5 New Stocks in Kamyar Khajavi’s MIK Capital Portfolio

4. United Rentals, Inc. (NYSE:URI)

MIK Capital’s Stake Value: $8,903,000

Percentage of MIK Capital’s 13F Portfolio: 4.51%

Number of Hedge Fund Holders: 47

Based out of Stamford, Connecticut, United Rentals, Inc. (NYSE:URI) was founded 24 years ago in 1997. It is the largest equipment rentals company, serving almost all of North America as well as 4 European countries with an overall equipment cost of $14.2 billion. United Rentals provides equipment rentals in different specialty fields such as trench safety, power, and HVAC, tool solutions, fluid solutions, onsite services, radio services, drone services as well as sports and entertainment.

In the second quarter ended June 30, MIK Capital owned 27,908 shares worth $8.9 million. This represents 4.51% of the hedge fund’s overall holdings. According to Insider Monkey’s data, the number of hedge funds that held stakes in United Rentals, Inc. (NYSE:URI) increased from 41 out of 866 in Q1 to 47 out of 873 in Q2.

Carillon Tower Advisers talked about United Rentals, Inc. (NYSE: URI) in their Q1 2021 investor letter. Here is what the fund said:

“United Rental is an equipment rental company that primarily services construction and industrial companies, as well as manufacturers, utilities, homeowners, municipalities, and other government entities. The firm performed well in the first quarter as the company is a clear beneficiary of both a strengthening economy as well as a possible infrastructure bill. United Rentals’ business model performed exceptionally well in 2020 as the company generated substantial free cash flow by aggressively scaling back its capital expenditures. In 2021, we believe the company should be able to push its rental rates higher following a year of disciplined fleet management across the entire equipment rental industry. Additionally, the entire rental industry should benefit from tightness throughout the machinery sector as manufacturers struggle to meet demand due to supply chain constraints.”