In this article, we will discuss the 5 best stocks to invest in according to Clint Murray’s Lodge Hill Capital based on Q1 holdings of the fund. If you want to read our detailed analysis of Murray’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Stocks to Invest In According to Clint Murray’s Lodge Hill Capital.
5. Amazon.com, Inc. (NASDAQ: AMZN)
Murray’s Stake Value: $15,470,000
Percentage of Clint Murray’s 13F Portfolio: 6.08%
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ: AMZN) is a company that sells consumer goods and subscriptions online around the world. Amazon.com, Inc. (NASDAQ: AMZN) was incorporated in 1994 and is placed fifth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Amazon.com, Inc. (NASDAQ: AMZN) currently has a $1.68 trillion market capitalization.
On August 2, Baxter International Inc. (NYSE: BAX), a medical products company, partnered with Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc. (NASDAQ: AMZN), to offer cloud technology solutions. After Amazon posted earnings. Stifel on July 7, said to “buy on dip” and maintained the price target of $4,000. While on July 30, JPMorgan analyst Doug Anmuth lowered the price target on Amazon.com, Inc. (NASDAQ: AMZN) to $4,100 from $4,600 and kept an “Overweight” rating on the shares. Anmuth informs investors in a research note that Amazon.com, Inc. (NASDAQ: AMZN) results “disappointed” in the second quarter of 2021.
The hedge fund chaired by Clint Murray holds 5,000 shares in Amazon.com, Inc. (NASDAQ: AMZN) worth over $15 million, representing 6.08% of their portfolio. Lodge Hill Capital added this stock to its portfolio in the first quarter of 2021. Crake Asset Management is a leading shareholder in Amazon.com, Inc. (NASDAQ: AMZN) with 68,500 shares worth more than $235 billion.
Argosy Investors, in its second quarter 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN). Here is what the fund said:
“So how are our largest holdings affected in a world of higher wage inflation? As a general rule, I will evaluate current and potential future holdings on their capital intensivity and their ability to raise prices. Amazon is now (a part of) our top 5 largest equity holdings. Amazon is a more complex story. Their AWS business is largely a similar story to Facebook. Their first-party retail business is very asset-and labor-intensive given their extensive warehousing footprint. I think Amazon would have more pricing power than any other player, and despite being one of the largest employers in the US, bricks-and-mortar retail is likely still more asset- and labor-intensive than Amazon’s ecommerce footprint. With all that said, overall Amazon’s first-party business would be adversely impacted by inflation, but the combination of Amazon’s AWS and advertising business should provide fairly robust inflation protection.”
4. WESCO International, Inc. (NYSE: WCC)
Murray’s Stake Value: $15,575
Percentage of Clint Murray’s 13F Portfolio: 6.12%
Number of Hedge Fund Holders: 28
WESCO International, Inc. (NYSE: WCC) is a global business-to-business distribution, logistics, and supply chain solutions provider. It was founded in 1922 and is placed fourth on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. WESCO International, Inc. (NYSE: WCC) shares have offered investors more than 153% in returns over the course of the past 12 months.
On August 5, WESCO International, Inc. (NYSE: WCC) posted earnings for the second quarter of 2021. The company declared earnings per share of $2.64, beating the estimates by $0.67. On August 6, Wells Fargo analyst Michael McGinn raised the price target on WESCO International, Inc. (NYSE: WCC) to $145 from $125 and maintained an “Overweight” rating on the shares.
Lodge Hill Capital holds 180,000 shares in WESCO International, Inc. (NYSE: WCC), worth over $15 million. This represents 6.12% of their portfolio. At the end of the first quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.03 billion in WESCO International, Inc. (NYSE: WCC), up from 23 the preceding quarter worth $918.18 million.
Roubaix Capital LLC, in its fourth-quarter 2020 investor letter, mentioned WESCO International, Inc. (NYSE: WCC). Here is what the fund said:
“The next largest long contributor was WESCO International (WCC). This company caught our attention due to the highly unusual circumstances that transpired. WCC was in the process of merging with peer Anixter International when private equity investors attempted to buy WCC and then the combined company. The facts were clear that there was significant value. WCC prevailed and was able to finalize the merger and avoid being acquired. However, timing added a wrinkle to the story. The deal closed not long before the pandemic struck and caused meaningful concern about the availability of capital. After the merger, WCC had significant leverage and at that time there was also uncertainty about the stability of their end markets. As our views evolved and as the U.S. Fed stabilized capital markets, we saw opportunities in companies that had meaningful levels of self-help, and we thought the balance sheet risk was less than the market believed. To date, this has been accurate and even the end markets for WCC proved to be resilient during the pandemic. While sharp appreciation has led us to reduce the size of our position in WCC, we anticipate outsized earnings growth in the years ahead from cost savings and an economic recovery.”
3. Reliance Steel & Aluminum Co. (NYSE: RS)
Murray’s Stake Value: $17,223,000
Percentage of Clint Murray’s 13F Portfolio: 6.77%
Number of Hedge Fund Holders: 18
Reliance Steel & Aluminum Co. (NYSE: RS) is a leading metal solutions provider with many products. The company was founded in 1939 and stands third on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. The shares of Reliance Steel & Aluminum Co. (NYSE: RS) surged 50.77% in the past 12 months.
On August 4, Reliance Steel & Aluminum Co. (NYSE: RS) agreed to buy Merfish United from One Equity Partners Open Water I Corp. (NASDAQ: OEPW) in a formal agreement. The transaction’s terms were not disclosed. On July 26, Citi upgraded the stock to “Buy” from “Hold” raising the price target to $200 from $160.
The hedge fund chaired by Clint Murray holds 113,094 shares in Reliance Steel & Aluminum Co. (NYSE: RS) worth over $17 million. Lodge Hill Capital’s stake in Reliance Steel & Aluminum Co. (NYSE: RS) shares decreased by 64% in the first quarter of 2021. Royce & Associates is a leading shareholder in Reliance, with 379,002 shares worth more than $57 million.
2. Athene Holding Ltd. (NYSE: ATH)
Murray’s Stake Value: $22,221,000
Percentage of Clint Murray’s 13F Portfolio: 8.74%
Number of Hedge Fund Holders: 44
Athene Holding Ltd. (NYSE: ATH) is a provider of retirement services. The company was founded in 2008 and ranks second on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Athene Holding Ltd. (NYSE: ATH) currently has a $12.65 billion market capitalization and was able to deliver a 79.76% return in the past 12 months.
On August 10, Truist analyst Mark Hughes downgraded Athene Holding to “Hold” from “Buy” maintaining his price target of $68. On August 5, Athene Holding Ltd. (NYSE: ATH) reported earnings for the second quarter of 2021. Athene Holding Ltd. (NYSE: ATH) announced earnings per share of $5.04, beating the estimates by $1.57. Net investment income for the second quarter was over $2.04 billion, up 52.2% YoY, beating the forecast by $340 million.
The hedge fund managed by Clint Murray owns 440,900 shares in Athene Holding Ltd. (NYSE: ATH) worth over $22 million, representing 8.74% of their portfolio. Lodge Hill Capital has increased its stake in the firm by 28% in the first quarter of 2021. In addition, hedge funds are loading up on Athene Holding Ltd. (NYSE: ATH), as Insider Monkey’s data shows that 44 hedge funds held stakes in the company as of the end of the first quarter of 2021, up from 36 funds a quarter earlier.
1. Carlisle Companies Incorporated (NYSE: CSL)
Murray’s Stake Value: $28,802,000
Percentage of Clint Murray’s 13F Portfolio: 11.33%
Number of Hedge Fund Holders: 18
Carlisle Companies Incorporated (NYSE: CSL) is a diversified engineered goods company. The company was founded in 1917 and is placed first on the list of 10 stocks to invest in according to Clint Murray’s Lodge Hill Capital. Carlisle Companies Incorporated (NYSE: CSL) shares have returned 63.31% to investors over the course of the past 12 months.
On August 5, Carlisle Companies Incorporated (NYSE: CSL) declared a quarterly dividend of $0.54 per share, a 2.9% increase from the previous dividend of $0.525. On July 23, Oppenheimer analyst Bryan Blair raised the price target on Carlisle Companies Incorporated (NYSE: CSL) to $230 from $220 and kept an “Outperform” rating on the shares. On July 22, the company posted earnings for the second quarter of 2021. Carlisle Companies Incorporated (NYSE: CSL) reported earnings per share of $2.16, beating market predictions by $0.04. The revenue for the second quarter was over $1.2 billion, up 17.6% YoY, beating the estimates by $50 million.
Clint Murray’s Lodge Hill Capital holds 175,000 shares in Carlisle Companies Incorporated (NYSE: CSL), worth over $28 million, representing 11.33% of their portfolio. The hedge fund has trimmed stakes in the firm by 2% in the first quarter of 2021. At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $186.38 million in Carlisle Companies Incorporated (NYSE: CSL), up from 17 the preceding quarter worth $192.96 million.
You can also take a peek at Top 10 Value Stocks to Invest In According to ValueAct Capital and 16 Best Beginner Stocks to Invest in Right Now
