In this article, we shall be going over the 5 Best Stocks to Buy in 2022 According to Billionaire Richard Chilton. If you want to know more about Chilton’s history, his investment philosophy, and hedge fund performance, go directly and see 10 Best Stocks to Buy in 2022 According to Billionaire Richard Chilton.
5. Alphabet Inc. (NASDAQ:GOOG)
Chilton Investment Company’s Stake Value: $91.1M
Percentage of Chilton Investment Company’s 13F Portfolio: 2.18%
Number of Hedge Fund Holdings: 205
Out of more than 900 hedge funds tracked by Insider Monkey, Alphabet Inc. (NASDAQ:GOOG) has featured in the portfolios of 205. As of Q1 2022, Ken Griffin’s Citadel Investment Group is the largest stakeholder in the company, owning over 3.4 million shares worth more than $9.6 billion. Chilton Investment Company is relatively more held back in the amount of value they have placed in the stock, owning 32,749 shares worth only $91.1 million. This marks Chilton increasing his interest in the stock by a staggering 1344%, with Alphabet Inc. (NASDAQ:GOOG) comprising 2.18% of the billionaire’s investment portfolio.
On April 19, Rosenblatt analyst Barton Crockett bestowed Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and $4,183 price target. He maintained Alphabet Inc. (NASDAQ:GOOG) is best-positioned to capitalize on the growing online multiverse, given its “advantageous positioning for new ad privacy restrictions, dominance in viral video and emerging success in cloud services”.
Here is what Baron Financial Group, an investment management firm had to say about Alphabet Inc. (NASDAQ:GOOG) in their Q1 2022 investor letter:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
4. S&P Global Inc. (NYSE:SPGI)
Chilton Investment Company’s Stake Value: $35.9M
Percentage of Chilton Investment Company’s 13F Portfolio: 0.86%
Number of Hedge Fund Holdings: 97
S&P Global Inc. (NYSE:SPGI) is based in Manhattan, New York City and is a publicly traded corporation which specializes in financial information and analytics. It parents S&P Global Ratings, S&P Global Market Intelligence, S&P Global Mobility, and S&P Global Engineering Solutions among other ventures. S&P Global Inc. (NYSE:SPGI) has a dividend yield of 3.40% as of June 28 and its second quarter dividend payout of $0.85 per share was due on June 10, in line with its consistent quarterly payout history. S&P Global Inc. (NYSE:SPGI) has been punctually paying dividends since 1937 and has been raising its dividend per share consecutively for 48 years.
As of Q1 2022, 97 hedge funds have reported bullish bets on the company, with Chris Hohn’s TCI Fund Management being the top stakeholder, owning shares worth nearly $2.8 billion. S&P Global Inc. (NYSE:SPGI) is the majority owner of S&P Dow Jones Indices which maintains the famously followed S&P 500 Index that tracks the 500 largest companies. Some prominent ones include the likes of Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA).
Richard Chilton’s Chilton Investment Group owns 87,519 shares that have been valued at around $35.9 million, a result of Chilton increasing his hold over the stock by 3117% with S&P Global Inc. (NYSE:SPGI) making up 0.86% of Chilton’s 13F portfolio.
Cooper Investors, an investment management firm, mentioned S&P Global Inc. (NYSE:SPGI) in their Q1 2022 investor letter, a copy of which can be obtained here. This is what they had to say:
“This quarter, S&P Global announced the successful completion of its acquisition of IHS Markit. The deal makes S&P a global leader across the information services industry. The Fund has been long term shareholders of S&P, building a position back in 2015 when the organization was still named McGraw-Hill Financial. We saw the initial opportunity as it refocused the business from a publishing and financial conglomerate towards its core data and financial assets. S&P’s credit ratings, benchmarks and analytics businesses in global capital and commodity markets carry leading positions, defensible offerings, consistent growth and high margins – as true today as it was seven years ago. With the increased focus management have applied over a lengthy period we see improved revenue growth, margins and cash flows…”
3. Canada Goose Holdings (NYSE:GOOS)
Chilton Investment Company’s Stake Value: $1.8M
Percentage of Chilton Investment Company’s 13F Portfolio: 0.04%
Number of Hedge Fund Holdings: 17
Founded under the name of Metro Sportswear Ltd. in 1957, Canada Goose Holdings Inc. (NYSE:GOOS) is a Canadian holding company of winter clothing manufacturers based in Toronto, Canada. It serves retail stores in cities across the United States, Canada, Japan and the UK, marketing a wide array of products including jackets, parkas, vests, hats, gloves, shells and other apparel, selling them online and wholesale. The brand is primarily known for its distinctive red, blue and white circular logo. Bill Miller’s Miller Value Partners is the majority shareholder of Canada Goose Holdings Inc. (NYSE:GOOS), with shares worth more than $33.5 million. The steady increase in hedge fund holdings indicate an increase in investor interest in the stock.
Chilton has capitalized on this increased interest by buying 70,185 shares this last quarter, cementing a significant stake in Canada Goose Holdings Inc. (NYSE:GOOS) of $1.8 million. This has led to the company making up 0.04% of Chilton’s 13F portfolio this fiscal quarter.
In their Q1 2020 investor letter, this is what investment management firm Miller Value Partners had to say about Canada Goose Holdings Inc. (NYSE:GOOS):
“Canada Goose (NYSE:GOOS) is a premium luxury brand focused on outerwear. It was one of the first to announce problems from the pandemic because of its Asian presence. The stock was $55 a year ago, over $30 in February and $21 today. While this one looks more expensive on today’s numbers at 22x earnings, this unique kind of brand typically trades for a premium and we believe it still has nice growth potential. We think it has greater than 50% recovery potential plus the ability to compound capital over the long term.”
2. Booz Allen Hamilton Holding Corp. (NYSE:BAH)
Chilton Investment Company’s Stake Value: $9.7M
Percentage of Chilton Investment Company’s 13F Portfolio: 0.23%
Number of Hedge Fund Holdings: 29
Based in McLean, Virginia, Booz Allen Hamilton Holding Corp (NYSE:BAH) parents Booz Allen Hamilton Inc. and is an American management and information technology consulting firm. With over 80 offices around the globe, the company specializes in the provision of consulting, analysis and engineering services to public and private sector organizations and non-profits. Prominent members of the US Senate have held stakes in Booz Allen Hamilton Holding Corp (NYSE:BAH) including Tom Carper and Bill Hagerty.
Chilton’s Chilton Investment Company is relatively more conservative in their ownership of the stock, owning 111,005 shares worth more than $9.7 million. Booz Allen Hamilton Holding Corp (NYSE:BAH) was not a part of Chilton’s investment portfolio in the previous quarter, and Chilton’s confidence in the stock is indicated in Booz Allen Hamilton Holding Corp (NYSE:BAH) making up for 0.23% of Chilton Investment Company’s 13F portfolio for the first quarter of 2022.
1. NVIDIA Corporation (NASDAQ:NVDA)
Chilton Investment Company’s Stake Value: $2.5M
Percentage of Chilton Investment Company’s 13F Portfolio: 0.06%
Number of Hedge Fund Holdings: 102
Based in Santa Clara, California, Nvidia Corporation (NASDAQ:NVDA) is an American multinational company which is incorporated in Delaware, and deals in graphics processing units (GPUs), application programming interface (APIs) for data science and high-performance computing as well as system on a chip units (SoCs) for the mobile computing and automotive market. Founded in 1993, Nvidia (NASDAQ:NVDA) has since emerged as a global giant in artificial intelligence hardware & software from edge to cloud computing. They have expanded their presence in the gaming industry with the launch of handheld gaming consoles Shield Portable, Shield Tablet, and Shield Android TV and its cloud gaming service GeForce Now. Of late, Nvidia (NASDAQ:NVDA) has also entered the mobile computing market where it deals in Tegra mobile processors for smartphones and tablets as well as vehicle navigation and entertainment systems.
Nvidia (NASDAQ:NVDA) is a great point of interest for elite hedge funds, with 102 hedge funds including Nvidia (NASDAQ:NVDA) in their 13F portfolios. Griffin’s Citadel Investment Group is by far the largest stakeholder in the stock, owning more than 15.1 million shares worth $4.1 billion. Richard Chilton included Nvidia (NASDAQ:NVDA) in his investment portfolio in Q1 2022 by buying 9,154 shares worth at around $2.5 million. Hence, Nvidia (NASDAQ:NVDA) makes up for almost 0.06% of Chilton’s 13F portfolio.
In their Q1 2022 investor letter, investor management firm RiverPark Capital Management mentioned NVIDIA Corporation’s (NASDAQ:NVDA). This is what they said:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers, and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44%, and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
