In this article, we discuss the 5 stocks that billionaire Ken Fisher is selling. If you want our detailed analysis of Fisher’s investment philosophy, go directly to Billionaire Ken Fisher is Selling These 10 Stocks.
5. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 53
General Electric Company (NYSE:GE) is a multinational conglomerate headquartered in Boston, Massachusetts, that specializes in aircraft engines, electrical distribution, electric motors, energy, software, and wind turbines.
Fisher Asset Management initially purchased a stake in General Electric Company (NYSE:GE) in Q4 2010, before selling its position in Q2 2012. The hedge fund reinvested in General Electric Company (NYSE:GE) in Q3 2012, and held the position consistently until selling it off in Q3 2017. Ken Fisher bought General Electric Company (NYSE:GE) shares again in Q4 2017, and sold the $2.1 million stake entirely in the third quarter of 2021.
On December 10, General Electric Company (NYSE:GE) declared a $0.08 per share quarterly dividend, in line with previous, which was paid on January 25.
Bernstein analyst Brendan Luecke initiated coverage of General Electric Company (NYSE:GE) on January 11 with an Outperform rating and a $120 price target. The analyst stated that the U.S. multi industry and electrical equipment sector is “at a time of great uncertainty”.
In the third quarter of 2021, 53 hedge funds were long General Electric Company (NYSE:GE), down from 67 funds in the preceding quarter. Andreas Halvorsen’s Viking Global is the biggest General Electric Company (NYSE:GE) stakeholder, with approximately 17 million shares worth $1.74 billion.
Here is what Vulcan Value Partners has to say about General Electric Company (NYSE:GE) in its Q3 2021 investor letter:
“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed GE from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric in the second quarter of 2020 with a substantial margin of safety. GE is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated it to more discounted companies.”