Billionaire Stanley Druckenmiller’s 2022 Portfolio: 5 Value Stock Picks

4. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 46

P/E Ratio as of May 18: 8.75

The Mosaic Company (NYSE:MOS) produces and sells phosphate and potash crop nutrients in North America and internationally. The Mosaic Company (NYSE:MOS) is a new arrival in Stanley Druckenmiller’s Q1 portfolio, with the billionaire purchasing 143,825 shares of the company, worth $9.5 million. 

On May 2, The Mosaic Company (NYSE:MOS) reported financial results for the first quarter of 2022. The company announced an EPS of $2.41, below analysts’ estimates by $0.01. The revenue grew 70.75% year-over-year to $3.92 billion, falling below Street consensus by $125.16 million. 

Mizuho analyst Christopher Parkinson on April 29 raised the price target on The Mosaic Company (NYSE:MOS) to $89 from $59 and kept a Buy rating on the shares. According to the analyst, while the global agriculture macro backdrop “is increasingly appearing conducive for a multi-year bullish call,” share pullbacks will be “short and shallow, but nonetheless worth waiting for at this juncture”. 

Among the hedge funds tracked by Insider Monkey, 46 funds were bullish on The Mosaic Company (NYSE:MOS) at the end of December 2021, up from 40 funds in Q3. In the first fiscal quarter of 2022, Eric W. Mandelblatt’s Soroban Capital Partners held a leading stake in the company, with about 5 million shares worth $328.3 million. 

Here is what Ariel Investments has to say about The Mosaic Company (NYSE:MOS) in its Q4 2021 investor letter:

“We continue to believe recent aggressive fiscal and monetary policy will drive high levels of intransient (rather than transitory) inflation. Recent inflation numbers have exceeded our hawkish predictions. While we believed the Consumer Price Index might rise +4% in 2021, double the Fed target of +2%; it rose +7%, the highest level in forty years. Ariel Focus Fund has been well positioned for this environment as natural resource and material companies such as The Mosaic Company (MOS) which returned +72.15% for the year. This was one of our two largest holdings at year-end and have performed well very early into 2022.”