Bill Gates’ 2022 Portfolio: 4 Stocks to Sell

3. Canadian Pacific Railway Limited (NYSE:CP)

Number of Hedge Fund Holders: 55

Reduction In Stake: 100%

Canadian Pacific Railway Limited (NYSE:CP) is a railway company headquartered in Calgary, and operates a transcontinental freight railway network roughly 13,000 miles long. Bill Gates’ hedge fund sold off all the firm’s shares at the end of Q1 2022.

But major hedge funds were bullish on Canadian Pacific Railway Limited (NYSE:CP) shares at the close of the fourth quarter of 2021, where 55 reported bullish bets on the company shares, as compared to 38 hedge funds a quarter earlier.

Raymond James analyst Steve Hansen on April 22 reiterated a ‘Market Perform’ rating on Canadian Pacific Railway Limited (NYSE:CP) shares, and decreased the price target to C$100 from C$105. The analyst lowered the price target on the back of concerns over the slowing economic backdrop, and a weaker-than-expected start to the year. Hansen notes the firm’s Q1 performance suffered on account of stiff weather, volume and cost-related headwinds.

Canadian Pacific Railway Limited (NYSE:CP) posted an EPS of $0.52 for the first quarter, which missed estimates by $0.04. Revenue of $1.43 billion for the quarter also underperformed consensus figures by $40.1 million.

Here is what ClearBridge Investments had to say about Canadian Pacific Railway Limited (NYSE:CP) in its Q3 2021 investor letter:

“The other major headwind to relative performance in the quarter was Canadian Pacific Railway. The stock has been a strong performer for the Strategy but negative sentiment around its bidding war for U.S. rail operator Kansas City Southern has weighed on the stock since late May. As a result, the cyclical uptick we expected from the company has been masked by the takeover. Indeed, we have been frustrated by the muted performance among Canadian Pacific and other recently added positions in our structural bucket of growth companies with more cyclical business models or that are undergoing a restructuring that should lead to a step change improvement in earnings. As more regions reopen from COVID-19 and spending rebounds, we expect better performance from our structural names, including Airbus and hospitality and food service provider Compass.”