In this article, we discuss the 10 stocks that Israel Englander is buying.
Israel Englander founded Millennium Management in 1989 with $35 million. The fund currently manages over $57 billion in assets. Englander’s investment philosophy revolves around maintaining risk control and being disciplined while investing. He follows a simple strategy of quantitative analysis while choosing stocks. The hedge fund provides autonomy to portfolio managers, allowing them to operate in independent silos.
Over the years, Millennium Management has delivered strong returns to its shareholders. Other than 2008, the hedge fund never registered a negative year since 1990. In 2020, Millennium Management gained 26%, marking its best performance in 20 years.
Millennium’s multi-strategy fund is up 23.3% in 2021, while the fund gained 3.4% this month, through December 17, as reported by Bloomberg.
As of Q3 2021, Millennium Management’s 13F portfolio has a value of $166.7 billion, up from $163 billion in the previous quarter. Technology accounted for 17.1% of the hedge fund’s portfolio, while healthcare, finance, and consumer services represented 10.3%, 10.5%, and 12.1%, respectively.
In this article, we will focus on the new holdings of Millennium Management as of Q3. Some of the notable stocks in Israel Englander’s portfolio are JPMorgan Chase & Co. (NYSE:JPM), Oracle Corporation (NYSE:ORCL), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA).
Israel Englander of Millennium Management
Our Methodology
We selected the stocks in which Englander increased his stake or started investing in during the third quarter. For this list, we collected data from Millennium Management’s 13F portfolio as of Q3.
Billionaire Israel Englander is Buying These 10 Stocks
10. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 33
Millennium Management’s Stake Value: $19,778,000
The Kraft Heinz Company (NASDAQ:KHC) is one of the newest acquisitions of Millennium Management in Q3. The hedge fund started building its position in the company with shares worth over $19.7 million. The Kraft Heinz Company accounted for 0.01% of Israel Englander’s portfolio.
Recently, The Kraft Heinz Company announced to acquire an 85% stake in German food products supplier, Just Spices. The acquisition will be completed in the first quarter of 2022. In Q3 2021, The Kraft Heinz Company posted an EPS of $0.65, beating estimates by $0.07.
At the end of Q3 2021, 33 hedge funds tracked by Insider Monkey held stakes in The Kraft Heinz Company, the same as in the previous quarter. The total value of these stakes is over $12.3 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading shareholder in the company in Q3, owning a roughly $12 billion worth of stake.
Like Oracle Corporation, Microsoft Corporation, Meta Platforms, Inc., and NVIDIA Corporation, The Kraft Heinz Company is also one of the notable stocks in Israel Englander’s portfolio.
9. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
Millennium Management’s Stake Value: $27,312,000
C3.ai, Inc. (NYSE:AI) is an American software company that provides services in AI technology. The company recently announced its fiscal Q2 2022 results and posted an EPS of -$0.23, which beat estimates by $0.06. Moreover, C3.ai, Inc.’s subscription revenue stood at $47.4 million, up from $35.9 million during the same period last year.
As of Q3 2021, 24 hedge funds in Insider Monkey’s database reported owning stakes in C3.ai, Inc., down from 29 in the preceding quarter. The total value of these stakes stood at over $199 million.
In Q3, Millennium Management increased its stake in C3.ai, Inc. by 322%, and now holds shares worth $27.3 million. The company constituted 0.01% of Israel Englander’s portfolio. Recently, Needham appreciated C3.ai, Inc. as the company was awarded a contract from the U.S. Department of Defense. The firm remained bullish on the stock, lifting its price target to $103, with a Buy rating on the shares.
8. Fiverr International Ltd. (NYSE:FVRR)
Number of Hedge Fund Holders: 29
Millennium Management’s Stake Value: $49,170,000
Fiverr International Ltd. (NYSE:FVRR) is an Israeli online marketplace for freelancers. Due to the growth in earnings by e-commerce and digital channels, recently, MKM Partners lifted its price target on Fiverr International Ltd. to $175, with a Neutral rating on the shares.
In Q3, the number of hedge funds tracked by Insider Monkey having stakes in Fiverr International Ltd. slightly declined to 29, from 30 in the previous quarter. These stakes hold a consolidated value of $520.4 million.
Millennium Management started building its position in Fiverr International Ltd. during the second quarter of 2019. In Q3 2021, the hedge fund increased its stake by 654% in the company, which represented 0.02% of its portfolio. In November, Fiverr International Ltd. reported a 33% year-over-year growth in its active buyers, reaching 4.1 million in number.
Baron Funds mentioned Fiverr International Ltd. in its Q1 2021 investor letter. Here is what the firm has to say:
“We sold out of Fiverr International Ltd., the marketplace for freelance services, since the stock ran up multiple fold since our purchase less than a year ago and traded at a valuation that we thought captured much of the future opportunity.”
7. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 77
Millennium Management’s Stake Value: $75,185,000
Merck & Co., Inc. is an American pharmaceutical company that also offers healthcare solutions to its consumers. Millennium Management started investing in the company during the second quarter of 2011 but sold its entire stake over time. In Q3, the hedge fund again started building its position in Merck & Co., Inc., with shares worth $75.1 million. The company accounted for 0.04% of Israel Englander’s portfolio.
At the end of Q3 2021, 77 hedge funds in Insider Monkey’s database reported owning stakes in Merck & Co., Inc., down from 79 in the previous quarter. These stakes hold a value of over $4.5 billion.
In Q3, Merck & Co., Inc. posted an EPS of $1.75, beating the estimates by $0.20. After solid Q3 results, the company expects to produce over 10 million courses of its Covid-19 pill by the end of the year, increasing it to 20 million in 2022. Recently, Goldman Sachs initiated its coverage on Merck & Co., Inc. with a Conviction Buy rating and a $93 price target.
Artisan Partners mentioned Merck & Co., Inc. in its Q1 2021 investor letter. Here is what the firm has to say:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
6. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Millennium Management’s Stake Value: $210,591,000
Exxon Mobil Corporation (NYSE:XOM) is an American oil and gas corporation. Since the start of 2021, Exxon Mobil Corporation surged 44.7%, as of the close of December 20.
GQG Partners was the largest shareholder of Exxon Mobil Corporation in Q3, owning shares worth $1.56 billion. Overall, 64 hedge funds tracked by Insider Monkey held stakes in the company in Q3, compared with 68 in Q2. These stakes are valued at over $4.6 billion, up from $3.6 billion in the preceding quarter.
Millennium Management started investing in Exxon Mobil Corporation during the fourth quarter of 2010, with shares worth $26.1 million. In Q3 2021, the hedge fund increased its stake in the company by 3866%, and the stakes represented 0.12% of Israel Englander’s portfolio. Recently, JPMorgan lifted its price target on Exxon Mobil Corporation to $83, with an Overweight rating on the shares.
Exxon Mobil Corporation gained investors’ attention in 2021, like Microsoft Corporation, Meta Platforms, Inc., and NVIDIA Corporation.
First Eagle Investment Management mentioned Exxon Mobil Corporation in its Q2 2021 investor letter. Here is what the firm has to say:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 101
Millennium Management’s Stake Value: $246,173,000
Though JPMorgan Chase & Co. underperformed in 2021 relative to its peers, analysts present a positive outlook on the bank’s performance in the coming quarters. Recently, UBS initiated its coverage on the stock with a Buy rating and a $210 price target.
In Q3 2021, Millennium Management increased its stake in JPMorgan Chase & Co. by 233%, which now accounted for 0.14% of Israel Englander’s portfolio. In its third-quarter results, JPMorgan Chase & Co. reported revenue of $29.6 billion, up 2% from the prior-year quarter. Since the start of 2021, the stock has delivered a 24.1% return to shareholders, as of the close of December 20.
Of the 867 hedge funds tracked by Insider Monkey, 101 hedge funds were bullish on JPMorgan Chase & Co. in Q3, down from 108 in the preceding quarter. These stakes are valued at over $5.6 billion. Fisher Asset Management was the company’s leading shareholder in Q3, owning shares worth $1.1 billion.
Vltava Fund mentioned JPMorgan Chase & Co. in its Q3 2021 investor letter. Here is what the firm has to say:
“While all the previous names could be categorised as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include also Jamie Dimon and Herman Gref.
We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.
The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 56
Millennium Management’s Stake Value: $253,964,000
Oracle Corporation is one of the leading computer technology companies in the world. In fiscal Q2, the company’s cloud revenue jumped 22% year-over-year at $2.7 billion, which, according to the management, will reach $11 billion in annualized revenue.
Millennium Management increased its stake in Oracle Corporation by 241% in Q3. The company currently accounts for 0.15% of Israel Englander’s portfolio. Since the start of 2021, the stock is up 43.5%, as of the close of December 20. Recently, Cowen raised its price target on Oracle Corporation to $115, while keeping an Outperform rating on the shares.
As of Q3 2021, 56 hedge funds tracked by Insider Monkey reported owning stakes in Oracle Corporation, up from 55 in the previous quarter. These stakes hold a consolidated value of $3.47 billion.
Saturna Capital mentioned Oracle Corporation in its Q3 2021 investor letter. Here is what the firm has to say:
“Technology companies provided the greatest contribution to Fund returns. The contribution was generated over July and August, as each of the companies declined in value in September. Oracle couldn’t buck the September sell-off, but it was more resilient, shedding just over 1%, which likely has much to do with its modest valuation.”
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 250
Millennium Management’s Stake Value: $505,030,000
Israel Englander’s Millennium Management started investing in Microsoft Corporation during the fourth quarter of 2010. In Q3 2021, the hedge fund increased its stake in the company by 128%, and now holds shares worth over $505 million.
Recently, Morgan Stanley appreciated the leading position of Microsoft Corporation in data management, as the sector contributed about 12% of the company’s total revenue in the first half of 2021. The firm lifted its price target on the stock to $364, with an Overweight rating on the shares. In its fiscal Q1 2022 results, Microsoft Corporation posted an EPS of $2.27, which beat estimates by $0.19.
At the end of Q3 2021, 250 hedge funds tracked by Insider Monkey reported owning stakes in Microsoft Corporation, up from 238 in the previous quarter. These stakes hold a consolidated value of $65.8 billion.
Baron Funds mentioned Microsoft Corporation in its Q3 2021 investor letter. Here is what the firm has to say:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 248
Millennium Management’s Stake Value: $936,649,000
Recently, Morgan Stanley listed Meta Platforms, Inc. as one of the companies that could benefit from the advertisement segment in 2022. The stock is up 21.01% for 2021, as of the close of December 20.
As per Insider Monkey’s Q3 data, 248 hedge funds held stakes in Meta Platforms, Inc., down from 266 in the previous quarter. The total value of these stakes is over $38.5 billion.
In Q3, Millennium Management increased its position in Meta Platforms, Inc. by 103%. The hedge fund now holds more than 2.7 million shares in the company, valued at $936.6 million. Meta Platforms, Inc. represented 0.56% of Israel Englander’s portfolio. Recently, UBS assumed its coverage on the stock with a Buy rating and a $425 price target.
Canterbury Tollgate mentioned Meta Platforms, Inc. in its recently published Q3 2021 investor letter. Here is what the firm has to say:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-atlarge, but that it is of Facebook’s doing…” (Click here to see the full text)
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
Millennium Management’s Stake Value: $1,082,000
NVIDIA Corporation is an American leading tech company that manufactures products for gaming and professional markets. In Q3, the company’s gaming revenue grew by 42% from a year ago at $3.22 billion, while its data-center sales rose 55% to $2.94 billion.
In Q3 2021, Millennium Management increased its stake in NVIDIA Corporation by 226%, and now holds shares worth over $1.08 billion. The company accounted for 0.64% of Israel Englander’s portfolio. Appreciating the company’s strong data center and gaming revenue, recently, Tigress Financial lifted its price target on NVIDIA Corporation to $400, with a Buy rating on the shares.
As of Q3 2021, 83 hedge funds tracked by Insider Monkey were bullish on NVIDIA Corporation, compared with 86 in the previous quarter. These stakes hold a consolidated value of over $10 billion, up from $9.09 billion in Q2. GQG Partners was the company’s largest shareholder in Q3, owning a stake worth $3.1 billion.
Harding Loevner mentioned NVIDIA Corporation in its Q3 2021 investor letter. Here is what the firm has to say:
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
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This article is originally published at Insider Monkey.
