In this article, we will be taking a look at some of the best stocks in billionaire Chris Rokos’s Q2 portfolio. To read our analysis of Chris Rokos’s profile and investment strategy, and also the risk/reward and methodology of this list, you can go to the 10 Best Stocks to Buy Now According to Billionaire Chris Rokos.
05. Southwestern Energy Company (NYSE:SWN)
Rokos Capital Management’s Stake Value: $47.739 million
Rokos Capital Management’s 13F Portfolio: 1.39%
Number of Hedge Fund Holders: 47
The Southwestern Energy Company (NYSE:SWN) was established in 1929 and has its corporate headquarters in Spring, Texas. It is an independent energy company that operates in the United States and is involved in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs).
For Q2, a total of 47 hedge funds are bullish on Southwestern Energy Company (NYSE:SWN) as compared to 35 in the previous quarter.
Rokos Capital Management initiated a stake in Southwestern Energy Company (NYSE:SWN) during the most recent quarter by acquiring 7.3 million of its shares, valued at $47.7 million. In its Q1 2022 investor letter, Greenlight Capital mentioned Southwestern Energy Company (NYSE:SWN) and explained its insights for the company. Here is what the fund said:
“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”
04. Microsoft Corporation (NASDAQ:MSFT)
Rokos Capital Management’s Stake Value: $68.183 million
Rokos Capital Management’s 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 258
Founded in 1975, Microsoft Corporation (NASDAQ:MSFT) is a Redmond, Washington-based multinational technology corporation with a $1.97 trillion market capitalization. During Q2, Rokos reduced his stake in MSFT by 34%, holding 265,534 of its shares worth roughly $68.183 million.
In its Q2 2022 investor letter, Baron Durable Advantage Fund mentioned Microsoft Corporation (NASDAQ:MSFT) and explained its insights for the company. Here is what the fund said:
“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.”
03. Apple Inc. (NASDAQ:AAPL)
Rokos Capital Management’s Stake Value: $69.381 million
Rokos Capital Management’s 13F Portfolio: 2.03%
Number of Hedge Fund Holders: 128
Warren Buffett’s Berkshire Hathaway is the largest shareholder of Apple Inc. (NASDAQ:AAPL), holding around 895 million of its shares worth roughly $122 billion. Rokos Capital is holding 512,103 shares of Apple Inc. (NASDAQ:AAPL), valued at $69 million.
On September 8, Morgan Stanley analyst Erik Woodring maintained an Overweight rating and a $180 price target on Apple Inc. (NASDAQ:AAPL) shares.
In the second quarter investor letter, Alger Capital discussed Apple Inc. (NASDAQ:AAPL). Here is what Alger Capital specifically said about Apple:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”
02. Bank of America Corporation (NYSE:BAC)
Rokos Capital Management’s Stake Value: $130.303 million
Rokos Capital Management’s 13F Portfolio: 3.81%
Number of Hedge Fund Holders: 99
Bank of America Corporation (NYSE:BAC), a financial services firm based in Charlotte, North Carolina, was established in 1998 and has a $283.4 billion market capitalization. It’s a new addition to the Rokos 13F portfolio as the fund has acquired 4.19 million shares of Bank of America Corporation (NYSE:BAC) during Q2, worth roughly $130.303 million.
On September 12, analyst Matt O’Connor with Deutsche Bank cut his price target for Bank of America Corporation (NYSE:BAC) from $51 to $45 while maintaining a Buy rating on the shares. O’Connor informs investors in a research note that although there has been some reprieve in recent weeks, the banks have underperformed this year mostly due to recession fears. According to the analyst, banks are down approximately 25% since their January highs and are pricing in a 55%–60% likelihood of a moderate–to–severe recession.
In its Q2 2022 investor letter, ClearBridge Dividend Strategy mentioned Bank of America Corporation (NYSE:BAC) and explained its insights for the company. Here is what ClearBridge Dividend Strategy has to say about Bank of America Corporation (NYSE:BAC):
“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”
01. EQT Corporation (NYSE:EQT)
Rokos Capital Management’s Stake Value: $130.964 million
Rokos Capital Management’s 13F Portfolio: 3.83%
Number of Hedge Fund Holders: 52
EQT Corporation (NYSE:EQT) operates as a natural gas production company in the United States. The company was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania. On July 27, EQT Corporation (NYSE:EQT) posted strong Q2 results, reporting an EPS GAAP actual of $0.83 and actual revenue of $2.53 billion, both above Wall Street expectations. The stock has gained 153% in value in the past twelve months.
The number of hedge funds holding a stake in EQT Corporation (NYSE:EQT) as of the end of the second quarter remained unchanged from the previous quarter as a total of 52 hedge funds have disclosed a stake in the company.
On August 18, EQT Corporation (NYSE:EQT) price target was increased from $55 to $59 by Mizuho analyst Vincent Lovaglio, who maintains a Buy rating on the stock.
In its Q2 2022 investor letter, ClearBridge Mid Cap Growth Strategy Fund mentioned EQT Corporation (NYSE:EQT) and explained its insights for the company. Here is what the fund said:
“We initiated a position in EQT (NYSE:EQT), the largest natural gas producer in the U.S., which possesses high-quality acreage within the Marcellus Shale basin. EQT has benefited from tight supply and demand dynamics as cleaner-burning natural gas takes global share from coal and exports to Europe and Asia provide an avenue of demand growth. Longer-term contracts enhance EQT’s earnings visibility as Europe eliminates its dependence on Russian gas.”
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.
