In this piece, we will take a look at the ten finance and investment stocks to buy today according to Israel Englander’s Millennium Management.
Millennium Management was founded by Mr. Israel Englander in 1989, and has led to the executive becoming one of the richest people in the world.
The executive, who is currently serving as the firm’s chief investment officer, started his journey in the financial world in the 1970s. Mr. Englander was born in the U.S. in 1948, only a year after his parents had migrated to the country. His family was one of the many to have faced unendurable hardships during the second world war. Both of Mr. Englander’s parents have spent time in a labor camp run by the former Soviet Union and both of his older sisters were born during this time.
He is one of the many hedge fund executives that took an early interest in the stock market. This also influenced his choice of undergraduate study, with the executive graduating from the New York University with a bachelor’s degree in Finance in 1970. During his time at NYU, he would mark his entry into the finance industry by working as an intern at the firm Oppenheimer. After graduating, he took up a job with another Wall Street firm.
Millennium Management was not the first time the now billionaire hedge fund executive tried his hand at setting up a hedge fund. His first attempt came in 1985, four years before Millennium would open its doors. This firm was dubbed Jamie Securities, after Mr. Englander’s business partner. After the partner came into legal trouble, the firm closed down shop in 1988.
Mr. Englander set up Millennium Management a year later in 1989 along with another business partner. The firm was set up with $35 million in capital, the bulk of which came from outside sources. The investment firm primarily engages in four investment strategies. These are investing with fundamentals in mind, arbitrage, fixed income portfolio investments, and quantitative analysis. Mr. Englander continues to run the firm to date, and he is both its chief executive officer and chief investment officer. The firm has more than a hundred teams each with its own portfolio manager, and it prides itself on this diverse structure.
Israel Englander of Millennium Management
Our Methodology
In order to decipher the inner workings of Mr. Englander’s mind, we took a look at Millennium Management’s regulatory filings for the fourth quarter of last year. This enabled us to pick out its top ten finance and investment stocks.
10 Finance and Investment Stocks to Buy Today According to Israel Englander’s Millennium Management
10. Bank of America Corporation (NYSE:BAC)
Millennium Management’s Stake Value: $178 million
Percentage of Millennium Management’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 84
Bank of America Corporation (NYSE:BAC) is an American bank headquartered in Charlotte, North Carolina, and among one of the oldest in the world after being set up soon after the American revolution in 1784. It offers a host of services such as different kinds of accounts, loans, investment management, brokerage, and others.
Millennium Management owned 4 million Bank of America Corporation (NYSE:BAC) shares as the fourth quarter of last year came to an end. These were worth $178 million and they represented 0.09% of its investment portfolio. During the same time period, 84 of the 924 hedge funds polled by Insider Monkey had also invested in the firm.
Bank of America Corporation (NYSE:BAC) reported $23 billion in revenue and $0.80 in GAAP EPS for its first fiscal quarter, beating analyst estimates for both metrics. Citi kept a $47 price target for the company in April 2022, stating that the company’s ratios were better than peers.
Bank of America Corporation (NYSE:BAC)’s largest investor is Warren Buffett’s Berkshire Hathaway which owns one billion shares that are worth $44 billion.
Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), and Visa Inc. (NYSE:V) are met by Bank of America Corporation (NYSE:BAC) in the list of Millennium Management’s favorite stocks.
9. Stifel Financial Corp. (NYSE:SF)
Millennium Management’s Stake Value: $185 million
Percentage of Millennium Management’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 23
Stifel Financial Corp. (NYSE:SF) is a financial services and bank holding company. It provides a host of services such as investment banking wealth management, and retail banking services to a large set of customers. The company is headquartered n St. Louis, Missouri, United States.
For its fiscal fourth quarter, Stifel Financial Corp. (NYSE:SF) raked in $1.3 billion in revenue and $2.23 in non-GAAP EPS, for a strong set of results that ended up beating Wall Street estimates for both. JMP Securities raised its price target to $100 from $93 in January 2022, stating that the company is well positioned for growth.
Mr. Englander’s investment firm owned 2.6 million Stifel Financial Corp. (NYSE:SF) shares during Q4 2021 for a $185 million stake that represented 0.09% of its investment portfolio. Insider Monkey scanned 924 hedge fund holdings for the same three month time period and found out that 23 had bought the company’s shares.
Ken Fisher’s Fisher Asset Management is Stifel Financial Corp. (NYSE:SF)’s largest investor after Millennium Management. It owns 1.8 million shares that are worth $130 million.
8. The Carlyle Group Inc. (NASDAQ:CG)
Millennium Management’s Stake Value: $196 million
Percentage of Millennium Management’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 33
The Carlyle Group Inc. (NASDAQ:CG) is an investment firm based in Washington, District of Columbia, United States. It has a diverse set of services portfolio and an equally vast list of operating territories. Some of the services that it offers are buyouts, privatizations, financing, and PIPE financings. The territories that it operates in include the U.K., Germany, Denmark, Finland, Qatar, Saudi Arabia, Hungary, Poland, and more.
For its Q4 2021 investment portfolio, Millennium Management held a $196 million stake in The Carlyle Group Inc. (NASDAQ:CG). This came in the form of 3.5 million shares and represented 0.09% of its investment portfolio. Insider Monkey’s hedge fund poll covering 924 funds outlined that 33 also had a stake in the company during the fourth quarter of 2021.
The Carlyle Group Inc. (NASDAQ:CG) reported $2 billion in revenue and $2.01 in non-GAAP EPS for its fourth fiscal quarter, beating analyst estimates for both. Oppenheimer raised its price target to $80 from $71 in April 2022, stating that investing in the company despite some fears can reap benefits for years to come.
The Carlyle Group Inc. (NASDAQ:CG)’s largest investor is Panayotis Takis Sparaggis’s Alkeon Capital Management which owns 8.7 million shares worth $482 million.
Vulcan Value Partners mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“Carlyle Group Inc., one of KKR’s peers, also was a material contributor during the quarter. The company has deep and growing relationships with capital providers. Carlyle Group enjoys a very stable management fee stream and a proven ability to convert capital into a performance fee stream, both of which lead to a business with a stable and growing intrinsic value. In addition, the company enjoys nice tailwinds of increasing allocations to private and alternative investments.
7. CubeSmart (NYSE:CUBE)
Millennium Management’s Stake Value: $210 million
Percentage of Millennium Management’s 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 34
CubeSmart (NYSE:CUBE) is a real estate investment trust (REIT) that is headquartered in Malvern, Pennsylvania, United States. It focuses its efforts on acquiring and developing self storage properties in America and the firm has been described as one of the three largest American owners of storage properties.
By the end of its fiscal fourth quarter, CubeSmart (NYSE:CUBE) reported $174 million in revenue and $0.58 in funds from operations (FFO), managing to beat FFO estimates only. JPMorgan raised its price target to $58 from $57 in April 2022, indicating that the strong quarterly results combined with a stronger growth outlook and rising inflation will bode well for the company.
Millennium Management held a stake of $210 million in CubeSmart (NYSE:CUBE) during the fourth quarter of last year. This came through 3.6 million shares and it represented 0.1% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 analysis of 924 hedge funds revealed that 34 had also invested in the firm.
Stuart J. Zimmer’s Zimmer Partners is CubeSmart (NYSE:CUBE)’s largest investor. It owns 4 million shares that are worth $227 million.
6. Intercontinental Exchange, Inc. (NYSE:ICE)
Millennium Management’s Stake Value: $213 million
Percentage of Millennium Management’s 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 56
Intercontinental Exchange, Inc. (NYSE:ICE) is an American company based in Atlanta, Georgia. It operates stock exchanges, clearing houses, and listing venues for different financial instruments in the United States, Israel, Canada, Singapore, and the United Kingdom.
Mr. Englander’s hedge fund owned 1.5 million Intercontinental Exchange, Inc. (NYSE:ICE) shares that were worth $213 million and represented 0.1% of its investment portfolio as the fourth quarter of last year came to an end. Insider Monkey’s 924 hedge fund survey for the same time period revealed that 56 had invested in the fund.
Intercontinental Exchange, Inc. (NYSE:ICE) raked in $2.3 billion in revenue and $1.34 in non-GAAP EPS for its fiscal Q4, beating analyst estimates for both. Deutsche Bank raised its price target to $161 from $155 in April 2022. As part of the decision, the bank pointed out that the future is unclear for the company but fears of a recession might be unwarranted.
Intercontinental Exchange, Inc. (NYSE:ICE)’s largest shareholder is William Von Mueffling’s Cantillon Capital Management which owns 3.8 million shares that are worth $526 million.
Intercontinental Exchange, Inc. (NYSE:ICE) is one of Mr. Englander’s favorite finance and investment stocks, joining the ranks of JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), and Visa Inc. (NYSE:V).
5. JPMorgan Chase & Co. (NYSE:JPM)
Millennium Management’s Stake Value: $220 million
Percentage of Millennium Management’s 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 107
JPMorgan Chase & Co. (NYSE:JPM) is one of the oldest banks in the world, as it was set up in the United States during the country’s infancy in 1799. It offers a host of financial services, such as deposit and investment products, loans, leasing, mortgages, and more.
Millennium Management’s Q4 2021 stake in JPMorgan Chase & Co. (NYSE:JPM) was worth $220 million. It came in the form of 1.3 million shares and represented 0.11% of the firm’s investment portfolio. Insider Monkey’s 924 hedge fund survey for the same time period outlined that 107 had also held the bank’s shares.
JPMorgan Chase & Co. (NYSE:JPM) reported $30 billion in revenue and $2.63 in non-GAAP EPS for its fiscal first quarter, beating analyst revenue estimates but meeting them for revenue. Argus lowered its price target to $155 from $177 in April 2022, outlining that the company’s balance sheet was hurt by the Russia-Ukraine conflict.
JPMorgan Chase & Co. (NYSE:JPM)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.4 million shares worth $1.1 billion.
ClearBridge Investments mentioned the company in its Q4 2021 investor letter. Here is what the fund said:
“Our energy and financials holdings kept pace in the 2021 rally. In financials, JPMorgan benefited from strong economic growth, a rise in Treasury yields, and a benign credit environment.
4. PayPal Holdings, Inc. (NASDAQ:PYPL)
Millennium Management’s Stake Value: $265 million
Percentage of Millennium Management’s 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 110
PayPal Holdings, Inc. (NASDAQ:PYPL) is a financial technology firm that provides a payment platform for consumers and companies to transfer funds to each other. Some of the services that it offers are transferring and withdrawing funds alongside holdings balances.
PayPal Holdings, Inc. (NASDAQ:PYPL) reported $6 billion in revenue and $1.11 in non-GAAP EPS for its fourth fiscal quarter, beating analyst revenue estimates but missing them for EPS. SMBC Nikko lowered the company’s price target to $105 from $125 in April 2022, outlining that the company’s management is yet to send significant positive signals in light of the company’s recent troubles.
Millennium Management held 1.4 million PayPal Holdings, Inc. (NASDAQ:PYPL) shares as part of its fourth quarter of 2021 investments. These were worth $265 million and they represented 0.13% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 hedge fund portfolio analysis listed 110 as the company’s investors.
Ken Fisher’s Fisher Asset Management is PayPal Holdings, Inc. (NASDAQ:PYPL)’s largest shareholder. It has a $2.7 billion stake that comes courtesy of 14 million shares.
Wedgewood Partners mentioned the company in its first quarter 2022 investor letter, which stated that:
“PayPal also detracted from performance during the quarter as investors panicked in the face of the well-telegraphed run-off of eBay’s revenues. We have been aware of the runoff of eBay’s revenues since at least the third quarter of 2017.2 Although markets are supposedly efficient, maybe markets are only as efficient as long as the same shareholders are in the stock. When a shareholder base turns over several, if not dozens, of times over a 5-year time frame, perhaps old news periodically becomes “new” to a market riddled with transient shareholders. In any case, we increased our weightings in the stock for the first time since 2018 as the only thing “new”to us was the highly attractive multiple for a competitively wellpositioned business in the e-commerce industry.”
3. Visa Inc. (NYSE:V)
Millennium Management’s Stake Value: $302 million
Percentage of Millennium Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is an American payments firm that is headquartered in San Francisco, California, United States. Its payments platform is one of the most well known in the world, and it allows customers and merchants to authorize, clear, and settle their payments.
For its fiscal Q1, Visa Inc. (NYSE:V) reported $7 billion in revenue and $1.81 in non-GAAP EPS, for a strong set of results that beat Wall Street analyst estimates for both. Barclays reduced its price target to $260 from $265 in April 2022 and kept an Overweight rating on the shares.
Mr. Englander’s hedge fund owned 1.3 million Visa Inc. (NYSE:V) shares that were worth $302 million and represented 0.15% of its investment portfolio by the end of the fourth quarter of last year. During the same time period, 142 of the 924 hedge funds polled by Insider Monkey had invested in the firm.
Visa Inc. (NYSE:V)’s largest investor is Chris Hohn’s TCI Fund Management which owns 23 million shares that are worth $5 billion.
Wedgewood Partners mentioned the company in its first quarter 2021 investor letter and outlined that:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American reengaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparallel scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
2. Blackstone Inc. (NYSE:BX)
Millennium Management’s Stake Value: $303 million
Percentage of Millennium Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 62
Blackstone Inc. (NYSE:BX) is a financial services firm that invests in early stage companies, real estate, corporate private equity, and other areas. It operates globally and is headquartered in New York, New York, United States.
Millennium Management owned 2.3 million Blackstone Inc. (NYSE:BX) shares as part of its Q4 2021 investment portfolio. These were worth $303 million and they represented 0.15% of its total shareholdings. Insider Monkey’s survey of 924 hedge funds for the same time period outlined that 62 had also invested in the company.
As part of its fiscal first quarter results, Blackstone Inc. (NYSE:BX) revealed that it had earned $1.55 in non-GAAP EPS, beating analyst estimates for the metric. Deutsche Bank reduced the company’s price target to $182 from $186 in April 2022, outlining that the company will maintain its lead in some of its key segments.
John Allison’s Unio Capital is Blackstone Inc. (NYSE:BX)’s largest shareholder courtesy of 117,333 shares that are worth $613 million.
Artisan Partners mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“Investment heavyweight Blackstone’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management mature in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend. In short, this is a long-duration fee stream and robust capital-raising engine.”
1. Morgan Stanley (NYSE:MS)
Millennium Management’s Stake Value: $306 million
Percentage of Millennium Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 65
Morgan Stanley (NYSE:MS) is an American investment bank that is based out of New York, New York, United States. It offers financial products and services to all kinds of customers such as individuals, financial institutions, corporations, and governments.
Morgan Stanley (NYSE:MS) raked in $14.8 billion in revenue and $2.06 in non-GAAP EPS as part of its fiscal first quarter earnings, beating analyst estimates for both revenue and EPS. The bank is allegedly a key player in billionaire Elon Musk’s $43 billion attempt to acquire Twitter, reported the New York Times in April 2022.
By the end of the fourth quarter of last year, Millennium Management owned 3 million Morgan Stanley (NYSE:MS) shares which were worth $306 million. During the same time period, 65 of the 924 hedge funds polled by Insider Monkey had also held the bank’s shares.
Boykin Curry’s Eagle Capital Management is Morgan Stanley (NYSE:MS)’s largest investor. It owns 14 million shares that are worth $1 billion.
Suggested articles:
- Gillson Capital Stock Portfolio: 10 Best Dividend Stocks
- 10 Stocks to Buy Now According to Wayne Yu’s BCK Capital
- 9 Dividend Stocks to Buy According to Billionaire Dan Loeb’s Third Point
Disclosure: None. 10 Finance and Investment Stocks to Buy Today According to Israel Englander’s Millennium Management is originally published on Insider Monkey.
