5 New Stocks for 2021: Qing Li’s Sciencast Management Portfolio

2. L3Harris Technologies, Inc. (NYSE:LHX)

Li’s Stake Value: $4,642,000

Percentage of Qing Li’s 13F Portfolio: 0.97%

Number of Hedge Fund Holders: 42

L3Harris Technologies, Inc. (NYSE: LHX), is an American technology company that specializes in the provision of advanced defense and commercial technologies that assists with surveillance solutions, microwave weaponry, and electronic warfare. Qing Li’s Sciencast management owns 20,896 shares in L3Harris Technologies, Inc. (NYSE: LHX) worth over $4.64 million.

Out of the hedge funds being tracked by Insider Monkey, Ohio-based firm Diamond Hill Capital is a leading shareholder in L3Harris Technologies, Inc. (NYSE: LHX) with around 1.2 million shares, worth more than $267 million.

On September 23, investment management firm Goldman Sachs downgraded L3Harris Technologies (NYSE: LHX) to Sell from Neutral, stating that a reduction in the defense budget growth rate of the United States is likely to impact L3Harris’ sales.

As of the second quarter of 2021, 42 hedge funds out of the 873 tracked by Insider Monkey held stakes in L3Harris Technologies Inc. (NYSE: LHX), compared to 41 in the previous quarter.

L3Harris Technologies, Inc. (NYSE: LHX) was mentioned in Artisan Mid Cap Fund’s Q4 2020 investor letter. Here’s what the fund said:

“We also exited our position in L3Harris Technologies. L3Harris’ recent quarterly results showed some pandemic-related impact on the company’s business, though relative to other industrials stocks, the effect has been quite modest, and it is achieving ahead-of-schedule synergies from its recent merger. However, concerns about ballooning federal deficits and potential associated defense-budget cuts have been a headwind. We share these concerns, and with the company’s market cap above the mid-cap range, we concluded our campaign to fund newer profit cycle opportunities.”