In this article we take a look at the 10 stocks billionaire David Harding is currently buying.
David Harding is a British billionaire businessman, who enjoys a unique standing in the world of finance. Having studied theoretical physics at Cambridge University, Harding is among a group of ultra-successful investors who delved into the stock market after having shown exceptional ability in mathematics. David Harding is an expert at quantitative analysis, and uses a scientific approach to dissect the market. The British genius forms his own quantitative models to garner insight over which stocks to pick, and he has picked plenty of good ones over the years.
Born in London and raised in Oxfordshire, David Harding was always interested in investing and using mathematics to solve real-world problems. In his early career, he worked at Sabre Fund Management designing trading systems. In 1987, Harding co-founded AHL, and sold it in 1994 to The Man Group.
In 1997, he founded Winton Capital Management with a meagre $1.6 million in assets, and the hedge fund went on to hold over $30 billion in assets under management (AUM) in 2016. As of 2013, Harding’s fund returned an average of 15% net per year. He built his success based on empirical scientific research, rather than relying on following marketing trends.
However, five years leading to the Covid pandemic have not been kind to Harding’s Winton Capital Management. According to Financial Times, Harding lost 80% of his company’s value in the last five years. The gradual drop resulted in client withdrawals, and in 2020, investor assets stood at $7.3 billion. As of the third quarter of 2021, Winton Capital Management has $1.78 billion in assets under management. Analysts explain this downfall in terms of computer-driven hedge funds failing to pick up volatile market trends not predicted by any scientific model, as the pandemic proved too novel a worldwide event for computer models to understand.
But David Harding’s impact on Wall Street and the larger world is significant. He donated $100 million to Cambridge University, and launched a research program into the physics of sustainability at Cambridge University’s Cavendish Laboratory. Harding is a frequent contributor to many philanthropic and academic causes around the world.
David Harding of Winton Capital Management
Among David Harding’s most notable positions are Berkshire Hathaway Inc. (NYSE: BRK.A), Alphabet Inc. (NASDAQ: GOOG), and Meta Platforms, Inc. (NASDAQ: FB)
Based on the Q3 13F holdings, here is a list of top 10 stocks that billionaire David Harding is buying.
Winton Capital added these stocks to its portfolio in the third quarter of 2021.
Billionaire David Harding is Buying These 10 Stocks
10. Spotify Technology S.A. (NYSE:SPOT)
Winton Capital Management’s Stake Value: $454,000
Percentage of Winton Capital Management’s 13F portfolio: 0.02%
Total Number of Hedge Fund Holders: 48
Starting off our list is Spotify Technology S.A. (NYSE: SPOT), the music-streaming service headquartered in Stockholm, Sweden and with presence in 93 countries around the globe. As of the second quarter of 2021, Spotify boasts 172 million premium subscribers worldwide.
The company posted an EPS of $0.01 for Q3 2021, beating consensus estimates by $0.21. Quarterly revenue stood at $2.90 billion, which was above expectations by $64.16 million.
On November 1, Bernstein analyst Todd Juenger upgraded Spotify Technology S.A. from ‘Underperform’ to ‘Market Perform’, setting the target price to $280 on the stock. Industry analysts note that Spotify Technology S.A. ranks ahead of Apple Music in the music streaming and podcast industry, with its incentives for creator monetization proving an advantage over its competition.
Hedge funds sentiment is, however, negative on Spotify Technology S.A., as Insider Monkey’s data shows that 48 hedge funds held stakes in the company as of the end of September, compared to 57 funds at the end of June 2021.
Like Berkshire Hathaway Inc., Alphabet Inc., and Meta Platforms, Inc., Spotify Technology S.A. is a top stock commanding the attention of investors.
9. Cerence Inc. (NASDAQ:CRNC)
Winton Capital Management’s Stake Value: $463,000
Percentage of Winton Capital Management’s 13F portfolio: 0.02%
Total Number of Hedge Fund Holders: 18
The Massachusetts-based AI company ranks among the stocks billionaire David Harding is currently buying. Cerence Inc. (NASDAQ: CRNC) provides AI solutions and other innovations to automobiles and autonomous vehicles.
As of the end of the third quarter, 18 hedge funds in Insider Monkey’s database of 867 funds held stakes in Cerence Inc., compared to 21 hedge funds in the second quarter.
The company posted an EPS of $0.66 in Q3 2021, beating estimates by $0.10.
On November 23, research firm Craig-Hallum kept its ‘Buy’ rating on the company stock, lowering the price target to $135 from $145.
8. Synopsys, Inc. (NASDAQ:SNPS)
Winton Capital Management’s Stake Value: $465,000
Percentage of Winton Capital Management’s 13F portfolio: 0.02%
Total Number of Hedge Fund Holders: 43
Then there’s Synopsys, Inc. (NASDAQ: SNPS), a market leader in Electronics Design Automation (EDA). The company specializes in tools and equipment used to design semiconductor chips and systems. The firm operates through its segments: Semiconductor and System Design, and Software Integrity.
On November 23, Wells Fargo analyst Gary Mobley maintained an ‘Overweight’ rating on the company stock, raising the price target to $400 from $340.
Winton Capital initiated a new stake in the company in the third quarter.
Synopsys, Inc. recently finished its acquisition of Concertio, a leading provider of AI-powered performance optimization software. The terms of this acquisition have not been disclosed, but it looks set to expand the capabilities and benefits of the company to its growing consumer base.
The company posted an EPS of $1.81 for the third quarter, exceeding estimates by $0.03.
As of the end of the third quarter, 43 hedge funds held positions worth $2.34 billion in Synopsys, Inc., as compared to 41 hedge funds with combined holdings of $2.05 billion the quarter before.
7. Chubb Limited (NYSE:CB)
Winton Capital Management’s Stake Value: $1.01 million
Percentage of Winton Capital Management’s 13F portfolio: 0.05%
Total Number of Hedge Fund Holders: 30
The Switzerland-based company is a leading global provider of insurance and reinsurance products, and ranks among the stocks billionaire David Harding is currently buying. According to the 13F filings for Q3, Harding owns 5,869 shares in Chubb Limited (NYSE: CB) with a total worth of $1.01 million.
By the end of September, 30 hedge funds out of 867 tracked by Insider Monkey held shares worth $1.27 billion in the insurance company, as compared to 42 hedge funds holding positions worth $1.73 billion by the end of June.
Chubb Limited announced its third quarter earnings on October 26, and declared earnings per share of $2.64, beating the estimates by $0.39. Revenue for the quarter stood at $9.90 billion, which was above analysts’ forecast by $694.67 million.
On November 22, Goldman Sachs initiated coverage of the company with a ‘Buy’ rating, setting a $230 price target.
6. Zscaler, Inc. (NASDAQ:ZS)
Winton Capital Management’s Stake Value: $258,000
Percentage of Winton Capital Management’s 13F portfolio: 0.01%
Total Number of Hedge Fund Holders: 38
Up next on David Harding’s radar of stocks to buy is Zscaler, Inc. (NASDAQ: ZS), a cloud-based internet security company that is currently enjoying an impressive upwards trajectory. The California-based firm gained 108% in the last year.
Hedge funds are loading up on Zscaler, Inc. stock, with 38 hedge funds holding $1.62 billion worth of stakes by end of September. This is in comparison to the previous quarter where the same number of hedge funds reported owning stakes worth $1.10 billion in the company.
On November 16, research firm Credit Suisse analyst Phil Winslow initiated coverage of Zscaler, Inc. with an ‘Outperform’ rating, setting a $410 price target.
Along with Berkshire Hathaway Inc., Alphabet Inc., and Meta Platforms, Inc., Zscaler, Inc. is a leading stock for investment today.
5. Zimmer Biomet Holdings, Inc. (NYSE:ZBH)
Winton Capital Management’s Stake Value: $1.46 million
Percentage of Winton Capital Management’s 13F portfolio: 0.08%
Total Number of Hedge Fund Holders: 47
Zimmer Biomet Holdings, Inc. (NYSE: ZBH) deals in the design, manufacture and supply of musculoskeletal products around the globe. These include orthopedic reconstructive products, such as hip and knee replacement products, as well as devices used for rehabilitative purposes during surgery.
On November 23, research firm Argus downgraded the company’s stock from ‘Buy’ to ‘Hold’. The company has suffered from the spread of the Delta variant and a ban on elective surgeries in most parts of the world. The firm’s analyst David Toung added that pricing cuts in China were also pressuring gross and operating margins.
In the third quarter of 2021, Zimmer Biomet Holdings, Inc. posted an EPS of $1.81, beating estimates by $0.05.
Out of 867 hedge funds tracked by Insider Monkey, 47 reported owning shares in Zimmer Biomet Holdings, Inc. by end of September. The combined value of these holdings stood at $1.66 billion.
4. Sharps Compliance Corp. (NASDAQ:SMED)
Winton Capital Management’s Stake Value: $139,000
Percentage of Winton Capital Management’s 13F portfolio: Less than 0.01%
Total Number of Hedge Fund Holders: 12
Sharps Compliance Corp. (NASDAQ: SMED) is a company that deals in the processing of medical, pharmaceutical, and hazardous waste in the United States. According to the Q3 data, David Harding recently acquired 16,752 shares in the company, valued at $139,000.
The firm posted an EPS of -$0.04, missing estimates by -$0.01. For the third quarter, revenue stood at $13.91 million, beating expectations by $0.53 million
In November, Sharps Compliance Corp. acquired Affordable Medical Waste for $2.2 million. AMW is a full-service, route-based provider of waste management services. The deal allows Sharps Compliance Corp. access to over 500 customer locations in the Midwest region, primarily Indiana.
On November 3, research firm Barrington maintained an ‘Outperform’ rating on the company stock, lowering the price target from $13 to $11.
12 hedge funds in Insider Monkey’s database reported owning shares in Sharps Compliance Corp. by the end of September.
3. Airbnb, Inc. (NASDAQ:ABNB)
Winton Capital Management’s Stake Value: $3.04 million
Percentage of Winton Capital Management’s 13F portfolio: 0.17%
Total Number of Hedge Fund Holders: 58
Next up is Airbnb, Inc. (NASDAQ: ABNB), ranking on the list of stocks billionaire David Harding is buying. The company is a household name in many parts of the world, providing an online marketplace that connects homeowners to travelers looking for lodging and accommodation.
As of the third quarter of 2021, 58 hedge funds out of 867 tracked by Insider Monkey reported owning positions in Airbnb, Inc., with a combined value of $2.71 billon.
The company posted an EPS of $1.22 for Q3 2021, beating estimates by $0.52. Airbnb, Inc. raked in $2.24 billion in revenue for the quarter, beating analysts’ forecasts by $181.63 million.
On November 8, Truist analyst Naveed Khan kept a ‘Hold’ rating on the company’s shares, raising the price target to $180 from $160. The company is expected to grow strongly as international travel resumes after the gradual easing of travel restrictions.
2. Myovant Sciences Ltd. (NYSE:MYOV)
Winton Capital Management’s Stake Value: $287,000
Percentage of Winton Capital Management’s 13F portfolio: 0.01%
Total Number of Hedge Fund Holders: 13
Myovant Sciences Ltd. (NYSE: MYOV) is next on David Harding’s radar, a growing biopharmaceutical company that deals in the development of therapies for the treatment of women’s health and endocrine diseases.
By the end of September, the company reported an EPS of -$0.23, beating estimates by $0.17. For the third quarter, revenue stood at $77.90 million, surpassing expectations by $6.09 million.
In Q3 2021, 13 hedge funds out of 867 tracked by Insider Monkey disclosed ownership in Myovant Sciences Ltd., with a combined value of $40.73 million. This is in comparison to the previous quarter where 18 hedge funds held $103.19 million worth of shares in the bio-pharmaceutical company.
1. The Aaron’s Company, Inc. (NYSE:AAN)
Winton Capital Management’s Stake Value: $533,000
Percentage of Winton Capital Management’s 13F portfolio: 0.02%
Total Number of Hedge Fund Holders: 17
The Aaron’s Company, Inc. is a provider of lease-to-own and purchase services for a range of furniture, home appliances, electronics and accessories throughout the United States and Canada. It operates approximately 1300 company operated stores overall, and provides services through its e-commerce platform as well.
Out of 867 hedge funds tracked by Insider Monkey, 17 reported holding stakes in The Aaron’s Company, Inc. by the end of September. The total value of these holdings was $67.83 million, down from $85.41 million held by 15 hedge funds a quarter earlier.
The company reported earnings per share of $0.83 for Q3 2021, beating estimates by $0.26. Revenue for the quarter was $452.15 million, which surpassed consensus estimates by $20.90 million.
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This article is originally published at Insider Monkey.
