Billionaire Michael Price’s Top 10 Stock Picks

Published March 9, 2021 at 1:07 pm EST Updated September 7, 2026 at 1:24 pm EDT

In this article, we take a look at billionaire Michael Price’s top 10 stock picks.

The value investor Michael Price, 68, runs New York-based hedge fund MFP Investors, with assets over $1 billion. Seth Klarman’s mentor started his career as a research assistant at a hedge fund run by famous self-made value investor Max Heine after graduating from the University of Oklahoma in 1973. Michael Price likes to buy beaten-down stocks that are trading at a significant discount compared to their actual value. The value investor has extended his strategy in the latest quarter by buying several underperforming stocks from the financial sector, increasing the financial sector weightage to 31% of the overall portfolio.

Instead of holding large funds in a few stocks, Price has diversified his investments across the financial sector by holding a stake in more than 45 stocks, according to the latest quarter filings. His strategy appears to be working because the financial sector is ranked second-best performing S&P 500 sector in 2021.

Michael Price only buys stocks with strong inherent value, and he likes to conduct significant research before picking any stock for his portfolio. He bought 9 new stocks in the latest quarter and 5 of them belong to the financial sector.

“If you really [want] to find value, you [must] do original work, digging through stuff no one else [wants] to look at. …The really important thing is to eliminate the Wall Street consensus, the Wall Street research. You need to understand where the company is in the world and what the competition is for the products, whether the products are any good, and whether or not the company has any pricing power or barriers to entry. … Think about the business, think about what you see without any input from Wall Street, do [your own] primary research.” – Michael F. Price

The value investor has also been playing smartly with technology stocks. Intel Corporation (NASDAQ: INTC) is the largest stock holding of MFP Investors at present. He sold out FLIR Systems Inc (NASDAQ: FLIR) and Arista Networks Inc (NYSE: ANET) in the December quarter. Overall, he held a stake in 7 tech stocks for the first quarter of 2021. Consumer defensive and real estate stocks are also holding a huge weightage in his portfolio. The value investor is also seeking to capitalize on a strong performance of communication stocks. He added a position in Loral Space & Communications Inc (NASDAQ: LORL) during the fourth quarter and increased his stake in Twitter (NYSE: TWTR) by 200% to 2.50% of the overall portfolio.

Price’s strategies also include buying stakes in companies that are struggling due to special situations like bankruptcy, merger-arbitrage trades, restructuring, and event-driven situations. His stock-picking strategy is also based on a ratio of two-thirds equities and one-third special situations. He learned these strategies from his mentor Heine who generated big profits from special situations such as restructuring and bankruptcy.

Billionaire Michael Price's Top 10 Stock Picks

Michael Price of MFP Investors

While Michael Price’s reputation remains intact, the same can’t be said of the hedge fund industry as a whole, as its reputation has been tarnished in the last decade during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 88 percentage points since March 2017. Between March 2017 and February 5th 2021 our monthly newsletter’s stock picks returned 187.5%, vs. 75.8% for the SPY. Our stock picks outperformed the market by more than 111 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s start reviewing Billionaire Michael Price’s Top 10 Stock Picks for 2021 to see whether the value investor is in a position to outperform the market trends.

10. Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI)

Michael Price’s strategy of holding a big stake in banking services provider Atlantic Capital Bancshares, Inc. (NASDAQ: ACBI) appears to be moving in the right direction. The shares of the regional bank grew 43% since the beginning of this year, thanks to a rebound in economic numbers and easing social distancing policies. ACBI stake accounted for 2.33% of the 13F portfolio at the end of the latest quarter. Atlantic Capital has generated 11% revenue growth in the latest quarter while its earnings per share came in at $0.48 compared to $0.32 per share in the year-ago period. Moreover, Atlantic Capital management claims the bank is well-positioned for solid growth and strong performance in 2021.

9. Twitter Inc (NYSE: TWTR)

The value investor’s strategy of increasing position by 200% in the social media giant Twitter moved in favor of his hedge fund. This is because shares of social media company grew 23% so far in 2021, extending the twelve-month gains to 90%. Twitter ranks 9^th among billionaire Michael Price’s top 10 stock picks.

Carillon Eagle Mid Cap Growth Fund stated in a third-quarter investor letter that Twitter has been seeing strong user growth over the past couple of quarters. Here is what Carillon Eagle Mid Cap Growth Fund said:

“Twitter’s user count continues to accelerate due to the global stay-at-home situation as well as the numerous positive changes the company has introduced on the platform in order to keep users engaged. The addition of various topics and lists along with the expansion of video have led to more users joining the platform and kept existing users more engaged. We believe the next positive development on the horizon could come from the company’s ability to increase the monetization of these users.”

8. Popular, Inc. (NASDAQ: BPOP)

The shares of regional bank Popular, Inc. (NASDAQ: BPOP) rallied 22% year to date, extending the twelve-month gains to 48%. In addition to share price gains, the company also offers a dividend yield of more than 2.3%. MFP Investors position in Popular accounted for 2.7% of the overall portfolio at the end of the latest quarter and ranked eighth largest stock holding of the 13F portfolio.

Popular stock price gains are backed by robust financial numbers. The company has generated $176 million in net income for the fourth quarter compared to $168.4 million in Q3 and $166.8 million in the year-ago quarter. Moreover, the bank reported a profit for the full year despite significant provision losses.

7. Anterix Inc. (NASDAQ: ATEX)

Shares of communication services company Anterix Inc. (NASDAQ: ATEX) also outperformed the broader market index since the beginning of this year. It is ranked seventh among the billionaire Michael Price’s top 10 stock picks for 2021. ATEX stock price is up 14% so far in 2021.

Roubaix Capital LLC, which generated a net return of 26.63% for the Q4 of 2020, highlighted some stocks including Anterix in their Q4 investor letter. Here is what Roubaix Capital stated:

“We also maintain many long positions in companies that are not specifically tethered to the current backdrop. Instead, either the merits of the business, the development of the thesis or the strength of a trend control the expected outcome. One such position, which we have discussed in the past and remains a large position for the Composite, is Anterix (ATEX). The company owns spectrum approved for dedicated enterprise networks for critical infrastructure industries, among others. This spectrum will allow users to build fully private high speed data networks to capture the value of the internet of things, while at the same time having a higher level of secure communication and infrastructure. In May 2020, company’s plan for its 900 MHz spectrum was approved by the FCC. More recently in December 2020, the company announced its first commercial contract with Ameren (AEE) for a 30 year spectrum lease for a private LTE network with a further 10 year renewal option. This sets the precedent for future contracts. As the company scales with more contracts in 2021, the high margin business model will come into focus and should drive the shares. We also see the potential for the new administration to increase infrastructure spending and emphasize grid security as ways to drive employment and in reaction to a recent high profile government hack, respectively.”

6. Banc of California, Inc. (NYSE: BANC)

Michael Price’s strategy also worked in the case of Banc of California, Inc. (NYSE: BANC). After a sluggish performance in 2020, shares of the regional bank grew 32% year to date, extending the twelve-months gains to 39%. It is the sixth-largest stock holding of Price’s portfolio. The bank also offers a dividend of just over 1% to shareholders.

The latest share price rally is supported by stronger than expected results for the December quarter. Its Q4 revenue of $68 million topped the Wall Street consensus estimate by $6.6 million while earnings per share have beaten expectations by $0.17.

5. CIT Group Inc. (NYSE: CIT)

The regional bank CIT Group Inc. (NYSE: CIT) is the fifth-largest stock holding of the MFP Investors’ portfolio for 2021. The firm held 645,600 shares of CIT at the end of the latest quarter, accounting for 3.57% of the overall portfolio. Shares of CIT Group rallied 33% since the beginning of this year, thanks to improving market trends and financial numbers. Its fourth-quarter revenue of $496 million increased 7.6% year over year. CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals.

4. Dolby Laboratories Inc. (NYSE: DLB)

Despite selling a 44% position during the fourth quarter, Dolby Laboratories Inc. (NYSE: DLB) still represents the fourth largest stock holding of Michael Price’s portfolio. Shares of Dolby Laboratories soared 49% in the last twelve months. The company has generated 49% revenue growth in the latest quarter and raised the second-quarter revenue forecast to $280-310 million compared to the prior guidance for $270-300 million.

3. Bunge Limited (NYSE: BG)

Shares of Bunge Limited (NYSE: BG) saw a stunning rally in the last twelve months amid improving demand for its products. Bunge is ranked third among billionaire Michael Price’s top 10 stock picks for 2021. In addition to a 80% share price rally in the last twelve months, Bunge also offers a hefty dividend yield of 2.57%. Bunge Limited operates as an agribusiness and food company worldwide. It operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Fertilizer, and Sugar and Bioenergy. Its revenue grew 17% year over year in the latest quarter and the company expects favorable trends to continue in 2021.

2. S&W Seed Company (NASDAQ: SANW)

Michael Price’s strategy of holding a big position in S&W Seed Company appears to be benefiting his hedge fund. Shares of S&W Seed Company rallied 18% so far in 2021, enlarging twelve-month gains to 30%. It is an agricultural company, engaging in breeding, growing, processing, and selling alfalfa and sorghum seeds. The latest rally in SANW stock price is backed by 21.9% year-over-year revenue growth in the latest quarter.

1. Intel Corporation (NASDAQ: INTC)

Intel tops the list of billionaire Michael Price’s top 10 stock picks. The hedge fund sold 12% of its stake in Intel Corporation during the fourth quarter. Intel’s stock price has bounced back strongly during the first quarter due to restructuring strategies and improving demand. INTC stock price rose 21% since the beginning of this year.

Third Point LLC, which generated a net return of 16.1% for the fourth quarter, highlighted Intel Corporation in their Q4 investor letter. Here is what Third Point LLC said:

“After building a significant stake in Intel in Q4, we sent a letter on December 29th to Intel’s Board Chairman, Omar Ishrak. We shared our views regarding Intel’s dramatic underperformance and suggested certain steps the company could take to remedy a rapidly deteriorating outlook. We highlighted an urgent need for Intel to address its “brain drain” of engineering talent, the chief cause of the manufacturing and design deficiencies that have led to its declining market share.

Shortly after our note and engagement with the company, Intel announced it was bringing back Pat Gelsinger as its new CEO. Gelsinger is a respected engineer and manager who previously spent 30 years of his career working closely with Intel’s legendary founders during the company’s best days. With a background in electrical engineering and prior roles such as head of Intel’s digital enterprise group, desktop products group, and Intel Labs, and as the company’s first CTO, Gelsinger has the deep technical expertise needed to address Intel’s current execution issues. He also has a history of success in reinvigorating major organizations. During his eight-year tenure as CEO of VMWare, he put the on-premise company on a path to the hybrid cloud and positioned it for several years of growth ahead.”

You can also take a peek at Billionaire Carl Icahn’s Top 10 Picks and Cathie Wood’s Top 10 Stock Picks.

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