Andreas Halvorsen Stock Portfolio: 5 Top Stock Picks

4. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 47      

United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery services. 13F filings show that Viking Global owned 6.6 million shares in United Parcel Service, Inc. (NYSE:UPS) at the end of the third quarter of 2023 worth $1 billion, representing 4.21% of the portfolio. 

On November 8, investment advisory Loop Capital maintained a Hold rating on United Parcel Service, Inc. (NYSE:UPS) stock and lowered the price target to $162 from $172. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based Citadel Investment Group is a leading shareholder in United Parcel Service, Inc. (NYSE:UPS) with 1.9 million shares worth more than 306 million.

In its Q3 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and United Parcel Service, Inc. (NYSE:UPS) was one of them. Here is what the fund said:

“A higher-for-longer rate mentality taking hold was a headwind for economically sensitive stocks. Rising wages have been one of the main drivers of inflation, and this has proved to be a sticky area, keeping the Fed’s attention and weighing on share prices. For example, United Parcel Service, Inc. (NYSE:UPS) renegotiated a wage increase for its union-backed workforce this summer, which weighed on margins that were already being constricted by slowing volumes. While the new union deal will dampen profits over the next 12 months due to the front-end-loaded nature of the new five-year contract, management gained increased flexibility to deploy automation, which we think should further enhance UPS’s strong competitive position and provide a long-term tailwind to profitability.”