In this article, we discuss 10 new stock picks of Ken Fisher.
Ken Fisher is a billionaire investor and hedge fund manager, who founded Fisher Asset Management in 1979, and currently serves as the chairman and co-chief investment officer of the Washington-based hedge fund. The Q4 13F portfolio at Ken Fisher’s fund is worth $178.5 billion, up from roughly $161 billion a quarter earlier.
Ken Fisher manages discretionary assets under management of $159.6 billion at his hedge fund, as per the 13F filings from Q4 2021, and his investments are mainly focused in the information technology, healthcare, finance, consumer discretionary, and communications sectors. His massive portfolio has a top ten holdings concentration of 31.6%, and Fisher Asset Management’s largest holding is Apple Inc. (NASDAQ:AAPL). The $11.36 billion Apple Inc. (NASDAQ:AAPL) stake represents 6.36% of the fund’s 13F securities for the period.
In Q4 2021, Ken Fisher acquired 112 new stocks, made additional purchases in 512 securities, sold out of 69 equities, and reduced holdings in 303 companies. His top buys for the fourth quarter included Microsoft Corporation (NASDAQ:MSFT), Intuit Inc. (NASDAQ:INTU), and Advanced Micro Devices, Inc. (NASDAQ:AMD). Whereas, the billionaire reduced holdings in Walmart Inc. (NYSE:WMT), The Walt Disney Company (NYSE:DIS), and Visa Inc. (NYSE:V).
The most notable stock picks of Ken Fisher’s Fisher Asset Management in Q4 2021 included Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
We used the Q4 2021 portfolio of Ken Fisher’s Fisher Asset Management for this analysis, selecting the newest stock picks of the billionaire for the period. We have ranked the securities according to the stake value of Ken Fisher’s fund in each holding.
New Stock Picks of Ken Fisher
10. The Kraft Heinz Company (NASDAQ:KHC)
Fisher Asset Management’s Stake Value: $232,000
Number of Hedge Fund Holders: 33
The Kraft Heinz Company (NASDAQ:KHC) is a prominent American multinational food company that sells beverages, convenience foods, snacks, and food service. The Kraft Heinz Company (NASDAQ:KHC) offers over 20 different brands and its products are distributed worldwide.
Billionaire Ken Fisher started building his position in The Kraft Heinz Company (NASDAQ:KHC) back in Q3 2015, but has been inconsistent with his stake in the company over the years. He sold out of The Kraft Heinz Company (NASDAQ:KHC) in Q4 2017, only to purchase a stake again in the next quarter. In Q2 2021, Ken Fisher once again discarded his shares of The Kraft Heinz Company (NASDAQ:KHC), and repurchased 6,461 shares of the company in Q4 2021, worth $232,000.
On December 8, The Kraft Heinz Company (NASDAQ:KHC) announced its plan to combine its U.S. and Canada businesses to create the North America Zone. For reporting purposes, the new zone is expected to be effective in the second fiscal quarter of 2022. The rationale for this move is to advance the company’s long-term, sustainable growth plans by bringing increased agility to its innovation agenda and operations.
Morgan Stanley analyst Pamela Kaufman raised the price target on The Kraft Heinz Company (NASDAQ:KHC) to $38 from $37 and kept an Equal Weight rating on the shares. The Packaged Food group underperformed the market over the last year, but has seen stronger performance in the last month due to sector rotation and a rise in COVID-19 cases that supports near-term demand, noted the analyst, who prefers companies that are set for a post-COVID topline recovery, benefit from secular growth tailwinds, and have stronger pricing power.
Among the hedge funds tracked by Insider Monkey in Q3 2021, Berkshire Hathaway held the largest stake in The Kraft Heinz Company (NASDAQ:KHC), owning 325.6 million shares worth roughly $12 billion. Overall, 33 hedge funds were bullish on the stock in the third quarter.
In addition to Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN), The Kraft Heinz Company (NASDAQ:KHC) is a significant addition to Ken Fisher’s Q4 portfolio.
9. Airbnb, Inc. (NASDAQ:ABNB)
Fisher Asset Management’s Stake Value: $241,000
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ:ABNB) is an American vacation rental company that operates an online marketplace to offer lodging and hospitality services to customers worldwide. Ken Fisher acquired a position in Airbnb, Inc. (NASDAQ:ABNB) in Q4 2021, buying 1,447 shares of the company, valued at $241,000.
Although Airbnb, Inc. (NASDAQ:ABNB) shares have dropped roughly 9% year-to-date, heading into 2022, the company will benefit from decentralized living as a consequence of the COVID-19 pandemic. The company is focused on onboarding more hosts and will leverage a gig economy business model, which has received skepticism from many investors.
On January 18, Gordon Haskett analyst Robert Mollins downgraded Airbnb, Inc. (NASDAQ:ABNB) to Hold from Buy with a price target of $172, down from $216. The analyst sees headwinds to the company’s growth and not enough upside catalysts. While Airbnb, Inc. (NASDAQ:ABNB) will prove the most resilient name in online travel for the foreseeable future, its peers will see “far greater” gross book value growth relative to pre-pandemic levels, he tells investors in a research note.
In Q3 2021, Renaissance Technologies was a prominent stakeholder of Airbnb, Inc. (NASDAQ:ABNB), with 2.77 million shares worth $465.3 million. Overall, 58 hedge funds were bullish on Airbnb, Inc. (NASDAQ:ABNB) in the third quarter of 2021, with stakes totalling $2.71 billion.
Here is what Tollymore Investment Partners has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimizing externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
8. The Charles Schwab Corporation (NYSE:SCHW)
Fisher Asset Management’s Stake Value: $392,000
Number of Hedge Fund Holders: 59
The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company that serves retail and institutional clients, offering services including commercial banking, stock brokerage, wealth management, and investment consulting.
Ken Fisher initially purchased a stake in The Charles Schwab Corporation (NYSE:SCHW) in Q2 2015, but sold out of his position in the next quarter. He then purchased shares worth $204,000 in The Charles Schwab Corporation (NYSE:SCHW) in Q2 2021, before discarding his position in Q3 2021. Ken Fisher, as of Q4 2021, once again bought 4,665 shares of The Charles Schwab Corporation (NYSE:SCHW), valued at $392,000.
Publishing its Q4 results on January 18, The Charles Schwab Corporation (NYSE:SCHW) posted earnings per share of $0.86, missing estimates by $0.02. The company’s revenue for the period increased 12.74% year-over-year to $4.71 billion, but missed estimates by $79.07 million.
On January 31, Deutsche Bank analyst Brian Bedell lowered the price target on The Charles Schwab Corporation (NYSE:SCHW) to $121 from $122 and kept a Buy rating on the shares. The analyst remains encouraged by The Charles Schwab Corporation (NYSE:SCHW)’s business growth profile and synergies with the acquired Ameritrade franchise and continues to forecast over 25% earnings growth in each of the next two years. He believes consensus earnings estimates are too low and reiterates the stock as his top pick.
According to the hedge funds tracked by Insider Monkey in Q3 2021, Egerton Capital Limited is the largest stakeholder of The Charles Schwab Corporation (NYSE:SCHW), with a position worth over $1 billion. Overall, 59 hedge funds were bullish on The Charles Schwab Corporation (NYSE:SCHW), down from 72 funds in the quarter earlier.
Here is what Giverny Capital Asset Management has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q4 2021 investor letter:
“Our fourth-largest holding at year-end was Charles Schwab. Schwab shares rose 60%, buoyed by twin tailwinds of asset growth and the prospect of rising interest rates. Schwab is an exceptional business – it has grown new brokerage accounts at a steady 5%-6% clip for many years, and even faster recently. It has won the trust of retail investors – it’s hard to overstate how important trust is in financial services – but also offers financial advisers a low-cost custodial solution that has helped it win large chunks of business from legacy players like Merrill Lynch or Morgan Stanley. Schwab earns the bulk of its profit on interest rate spreads, or the difference between what it earns on cash deposits held in customers’ brokerage and bank accounts and what it pays to the owners of those accounts. As interest rates rise, so Schwab’s earnings. We’re happy about that, but we see Schwab continuing to grow brokerage accounts for years to come.”
7. Arthur J. Gallagher & Co. (NYSE:AJG)
Fisher Asset Management’s Stake Value: $737,000
Number of Hedge Fund Holders: 32
Arthur J. Gallagher & Co. (NYSE:AJG) is an American insurance and risk management company based in Illinois, Chicago. The company specializes in insurance and reinsurance products and is one of the leading insurance brokers worldwide. Ken Fisher acquired a stake in Arthur J. Gallagher & Co. (NYSE:AJG) in Q4 2021, purchasing 4,343 shares of the company, worth $737,000.
On January 27, Arthur J. Gallagher & Co. (NYSE:AJG) announced earnings for Q4 2021. The company posted an EPS of $0.98, beating estimates by $0.03. Revenue for the quarter jumped 16.70% year-over-year to $1.94 billion, exceeding estimates by $35.90 million. The fourth quarter results were helped by strength in core brokerage and risk management, according to Arthur J. Gallagher & Co. (NYSE:AJG)’s management.
RBC Capital analyst Mark Dwelle lowered the price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $160 from $170 and kept a Sector Perform rating on the shares after its Q4 results. The company’s organic growth remains strong and this momentum should continue, but he sees “only modest” margin expansion in 2022 due to difficult comparisons and higher expenses, the analyst told investors in a research note.
According to Insider Monkey’s Q3 database, 32 hedge funds held long positions in Arthur J. Gallagher & Co. (NYSE:AJG), down from 40 funds in the quarter earlier. Billionaire Ken Griffin’s Citadel Investment Group is the leading stakeholder of Arthur J. Gallagher & Co. (NYSE:AJG) as of Q3 2021, with 1.39 million shares worth $207.1 million.
Just like Apple Inc. (NASDAQ:AAPL), salesforce.com, inc. (NYSE:CRM), and Amazon.com, Inc. (NASDAQ:AMZN), Arthur J. Gallagher & Co. (NYSE:AJG) is a notable stock pick of Ken Fisher as of Q4 2021.
6. The Sherwin-Williams Company (NYSE:SHW)
Fisher Asset Management’s Stake Value: $4,257,000
Number of Hedge Fund Holders: 44
The Sherwin-Williams Company (NYSE:SHW) is an Ohio-based company that specializes in paints, coatings, stains, caulks, sealants, and applicators. In Q3 2021, 44 hedge funds reported owning stakes in The Sherwin-Williams Company (NYSE:SHW), worth $1.5 billion, as compared to 49 funds in the quarter earlier, holding stakes in The Sherwin-Williams Company (NYSE:SHW) amounting to over $2 billion.
Ken Fisher initially purchased a stake in The Sherwin-Williams Company (NYSE:SHW) in Q3 2019, before disposing of his shares completely in Q1 2020. The billionaire once again acquired The Sherwin-Williams Company (NYSE:SHW) shares in Q3 2020, but discarded his position completely in Q2 2021. Ken Fisher, via Fisher Asset Management, added The Sherwin-Williams Company (NYSE:SHW) to his Q4 portfolio yet again, buying 12,088 shares worth $4.25 million.
On January 27, The Sherwin-Williams Company (NYSE:SHW) posted its Q4 results. The company reported earnings per share of $1.34, missing estimates by $0.01. The $4.76 billion revenue outperformed estimates by $3.40 million.
KeyBanc analyst Kenneth Zener lowered the price target on The Sherwin-Williams Company (NYSE:SHW) on January 31 to $335 from $394 to mirror valuation compression in the overall market, while keeping an Overweight rating on the shares. The analyst thinks The Sherwin-Williams Company (NYSE:SHW) is well positioned to recover costs and further share gain, in time, despite rising cyclical concerns amid Fed tightening.
Billionaire Richard Chilton’s Chilton Investment Company held the biggest stake in The Sherwin-Williams Company (NYSE:SHW) as of Q3 2021, with 1.15 million shares worth roughly $324 million.
5. XP Inc. (NASDAQ:XP)
Fisher Asset Management’s Stake Value: $14,166,000
Number of Hedge Fund Holders: 28
Headquartered in São Paulo, Brazil, XP Inc. (NASDAQ:XP) is an investment management company specializing in fixed income, investment funds, private pension, wealth management, and related financial services. In Q4 2021, Ken Fisher acquired a position in XP Inc. (NASDAQ:XP), buying 492,906 shares of the company, worth $14.16 million.
On January 11, in its Q4 update, XP Inc. (NASDAQ:XP) reported total assets under custody of R$815 billion as of December 2021, up 23% year-over-year, which was driven by R$230 billion of net inflows and R$75 billion of market depreciation.
XP (NASDAQ:XP) signed a binding agreement on January 7 for merging up to 100% of Banco Modal in exchange for 19.5 million newly issued XP Inc. (NASDAQ:XP) Class A shares or Brazilian Depositary Receipts, marking a 35% premium over Banco Modal’s last 30 days average price.
Citi analyst Gabriel Gusan kept a Neutral rating on XP Inc. (NASDAQ:XP) on October 18 but opened a “30-day positive Catalyst Watch” on the shares. The analyst believes the company “could go back to delivering sound inflows and profitability in the medium term.”
Alkeon Capital Management is the biggest stakeholder of XP Inc. (NASDAQ:XP) as of Q3 2021, with 4.25 million shares worth $171 million. Overall, 28 hedge funds were long XP Inc. (NASDAQ:XP) in the third quarter of 2021, up from 25 funds in the preceding quarter.
4. Ovintiv Inc. (NYSE:OVV)
Fisher Asset Management’s Stake Value: $45,027,000
Number of Hedge Fund Holders: 44
Ovintiv Inc. (NYSE:OVV) is a Colorado-based company engaged in hydrocarbon exploration and production, providing petroleum, natural gas, and natural gas liquids. In the fourth quarter of 2021, Ken Fisher purchased 1.33 million Ovintiv Inc. (NYSE:OVV) shares, worth $45 million, representing 0.02% of the billionaire’s total 13F investments for the period.
On November 2, Ovintiv Inc. (NYSE:OVV) declared a $0.14 per share quarterly dividend, in line with previous. The dividend was paid on December 31, to shareholders of record on December 15.
JPMorgan analyst Arun Jayaram downgraded Ovintiv Inc. (NYSE:OVV) on January 18 to Neutral from Overweight with an unchanged price target of $53. The analyst sees a more balanced risk/reward for the shares relative to the peer group following a 30% move higher over the past month. The downgrade also reflects the analyst’s updated 2022 cash return analysis and his anticipation of an “uncharacteristic” Q4 earnings miss.
In Q3 2021, 44 hedge funds were bullish on Ovintiv Inc. (NYSE:OVV), with stakes totaling $684 million, as compared to 40 funds in the prior quarter, holding stakes in Ovintiv Inc. (NYSE:OVV) worth $739.2 million. Two Sigma Advisors is the largest stakeholder of Ovintiv Inc. (NYSE:OVV) as of the third quarter, with over 3 million shares, valued at $99 million.
Here is what Davis International Fund has to say about Ovintiv Inc. (NYSE:OVV) in their Q4 2020 investor letter:
“Energy holdings in Ovintiv also experienced detracted performance, as oil demand collapsed due to the pandemic. With approximately 70% of oil demand used for transportation, the decline in miles driven (i.e., U.S. miles driven are down 11% in 2020) and the far bigger 60–70% decline in global air passenger traffic led to a dramatic drop in oil prices.
It is our expectation that oil demand will remain weak for the foreseeable future, as flying and driving slowly recover, and that over the long term, electric vehicles and renewable energy will also decrease demand for fossil fuels. As a result, we sold out of our energy positions in 2020. We redeployed the assets in other sectors such as financial services that also saw falling stock prices, but where we had stronger conviction that the long-term health of their business was strong.”
3. Zoom Video Communications, Inc. (NASDAQ:ZM)
Fisher Asset Management’s Stake Value: $418,128,000
Number of Hedge Fund Holders: 56
Zoom Video Communications, Inc. (NASDAQ:ZM) is a California-based communications technology company that offers services including videotelephony, online chat, and business telephone systems.
Billionaire Ken Fisher started building his position in Zoom Video Communications, Inc. (NASDAQ:ZM) in Q3 2020, before discarding his stake entirely in Q3 2021. He purchased Zoom Video Communications, Inc. (NASDAQ:ZM) shares again in Q4 2021, buying a significant position this time. His hedge fund owns 2.27 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM), worth $418.1 million, representing 0.23% of the total 13F portfolio.
On December 30, Citic Securities analyst Junyun Chen initiated coverage of Zoom Video Communications, Inc. (NASDAQ:ZM) with a Buy rating and a $260 price target. The analyst sees an “appealing valuation” at current levels, saying the stock is “oversold” due to the slowdown in sales growth and market concerns over increased competition.
As of Q4 2021, Cathie Wood’s ARK Investment Management holds a prominent stake in Zoom Video Communications, Inc. (NASDAQ:ZM), increasing its position in the company by 57%. ARK Investment Management owns 6.89 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM), worth $1.26 billion.
Here is what Artisan Partners has to say about Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2021 investor letter:
“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in video conferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
2. DocuSign, Inc. (NASDAQ:DOCU)
Fisher Asset Management’s Stake Value: $464,854,000
Number of Hedge Fund Holders: 51
DocuSign, Inc. (NASDAQ:DOCU) is a California-based company offering electronic signatures and digital transaction management software and services. Ken Fisher purchased over 3 million DocuSign, Inc. (NASDAQ:DOCU) shares, worth $464.85 million, representing 0.26% of the billionaire’s 13F investments for Q4 2021.
DocuSign, Inc. (NASDAQ:DOCU) published its earnings for the quarter ending October on December 2, posting an EPS of $0.58, beating estimates by $0.12. Revenue over the period jumped 42.45% year-over-year to $545.46 million, surpassing estimates by $14.22 million.
On January 6, Piper Sandler analyst Rob Owens lowered the price target on DocuSign, Inc. (NASDAQ:DOCU) to $175 from $200 and kept a Neutral rating on the shares. Many of the demand drivers that positively impacted cybersecurity spending in 2021 remain in play as we enter 2022, the analyst told investors in a research note.
According to the third quarter database of Insider Monkey, 51 hedge funds were long DocuSign, Inc. (NASDAQ:DOCU), with stakes totaling $4.2 billion, as compared to 58 funds in the quarter earlier, holding stakes in DocuSign, Inc. (NASDAQ:DOCU) worth $4.6 billion. Tiger Global Management is the largest DocuSign, Inc. (NASDAQ:DOCU) stakeholder as of Q3 2021, with 7.30 million shares, valued at $1.88 billion.
Here is what Rowan Street Capital has to say about DocuSign, Inc. (NASDAQ:DOCU) in its Q4 2021 investor letter:
“DocuSign (DOCU)
Finished 2018 with $701 million in revenues; in 2021 they are expected to make $2.1 billion (that’s 3x in just 3 years)
477,000 paying customers at the end of 2018 grew to 1.1 million
Customers spending more than $300k per year increased from 310 to 785 (2.5x growth).
Docusign stock tumbled 42% after it reported in Q3 earnings in the beginning of December, in which it delivered a disappointing Billings outlook as CEO Dan Springer called out a “return to more normalized buying patterns following a stretch of “accelerated growth.” The company was viewed as a hot pandemic play, but recently the market sentiment has shifted to “the slowdown is as a sign a company might have grown too quickly as investors crowded into trades that worked.“
As you can see from the graph below, Docusign stock was trading at ‘peak optimism’ price-to-sales ratio of 35x in the summer of 2020 and has now corrected to a much more reasonable 13x (or 10x expected 2022 sales). Thankfully, our position was insignificant before this correction, and we have been taking advantage of this significant decline in the stock price to build a much larger position, as we expect it to deliver double-digit returns from these price levels over the next 3-5+ years.
Our rationale is simple: despite the recent decline in the valuation, it’s clear that Docusign is still in the early days of its $50 billion Agreement Cloud opportunity as digital transformation remains a high priority for organizations worldwide (our fund is a very happy user of their services). DocuSign is uniquely positioned to lead and capture eSignature and the broader Agreement Cloud market opportunity, given their strong brand leading market position (Docusign has now become a verb) and product differentiation. Even as the pandemic subsides and people begin to return to the office, they are not returning to paper. eSignature and the broader Agreement Cloud are clearly here to stay, and DocuSign’s value proposition will persist no matter how the future of work unfolds.
The huge drop in company stock also triggered the company CEO, Dan Springer to purchase approximately $10 million worth of DOCU stock in the open market. This is the first insider purchase at the company since it went public in April 2018 at $29, and it’s the vote of confidence that we love to see!”
1. Uber Technologies, Inc. (NYSE:UBER)
Fisher Asset Management’s Stake Value: $635,212,000
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is an American on-demand mobility service provider, offering services including vehicle for hire, food delivery, package delivery, courier, and freight transport. Ken Fisher headed into 2022 with a newly acquired stake in Uber Technologies, Inc. (NYSE:UBER), worth $635.2 million, representing 0.35% of the billionaire’s 13F securities for the period.
Oppenheimer analyst Jason Helfstein on February 4 lowered the price target on Uber Technologies, Inc. (NYSE:UBER) to $50 from $70 and kept an Outperform rating on the shares, citing lower peer valuation. Uber Technologies, Inc. (NYSE:UBER) looks well poised for 2022, the analyst told investors in a research note, adding that Q4 mobility should exceed expectations.
On January 25, Uber Technologies, Inc. (NYSE:UBER) announced its new partnership with Smart & Final Stores to expand their on-demand and scheduled grocery delivery to customers across the West Coast.
In Q3 2021, 143 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), with collective stakes exceeding $10.76 billion. Altimeter Capital Management held the largest stake in Uber Technologies, Inc. (NYSE:UBER), with 24.50 million shares worth over $1 billion.
Here is what ClearBridge Large Cap Growth Strategy has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2021 investor letter:
“We have also been looking for multi-year secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”
You can also take a look at 9 Latest Stock Picks of Chinese Billionaire Chen Tianqiao’s Shanda Asset Management and Charlie Munger’s Daily Journal Portfolio: Top Stock Picks.
Follow Insider Monkey on Twitter
Suggested articles:
- 10 Best Dividend Stocks According to John Overdeck And David Siegel’s Two Sigma Advisors
- 9 Stocks That Credit Markets Expert Steve Ketchum Likes
- Billionaire Michael Hintze Portfolio: Top 10 Stock Picks
Disclosure: None. 10 New Stock Picks of Ken Fisher is originally published on Insider Monkey.
