In this article, we discuss 5 stocks to buy in 2022 according to Mark Massey’s AltaRock Partners. If you want to read our detailed analysis of Massey’s history, investment philosophy, and hedge fund performance, go directly to 9 Stocks to Buy In 2022 According to Mark Massey’s Altarock Partners.
5. Charter Communications, Inc. (NASDAQ:CHTR)
AltaRock Partners’ Stake Value: $349,432,000
Percentage of AltaRock Partners’ 13F Portfolio: 8.9%
Number of Hedge Fund Holders: 73
Charter Communications, Inc. (NASDAQ:CHTR) is a company that provides high-speed internet access. Spectrum TV, Spectrum Internet, and Spectrum Voice are among its offerings. The most significant stakeholder of Charter Communications, Inc. (NASDAQ:CHTR) is Harris Associates, with 4.13 million shares worth $2.25 billion.
Analyst Walter Piecyk of LightShed Partners initiated coverage of Charter Communications, Inc. (NASDAQ:CHTR), maintaining a Neutral rating on May 4. Securities filings reveal that AltaRock Partners trimmed its stake in Charter Communications, Inc. (NASDAQ:CHTR) by 53% during the first quarter of 2022. The fund owns 640,548 shares of Charter Communications, Inc. (NASDAQ:CHTR) worth over $349.43 million, representing 8.9% of the portfolio.
According to our database, the number of long hedge fund positions in Charter Communications, Inc. (NASDAQ:CHTR) decreased at the end of the fourth quarter of 2021. 73 hedge funds held a position in Charter Communications, Inc. (NASDAQ:CHTR), compared to 74 funds in the third quarter.
Here is what ClearBridge Investments said about Charter Communications, Inc. (NASDAQ:CHTR) in its Q1 2021 investor letter:
“We also added to Charter Communications (NASDAQ:CHTR), a historically strong performer that has faced headwinds recently due to a deceleration in broadband subscriber growth following a period of robust results during the pandemic.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
AltaRock Partners’ Stake Value: $414,816,000
Percentage of AltaRock Partners’ 13F Portfolio: 10.57%
Number of Hedge Fund Holders: 279
Amazon.com, Inc. (NASDAQ:AMZN) is a worldwide technology corporation that provides online retail buying services. In Q1 2022, Ken Fisher’s Fisher Asset Management was a notable shareholder of Amazon.com, Inc. (NASDAQ:AMZN), with 2.36 million shares worth $7.70 billion.
Amazon.com, Inc. (NASDAQ:AMZN) is a new arrival in Mark Massey’s portfolio, as his hedge fund bought about 127,246 shares of the company, worth $414.82 million in the first quarter of 2022. As of the end of the fourth quarter of 2021, 279 hedge funds in Insider Monkey’s database held stakes in Amazon.com, Inc. (NASDAQ:AMZN), an increase compared to 242 funds in the preceding quarter.
On May 18, Amazon.com, Inc. (NASDAQ:AMZN) announced the introduction of the next-generation Fire 7 and Fire 7 Kids tablets, stating that they will improve its most affordable tablet’s speed, performance, and value.
Here is what Baron Funds had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2022 investor letter:
“Jeff Bezos sums up the current market behavior well in his 2000 shareholder letter where he quoted Benjamin Graham’s famous statement that, in the short term, a stock market is a voting machine, while in the long term, it is a weighing machine, saying that Amazon (NASDAQ:AMZN) is a “company that wants to be weighed, and over time we will be – over the long term, all companies are. In the meantime, we have our heads down working to build a heavier and heavier company.”
We have a lot of conviction that our businesses are doing the same – working to build heavier and heavier companies.”
3. Microsoft Corporation (NASDAQ:MSFT)
AltaRock Partners’ Stake Value: $812,492,000
Percentage of AltaRock Partners’ 13F Portfolio: 20.71%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a global technology company based in Redmond, Washington, manufacturing computer software, consumer electronics, personal computers, and associated products and services. Microsoft Corporation (NASDAQ:MSFT) was present in the public stock portfolios of 262 hedge funds in the fourth quarter of 2021, compared to 250 funds in the earlier quarter.
On May 18, American Airlines Group Inc. (NASDAQ:AAL) and Microsoft Corporation (NASDAQ:MSFT) announced a partnership in which American Airlines will use Microsoft Azure as its preferred cloud platform for airline applications and critical work schedules, significantly accelerating its digital transformation and solidifying Microsoft’s position as one of the airline’s largest technology partners.
Among the hedge funds tracked by Insider Monkey, Fisher Asset Management is a notable shareholder of Microsoft Corporation (NASDAQ:MSFT) as of Q1 2022, with 27.87 million shares worth $8.59 billion. Mark Massey’s AltaRock Partners first invested in Microsoft Corporation (NASDAQ:MSFT) back in the second quarter of 2021. In the first quarter of 2022, the hedge fund raised its position in Microsoft Corporation (NASDAQ:MSFT) by 54% to 2.64 million shares, accounting for 20.71% of the overall portfolio.
In its Q4 2021 investor letter, Vulcan Value Partners highlighted a few stocks, and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”
2. TransDigm Group Incorporated (NYSE:TDG)
AltaRock Partners’ Stake Value: $926,020,000
Percentage of AltaRock Partners’ 13F Portfolio: 23.61%
Number of Hedge Fund Holders: 64
TransDigm Group Incorporated (NYSE:TDG) manufactures, designs, and supplies engineered aviation components for commercial and military aircrafts. TransDigm Group Incorporated (NYSE:TDG) on May 10 posted earnings for the March quarter. The reported EPS came in at $3.86, beating estimates by $0.17. Revenue over the period gained 11.8% as compared to the previous year’s quarter, reaching $1.33 billion, outperforming estimates by $20 million.
Susquehanna analyst Charles Minervino cut TransDigm Group Incorporated (NYSE:TDG)’s price objective to $620 from $720 on May 11 but maintained a Neutral rating on the stock. The analyst raised his estimates, noting a stronger-than-expected comeback in Commercial Aftermarket and lower costs, which brought adjusted EBITDA margins closer to historical highs.
AltaRock Partners started building its position in TransDigm Group Incorporated (NYSE:TDG) in the fourth quarter of 2014. In Q1 2022, the hedge fund strengthened its position in TransDigm Group Incorporated (NYSE:TDG) by buying 70,225 additional shares. This makes its stake in TransDigm Group Incorporated (NYSE:TDG) total 1.42 million shares worth $926.02 million.
Overall, hedge funds are loading up on TransDigm Group Incorporated (NYSE:TDG), as 64 out of the 924 funds tracked by Insider Monkey held stakes in the search engine and ads giant in Q4 2021, up from 63 funds a quarter earlier.
In its Q2 2021 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE: TDG). Here is what the fund said:
“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”
1. Alphabet Inc. (NASDAQ:GOOG)
AltaRock Partners’ Stake Value: $932,058,000
Percentage of AltaRock Partners’ 13F Portfolio: 23.76%
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology holding company headquartered in Mountain View. In the first quarter, Mark Massey loaded up on Alphabet Inc. (NASDAQ:GOOG), increasing his hold on the company by 17%. AltaRock Partners owns 335,110 shares of Alphabet Inc. (NASDAQ:GOOG), worth $932.06 million.
On May 17, Alphabet Inc. (NASDAQ:GOOG) launched the Assured Open Source Software service, which allows commercial and government users of open-source software to effortlessly incorporate the same OSS packages used by Google into their own development processes.
In the first fiscal quarter of 2022, Chris Hohn’s TCI Fund Management held a prominent stake in Alphabet Inc. (NASDAQ:GOOG), with 2.37 million shares worth over $6.62 billion. 158 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG) in the fourth quarter of 2021, compared to 156 funds the previous quarter, according to Insider Monkey’s data. The aggregate stakes owned in the fourth quarter of 2021 amounted to $36.63 billion, up from $34.96 billion in the third quarter of 2021.
Farrer Wealth Advisors, in its Q1 2022 investor letter, mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“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)
You can also take a peek at Top 10 Stock Picks of Eli Cohen’s Crescent Park Management and 10 Best Tech Stocks to Buy Now According to Joe Dimenna’s Zweig-DiMenna Partners
