Activist Billionaire Paul Singer 2023 Portfolio: Top 5 Stock Picks

3. Howmet Aerospace Inc. (NYSE:HWM)

Elliott Management’s Stake Value: $1,045,516,739

Number of Hedge Fund Holders: 42

Howmet Aerospace Inc. (NYSE:HWM) offers innovative engineered solutions for the aerospace and transportation sectors worldwide. The company operates through four main segments – Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. Securities filings for Q1 2023 reveal that Paul Singer owned 24.6 million shares worth over $1 billion. While Howmet Aerospace Inc. (NYSE:HWM) is one of the top stock picks of the activist, he trimmed 29% of his stake in the March quarter. 

On May 9, BofA analyst Ronald Epstein raised the firm’s price target on Howmet Aerospace Inc. (NYSE:HWM) to $52 from $45 and kept a Buy rating on the shares. This decision comes after Howmet Aerospace Inc. (NYSE:HWM) announced a robust quarter with impressive revenue and earnings per share, and also revised its outlook for fiscal year 2023 upwards. While there may be some uncertainty in the short term regarding aircraft production rates, the firm believes that Howmet Aerospace Inc. (NYSE:HWM) will still experience positive effects from the growing demand in defense and the overall recovery in commercial air traffic. 

According to Insider Monkey’s first quarter database, 42 hedge funds were long Howmet Aerospace Inc. (NYSE:HWM), compared to 35 funds in the prior quarter. William B. Gray’s Orbis Investment Management is a prominent stakeholder of the company. 

Oakmark Equity and Income Fund made the following comment about Howmet Aerospace Inc. (NYSE:HWM) in its Q1 2023 investor letter:

“During the quarter, we eliminated three positions: Howmet Aerospace Inc. (NYSE:HWM), Keurig Dr Pepper and LivaNova. Howmet performed well and reached our sell target. This is our second successful investment with CEO John Plant, whom we rank among the top CEOs.”