Billionaire Seth Klarman’s Top 5 Stock Picks for 2021

3. Intel Corporation (NASDAQ: INTC)

Seth Klarman used the dip in Intel Corporation’s (NASDAQ: INTC) stock price as a buying opportunity. The firm created a big position in the information technology company during the fourth quarter when its shares tumbled significantly due to increased market competition. However, Intel’s stock price bounced back since the beginning of this year and reversed recent losses amid new CEO Pat Gelsinger’s transition strategies.

In a Q4 investor letter, investment management firm Third Point LLC commented on a few stocks including Intel Corporation. Here is what Third Point 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.”