Billionaire Stephen Mandel’s Top 5 Stock Picks

In this article, we discuss billionaire Stephen Mandel’s top 5 stock picks. For Mandel’s investment philosophy and his comments on certain stocks, please see Billionaire Stephen Mandel’s Top 10 Stock Picks.

5. Netflix, Inc. (NASDAQ: NFLX)

Value: $1,325,935,000
Percent of Stephen Mandel’s 13F Portfolio: 4.81%
Number of Hedge Fund Holders: 116

Netflix ranks 5th on the list of billionaire Stephen Mandel’s top 10 stock picks. Lone Pine Capital increased its hold in the company by 9% in the fourth quarter, entering 2021 with 2.45 million shares of the company, worth $1.33 billion. Investment firm Benchmark recently cut its price target on Netflix, adding that the company will have to produce compelling content on a monthly basis to stop customer churn. The firm, which has a Sell rating for Netflix, cut its price target for the streaming company to $472 from $485.

With a $1.99 billion stake in Netflix, Fisher Asset Management owns 3.7 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 116 hedge funds held stakes in Netflix as of the end of the fourth quarter, versus 104 funds in the third quarter. NFLX ranks 14th in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.

Miller Value Partners, in their Q4 2020 investor letter, said Netflix, Inc. (NASDAQ: NFLX) was added in their portfolio in the fourth quarter of 2020. Here is what Miller Value Partners has to say about Netflix, Inc. in their Q4 2020 investor letter:

“Lastly, we added a small position to Netflix after the disappointment following 3Q results. Overall, it’s getting more difficult to find investment opportunities in the very high growth areas that meet our standards for attractive value. On the other hand, we continue to find opportunities in more value-oriented areas of the market. We would expect the portfolio to migrate in this direction.”