In this article, we discuss 5 stocks to buy according to GuardCap Asset Management. If you want to read our detailed analysis of the hedge fund’s history, investment philosophy, and its performance, go directly to 10 Stocks to Buy According to GuardCap Asset Management.
5. Mastercard Incorporated (NYSE:MA)
GuardCap Asset Management’s Stake Value: $600,486,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 7.86%
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA), a technology business, provides transaction processing and other payment-related products and services in the US and internationally. Mastercard Incorporated (NYSE:MA) has featured on GuardCap Asset Management’s portfolio since the first quarter of 2018. According to the 13F filings for the first quarter of 2022, the hedge fund held over 1.68 million shares of Mastercard Incorporated (NYSE:MA), amounting to more than $600.49 million and representing 7.86% of the fund’s portfolio value.
On May 17, Goldman Sachs initiated coverage of Mastercard Incorporated (NYSE:MA), retaining a Buy rating and a price objective of $460, representing a 38% upside. Following a tumultuous start to 2022, the analyst remained upbeat about the payments sector, noting that the companies are well-positioned to manage a low-growth, inflationary environment.
By the end of the first quarter of 2022, Insider Monkey identified 136 hedge funds that had stakes in Mastercard Incorporated (NYSE:MA). The total value of these stakes was over $15.44 billion.
Here is what Ensemble Capital had to say about Mastercard Incorporated (NYSE:MA) in its first-quarter 2022 investor letter:
“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”
4. Booking Holdings Inc. (NASDAQ:BKNG)
GuardCap Asset Management’s Stake Value: $734,273,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 9.61%
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) is an online travel and related services firm with six primary brands – Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable, which serve customers and local partners in over 220 countries and territories.
Thomas Champion of Piper Sandler boosted his price objective on Booking Holdings Inc. (NASDAQ:BKNG) to $2,500 from $2,440 on May 5 and reiterated his Neutral rating on the stock. In a research note to investors, Champion stated that Booking Holdings Inc. (NASDAQ:BKNG)’s first-quarter bookings beat Street forecasts. Management was optimistic about the company’s return to travel and its push into projects like Air and Connected Trip.
GuardCap Asset Management elevated its stake by 3% in Booking Holdings Inc. (NASDAQ:BKNG) in the first quarter of 2022. The hedge fund held 312,663 shares of the firm compared to 306,046 shares in the fourth quarter of 2021. At the end of Q1 2022, there were 99 optimistic hedge fund bets on Booking Holdings Inc. (NASDAQ:BKNG) shares, up from 92 a quarter earlier.
In its Q1 2022 investor letter, ClearBridge Investments mentioned Booking Holdings Inc. (NASDAQ:BKNG) and explained its insights for the company. Here is what the fund said:
“Other actions during the quarter included the sale of consumer name Booking Holdings (NASDAQ:BKNG). We sold Booking, the owner of online travel agencies Booking.com, Priceline and Kayak, due to its higher exposure to Europe where we believe a rebound in travel will be slowed by the spillover effects of the Ukraine invasion on consumer spending.”
3. UnitedHealth Group Incorporated (NYSE:UNH)
GuardCap Asset Management’s Stake Value: $754,533,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 9.88%
Number of Hedge Fund Holders: 103
UnitedHealth Group Incorporated (NYSE:UNH) is a health insurance company located in Minneapolis that provides health benefit plans and services to private and public sector organizations and individuals, as well as Medicare programs and prescription drug coverage.
GuardCap Asset Management increased its stake in UnitedHealth Group Incorporated (NYSE:UNH) by 3% in the first quarter, thereby consisting of 1.48 million shares valued at $754.53 million. Eagle Capital Management is a prominent shareholder of UnitedHealth Group Incorporated (NYSE:UNH), with 2.90 million shares worth more than $1.48 billion.
As part of a comprehensive research note on U.S. Healthcare Services, Bernstein analyst Lance Wilkes downgraded UnitedHealth Group Incorporated (NYSE:UNH) on May 26 from Outperform to Market Perform with a price objective of $561, down from $566. Even though UnitedHealth is the largest federal MCO and supplier of value-based care, Wilkes claimed that his new rating reflected the stock’s strong performance and rising relative earnings multiple.
The number of hedge funds tracked by Insider Monkey having stakes in UnitedHealth Group Incorporated (NYSE:UNH) grew to 103 in Q1, from 96 in the preceding quarter. These stakes hold a consolidated value of $12.82 billion, down from $13.67 billion.
In its Q1 2022 investor letter, Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH). Here is what the firm said:
“UnitedHealth Group Incorporated (NYSE:UNH) is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and healthcare services arm, Optum, which offers care delivery and other services. Shares increased 1.8% on good fourth quarter results with revenues up 12.5% year-over-year, operating margins of 7.5% and EPS up 78% while also reaffirming its 2022 guidance. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”
2. Alphabet Inc. (NASDAQ:GOOG)
GuardCap Asset Management’s Stake Value: $765,233,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 10.02%
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is an American global technology giant. On May 24, Jefferies analyst Brent Thill lowered his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,100 from $3,400 while maintaining his Buy rating, claiming that Snap Inc. (NYSE:SNAP)’s expectation of lower Q2 revenue growth than its initial 20%-25% guidance is suggestive of a rapidly declining macro environment that will probably influence the entire ad industry.
At the conclusion of the first quarter of 2022, 160 out of Insider Monkey’s 900+ elite hedge funds were long Alphabet Inc. (NASDAQ:GOOG). At the end of the fourth quarter of the previous year, 158 hedge funds reported owning interests in Alphabet Inc. (NASDAQ:GOOG).
GuardCap Asset Management owned 275,130 shares of Alphabet Inc. (NASDAQ:GOOG) in the first quarter of 2022, down 8% from the previous quarter’s stake of 295,864 shares. The stock accounted for 10.02% of the fund’s total 13F portfolio in Q1 2022.
Here is what Farrer Wealth Advisors has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
1. CME Group Inc. (NASDAQ:CME)
GuardCap Asset Management’s Stake Value: $987,307,000
Percentage of GuardCap Asset Management’s 13F Portfolio: 12.93%
Number of Hedge Fund Holders: 58
CME Group Inc. (NASDAQ:CME) administers a derivatives marketplace that provides various risk management futures and options products. On May 4, CME Group Inc. (NASDAQ:CME) issued a quarterly dividend of $1.00 per share, in line with previous. The forward yield was 1.83%.
58 hedge funds held positions in CME Group Inc. (NASDAQ:CME) at the close of the first quarter, with a combined value of $2.95 billion. This is up from 55 bullish hedge fund bets on CME Group Inc. (NASDAQ:CME) a quarter ago.
CME Group Inc. (NASDAQ:CME) was raised to Outperform from Perform by Oppenheimer analyst Owen Lau on May 25, with a price target of $223. Lau wrote in a research letter to investors that the upgrade is based on the premise that there would be no significant calamities or recession in the foreseeable future.
GuardCap Asset Management increased its stake by 3% in CME Group Inc. (NASDAQ:CME) in the first quarter of 2022. The hedge fund held 4.15 million shares of the firm compared to 4.06 million shares in the fourth quarter of 2021.
In its Q1 2022 investor letter, Baron Funds mentioned CME Group Inc. (NASDAQ:CME). Here is what the fund said:
“CME Group, Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares rose 4.6%, contributing to results as elevated market volatility and rising interest rates led to higher trading activity on CME’s exchanges. Average daily trading volume increased 19% year-over-year with notable strength in Interest Rates and Equities products. We continue to own the stock due to CME’s strong competitive moats, underpinned by its product breadth and liquidity depth, as well as its sustainable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures while also benefiting from the rising rate environment.”
You can also take a peek at 10 Best Real Estate Stocks to Buy in 2022 According to Eduardo Abush’s Waterfront Capital Partners and 9 Stocks to Buy in 2022 According to Mark Massey’s AltaRock Partners.
