9 million in Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH).
Out of the hedge funds being tracked by Insider Monkey, New York-based Nut Tree Capital is the leading shareholder in Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) with 3.6 million shares worth more than $44.5 million.
8. TAL Education Group (NYSE:TAL)
Rokos’ Stake Value: $6,995,000
Percentage of Rokos’ 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 27
TAL Education Group (NYSE:TAL) is the eighth stock on our list of the 10 best stocks under $20 according to British billionaire Chris Rokos. This is a Chinese holding company focusing on developing and delivering cutting-edge educational technology that will offer consistent development and extracurricular learning across public and private education sectors. The company has a market cap of $2.844 billion.
At the end of the second quarter of 2021, 27 hedge funds in Insider Monkey’s database held stakes amounting to $606.67 million in TAL Education Group (NYSE:TAL), down from 38 in the previous quarter with stakes worth over $1.37 billion.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based Yiheng Capital is the leading shareholder in TAL Education Group (NYSE:TAL), with 5.77 million shares worth over $145.7 million.
Baillie Gifford mentioned TAL Education Group (NYSE:TAL) in its Q2 2021 investor letter. Here is what they said:
“Among the top detractors from Fund performance in the second quarter was Tal Education. Tal Education’s share price weakened over the quarter following announced changes in Chinese antitrust regulation of the private tuition industry. From a long-term investment perspective, however, such developments appear conducive to more sustainable practices across the industry, in which TAL remains the leader. Operational performance remains strong– the company reported a revenue increase of 59% over the previous year and a 44% increase in student enrolments to 6.7 million, driven by its small class offerings and online courses.”
7. DiDi Global Inc. (NYSE:DIDI)
Rokos’ Stake Value: $8,484,000
Percentage of Rokos’ 13F Portfolio: 0.16%
Number of Hedge Fund Holders: 46
The seventh stock on our list of the 10 best stocks under $20 according to British billionaire Chris Rokos is DiDi Global Inc. (NYSE:DIDI), which is a mobility technology platform offering ride and taxi hailing, shared transport facilities, auto solutions, food delivery, moving freight, and financial services. The company operates its app-based services across Asia Pacific, Latin America, Africa, Central Asia, and Russia. The market cap for DiDi Global Inc. (NYSE:DIDI) is $37.525 billion.
Rokos Capital Management owns 600,000 shares in DiDi Global Inc. (NYSE:DIDI), amounting to $8.4 million, and making up 0.16% of Rokos’ 13F portfolio.
At the end of the second quarter of 2021, 46 hedge funds in Insider Monkey’s database held stakes amounting to $924.7 million in DiDi Global Inc. (NYSE:DIDI).
On July 26, the London-based brokerage firm Atlantic Equities maintained a Neutral rating on DiDi Global Inc. (NYSE:DIDI), raising the price target to $25 from $7.78.
Like Alibaba Group Holding Limited (NYSE:BABA), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA), and Netflix, Inc. (NASDAQ:NFLX), DiDi Global Inc. (NYSE:DIDI) is a notable stock in Rokos’ Q2 portfolio.
6. Frontier Group Holdings, Inc. (NASDAQ:ULCC)
Rokos’ Stake Value: $9,037,000
Percentage of Rokos’ 13F Portfolio: 0.18%
Number of Hedge Fund Holders: 10
The sixth stock on our extensive list is Frontier Group Holdings, Inc. (NASDAQ:ULCC), which is a low-cost airline offering its services to commercial passengers via direct distribution channels such as the company website, mobile application, and call center. Frontier Group Holdings, Inc. (NASDAQ:ULCC) operates across 110 domestic US airports and also offers international flights to destinations in the Americas. The company has a market cap of $3.54 billion.
Rokos Capital Management owns 540,000 shares in Frontier Group Holdings, Inc. (NASDAQ:ULCC), amounting to $9.03 million, and making up 0.18% of Rokos’ 13F portfolio.
At the end of the second quarter of 2021, 10 hedge funds in Insider Monkey’s database held stakes worth $77.3 million in Frontier Group Holdings, Inc. (NASDAQ:ULCC).
On September 14, Morgan Stanley maintained an Overweight rating on Frontier Group Holdings, Inc. (NASDAQ:ULCC), raising the price target to $21.9 from $16.43.
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Disclosure: None. 10 Best Stocks Under $20 According to British Billionaire Chris Rokos is originally published on Insider Monkey.
