Billionaire Cliff Asness is Selling These 5 Stocks in 2022

3. Canadian Pacific Railway Limited (NYSE:CP)

Number of Hedge Fund Holders: 41

Canadian Pacific Railway Limited (NYSE:CP) operates a transcontinental freight railway in Canada and the United States, transporting bulk commodities. Cliff Asness’ AQR Capital Management held 37,991 shares of Canadian Pacific Railway Limited (NYSE:CP) in Q4 2021, worth $2.71 million. The hedge fund sold off its position in the company in Q1 2022. 

Citi analyst Christian Wetherbee lowered the price target on Canadian Pacific Railway Limited (NYSE:CP) to $81 from $84 and reiterated a Buy rating on the stock. The analyst downgraded three stocks in US rails and lowered estimates across the board for the group, citing short-term risk in a decelerating freight and economic environment. He is taking a more cautious approach due to “freight warning signs” and “persistent” service issues, the analyst told investors. He believes these can result in a “delayed operational reaction to a true downturn”. 

According to Insider Monkey’s Q1 data, 41 hedge funds were bullish on Canadian Pacific Railway Limited (NYSE:CP), down from 55 funds in the preceding quarter. Chris Hohn’s TCI Fund Management is the largest shareholder of the company, with 55.8 million shares worth $4.60 billion. 

Here is what ClearBridge International Growth EAFE Strategy has 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 Limited (NYSE:CP). 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 Railway Limited (NYSE:CP) 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.”