In this article, we discuss the 5 best stocks to buy according to billionaire Brian Higgins. If you want to skip our detailed analysis of Higgins’ history, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Billionaire Brian Higgins.
5. Radian Group Inc. (NYSE: RDN)
Higgins’ Stake Value: $76,144,000
Percentage of Brian Higgins’ 13F Portfolio: 5.69%
Number of Hedge Fund Holders: 30
Radian Group Inc. (NYSE: RDN), with its subsidiaries, engages in lease, asset management, and other real estate services in the United States. The company was founded in 1977 and ranks fifth on our list of 10 best stocks to buy according to billionaire Brian Higgins. Radian stock has returned more than 41.62% to investors during the course of the past 12 months.
On June 16, Radian Group Inc. (NYSE: RDN) and Mortgage Cadence announced an expanded integration, which will allow Mortgage Cadence clients an easy approach to Radian’s series of insured and non-insured title and agreement services. On June 10, the company declared the start of title genius by Radian. It will enable Radian consumers to access Radian’s blockchain-qualified online portal that will help them shop directly. The company recently announced its first quarter of 2021 earnings per share of $0.68, beating the market estimates by $0.01. On May 4, Radian Group declared its quarterly dividend of $0.14 per share, which was 12% more than its previous dividend of $0.13.
The hedge fund run by Higgins owns more than 3.2 million shares in the company worth over $76.14 million, representing 5.69% of their investment portfolio. King Street Capital has increased its stake in Radian stock by 19% in the past few months. There were 30 hedge funds in our database that held stakes in Radian Group Inc. (NYSE: RDN) in the first quarter of 2021, compared to 37 funds in the fourth quarter of 2020.
4. MGIC Investment Corporation (NYSE: MTG)
Higgins’ Stake Value: $63,779,000
Percentage of Brian Higgins’ 13F Portfolio: 4.76%
Number of Hedge Fund Holders: 28
MGIC Investment Corporation (NYSE: MTG) is a provider of private lease insurance in the United States. It was incorporated in 1957 and is placed fourth on our list of 10 best stocks to buy according to billionaire Brian Higgins. MGIC stock has offered investors returns of 68.74% in the past 12 months.
On May 5, MGIC Investment Corporation (NYSE: MTG) declared first quarter 2021 earnings per share of $0.42 in line with the previous. The company also announced its revenue of $297.96 million, down 2.9% YoY, missing the estimates by $4.71 million. Net income increased to $150 million from $149.8 million a year ago. In April, the company declared its quarterly dividend of $0.06 per share. The forward yield is 1.65%.
In the first quarter of 2021, 28 hedge funds in Insider Monkey’s database of 887 funds held stakes in MGIC Investment Corporation (NYSE: MTG), compared to 27 funds in the fourth quarter of 2020. King Street Capital is the company’s most significant stakeholder, with 4.61 million shares worth $63.78 million.
3. Arch Capital Group Ltd. (NASDAQ: ACGL)
Higgins’ Stake Value: $47,579,000
Percentage of Brian Higgins’ 13F Portfolio: 3.55%
Number of Hedge Fund Holders: 34
Arch Capital Group Ltd. (NASDAQ: ACGL), with its subsidiaries, imparts insurance, additional coverage, and lease insurance products globally. The company was founded in 1995 and is ranked third on our list of 10 best stocks to buy according to billionaire Brian Higgins. Arch Capital stock has offered investors 35.29% in the past 12 months.
On April 27, Arch Capital Group Ltd. (NASDAQ: ACGL) announced its first quarter 2021 revenue of $2.5 billion, beating the estimates by $230 million. The company also declared its earnings per share of $0.59, beating the market predictions by $0.15. On January 19, Matthew Carletti, an analyst at JMP Securities, initiated a coverage on Arch Capital. He rated the stock as “Market Outperform” and set a price target at $43.00. On March 18, Arch Capital Group entered into a share purchase agreement with the Westpac Group to obtain Westpac Lenders Mortgage Insurance Limited. As a part of the agreement, Westpac Lenders Mortgage Insurance Limited will become Westpac’s provider of new loan originations for a period of 10 years.
King Street Capital holds 1.24 million shares in the firm worth $47.58 million, representing 3.55% of their investment portfolio. King Street Capital has increased their Arch Capital stake by 40% in the first quarter of 2021. In the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.67 billion in Arch Capital Group Ltd. (NASDAQ: ACGL), same as the preceding quarter worth $1.46 billion.
In its first quarter 2021 investor letter, Baron Partners Fund, an asset management firm, highlighted a few stocks, and Arch Capital Group Ltd. was one of them. Here is what the fund said:
“Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. The stock increased on quarterly earnings that exceeded investor estimates and 15% growth in its book value per share. Pricing trends are favorable in the property & casualty insurance market, and the outlook for the mortgage insurance business has substantially improved as the economy recovers from last year’s pandemic-related uncertainty. We continue to own the stock because we expect earnings growth to resume and admire Arch’s strong management team and underwriting discipline.”
2. Mid-America Apartment Communities, Inc. (NYSE: MAA)
Higgins’ Stake Value: $64,962,000
Percentage of Brian Higgins’ 13F Portfolio: 4.85%
Number of Hedge Fund Holders: 25
Mid-America Apartment Communities, Inc. (NYSE: MAA) is a public corporation, real estate investment company. It was founded in 1977 and stands second on our list of 10 best stocks to buy according to billionaire Brian Higgins. Mid-America Apartment currently has a $19.9 billion market capitalization. It delivered a 48.33% return in the past twelve months.
On April 28, Mid-America Apartment Communities, Inc. (NYSE: MAA) declared its first quarter 2021 revenue of $425 million, up 1.7% YoY, beating the market estimates by $1.69 million. The company also declared its funds from operations (FFO) of $1.64, beating the estimates by $0.03. On May 18, the company announced a quarterly dividend of $1.025 per share, in line with the previous. On June 4, Truist Securities analyst Michael Lewis upgraded Mid-America Apartment from “Hold” to “Buy,” raising the price target from $151.00 to $178.00.
King Street Capital is the company’s most significant stakeholder, with 450,000 shares worth $64.96 million. This represents 4.85% of their portfolio. The latest data reveals that King Street Capital’s stake in Mid America stock increased by 79% in the past few months.
1. T-Mobile US, Inc. (NASDAQ: TMUS)
Higgins’ Stake Value: $119,652,000
Percentage of Brian Higgins’ 13F Portfolio: 8.94%
Number of Hedge Fund Holders: 98
T-Mobile US, Inc. (NASDAQ: TMUS), with its subsidiaries, supplies mobile communications services. The company was founded in 1994 and is placed first on our list of 10 best stocks to buy according to billionaire Brian Higgins. The company’s shares have gained a whopping 35.36% over the last 12 months.
On May 27, T-Mobile Netherlands partnered with Nokia to speed up digital modification while securing its mobile networks against cyberattacks. On May 4, T-Mobile US, Inc. (NASDAQ: TMUS) declared first quarter 2021 revenue of $19.8 billion, up 78.4% YoY, beating the market estimates by $880 million. The company has raised its merger synergy guidance to $2.8 billion-$3.1 billion from $2.7 billion -$3 billion. This is after merger with Sprint.
King Street Capital holds 955,000 shares in the company worth $119.65 million, representing 8.94% of their portfolio. King Street Capital has increased its stakes in the firm by 983% in the past few months. The postpaid net adds is now expected to be between 4.4 million and 4.9 million versus previous guidance of 4 million-4.7 million.
ClearBridge Investments, in their Q1 2021 investor letter, mentioned T-Mobile US, Inc. Here is what the fund said:
“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”
You can also take a peek at Billionaire Daniel Sundheim’s Top 10 Picks and Billionaire Andreas Halvorsen’s Top Stock Picks.
