10 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital Partners

Published September 15, 2022 at 9:01 am EDT Updated August 19, 2026 at 8:31 am EDT

In this article, we discuss 10 stocks to buy according to Peter Simmie’s Bristol Gate Capital Partners.

Richard Hamm and Peter Simmie founded Toronto-based hedge fund Bristol Gate Capital Partners in 2006. Peter Simmie, the company’s former chief investment officer (CIO), retired in 2019, and Richard Hamm has taken over as CIO since then.

The hedge fund employs data analytics to invest in high-dividend growing companies. Because of artificial intelligence (AI), Bristol Gate Capital Partners has been producing greater results for its consumers. The hedge fund uses gradient-boosting machine technologies to give human analysts the best possible starting point for making investment decisions. Richard Hamm discussed the potential benefits of artificial intelligence (AI) on trading strategies in one of his interviews. He said that Bristol Gate Capital has been using these strategies from the beginning, even though the investing business is still not entirely on board with data analytics. The hedge fund invests in businesses after assessing the strength and quality of the company, in addition to concentrating on dividend growth equities.

10 Stocks to Buy According to Peter Simmie's Bristol Gate Capital Partners

Image by Sergei Tokmakov Terms.Law from Pixabay

Bristol Gate Capital Partners has produced profitable returns for investors since its establishment. Since its inception, Bristol Gate Capital has generated positive returns for its shareholders. The hedge fund generated returns of 7.3% over the last three years and 11.2% over the previous five years. Additionally, from 2009 to 2021, the hedge fund generated returns of 30.2% as opposed to the S&P 500’s return of 28.7%.

Bristol Gate Capital has 32 long positions in its portfolio. As of Q2 2022, Bristol Gate Capital Partners’ 13F portfolio is valued at $1.77 billion, with a 51.06% concentration of the top 10 holdings. Most of the hedge fund’s investments are focused on the information technology, finance, industrials, consumer discretionary, and healthcare sectors. Some of the fund’s significant holdings in Q2 were Mastercard Incorporated (NYSE:MA), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT).

Our Methodology

We picked these stocks from the Q2 2022 portfolio of Peter Simmie’s Bristol Gate Capital Partners. We rated the list based on hedge fund sentiment around the securities, as determined by Insider Monkey’s Q2 2022 database of 895 elite hedge funds.

Stocks to Buy According to Peter Simmie’s Bristol Gate Capital Partners

10. Starbucks Corporation (NASDAQ:SBUX)

Bristol Gate Capital Partners’ Stake Value: $84,945,000

Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 4.8%

Number of Hedge Fund Holders: 55

Starbucks Corporation (NASDAQ:SBUX) runs a global business as a retailer of specialty coffee. Starbucks Corporation has 34,317 outlets worldwide as of January 2, 2022, including a little under 17,000 stores in the United States. In fiscal 2022, the company intends to open 2,000 net new stores. Starbucks Corporation is trading at a forward P/E ratio of 25.91x, which is higher than the forward P/E for its industry of 19.63x.

Andy Barish, a Jefferies analyst, praised Laxman Narasimhan’s appointment as the new CEO as “positive” for Starbucks Corporation. Therefore, on September 8, the analyst maintained a ‘Buy’ rating on Starbucks Corporation with a $100 price target.

There were 55 hedge funds in our database that held stakes in Starbucks Corporation at the end of the second quarter of 2022, compared to 58 funds in the first quarter of 2022.

In the second quarter of 2022, Peter Simmie’s Bristol Gate Capital Partners boosted its stake in Starbucks Corporation by 47%, holding 1.11 million shares worth $84.95 million. Ray Dalio’s Bridgewater Associates is Starbucks Corporation’s most significant stakeholder, with 3.24 million shares worth $247.71 million.

In addition to Starbucks Corporation, Mastercard Incorporated, Visa Inc., and Microsoft Corporation were some of the significant holdings of Bristol Gate Capital Partners in Q2.

In its Q2 2022 investor letter, Wedgewood Partners mentioned Starbucks Corporation. Here is what the firm has to say:

“We exited our position in Starbucks during the second quarter. We do not mind admitting that there was a heated internal debate over this position, as there were several conflicting issues to weigh in our decision. Before the pandemic, we had been quite happy with the company’s execution and the stock’s performance, and we were likewise happy with strategic decisions made during and immediately after the initial pandemic-related lockdowns in 2020, as we have written previously. … (Click here to see full text).”

9. UnitedHealth Group Incorporated (NYSE:UNH)

Bristol Gate Capital Partners’ Stake Value: $85,133,000

Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 4.81%

Number of Hedge Fund Holders: 91

UnitedHealth Group Incorporated (NYSE:UNH) is a multifaceted healthcare provider in the United States. Among the hedge funds tracked by Insider Monkey, 91 were long UnitedHealth Group Incorporated in the second quarter of 2022, down from 103 funds in the previous quarter. Rajiv Jain’s GQG Partners is the biggest shareholder of UnitedHealth Group Incorporated, with 3.11 million shares worth $1.60 billion.

Following UnitedHealth Group Incorporated’s announcement of a 10-year collaboration with Walmart Inc. (NYSE:WMT), on September 8, Deutsche Bank analyst George Hill increased his price objective on UnitedHealth Group Incorporated to $569 from $556 and retained a ‘Buy’ recommendation on the shares.

UnitedHealth Group Incorporated has featured on Bristol Gate Capital Partners’ portfolio since the fourth quarter of 2015. In the second quarter of 2022, Bristol Gate Capital Partners owned 165,747 shares in UnitedHealth Group Incorporated, worth over $85.13 million.

Baron Funds, an asset management firm, mentioned UnitedHealth Group Incorporated 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.”

8. Microsoft Corporation (NASDAQ:MSFT)

Bristol Gate Capital Partners’ Stake Value: $85,669,000

Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 4.84%

Number of Hedge Fund Holders: 258

The tech behemoth Microsoft Corporation is ranked eighth on Bristol Gate Capital Partners’ list of top 10 stocks. On September 7, Microsoft Corporation revealed the Xbox Elite Wireless Controller Series 2 – Core in white, which is designed to meet the essential needs of today’s professional gamers. According to Microsoft Corporation, 1.4 billion active devices run on Windows 10 or 11 monthly.

Based on its 13F holdings for the second quarter of 2022, Bristol Gate Capital Partners owned 333,562 shares in Microsoft Corporation, valued at $85.67 million. Ken Fisher’s Fisher Asset Management is the biggest shareholder of Microsoft Corporation, with 28.69 million shares worth $7.37 billion as of Q2.

On August 11, Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation, assigning the stock a ‘Neutral’ rating and a price target of $292. According to Insider Monkey’s Q2 data, 258 hedge funds were bullish on Microsoft Corporation, with combined stakes of $56.01 billion, compared to 259 funds in the earlier quarter, holding stakes in the company valued at $65.64 billion.

Here is what Baron Funds has to say about Microsoft Corporation in its Q2 2022 investor letter:

“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.”

7. Broadcom Inc. (NASDAQ:AVGO)

Bristol Gate Capital Partners’ Stake Value: $86,622,000

Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 4.9%

Number of Hedge Fund Holders: 66

Broadcom Inc. (NASDAQ:AVGO) is a multinational technology firm that designs, develops, and sells semiconductor and infrastructure software. The business pays out a significant dividend, has robust free cash flows, and is quite profitable. Broadcom Inc. has a trailing twelve-month operating margin of 40.69% and a forward dividend yield of 3.33% as of September 11, which is supported by $15.30 billion in free cash flows.

Insider Monkey spotted 66 hedge funds that were long Broadcom Inc. at the end of Q2 2022. The collective value of these hedge funds totalled $4.03 billion, compared to $5.49 billion a quarter ago with 71 positions.

Bristol Gate Capital Partners owned 178,303 shares in Broadcom Inc., worth over $86.62 million, representing close to 4.9% of its portfolio. Fisher Asset Management is Broadcom Inc.’s largest shareholder as of Q2 2022, with shares worth $716.29 million.

On September 2, Truist analyst William Stein maintained a ‘Buy’ rating on Broadcom Inc. while trimming his price objective to $630 from $658. Despite the recent unfavorable tech data points, the business had another excellent quarter, the analyst told investors in a research note, with above-consensus projections and positive supply chain communication.

6. Zoetis Inc. (NYSE:ZTS)

Bristol Gate Capital Partners’ Stake Value: $87,479,000

Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 4.94%

Number of Hedge Fund Holders: 62

Zoetis Inc. (NYSE:ZTS) is a pharmaceutical company that develops, manufactures, and sells medications, vaccines, diagnostic items, bio-devices, genetic testing, and precision animal farming technologies. On September 5, Zoetis Inc. acquired NewMetrica, a Scottish company that creates digital instruments for animal health.

As of the end of the second quarter, 62 hedge funds in Insider Monkey’s database of 895 funds held bullish bets on Zoetis Inc., compared to 67 funds in the previous quarter. Bristol Gate Capital Partners held 508,924 shares in Zoetis Inc., worth over $87.48 million in Q2 2022.

Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held a notable stake in Zoetis Inc. at the end of the second quarter of 2022, equalling $358.70 million. Zoetis Inc. is the sixth largest holding of Bristol Gate Capital Partners.

On August 4, Stifel analyst Jonathan Block assigned a ‘Buy’ rating on Zoetis Inc. and a price objective of $225. In addition to Zoetis Inc., other notable stocks in the portfolio of Peter Simmie’s Bristol Gate Capital Partners include Mastercard Incorporated, Visa Inc., and Microsoft Corporation.

Here is what Baron Funds had to say about Zoetis Inc. in its Q1 2022 investor letter:

“Shares of Zoetis Inc., the global leader in the discovery, development, and manufacturing of companion and farm animal health medicine and vaccines, fell along with shares of other high-multiple 2021 standout performers. We retain conviction as Zoetis recently reported a top and bottom line beat with more than 21% growth driven by dermatology, parasiticides, and recently launched monoclonal osteoarthritic treatments. The company’s 2022 guidance was in line with Street expectations, calling for 9% to 11% operational revenue growth and modest margin expansion despite heavy investment in core growth drivers.”

5. Thermo Fisher Scientific Inc. (NYSE:TMO)

Bristol Gate Capital Partners’ Stake Value: $90,926,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.14%
Number of Hedge Fund Holders: 93

Thermo Fisher Scientific Inc. (NYSE:TMO) provides software, services, reagents, equipment, and analytical instruments for research, analysis, discovery, and diagnostics. Thermo Fisher Scientific Inc.’s largest Q2 shareholder is Fisher Asset Management, with a $1.27 billion stake which saw a 4% increase over the previous quarter.

On August 24, Credit Suisse analyst Dan Leonard initiated coverage of Thermo Fisher Scientific Inc., rating the stock as ‘Neutral’ with a $675 price target. The analyst was optimistic about the company’s better business mix and share gain prospects.

Thermo Fisher Scientific Inc. recently experienced a decrease in hedge fund interest. Thermo Fisher Scientific Inc. was in 93 hedge fund portfolios at the end of the second quarter of 2022. There were 101 hedge funds in our database with Thermo Fisher Scientific Inc. holdings at the end of the previous quarter.

Bristol Gate Capital Partners sold 2,660 shares of Thermo Fisher Scientific Inc., reducing its remaining stake by about 2%. At the end of the second quarter, the hedge fund still held 167,363 shares of Thermo Fisher Scientific Inc., worth about $90.93 million, representing 5.14% of its portfolio.

Investment firm Stewart Asset Management explained its insights for Thermo Fisher Scientific Inc. in its Q2 2022 investor letter, stating:

“Recently we initiated two new investments. One in Thermo Fischer Scientific, a supplier to the life sciences industry. We have followed the company for many years and the recent downturn in share price gave us a good entry price at which to invest. Thermo has had strong earnings growth for many years and is led by a superb team. The company’s recent acquisitions make it a full-service supplier to the biopharma and biotech industries.”

4. American Tower Corporation (NYSE:AMT)

Bristol Gate Capital Partners’ Stake Value: $91,893,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.19%
Number of Hedge Fund Holders: 52

American Tower Corporation (NYSE:AMT) owns, manages, and develops multi-tenant real estate buildings in addition to offering real estate investment services. In addition, our database shows that 52 hedge funds held stakes in American Tower Corporation as of the end of the second quarter of 2022, versus 50 funds in the first quarter of 2022.

After meeting with CFO Rod Smith, on September 8, JPMorgan analyst Philip Cusick reaffirmed an ‘Overweight’ rating with a $305 price target on American Tower Corporation. The analyst left with progressively more optimistic opinions on the economies in the United States, Europe, and the Asia-Pacific, as well as motivation from developments in Latin America and Africa.

Akre Capital Management held a position in American Tower Corporation exceeding $1.78 billion, making it the firm’s largest shareholder in the second quarter of 2022. In the second quarter of 2022, Bristol Gate Capital Partners owned 359,537 shares of American Tower Corporation, worth $91.89 million. This represented 5.19% of the investment portfolio of the hedge fund.

ClearBridge Investments mentioned American Tower Corporation in its Q2 2022 investor letter. Here is what the fund had to say:

“The top contributor was our sole real estate holding American Tower, the leading independent wireless tower operator with roughly 221,000 properties globally, including about 43,000 in the U.S., 76,000 in India and 23,000 in Brazil. The company’s business model is to lease space on its towers to predominantly wireless carriers on a long-term basis, generally ranging 5–10 years in duration, with built-in price escalators. This approach results in a stable and predictable cash flow business with high incremental margins — attractive qualities especially in volatile markets like the second quarters.”

3. Cintas Corporation (NASDAQ:CTAS)

Bristol Gate Capital Partners’ Stake Value: $93,506,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 32

Cintas Corporation (NASDAQ:CTAS) primarily serves clients in the United States, Canada, and Latin America with corporate identity uniforms and related business services. Since Cintas Corporation went public in 1983, it has paid a dividend yearly. Cintas Corporation announced a quarterly dividend of $1.15 per share on July 26. This is a 21.1% increase over the $0.95 dividend paid before. This was the company’s 39th consecutive annual dividend increase.

On August 17, Baird analyst Andrew Wittmann reaffirmed an ‘Outperform’ rating on Cintas Corporation and increased his price objective from $440 to $475. Overall, 32 hedge funds monitored by Insider Monkey were bullish on Cintas Corporation in the second quarter. The stakes of these funds are valued at $1.14 billion.

Bristol Gate Capital began building its stake in Cintas Corporation in the second quarter of 2016. In the second quarter of 2022, it held 250,329 shares of Cintas Corporation. These were worth $93.51 million and accounted for 5.28% of its portfolio. Cintas Corporation is the third-largest holding of Bristol Gate Capital Partners.

Here is what Cooper Investors, an investment management firm, has to say about Cintas Corporation in its Q1 2022 investor letter:

“During the quarter the Fund established a position in Cintas Corporation, a market leader in uniform rental services across North America (Mcap $44bn). This service provides workwear for large corporate and government clients, for example managing supply and laundry of uniforms for the nationwide employee base of customers such as Home Depot…. (Click to read the full text).”

2. Activision Blizzard, Inc. (NASDAQ:ATVI)

Bristol Gate Capital Partners’ Stake Value: $94,813,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.36%
Number of Hedge Fund Holders: 84

Activision Blizzard, Inc. (NASDAQ:ATVI) is an entertainment industry holding corporation that creates and distributes interactive video services and content. Hedge funds are piling into Activision Blizzard, Inc.. At the close of Q2 2022, Insider Monkey found 84 hedge funds long Activision Blizzard, Inc., up from 80 funds in the previous quarter. Berkshire Hathaway is the leading shareholder of Activision Blizzard, Inc. in the second quarter, with a position consisting of 68.40 million shares worth $5.33 billion.

In the second quarter of 2022, Bristol Gate Capital Partners held 1.22 million shares of Activision Blizzard, Inc., which amounted to $94.81 million and occupied 5.36% of the hedge fund’s total portfolio.

On August 4, analyst Benjamin Soff at Deutsche Bank cut his price objective on Activision Blizzard, Inc. from $95 to $84 while maintaining a ‘Hold’ rating for the stock. The analyst reasonably assessed the likelihood that the government would approve Microsoft Corporation’s proposed acquisition of Activision Blizzard, Inc..

1. Dollar General Corporation (NYSE:DG)

Bristol Gate Capital Partners’ Stake Value: $101,483,000
Percentage of Bristol Gate Capital Partners’ 13F Portfolio: 5.74%
Number of Hedge Fund Holders: 51

Discount retailer Dollar General Corporation (NYSE:DG) offers a range of goods throughout the mid-western, southern, southwestern, and eastern regions of the United States. Bristol Gate Capital Partners holds 413,474 shares of Dollar General Corporation worth $101.48 million, representing 5.74% of the fund’s overall portfolio.

After Dollar General Corporation’s “strong” Q2 report, Morgan Stanley analyst Simeon Gutman increased his price objective on Dollar General to $270 from $250 and maintained an ‘Overweight’ rating on the stock, referring to it as his top stock in the Dollar Store sector.

According to Insider Monkey’s data, 51 hedge funds were bullish on Dollar General Corporation at the end of June 2022, with combined stakes worth $2.37 billion, compared to 53 funds in the prior quarter worth $2.25 billion. William B. Gray’s Orbis Investment Management is the most prominent shareholder of Dollar General Corporation in the second quarter, with a stake consisting of 1.59 million shares valued at $390.04 million.

You can also take a peek at 10 Stocks to Buy According to Kevin McCarthy’s Breakline Capital and 10 Stocks to Buy According to Mark McMeans’ Brasada Capital Management.

Follow Insider Monkey on Twitter