In this article, we shall discuss how billionaire Ken Fisher bought these 10 stocks for the rest of 2022.
Kenneth Lawrence Fisher, an American investment analyst, hedge fund manager, and author, graduated from the Humboldt State University with a BA in economics in 1972. He currently serves as the chairman and co-chief investment officer of Fisher Investments, a fee-only financial advisement firm. He served as the Chief Executive Officer of the firm until July 2016, helping Fisher Investments become one of the largest independent money managers in the world. Furthermore, Fisher is also an author of eleven books, six of which are national bestsellers, and writes columns for USA Today, the Financial Times, and several other publications. He wrote Forbes’ prestigious ‘Portfolio Strategy’ column for over two decades, making him one of the longest running columnists in the magazine’s 85+ year history. Son of legendary investor Philip A. Fisher, Ken is renowned for making accurate market calls, often in direct contradiction to Wall Street’s consensus forecast. According to Forbes, his personal net worth is listed as $6.8 billion as of August 2022, making him one of the wealthiest hedge fund managers in the world.
Some of the most prominent stocks that Ken Fisher bought for the rest of 2022 are Nokia Corp. (NYSE:NOK), Keysight Technologies Inc. (NYSE:KEYS), and Humana Inc. (NYSE:HUM) . In this article, we shall go over 10 more stocks that billionaire Ken Fisher bought for the rest of the year.
Our Methodology
For this article, we have picked 10 of the most famous, ‘new’ stocks from Fisher Investments’ 13F investment portfolio from the second quarter of 2022. This means Ken Fisher purchased new stakes in the undermentioned companies in Q2 2022. The stocks have been ranked based on the stakes Fisher holds in each stock, from lowest to highest.
Billionaire Ken Fisher Bought These 10 Stocks for the Rest of 2022
10. FedEx Corp. (NYSE:FDX)
Fisher Investments’ Stake Value: $240,000
Number of Hedge Fund Holdings: 63
Based in Memphis, Tennessee, FedEx Corp. (NYSE:FDX) is an American multinational conglomerate holding company which specializes in transportation, e-commerce, and other services. The company is one of the top contractors of the US government and assists in the transport of some United States Postal Service packages through their Air Cargo network. In 2021, FedEx Corp. posted a revenue of almost $84 billion. The company has over 850,000 employees in over 220 countries around the world. As of August 27, FedEx Corp. has declined more than 15.6% year-to-date, and has a total market capitalization of $56.7 billion.
Investor interest around FedEx Corp. seems to have increased significantly in the second quarter of 2022, with 63 hedge funds having a collective stake of $1.75 billion. This is up from 52 funds having a stake of $1.79 billion in the company in Q1 2022. As of Q2 2022, Ken Griffin’s Citadel Investment Group is the largest stakeholder in FedEx Corp., owning more than 2.1 million shares worth at around $480 million. Fisher Investments purchased stakes in FedEx Corp. in Q2 2022 worth $240,000 in the second quarter of 2022. Furthermore, as of Q2 2022, the company posted an EPS of $6.87, beating estimates of $6.86 by $0.01.
On August 25, BMO Capital analyst Fadi Chamoun lowered the price target on FedEx Corp. from $280 to $270, keeping a Market Perform rating on the stock. According to the analyst, several data points suggest that volumes weakened further in the most recent quarter, and cyclical headwinds are worsening. There has been an increasingly pronounced demand slowdown for B2C volumes, but the moderating PMIs in the U.S. and Europe seem to suggest that the slowdown is likely to extend into the higher margin B2B segment as well.
9. SS&C Technologies Holdings Inc. (NASDAQ:SSNC)
Fisher Investments’ Stake Value: $329,000
Number of Hedge Fund Holdings: 50
Headquartered in Windsor, Connecticut, SS&C Technologies Holdings Inc. is an American multinational holding company which sells software and software as a service to the financial services industry. The company has offices located in the United States, Europe, Asia, Africa, and Australia. As of Q2 2022, hedge fund sentiment around SS&C Technologies Holdings Inc. has risen, with 50 hedge funds long the stock, compared to 48 in the preceding quarter. As of the second quarter of 2022, Robert Caruso’s Select Equity Group is the largest shareholder in the company, owning more than 10.4 million shares worth $606.5 million. Other prominent hedge funds to hold significant stakes in SS&C Technologies Holdings Inc. are Diamond Hill Capital and the Baupost Group. Fisher Investments bought stakes in SS&C Technologies Holdings Inc. in the second quarter of 2022, purchasing 5,658 shares worth $329,000.
The company reported a total revenue of more than $1.3 billion in the second quarter of 2022. Moreover, in Q2 2022, SS&C Technologies Holdings Inc. posted an EPS of $1.09, trailing behind estimates of $1.18 by $0.09. According to analysts, the company is estimated to grow 7.87% per year over the next five years.
On August 1, SS&C Technologies Holdings Inc. announced that as part of the company’s long-term strategy to maximize stockholder value, the Board of Directors has given authorization for a stock repurchase program, which will make way for the company to repurchase up to $1 billion in aggregate of the company’s outstanding shares of a common stock. On July 28, DA Davidson analyst Peter Heckmann lowered the price target on SS&C Technologies Holdings Inc. to $82 from $92, maintaining a Buy rating on the shares, citing a relatively disappointing Q2 performance.
Here is what Diamond Hill Capital had to say about SS&C Technologies Holdings Inc. in their Q1 2022 investor letter:
“SS&C Technologies Holdings is the world’s largest hedge fund and private equity administrator. SS&C provides important, hard-to-replicate services to its end markets, evidenced by its high level of recurring revenues and strong client retention. The company has shareholder-oriented management and a demonstrated track record of growing free cash flow through skillful acquisitions, sales execution and cost discipline.”
8. Kinder Morgan Inc. (NYSE:KMI)
Fisher Investments’ Stake Value: $343,000
Number of Hedge Fund Holdings: 41
Based in Houston, Texas, Kinder Morgan Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America, and owns and controls oil and gas pipelines all over the continent. Hedge fund sentiment around Kinder Morgan Inc. has grown slightly more favorable in the second quarter of 2022, with 41 hedge funds having stakes worth $1.2 billion. This is up from the first quarter of 2022, when only 40 hedge funds were long the stock, with a collective stake of $1.3 billion. As of Q2 2022, Orbis Investment Management is the largest shareholder in the company, owning more than 21.6 million shares worth $363.2 million.
7. Dover Corp. (NYSE:DOV)
Fisher Investments’ Stake Value: $363,000
Number of Hedge Fund Holdings: 30
Headquartered in Downers Grove, Illinois, Dover Corp. (NYSE:DOV) is an American manufacturer of industrial products. Dover’s (NYSE:DOV) business is divided into five main segments, namely Engineered Products, Clean Energy and Fueling, Imaging and Identification, Pumps and Process Solutions, and Climate and Sustainability Technologies. On July 22, Deutsche Bank analyst Nicole DeBlase lowered the price target on Dover Corp. to $132 from $135 post the Q2 2022 returns, maintaining a Hold rating on the stock. The analyst explained that while demand is not as bad as it seemed from the release, the implied second half of 2022 ramp still does not look like a low bar.
Investor interest around Dover Corp. has increased considerably in the second quarter of 2022, with 30 hedge funds long the stock, compared to 27 hedge funds a quarter ago. As of Q2 2022, Phill Gross and Robert Atchinson’s Adage Capital Management increased their hold on Dover Corp. by 147%, becoming the largest shareholder in the company. Adage Capital owns almost 824,380 shares worth $100 million. As of Q2 2022, Fisher Investments bought 2,989 shares in the company, which award Ken Fisher a total stake of $363,000.
6. Fastenal Co. (NASDAQ:FAST)
Fisher Investments’ Stake Value: $426,000
Number of Hedge Fund Holdings: 33
Fastenal (NASDAQ:FAST) is an American industrial distribution company based in Winona, Minnesota. Fastenal’s (NASDAQ:FAST) service model centers on approximately 3,200 in-market locations all over the globe. In the second quarter of 2022, the company reported a total revenue of $1.78 billion, with a market capitalization of $29.3 billion as of August 27. Furthermore, Fastenal met EPS estimates of $0.5 in Q2 2022.
On July 15, Argus analyst John Eade lowered the price target on Fastenal to $55 from $66 to reflect the impact of skyrocketing interest rates on valuation multiples. The analyst kept a Buy rating on the shares however, noting that the company’s business trends are positive and its management has exuded confidence in its long-term outlook through a double-digit dividend increase in early 2022. Eade further adds that over the long term, he expects Fastenal to generate mid-single-digit sales growth and high-single-digit EPS growth. According to analysts, the company is expected to grow 6.33% per year over the next 5 years.
Investor interest in Fastenal has increased significantly in the second quarter of 2022, with 33 hedge funds long the stock, compared to 29 hedge funds in the preceding quarter. Fisher Investments owns 8,533 shares which award Ken Fisher a total stake of $426,000 in Fastenal.
This is what Nomadic Value Partners had to say about Fastenal in their Q2 2021 investor letter:
“In mid-June we completely sold out of Fastenal (FAST). Although we had been using FAST as a source of liquidity for a few months already, it still feels bad to say an official goodbye to such an amazing company. However, we must stay focused on the math and the math concludes a difficult task to get our return hurdle going forward. The last time FAST traded at a forward P/E ratio of 34x (the multiple at our exit), the year was 2012. The company had been growing at 20% per year, and the US was about to embark on a shale oil boom, sustaining a low-teens growth trajectory. Today, FAST’s sales growth could turn anemic as the surge for COVID safety products is waning and heavy construction and resources customers are slow to return. An investor must have an optimistic view towards 5+ years of strong real GDP growth as well as sustained inflation. If one lowers the growth assumption to a more likely outcome, then the implicit bet is that low to negative real interest rates will persist and the forward P/E multiple will stay elevated4. I do not want to make such a strong macro bet as the justification for owning a stock. Fastenal is a cyclical business with a growth model proven to take market share secularly, but the time to buy FAST (the stock) will be when we are in the depths of an industrial recession. Stay tuned.”
5. M&T Bank Corp. (NYSE:MTB)
Fisher Investments’ Stake Value: $639,000
Number of Hedge Fund Holdings: 39
Headquartered in Buffalo, New York, M&T Bank Corp. is an American bank holding company, which operates 780 branches all over the United States. In the second quarter of 2022, the company posted an EPS of $1.08, trailing behind estimates of $2.44 by $1.36. As of August 27, M&T Bank Corp. has gained 16.28% year-to-date, with a total market capitalization of $32.32 billion. Moreover, the company reported a total revenue of $1.98 billion in Q2 2022.
Investor interest in M&T Bank Corp. depreciated in the second quarter of 2022, with 39 hedge funds having a collective stake of more than $1 billion in the company. This was down from the preceding quarter, where 40 hedge funds reported having stakes in M&T Bank Corp.. As of Q2 2022, Ken Griffin’s Citadel Investment Group is the largest shareholder in the company, owning more than 1.9 million shares worth $309.1 million. As of the second quarter of 2022, Fisher Investments purchased 4,011 shares in M&T Bank Corp., awarding the hedge fund a stake of $639,000.
4. Parsons Corp. (NYSE:PSN)
Fisher Investments’ Stake Value: $723,000
Number of Hedge Fund Holdings: 12
Based in Centreville, Virginia, Parsons Corp. (NYSE:PSN) is an American technology-focused defense, intelligence, security, and infrastructure engineering firm. On August 3, the company reported its Q2 2022 results. It posted a total revenue of $1.01 billion in Q2, beating analyst consensus of $929.03 million. Furthermore, Parsons Corp. met estimates in Q2 2022, posting an EPS of $0.12.
Overall, Q2 returns for Parsons Corp. were strong, as the company built on the momentum established over the last year. The company achieved year-over-year organic revenue growth of 9% and generated EBITIDA and cash flow results in-line with analyst expectations. According to CEO Carey Smith, Parsons Corp. is well-positioned to take advantage of the growing budgets and opportunities that exist in the company’s critical infrastructure and national security markets.
3. Berkshire Hathaway Inc Class A (NYSE: BRK.A)
Fisher Investments’ Stake Value: $1.22M
Number of Hedge Fund Holdings: 109
Based in Kiewit Plaza, Omaha, Berkshire Hathaway Inc. is an American multinational conglomerate holding company. Owned by legendary billionaire Warren Buffett, some of the most prominent companies Berkshire Hathaway Inc. owns are Long and Foster, Duracell, and NetJets. As of Q2 2022, hedge fund sentiment around Berkshire Hathaway Inc. has grown more favorable, with 109 hedge funds long the stock in Q2 2022, compared to 104 in the preceding quarter. As of Q2 2022, Bill and Melinda Gates Foundation Trust is the largest shareholder in the company, owning more than 34.7 million shares worth $9.47 billion. Fisher Investments bought a stake in Berkshire Hathaway Inc. in the second quarter of 2022, purchasing 3 shares worth $1.22 million.
Here is what Diamond Hill Capital, an investment management firm, has to say about Berkshire Hathaway Inc. in their Q1 2022 investor letter:
“Diversified holding company Berkshire Hathaway reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”
2. ICICI Bank Ltd. (NYSE:IBN)
Fisher Investments’ Stake Value: $3.94M
Number of Hedge Fund Holdings: 27
Based in Vadodara, Gujrat, ICICI Bank Ltd. (NYSE:IBN) is an Indian multinational bank and financial services company which offers a wide range of banking products and financial services for corporate and retail customers. The company has a network of more than 5270 branches and 15,589 ATMs across India, and has a presence in over 17 countries including the United States, the United Kingdom, Canada, Qatar, and many more. As of the second quarter of 2022, ICICI Bank Ltd. reported a total revenue of $3.52 billion.
Investor interest around ICICI Bank Ltd. has declined in the second quarter of 2022, with 27 hedge funds having a collective stake of $1.07 billion. This was down from the preceding quarter, when 28 funds were long the stock, having a cumulative stake of $1.22 billion. As of Q2 2022, Rajiv Jain’s GQG Partners is the largest stakeholder in ICICI Bank Ltd., owning more than 28.3 million shares worth $502.9 million. Fisher Investments purchased 221,896 shares in ICICI in Q2 2022, having a total stake of $3.94 million.
1. Chemical & Mining Co. of Chile Inc. (NYSE:SQM)
Fisher Investments’ Stake Value: $33.4M
Number of Hedge Fund Holdings: 29
Headquartered in Santiago, Chemical & Mining Co. of Chile Inc. is a Chilean chemical company and a supplier of plant nutrients, iodine, lithium, and industrial chemicals. It is the world’s biggest lithium producer, and as of the second quarter of 2022, hedge fund sentiment around Chemical & Mining Co. of Chile Inc. is at an all-time-high, with 29 hedge funds having a total stake of $658.6 million in the company. This is up from Q1 2022, when only 28 hedge funds were long the stock. As of Q2 2022, Fisher Investments purchased 399,964 shares in Chemical & Mining Company, having a stake of $33.4 million. The company contributes 0.02% to Fisher’s 13F portfolio for Q2 2022.
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