Billionaire Dan Loeb’s Top 5 Stock Picks

3. Danaher Corporation (NYSE: DHR)

Value: $666,420,000
Percent of Dan Loeb’s 13F Portfolio: 5.13%
Number of Hedge Fund Holders: 81

Danaher is one of the biggest industrial conglomerates in the world. The company has three main segments: Life Sciences, Diagnostics and Environmental & Applied Solutions. Danaher stock is up 70% over the last 12 months.

According to our database, the number of DHR’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 81 hedge funds that hold a position in Danaher Corp. compared to 75 funds in the third quarter. The biggest stakeholder of the company is Fisher Asset Management, with 3.09 million shares, worth $686.8 million.

In their Q3 2020 investor letter, Del Principe O’Brien Financial Advisors highlighted a few stocks and Danaher Corp (NYSE:DHR) is one of them. Here is what Del Principe O’Brien Financial Advisors said:

“Danaher, which designs, manufactures, and markets life science, diagnostics, dental, environmental, and applied solutions, is a prime example of how to use the business strategy of “bolt-on” acquisitions. Led by capital allocation experts the Rales brothers, Danaher will purchase a company in a fragmented industry, create a strategic platform for providing a unique service, and then spin off the company when it can create even more value as an independent entity.

Since Danaher’s bolt-on acquisition of the biopharma business of General Electric’s Life Sciences division for $21.4 billion in March 2019, we have realized a gain of well over 100%. The move boosted Danaher’s stock from around $90 (our purchase price) to the $210s. A gain like this is one of the big upsides of investing in a serial acquirer.”