In this article, we discuss 5 stocks to buy according to Kevin McCarthy’s Breakline Capital. If you want to check out a detailed analysis of McCarthy’s investment philosophy and recent portfolio allocation strategies, go directly to 10 Stocks to Buy According to Kevin McCarthy’s Breakline Capital.
5. Fox Corporation (NASDAQ:FOX)
Breakline Capital’s Stake Value: $4,912,000
Percentage of Breakline Capital’s 13F Portfolio: 5.64%
Number of Hedge Fund Holders: 31
Fox Corporation (NASDAQ:FOX) produces and distributes news, sports, and entertainment content under its recognizable domestic brands, including FOX News Media, FOX Sports, FOX Entertainment, and FOX Television Stations.
Fox Corporation (NASDAQ:FOX) announced a semi-annual dividend of $0.25 per share on August 12, a 4.2% increase from the previous distribution of $0.24. Yacktman Asset Management is Fox Corporation (NASDAQ:FOX)’s largest shareholder, with shares worth $256.48 million.
In the second quarter of 2022, Breakline Capital purchased 152,745 shares of Fox Corporation (NASDAQ:FOX), worth $4.91 million. That represented 5.64% of the hedge fund’s total portfolio. Out of the hedge funds tracked by Insider Monkey, 31 reported having ownership stakes in Fox Corporation (NASDAQ:FOX) as of the end of the second quarter of 2022, down from 38 a quarter earlier. The aggregate value of these funds’ Q2 holdings stood at $610.52 million.
4. Dell Technologies Inc. (NYSE:DELL)
Breakline Capital’s Stake Value: $6,451,000
Percentage of Breakline Capital’s 13F Portfolio: 7.41%
Number of Hedge Fund Holders: 49
Dell Technologies Inc. (NYSE:DELL) provides information technology services. With a stake valued at more than $172.25 million, Millennium Management is a prominent stakeholder of Dell Technologies Inc. (NYSE:DELL).
On August 26, Evercore ISI analyst Amit Daryanani maintained an ‘Outperform’ rating on Dell Technologies Inc. (NYSE:DELL) while lowering his price objective from $63 to $58. Despite the firm outperforming expectations for the June quarter, Dell executives claimed they saw signs of weakening as they moved into the year’s second half, according to a message to investors from Daryanani.
Dell Technologies Inc. (NYSE:DELL) declared on August 27 that it had stopped all activities in Russia after closing its offices in the middle of August. The company has decided to move out of the country, joining the growing number of businesses doing so.
In the second quarter, Breakline Capital reduced its stake in Dell Technologies Inc. (NYSE:DELL) by 21%, and its position is now worth about $6.45 million. Dell Technologies Inc. (NYSE:DELL) has featured on the hedge fund’s portfolio since the second quarter of 2019.
Fund managers reduced their Dell Technologies Inc. (NYSE:DELL) holdings in the second quarter of 2022. 49 hedge funds reported ownership of Dell Technologies Inc. (NYSE:DELL) positions as of the end of the second quarter of 2022, compared to 59 hedge funds as of the end of the first quarter of 2022.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Breakline Capital’s Stake Value: $6,739,000
Percentage of Breakline Capital’s 13F Portfolio: 7.74%
Number of Hedge Fund Holders: 87
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a multinational semiconductor company. On August 30, Advanced Micro Devices, Inc. (NASDAQ:AMD) revealed its new “Zen 4” architecture-based Ryzen 7000 series desktop CPUs, which would enhance functioning for content creators and gamers.
On August 3, Northland analyst Gus Richard increased his price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $105 from $95 and reiterated an ‘Outperform’ rating on the stock following the release of the company’s non-GAAP earnings, which marginally exceeded his estimate. The company also maintained its revenue and gross margin forecasts for calendar 2022.
Securities filings reveal that Breakline Capital boosted its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 552% during the second quarter of 2022. The fund thus owns 88,127 shares of Advanced Micro Devices, Inc. (NASDAQ:AMD), worth over $6.74 million and representing 7.74% of the value of its 13F portfolio.
87 hedge funds tracked by Insider Monkey reported having bullish bets on Advanced Micro Devices, Inc. (NASDAQ:AMD) as of the end of the second quarter of 2022, with an aggregate stake value of $4.84 billion. Fisher Asset Management, with a position worth $1.92 billion, stood as the most significant shareholder of Advanced Micro Devices, Inc. (NASDAQ:AMD).
Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2021 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
2. Visa Inc. (NYSE:V)
Breakline Capital’s Stake Value: $7,335,000
Percentage of Breakline Capital’s 13F Portfolio: 8.42%
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) is one of the companies in the payments sector. As of June 30, the company’s credit and debit cards were being used in more than 3.9 billion transactions in over 200 nations. Even though Visa Inc. (NYSE:V) ceased operations in Russia in March 2022, Visa (NYSE:V) reported on August 30 that its U.S. payments volume increased 11% year on year in August. In addition, Visa Inc. (NYSE:V) has increased its dividend every year since it went public in 2008, which is appealing to income seekers. Its most recent quarterly dividend was $0.375 per share.
On August 16, Daiwa analyst Kazuya Nishimura cut his price objective on Visa Inc. (NYSE:V) from $230 to $225 and downgraded the stock from ‘Outperform’ to ‘Neutral.’ Visa continued to grow positively as cross-border travel increased. Still, Nishimura argued there are fewer prospects for profitability to exceed market expectations now that border barriers have been virtually lifted, except some regions of Asia.
Visa Inc. (NYSE:V) is getting the attention of the smart money, as 166 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the second quarter, up from 159 funds a quarter earlier. Breakline Capital also bought about 37,255 shares of Visa Inc. (NYSE:V) in the second quarter of 2022.
Among the hedge funds being tracked by Insider Monkey, TCI Fund Management is a leading shareholder in Visa Inc. (NYSE:V), with 19.92 million shares worth more than $3.92 billion.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, mentioned Visa Inc. (NYSE:V) and discussed its stance on the company. Here is what the fund said:
“Visa and Mastercardhave both been beneficiaries of the move away from cash over the course of the pandemic with the consequence that forward- looking opportunities for further penetration of card payments are lower than a couple of years ago. Moreover, cross-border payments – which were badly impacted by lockdowns – strongly recovered in 2021 and for both businesses are at or near to pre-COVID levels.”
1. International Business Machines Corporation (NYSE:IBM)
Breakline Capital’s Stake Value: $9,869,000
Percentage of Breakline Capital’s 13F Portfolio: 11.33%
Number of Hedge Fund Holders: 40
International Business Machines Corporation (NYSE:IBM) offers global integrated solutions and services. On August 31, International Business Machines Corporation (NYSE:IBM) and VMware, Inc. (NYSE:VMW) announced an extended collaboration to assist global clients and partners in improving mission-critical operations and enhancing time-to-value in hybrid cloud environments.
International Business Machines Corporation (NYSE:IBM) tops the list of stocks to buy according to Kevin McCarthy’s Breakline Capital, with the hedge fund holding 69,902 shares worth $9.87 million, representing 11.33% of the total 13F securities.
On August 16, Credit Suisse analyst Shannon Cross initiated coverage of International Business Machines Corporation (NYSE:IBM), assigning the stock an “Outperform” rating and raised the price target from $156 to $163 as part of a wider research note on IT Hardware. She noted that historically, the group has outperformed during recessionary periods due to their strong balance sheets and cash flow.
According to Insider Monkey’s Q2 database, 40 hedge funds were long International Business Machines Corporation (NYSE:IBM), compared to 43 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital reported a prominent stake in International Business Machines Corporation (NYSE:IBM) in the second quarter of 2022, with 2.64 million shares worth $372.68 million.
St. James Investment Company, an investment management firm, mentioned International Business Machines Corporation (NYSE:IBM) in its fourth-quarter 2021 investor letter. Here is what the fund said:
“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available…. (Click here to see the full text).”
You can also take a peek at 10 Stocks to Buy According to Mark McMeans’ Brasada Capital Management and 10 Stocks to Buy According to Cheyne Capital.
