5 New Stock Picks of Ken Fisher

4. Ovintiv Inc. (NYSE:OVV)

Fisher Asset Management’s Stake Value: $45,027,000

Number of Hedge Fund Holders: 44

Ovintiv Inc. (NYSE:OVV) is a Colorado-based company engaged in hydrocarbon exploration and production, providing petroleum, natural gas, and natural gas liquids. In the fourth quarter of 2021, Ken Fisher purchased 1.33 million Ovintiv Inc. (NYSE:OVV) shares, worth $45 million, representing 0.02% of the billionaire’s total 13F investments for the period. 

On November 2, Ovintiv Inc. (NYSE:OVV) declared a $0.14 per share quarterly dividend, in line with previous. The dividend was paid on December 31, to shareholders of record on December 15. 

JPMorgan analyst Arun Jayaram downgraded Ovintiv Inc. (NYSE:OVV) on January 18 to Neutral from Overweight with an unchanged price target of $53. The analyst sees a more balanced risk/reward for the shares relative to the peer group following a 30% move higher over the past month. The downgrade also reflects the analyst’s updated 2022 cash return analysis and his anticipation of an “uncharacteristic” Q4 earnings miss.

In Q3 2021, 44 hedge funds were bullish on Ovintiv Inc. (NYSE:OVV), with stakes totaling $684 million, as compared to 40 funds in the prior quarter, holding stakes in Ovintiv Inc. (NYSE:OVV) worth $739.2 million. Two Sigma Advisors is the largest stakeholder of Ovintiv Inc. (NYSE:OVV) as of the third quarter, with over 3 million shares, valued at $99 million. 

Here is what Davis International Fund has to say about Ovintiv Inc. (NYSE:OVV) in their Q4 2020 investor letter:

“Energy holdings in Ovintiv also experienced detracted performance, as oil demand collapsed due to the pandemic. With approximately 70% of oil demand used for transportation, the decline in miles driven (i.e., U.S. miles driven are down 11% in 2020) and the far bigger 60–70% decline in global air passenger traffic led to a dramatic drop in oil prices.

It is our expectation that oil demand will remain weak for the foreseeable future, as flying and driving slowly recover, and that over the long term, electric vehicles and renewable energy will also decrease demand for fossil fuels. As a result, we sold out of our energy positions in 2020. We redeployed the assets in other sectors such as financial services that also saw falling stock prices, but where we had stronger conviction that the long-term health of their business was strong.”