Citrone’s Top 5 Stock Picks

In this article, we discuss Citrone’s top 5 stock picks. To read the detailed analysis of Citrone’s hedge fund, go directly to Citrone’s Top 15 Stock Picks.

5. iShares MSCI Australia ETF (NYSEARCA:EWA)

Discovery Capital Management’s Equity Stake: $31.6M

Discovery Capital increased its hold in iShares MSCI Australia ETF by 1900% in during the last quarter of 2023. As of the end of December 2023 the hedge fund had a $32 million stake in the ETF.

4. StoneCo Ltd. (NASDAQ:STNE)

Discovery Capital Management’s Equity Stake: $40.3M

StoneCo Ltd. (NASDAQ:STNE) is one of Citrone’s top stock picks in the technology sector, specializing in offering financial technology and software solutions to merchants and integrated partners. StoneCo Ltd. (NASDAQ:STNE)’s solutions power electronic commerce across in-store, online, and mobile channels.

StoneCo Ltd. (NASDAQ:STNE) was up by over 90% in 2023, with most gains coming in the fourth quarter.

Here is what Nordstern Capital said about StoneCo Ltd. (NASDAQ:STNE) in its Q1 2023 investor letter:

“StoneCo Ltd. (NASDAQ:STNE): (STNE, share price increased + 1% in 1Q 2023)

The card association in Brazil has indicated that the industry should grow between 14% and 18% this year. And we expect to continue to gain market share.” – Thiago dos Santos Piao, Director and former CEO StoneCo Ltd

STNE’s transformation is progressing well. New key personnel have joined, the board and management have strengthened. Cash flows are growing, margins are increasing, the client base and market share keep expanding. The company is all set to restart its lending business in the second half of 2023.

In our view, despite all the changes, STNE still offers best-in-class service coupled with lower pricing than the industry and continues to drive high customer satisfaction…” (Click here to read the full text)

3. Hertz Global Holdings, Inc. (NASDAQ:HTZ)

Discovery Capital Management’s Equity Stake: $45.14M

Hertz Global Holdings, Inc. (NASDAQ:HTZ) is Citrone’s top stock pick in the industrial sector, operating as a vehicle rental company. The company offers rental services under the Hertz Dollar and Thrifty brands. Hertz Global Holdings, Inc. (NASDAQ:HTZ) has benefited from the opening of the global economy by easing COVID-19 restrictions that restricted movements.

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2.  Grupo Televisa, S.A.B. (NYSE:TV)

Discovery Capital Management’s Equity Stake: $49.88M

Grupo Televisa, S.A.B. (NYSE:TV) is a communication services company that operates as a media company in Spanish-speaking Mexico. Grupo Televisa, S.A.B. (NYSE:TV) operates a multiple cable system that offers basic and premium television subscription pay-per-view installation, internet subscription, and mobile services.

Grupo Televisa, S.A.B. (NYSE:TV) remains one of Citrone’s investments in Latin America, as the company offers its services in Mexico. Grupo Televisa, S.A.B. (NYSE:TV) underperformed the overall market, going down by 26% in 2023.

Here is what Oakmark Funds said about Grupo Televisa, S.A.B. (NYSE:TV) in its first-quarter 2023 investor letter:

“With the exceptions of Credit Suisse and Grupo Televisa, S.A.B. (NYSE:TV), the remaining sales were simply a function of price and value converging favorably. David Herro discussed the sale of Credit Suisse in his letter. Grupo Televisa had perennially disappointed us fundamentally, and we determined there were better alternatives where we had more confidence in a good outcome.”

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1. Vista Energy, S.A.B. de C.V. (NYSE:VIST)

Discovery Capital Management’s Equity Stake: $85M

Vista Energy, S.A.B. de C.V. (NYSE:VIST) has been Citrone’s top stock pick for the longest time, offering exposure in the energy sector. The company engages in the exploration and production of oil and gas in Latin America. 

Vista Energy, S.A.B. de C.V. (NYSE:VIST) has turned out to be one of the best investments since making the first investment in the first quarter of 2022. Currently, the hedge fund owns an $85 million stake in the company.

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