In this article, we discuss 10 stocks to buy according to Centiva Capital.
Karim Abbadi and Edward McBride founded the New York-based hedge fund manager Centiva Capital in January 2016. Currently, Edward McBride serves as the chief investment officer of Centiva Capital, while Karim Abbadi is the deputy chief investment officer. The hedge fund uses a multi-strategy investing approach in its primary operations. Among the assets to which it is exposed are fixed income, foreign currency, derivatives, commodities, and equity instruments. In addition, Centiva Capital looks to invest in startups with significant growth potential.
Centiva Capital’s 13F portfolio contained assets valued at $5.22 billion as of March 31, up from $4.85 billion a quarter earlier. In the first quarter of 2022, the fund sold off 420 stocks and reduced the size of its holdings in 273 equities. On the other hand, it initiated 860 new positions and increased the size of 327 of its existing long positions. Some of the most prominent securities in Centiva Capital’s portfolio include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Thermo Fisher Scientific Inc. (NYSE:TMO).
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Our Methodology
The top ten equities, as recommended by Centiva Capital, are listed below. The stocks were picked from the first quarter regulatory filings of the hedge fund. Data from over 900 elite hedge funds tracked by Insider Monkey in Q1 2022 were used to calculate the number of hedge funds holding positions in each firm.
Stocks to Buy According to Centiva Capital
10. Lead Edge Growth Opportunities, Ltd (NASDAQ:LEGA)
Centiva Capital’s Stake Value: $8,549,000
Percentage of Centiva Capital’s 13F Portfolio: 0.16%
Number of Hedge Fund Holders: N/A
Lead Edge Growth Opportunities, Ltd (NASDAQ:LEGA) seeks to combine with one or more firms or organizations by way of a merger, share exchange, asset acquisition, reorganization, share purchase, or similar business combination. It seeks business opportunities in the software, internet, and technology sectors. The company was established in 2020, with New York serving as its corporate headquarters.
Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Thermo Fisher Scientific Inc. (NYSE:TMO) are a few of the stocks in which Centiva Capital increased its stake in the first quarter of 2022. Another is Lead Edge Growth Opportunities, Ltd (NASDAQ:LEGA), as Centiva Capital strengthened its position in the company in the first quarter of 2022, buying 280,000 shares. That raised its stake in Lead Edge Growth Opportunities, Ltd (NASDAQ:LEGA) to 875,000 shares worth $8.55 million. Simon Sadler’s Segantii Capital is another prominent shareholder of Lead Edge Growth Opportunities, Ltd (NASDAQ:LEGA).
9. Skydeck Acquisition Corp. (NASDAQ:SKYA)
Centiva Capital’s Stake Value: $8,873,000
Percentage of Centiva Capital’s 13F Portfolio: 0.16%
Number of Hedge Fund Holders: N/A
Skydeck Acquisition Corp. (NASDAQ:SKYA), a blank check corporation, was created to carry out a merger, share exchange, asset acquisition, share purchase, reorganization, or other comparable business combination with one or more companies or entities. Paul J. Salem, Martin J. Mannion, Christopher S. Satti, and Fredric A. Flaxman started Skydeck Acquisition Corp. (NASDAQ:SKYA) on February 9, 2021. Its main office is in Providence, Rhode Island.
Skydeck Acquisition Corp. (NASDAQ:SKYA) shares have offered investors 1.03% returns over the past six months as of August 8. With a $1.71 million stake in Skydeck Acquisition Corp. (NASDAQ:SKYA), Segantii Capital is also a prominent shareholder of this blank check company.
Centiva Capital started investing in Skydeck Acquisition Corp. (NASDAQ:SKYA) during the third quarter of 2021, purchasing shares worth $7.19 million. At the end of the first quarter of 2022, the hedge fund owned 911,951 Skydeck Acquisition Corp. (NASDAQ:SKYA) shares, valued at over $8.87 million. The stake in the company made up 0.16% of the hedge fund’s 13F portfolio value.
8. B. Riley Principal 150 Merger Corp. (NASDAQ:BRPM)
Centiva Capital’s Stake Value: $8,937,000
Percentage of Centiva Capital’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: N/A
Securities filings for the first quarter of 2022 revealed that Karim Abbadi and Edward Mcbride’s Centiva Capital acquired 900,940 shares of B. Riley Principal 150 Merger Corp. (NASDAQ:BRPM), worth $8.94 million, and representing 0.17% of the fund’s total 13F exposure. Centiva Capital is the company’s largest shareholder. Millennium Management is behind Centiva Capital, with a $7.97 million holding in B. Riley Principal 150 Merger Corp. (NASDAQ:BRPM).
B. Riley Principal 150 Merger Corp. (NASDAQ:BRPM), a special purpose acquisition company sponsored by a subsidiary of B. Riley Financial, Inc. (NASDAQ:RILY), is listed on the Nasdaq under the symbols BRPM, BRPMW, and BRPMU.
FaZe Clan Inc., the interactive lifestyle and media brand rooted in gaming and youth culture announced the completion of its business combination with B. Riley Principal 150 Merger Corp. (NASDAQ:BRPM) on July 20. As a result, the merged firm has been renamed FaZe Holdings Inc. (NASDAQ:FAZE).
7. Activision Blizzard, Inc. (NASDAQ:ATVI)
Centiva Capital’s Stake Value: $9,216,000
Percentage of Centiva Capital’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: 80
In the first quarter of 2022, Centiva Capital added gaming behemoth Activision Blizzard, Inc. (NASDAQ:ATVI) to its portfolio. The hedge fund purchased 115,028 shares of Activision Blizzard, Inc. (NASDAQ:ATVI) in the first quarter of 2022, worth $9.22 million.
Activision Blizzard, Inc. (NASDAQ:ATVI) was the 27th-most popular stock at the end of Q1 among 912 hedge funds tracked by Insider Monkey. According to our database, Activision Blizzard, Inc. (NASDAQ:ATVI) was part of 80 hedge funds’ portfolios at the end of the first quarter, up from 70 funds in the earlier quarter.
Robert Emil Zoellner’s Alpine Associates is a significant shareholder of Activision Blizzard, Inc. (NASDAQ:ATVI), with 1.85 million shares worth $144 million. On August 1, Activision Blizzard, Inc. (NASDAQ:ATVI) reported Q1 earnings per share of $0.48, in line with estimates. In addition, the company’s quarterly revenue amounted to $1.64 billion, beating estimates by $70 million.
On August 4, Deutsche Bank analyst Benjamin Soff reduced his price objective on Activision Blizzard, Inc. (NASDAQ:ATVI) to $84 from $95 while maintaining a ‘Hold’ rating on the stock. The analyst made a precise assessment of the likelihood that the government will approve Microsoft Corporation (NASDAQ:MSFT)’s proposed acquisition of Activision. Microsoft Corporation (NASDAQ:MSFT) announced in January of this year that it would purchase Activision Blizzard, Inc. (NASDAQ:ATVI) for $95.00 per share in an all-cash transaction valued at $68.7 billion.
6. two (NYSE:TWOA)
Centiva Capital’s Stake Value: $9,848,000
Percentage of Centiva Capital’s 13F Portfolio: 0.18%
Number of Hedge Fund Holders: N/A
two (NYSE:TWOA) is a special purpose acquisition company founded to combine forces with one or more companies. two (NYSE:TWOA)’s CEO is IT industry veteran Kevin Hartz. The firm was founded in 2021 and is headquartered in San Francisco. Shares of two (NYSE:TWOA) have inched up by 0.72% over the last 12 months as the company continues to suss out potential merger opportunities.
In the first quarter of 2022, Centiva Capital held more than 1.01 million shares of two (NYSE:TWOA) worth over $9.85 million, representing 0.18% of the value of the firm’s investment portfolio. The fund initiated a stake in TWOA in the second quarter of 2021. As of March 31, Sculptor Capital owned 2.07 million shares of two (NYSE:TWOA) and is the company’s largest shareholder.
Along with Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Thermo Fisher Scientific Inc. (NYSE:TMO), two (NYSE:TWOA) is one of the stocks that Centiva Capital is monitoring, being the sixth-largest holding of Karim Abbadi and Edward McBride’s Centiva Capital.
5. Barclays PLC (NYSE:BCS)
Centiva Capital’s Stake Value: $10,635,000
Percentage of Centiva Capital’s 13F Portfolio: 0.2%
Number of Hedge Fund Holders: 16
Barclays PLC (NYSE:BCS) is an investment bank based in the UK, with broad revenue exposure to retail banking, private banking, investment banking, wealth management, and overseas markets. On August 5, Morgan Stanley analyst Alvaro Serrano boosted his price objective on Barclays PLC (NYSE:BCS) from 200 GBp to 210 GBp, while retaining an ‘Equal Weight’ rating on the stock.
Barclays PLC (NYSE:BCS) posted its financial results for the second quarter on July 28, reporting EPS of £0.148, vs. EPS of £0.084 for the first quarter of 2022. Income over the period rose by 16.6% compared to the previous year’s quarter, reaching £13.2 billion.
According to Insider Monkey’s first quarter database, 16 hedge funds placed long bets on Barclays PLC (NYSE:BCS), compared to 11 funds in the earlier quarter. The total stakes owned in the first quarter amounted to $121 million, up from $86.8 million in the fourth quarter of 2021. Thomas Bailard’s Bailard Inc is a prominent shareholder of Barclays PLC (NYSE:BCS), with 22,000 shares worth approximately $766,000.
4. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Centiva Capital’s Stake Value: $11,896,000
Percentage of Centiva Capital’s 13F Portfolio: 0.22%
Number of Hedge Fund Holders: N/A
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company that was recently formed following the merger between Warner Media and Discovery. Warner Bros.
Discovery, Inc. (NASDAQ:WBD)’s was downgraded from ‘Outperform’ to ‘Market Perform’ on August 8 by Barrington analyst James Goss. In a research note to investors, Goss said that the downgrade resulted from delays in the distribution of the company’s revised strategic decisions and the imperfect blending of its two distinct programming offers.
On August 4, Warner Bros. Discovery, Inc. (NASDAQ:WBD) announced a loss of $1.50 per share in the second quarter of 2022. In the prior year’s quarter, the firm reported earnings per share of $1.01. In addition, the company reported $9.83 billion in revenue in its first quarter of 2022, reflecting 221% year-over-year growth.
Centiva Capital acquired a new position in Warner Bros. Discovery, Inc. (NASDAQ:WBD) during the first quarter, owning 476,400 shares worth $11.9 million. Among the hedge funds being tracked by Insider Monkey, Benjamin A. Smith’s Laurion Capital Management is the most significant shareholder of Warner Bros. Discovery, Inc. (NASDAQ:WBD), with a $338 million stake in the company.
In its Q1 2022 investor letter, Silver Ring Value Partners mentioned Warner Bros. Discovery, Inc. (NASDAQ:WBD). Here is what the fund said:
“Discovery completed the acquisition of the Warner Media business from AT&T in April, and the combined business is now named Warner Bros. Discovery, Inc. (NASDAQ:WBD). We are currently in the middle of an interesting technical event, following the spin-off special situation playbook.
The acquisition was structured as a spin-off of Warner Media, with AT&T shareholders receiving ~ 70% of the shares in the combined entity, or ~ 1.7B shares. Many of these shareholders owned AT&T for its phone business and its dividend. It appears that there has been elevated noneconomic selling as these shareholders exit regardless of price. On the other side, few if any investors want to buy the Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares prior to this forced selling being over.” (Click here to read full text)
3. AT&T Inc. (NYSE:T)
Centiva Capital’s Stake Value: $14,121,000
Percentage of Centiva Capital’s 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 74
AT&T Inc. (NYSE:T) is a company that specializes in media, communications, and technology. Simon Flannery, an analyst at Morgan Stanley, maintained an ‘Overweight’ rating and set a price objective of $22 on AT&T Inc. (NYSE:T) shares on July 22 while citing the company’s strong Q2 2022 financial results.
Karim Abbadi and Edward Mcbride’s Centiva Capital have kept a stake in AT&T Inc. (NYSE:T) since the fourth quarter of 2019. The investment fund strengthened its position in AT&T Inc. (NYSE:T) in the first quarter of 2022, buying 701,570 shares. That lifted their stake in AT&T Inc. (NYSE:T) to 791,188 shares worth $14.12 million. For the past 23 years, AT&T Inc. (NYSE:T) has consistently increased its dividends. As of August 9, the company’s quarterly dividend was $0.2775 per share, resulting in a 6.05% dividend yield.
Other leading investors have also been buying AT&T Inc. (NYSE:T) shares in recent quarters. At the end of the first quarter, 74 hedge funds were bullish on the company, compared to 70 in the previous quarter. The combined worth of hedge funds’ Q1 T holdings stood at about $4 billion. Kenneth A. Moffet’s Hourglass Capital owned a $4.05 million stake in AT&T Inc. (NYSE:T) at the end of the first quarter, making it one of the company’s notable shareholders.
In its Q4 2021 investor letter, Weitz Investment Management mentioned AT&T Inc. (NYSE:T). Here is what the fund said:
“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”
2. Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF)
Centiva Capital’s Stake Value: $16,734,000
Percentage of Centiva Capital’s 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 33
Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF) is a California-based special purpose acquisition company. It ranks second on our list of 10 stocks to buy according to Centiva Capital. The firm focuses on initial public offerings in the technology industry. It went public in October 2020, raising more than $1.1 billion in the process. Chamath Palihapitiya is Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF)’s CEO.
33 hedge funds reported having bullish bets on Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF) as of the end of the first quarter, with combined stakes worth $366 million. With about 4.24 million shares valued at $42.9 million, Fort Baker Capital Management is the biggest shareholder of Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF).
According to its 13F filing for the first quarter of 2022, Centiva Capital held over 1.66 million shares of Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF), amounting to more than $16.7 million and representing 0.32% of the fund’s 13F portfolio value. In addition, the hedge fund boosted its stake in the firm by 40% during Q1.
1. Pershing Square Tontine Holding (NYSE:PSTH)
Centiva Capital’s Stake Value: $22,091,000
Percentage of Centiva Capital’s 13F Portfolio: 0.42%
Number of Hedge Fund Holders: 60
Pershing Square Tontine Holding (NYSE:PSTH) is another company that proposes to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more other companies. Pershing Square Tontine Holding (NYSE:PSTH) was founded in 2020 in New York.
On July 12, Bill Ackman, the founder and chief executive officer of Pershing Square Tontine Holding (NYSE:PSTH) dissolved the largest SPAC ever and returned $4 billion to investors after failing to find a target company.
In the first quarter, Centiva Capital reduced its stake in Pershing Square Tontine Holding (NYSE:PSTH) by 43%, with its position worth about $22.1 million on March 31. Pershing Square Tontine Holding (NYSE:PSTH) has featured on Centiva Capital’s portfolio since the third quarter of 2020.
Among the hedge funds tracked by Insider Monkey, Andrew Hahn’s Ursa Fund Management is a notable stakeholder of Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH), with 2.88 million shares worth $57.5 million. Overall, 60 hedge funds were bullish on Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) at the end of March 2022, holding collective stakes amounting to approximately $975 million.
Here is what Pershing Square Capital Management said about Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) in its Q4 2021 investor letter:
“While seeking a transaction for PSTH, we are simultaneously looking to improve its structure with the launch of SPARC.
SPARC seeks to improve upon PSTH’s structure:
✓ Investors opt-in to the initial business combination (“IBC”)
✓ Reduced opportunity cost with no investor funding until a target is identified
✓ Amount of capital raised can be precisely tailored to capital requirements of merger partner
✓ Up to 10 years to complete a transaction vs. 2 years for a typical SPAC
✓ No underwriting fees
✓ Pure common stock capital structure other than 20% out-of-the-money warrants on 5.21% of shares outstanding held by Pershing Square funds and SPARC directors
Timing of SPARC distribution assuming receipt of regulatory approval:
If PSTH executes an IBC before SPARC registration statement is declared effective, distribution of SPARs to PSTH shareholders and warrant holders would occur shortly prior to IBC closing.
If PSTH does not consummate an IBC, distribution would occur concurrently with return of PSTH capital in trust…” (Click here to see the full text)
You can also take a peek at 10 Stocks to Buy According to Francis Chou’s Chou Associates Management and 10 Stocks to Buy According to William Von Mueffling’s Cantillon Capital Management
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Disclosure: None. 10 Stocks to Buy According to Centiva Capital is originally published on Insider Monkey.
