In this article, we will look at 10 dividend stocks in Crispin Odey’s hedge fund portfolio.
Mr. Odey’s Early Beginnings
Crispin Odey is a London-based hedge fund manager and the founding partner of Odey Asset Management Group. Mr. Odey has been dubbed as a “doom-monger” since he has managed to stay lucky in times of economic depression and market crashes. Prior to founding his hedge fund, Mr. Odey managed funds at Framlington and Barings.
Crispin Odey’s Past Performance
Crispin Odey founded Odey Asset Management Group in 1991 with the help of an initial investment of $150 million made by billionaire investor George Soros. Mr. Odey’s fund suffered dramatic losses in 1994 when the Federal Reserve raised interest rates. One of Mr. Odey’s funds lost 44% in value and he lost 95% of his clients. The investor then went on to thrive in the early 2000s. When the MSCI World Index lost 7%, Mr. Odey boasted gains of 20%. In 2008, the investor shorted bank stocks during a time of financial crisis. His short bets against the European banks proved profitable for him and his fund, pocketing him over £28 million that year. Odey Asset Management Group’s returns were a whopping 54.8% for that year.
Brexit Pays Off
In 2016, the investor speculated that the market would collapse as a consequence of Brexit. The wager resulted in gains of 15% for his hedge fund and made him over an astounding £220 million. As of the third quarter of 2021, Mr. Odey manages more than $374.95 million in 13F securities through his hedge fund, Odey Asset Management Group.
Crispin Odey of Odey Asset Management Group
Our Methodology
Among the Crispin Odey’s top holdings we have Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and T-Mobile US, Inc (NASDAQ:TMUS). However, for the purposes of this list, we will be discussing 10 dividend stocks with the highest yields present in Mr. Odey’s hedge fund portfolio.
10 Dividend Stocks in Crispin Odey’s Hedge Fund Portfolio
10. Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC)
Stake Value of Odey Asset Management Group: $2,432,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 0.64%
Number of Hedge Fund Holders: 21
Dividend Yield as of January 5: 2.08%
Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) engages in the telecommunications and networking business worldwide. On December 16, 2021, Verizon (NYSE:VZ) announced its collaboration with Google Cloud (NASDAQ:GOOG) and LM Ericsson (NASDAQ:ERIC) to develop 5G Edge technology solutions for industries, enterprises, and developers.
On December 20, 2021, Morgan Stanley analyst Dominik Olszewski started covering Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) with an Equal Weight rating along with a $13 price target.
By the end of the third quarter of 2021, 21 hedge funds held stakes in Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), up from 19 hedge funds in the previous quarter. The total value of these stakes amounted to $227.44 million.
Just like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and T-Mobile US, Inc (NASDAQ:TMUS), Mr. Odey has a significant stake in Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) via his hedge fund, Odey Asset Management Group.
9. Pfizer Inc. (NYSE:PFE)
Stake Value of Odey Asset Management Group: $3,011,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 0.8%
Number of Hedge Fund Holders: 74
Dividend Yield as of January 5: 2.93%
On January 5, BofA analyst Geoff Meacham upgraded Pfizer Inc. (NYSE:PFE) to Buy from Neutral and gave the stock a price target of $70, up from $59. On January 4, Pfizer Inc. (NYSE:PFE) reported that the US government has upped its order for Paxlovid, the company’s FDA-approved oral therapy, to battle COVID-19. The government had initially ordered 10 million courses of Paxlovid, which are now doubled to 20 million in total and are expected to be delivered by the end of September 2022.
Pfizer Inc. (NYSE:PFE) is one of the latest additions to Odey Asset Management Group’s 13F portfolio. Mr. Odey bought 70,000 shares of the stock during the third quarter of 2021, which brought his stake in the company to $3.01 million. The investment covers 0.8% of Mr. Odey’s hedge fund portfolio.
Of the 867 hedge funds being tracked by Insider Monkey, 74 held stakes in Pfizer Inc. (NYSE:PFE) worth $2.66 billion by the end of the third quarter of 2021. This is compared to 67 positions in the second quarter of 2021, with total stakes amounting to $2.35 billion. It is evident that the hedge fund sentiment around the stock is positive.
Saturna Capital, an investment management firm, published its “Amana Funds” third-quarter 2021 investor letter. Here’s what the firm had to say about Pfizer Inc. (NYSE:PFE):
“The Fund’s strongest performer during the quarter was pharmaceutical manufacturer Pfizer. The company submitted trial data to the FDA for use of its COVID-19 vaccine for younger children, and it is widely expected that the FDA will approve it. Health authorities also began recommending booster shots of the Pfizer vaccine for select populations, further increasing demand for vaccinations.”
8. Johnson & Johnson (NYSE:JNJ)
Stake Value of Odey Asset Management Group: $3,707,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 0.98%
Number of Hedge Fund Holders: 88
Dividend Yield as of January 5: 2.48%
Johnson & Johnson (NYSE:JNJ) researches, develops, manufactures, and sells a range of products in the health care field worldwide. The company operates through three segments: Consumer Health, Pharmaceutical, and Medical Devices. On January 4, Johnson & Johnson (NYSE:JNJ) announced that its board of directors have declared a quarterly cash dividend of $1.06 per share. The common stock cash dividend is payable on March 8, 2022, to shareholders of record on February 22. Johnson & Johnson (NYSE:JNJ) was founded in 1886 and is headquartered in New Jersey.
On December 15, 2021, Citi analyst Joanne Wuensch raised her price target on Johnson & Johnson (NYSE:JNJ) to $195 from $192 and reiterated a Buy rating on the shares.
By the end of the third quarter of 2021, 88 hedge funds out of the 867 being tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE:JNJ) worth $6.87 billion. Odey Asset Management’s stake in the company was valued at $3.7 million which accounted for 0.98% of the hedge fund’s 13F portfolio.
7. The Procter & Gamble Company (NYSE:PG)
Stake Value of Odey Asset Management Group: $3,823,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 1.01%
Number of Hedge Fund Holders: 69
Dividend Yield as of January 5: 2.13%
The Procter & Gamble Company (NYSE:PG) is an Ohio-based American multinational consumer goods corporation. The company operates through five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.
Of the 867 elite hedge funds tracked by Insider Monkey at the end of the third quarter of 2021, 69 held stakes in The Procter & Gamble Company (NYSE:PG) which were in excess of $6.41 billion. Odey Asset Management’s stake in the company was valued at $3.82 million and the investment covered 1.01% of the fund’s investment portfolio.
The Procter & Gamble Company (NYSE:PG) is one of the highest yielding dividend stocks among Odey Asset Management Group’s 13F holdings. Other stocks among the top holdings of the hedge fund are Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and T-Mobile US, Inc (NASDAQ:TMUS).
6. ViacomCBS Inc. (NASDAQ:VIAC)
Stake Value of Odey Asset Management Group: $4,365,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 1.16%
Number of Hedge Fund Holders: 64
Dividend Yield as of January 5: 2.90%
ViacomCBS Inc. (NASDAQ:VIAC) is a media and entertainment company that operates through TV Entertainment, Cable Networks, and Filmed Entertainment segments worldwide.
There were 64 hedge funds in total that held stakes in ViacomCBS Inc. (NASDAQ:VIAC) by the end of the third quarter of 2021. The total value of these stakes was $1.25 billion. ViacomCBS Inc. (NASDAQ:VIAC) covers 1.16% of Odey Asset Management Group’s 13F portfolio as of the third quarter of 2021. Mr. Odey’s stake in the company, via his hedge fund, was valued at $4.36 million.
5. Morgan Stanley (NYSE:MS)
Stake Value of Odey Asset Management Group: $4,807,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 1.28%
Number of Hedge Fund Holders: 65
Dividend Yield as of January 5: 2.69%
Morgan Stanley (NYSE:MS) operates as an American multinational investment bank and financial services company. On January 3 Barclays analyst Jason Goldberg raised his price target on Morgan Stanley (NYSE:MS) to $123 from $110 and kept an Overweight rating on the shares.
By the end of the third quarter of 2021, 65 hedge funds held stakes in Morgan Stanley (NYSE:MS) worth $4.99 billion. Odey Asset Management Group’s stake in the financial services company was valued at roughly $4.80 million, which accounted for 1.28% of the fund’s 13F portfolio.
Here is what Artisan Partners had to say about Morgan Stanley (NYSE:MS) in their third-quarter 2021 investor letter:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
4. ConocoPhillips (NYSE:COP)
Stake Value of Odey Asset Management Group: $5,727,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 1.52%
Number of Hedge Fund Holders: 49
Dividend Yield as of January 5: 2.39%
ConocoPhillips (NYSE:COP) operates as an American multinational corporation that is involved in hydrocarbon exploration and production worldwide.
On November 30, 2021, Mizuho analyst Silvio Micheloto raised his price target on ConocoPhillips (NYSE:COP) to $101 from $99 and reiterated a Buy rating on the shares.
By the end of the second quarter of 2021, Odey Asset Management Group’s stake in ConocoPhillips (NYSE:COP) stood at $3.92 million, which represented 0.88% of the hedge fund’s 13F portfolio.
Of the 867 hedge funds present in Insider Monkey’s database, 49 held stakes in ConocoPhillips (NYSE:COP) by the end of the third quarter of 2021. These stakes amounted to $1.37 billion, up from $1.15 billion in the second quarter of 2021, when 50 hedge funds held a stake in the company.
ClearBridge Investments mentioned ConocoPhillips (NYSE:COP) in their third-quarter 2021 investor letter, here’s what they had to say:
“We also seized the opportunity to add to our position in energy producer ConocoPhillips at what we considered an attractive valuation. The market rewarded this move late in the quarter after ConocoPhillips announced its purchase of Permian Basin assets from Shell, making the company the second-largest oil and gas producer in the contiguous U.S. We view this as a positive strategic transaction for a well-run, ESG-cognizant oil producer. With this and prior transactions, the company continues to press its cost advantage and is well-positioned to benefit from ongoing energy demand recovery to pre-pandemic levels.”
3. JPMorgan Chase & Co. (NYSE:JPM)
Stake Value of Odey Asset Management Group: $7,557,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 2.01%
Number of Hedge Fund Holders: 101
Dividend Yield as of January 5: 2.38%
On January 3, 2022, Barclays analyst Jason Goldberg raised his price target on JPMorgan Chase & Co. (NYSE:JPM) to $202 from $193 and kept an Overweight rating on the shares. The analyst anticipates bank stocks to continue to outperform the market in 2022.
On December 14, 2021, JPMorgan Chase & Co. (NYSE:JPM) declared a quarterly cash dividend of $1.00 per share of the company’s common stock. The common stock cash dividend is payable on January 31, for shareholders of record on January 6.
By the end of the third quarter of 2021, 101 hedge funds held stakes in JPMorgan Chase & Co. (NYSE:JPM) worth in excess of $5.63 billion. Of these 101 funds, Mr. Odey’s fund had stakes in the company worth $7.55 million which accounted for 2.01% of Odey Asset Management’s 13F portfolio. This is compared to 108 positions in the second quarter of 2021, with stakes worth $4.92 billion.
Vltava Fund, an investment management firm, published its third-quarter 2021 investor letter in which it mentioned JPMorgan Chase & Co. (NYSE:JPM). Here’s what Vltava Fund had to say:
“While all the previous names could be categorised as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include also Jamie Dimon and Herman Gref.
We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.
The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”
2. Sculptor Capital Management, Inc. (NYSE:SCU)
Stake Value of Odey Asset Management Group: $11,214,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 2.99%
Number of Hedge Fund Holders: 15
Dividend Yield as of January 5: 5.10%
Sculptor Capital Management, Inc. (NYSE:SCU) is a global diversified alternative asset management firm. The firm operates multiple investment strategies, including multi-strategy, credit, and real estate.
Mr. Odey upped his hedge fund’s stake in Sculptor Capital Management, Inc. (NYSE:SCU) in the third quarter of 2021. Odey Asset Management Group’s stake in the company went from $9.7 million in the second quarter of 2021, to $11.21 million by the end of the third quarter.
There were 15 positions that held stakes in Sculptor Capital Management, Inc. (NYSE:SCU) by the end of the third quarter of 2021. The total value of these stakes amounted to $84.6 million.
1. Shaw Communications Inc (NYSE:SJR)
Stake Value of Odey Asset Management Group: $36,561,000
Percentage of Odey Asset Management Group’s 13F Portfolio: 9.75%
Number of Hedge Fund Holders: 21
Dividend Yield as of January 5: 3.15%
On November 8, 2021, RBC Capital analyst Drew McReynolds upgraded Shaw Communications Inc (NYSE:SJR) to Outperform from Sector Perform and kept a price target of Canadian $40.50. Shaw Communications Inc (NYSE:SJR) is a telecommunication services company that operates through wireless and wireline segments in North America.
By the end of the third quarter of 2021, 21 hedge funds held stakes in Shaw Communications Inc (NYSE:SJR) worth more than $892.62 million. This is compared to 23 positions in the second quarter of 2021, with stakes of $697.69 million. Mr. Odey’s stake in the company, via his hedge fund, was valued at $36.56 million as of September 30, 2021. The stock is among the top 5 holdings of Odey Asset Management Group and covers 9.75% of the fund’s 13F portfolio.
You can also take a look at 10 Best Dividend Stocks to Buy According to Mason Hawkins’ Southeastern Asset Management and Top Stocks to Invest In According to Jeffrey Ubben’s ValueAct Capital.
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Disclosure: None. 10 Dividend Stocks in Crispin Odey’s Hedge Fund Portfolio is originally published on Insider Monkey.
