In this article, we will discuss 10 stocks to invest in according to Alan Parsow’s Elkhorn Partners.
Alan S. Parsow is the son of David Parsow, the owner of Parsow Clothing and Fashion, which closed down in 2020 after 68 years. He started working with his father at his clothing store. Parsow later drew inspiration from Warren Buffett, a customer of Parsow Fashion, to move towards investment management. Alan Parsow attended the University of Nebraska and graduated with BA Classics, Accounting, and Art History minors. Later on, he also attended the University of California, Los Angeles.
Alan Parsow started Elkhorn Partners in 1989, which has 35 limited partners.
According to the 13F filings of Elkhorn Partners at the end of the second quarter of 2021, Elkhorn Partners managed $163.36 million in 13F securities. The fund bought 8 new stocks and made 8 additional purchases. Furthermore, it sold out of 11 stocks and reduced holdings in 17 companies.
Alibaba Group Holding Limited (NYSE:BABA), Berkshire Hathaway Inc. (NYSE:BRK.A), and Amazon.com, Inc. (NASDAQ:AMZN) are some of the major companies that Elkhorn Partners has invested in.
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Why should we pay attention to Alan Parsow’s 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.
Our Methodology
With this context in mind, here is our list of 10 stocks to invest in according to Alan Parsow’s Elkhorn Partners. These were picked from Elkhorn’s Q2 portfolio.
Stocks to Invest in According to Alan Parsow’s Elkhorn Partners
10. ProShares Short S&P500 (NYSE:SH)
Parsow’s Stake Value: $596,000
Percentage of Alan Parsow’s 13F Portfolio: 0.36%
ProShares is a subsidiary of Profunds Group that manages several investment funds. The company specializes in exchange-traded fund products.
According to the Q2 filings, Elkhorn Partners has 38,700 shares in ProShares Short S&P500 worth $596,000.
9. CTO Realty Growth, Inc. (NYSE:CTO)
Parsow’s Stake Value: $2.2 million
Percentage of Alan Parsow’s 13F Portfolio: 1.34%
Number of Hedge Fund Holders: 12
CTO Realty Growth, Inc. (NYSE:CTO) is a diversified real estate investment trust specializing in income properties. The company owns around 2.2 million square feet in the US and has a 16% stake in Alpine Income Property Trust (NYSE:PINE), a REIT.
As of the second quarter of 2021, Elkhorn Partners own 42,157 shares of CTO Realty Growth, Inc. worth $2.2 million. The company represents 1.34% of the fund’s portfolio.
8. Apple Inc. (NASDAQ:AAPL)
Parsow’s Stake Value: $2.30 million
Percentage of Alan Parsow’s 13F Portfolio: 1.4%
Number of Hedge Fund Holders: 138
Apple is a technology company that manufactures electronics and computer software.
According to Elkhorn Partners’ Q2 filings, the fund owns 16,815 shares of Apple Inc. (NASDAQ:AAPL) worth $2.3 million, making it the eighth company on our list of stocks to invest in according to Alan Parsow. Apple Inc. represents 1.4% of Elkhorn Partners’ portfolio.
ClearBridge Investments’ investor letter of the first quarter of 2021 mentioned Apple Inc.. Here is what the letter said:
“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”
7. Alphabet Inc. (NASDAQ:GOOGL)
Parsow’s Stake Value: $2.32 million
Percentage of Alan Parsow’s 13F Portfolio: 1.42%
Number of Hedge Fund Holders: 190
The Q2 filings of Elkhorn Partners show that it owns 954 shares of Alphabet Inc. (NASDAQ:GOOGL) worth $2.32 million. Out of 873 hedge funds tracked by Insider Monkey, 190 owned shares worth $26.8 billion in the second quarter of 2021 compared to 185 worth 24.57 billion in the previous quarter.
In the second quarter, Alphabet Inc. reported an EPS of $27.26, easily beating the estimates by $8.16. The revenue generated for the quarter was $61.88 billion, beating the estimates by $5.80 billion.
6. Citigroup Inc. (NYSE:C)
Parsow’s Stake Value: $573,000
Percentage of Alan Parsow’s 13F Portfolio: 0.35%
Number of Hedge Fund Holders: 87
Citigroup Inc. (NYSE:C) is a New York-based company that offers financial services and products. According to Q2 securities filings, Elkhorn Partners owned 8,100 shares in the company at the end of June 2021, worth $573,000, representing 0.35% of the portfolio.
On October 15, BMO Capital analyst James Fotheringham maintained an Outperform rating on Citigroup Inc. stock and raised the target price from $84 to $86, noting the corporation’s revenue in the third quarter of the year.
In the third quarter, Citigroup Inc. reported an EPS of $2.15, beating the estimates by $0.36. Moreover, the revenue generated by the company was $17.15 billion, beating the forecast by $223.95 million.
5. Cadiz Inc. (NASDAQ:CDZI)
Parsow’s Stake Value: $2.6 million
Percentage of Alan Parsow’s 13F Portfolio: 1.61%
Number of Hedge Fund Holders: 10
Cadiz Inc. (NASDAQ:CDZI) is a Southern California-based natural resources company. It owns 70 square miles of property and water resources. It is also currently creating the Cadiz Water Project to create a water supply for more than 100,000 families.
According to the 13F holdings for the second quarter of 2021, Elkhorn Partners own 193,700 shares of Cadiz Inc. worth $2.6 million. The hedge fund currently holds the largest stake in Cadiz Inc..
4. Berkshire Hathaway Inc. (NYSE:BRK.B)
Parsow’s Stake Value: $16.3 million
Percentage of Alan Parsow’s 13F Portfolio: 9.98%
Number of Hedge Fund Holders: 116
Berkshire Hathaway Inc. (NYSE:BRK.B) is an American multi-industry company. Some of its significant subsidiaries are Duracell, Dairy Queen, and Shaw Industries. Berkshire Hathaway Inc. also has minority holdings in American Express (NYSE:AXP), The Coca-Cola Company (NYSE:KO), and Apple Inc.. As of 2016, Berkshire Hathaway Inc. also has major holdings in some of the most prominent American airline carriers.
According to the data tracked by Insider Monkey, the hedge fund sentiment increased towards Berkshire Hathaway Inc. at the end of the second quarter of 2021. The data reveals that 116 hedge funds held stakes in the company, compared to 111 in the previous quarter.
3. Berkshire Hathaway Inc. (NYSE:BRK.A)
Parsow’s Stake Value: $20.5 million
Percentage of Alan Parsow’s 13F Portfolio: 12.55%
The BRK.A ticker for Berkshire Hathaway Inc. represents the Class A shares of Berkshire Hathaway Inc.
Berkshire Hathaway Inc. had an EPS of $4399.91 at the end of the second quarter of 2021, beating the estimates by $619.74. As of 6th June 2021, FMR LLC held 32,001 shares of Hathaway Inc. worth $13.39 billion making up 1.05% of the fund’s portfolio.
The investment management firm Black Bear Value Partners published their third-quarter investor letter in which it mentioned Berkshire Hathaway Inc.. Here is what the fund said:
“Please see Q1 letter for our Berkshire on a Napkin investment exercise. We have written on it extensively and will save your eyeballs from extraneous reading. Berkshire is very cheap for owning such high-quality businesses and will continue to grind higher and compound value for us.”
2. White Mountains Insurance Group, Ltd. (NYSE:WTM)
Parsow’s Stake Value: $25.35 million
Percentage of Alan Parsow’s 13F Portfolio: 15.51%
Number of Hedge Fund Holders: 17
White Mountains Insurance Group, Ltd. (NYSE:WTM) is a financial services holding company headquartered in New Hampshire. The company specializes in insurance subsidiaries. White Mountains Insurance Group, Ltd. also owned Esurance Insurance Services, Inc before selling it for $1 billion in 1999.
1. Kennedy-Wilson Holdings, Inc. (NYSE:KW)
Parsow’s Stake Value: $83.56 million
Percentage of Alan Parsow’s 13F Portfolio: 51.15%
Number of Hedge Fund Holders: 18
Kennedy-Wilson Holdings, Inc. (NYSE:KW) is a real estate investment company specializing in multifamily and office properties in the USA and the UK. The company has $19 billion worth of assets under management and owns 31,900 multifamily units. Kennedy-Wilson Holdings, Inc. is our top pick among the 10 stocks to invest in according to Alan Parsow’s Elkhorn Partners.
According to the recent 13F holdings, Elkhorn Partners own 4.2 million shares of Kennedy-Wilson Holdings, Inc., worth $83.56 million, representing 51.15% of the fund’s portfolio.
You can also take a peek at 11 Best 5G Stocks To Buy According To Hedge Funds and 11 Best Space Stocks To Buy According To Hedge Funds.
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This article is originally published at Insider Monkey.
