In this article, we discuss David Zorub’s Parsifal Capital Management’s top 5 stocks. If you want our detailed analysis of these stocks, go directly to David Zorub’s Parsifal Capital Management’s Top 10 Stocks.
5. Ally Financial Inc. (NYSE:ALLY)
Parsifal Capital Management’s Stake Value: $88,812,000
Percentage of Parsifal Capital Management’s 13F Portfolio: 7.25%
Number of Hedge Fund Holders: 54
Ally Financial Inc. (NYSE:ALLY) is one of the top stock picks of David Zorub’s Parsifal Capital Management. Ally Financial Inc. (NYSE:ALLY) is a bank holding company offering financial services including vehicle financing, insurance, corporate lending, and mortgage loans, among other related services. Ally Financial Inc. (NYSE:ALLY) also acts as a stockbroker, and offers an electronic trading platform for financial assets.
David Zorub owns 1.78 million shares in Ally Financial Inc. (NYSE:ALLY), worth $88.81 million, representing 7.25% of Zorub’s 13F portfolio for the second quarter.
The Q3 earnings were reported on October 21, where the EPS came in at $2.16, exceeding analysts’ consensus estimates by $0.22. Ally Financial Inc. (NYSE:ALLY)’s revenue for the quarter missed estimates by -$46.16 million at $1.99 billion.
At the end of Q2, 54 hedge funds were bullish on Ally Financial Inc. (NYSE:ALLY), compared to 51 in the previous quarter.
4. VICI Properties Inc. (NYSE:VICI)
Parsifal Capital Management’s Stake Value: $89,035,000
Percentage of Parsifal Capital Management’s 13F Portfolio: 7.27%
Number of Hedge Fund Holders: 37
VICI Properties Inc. (NYSE:VICI) is a New York-based REIT that owns one of the largest portfolios of gaming, hospitality, and entertainment establishments in the United States. Some popular entertainment venues owned by VICI Properties Inc. (NYSE:VICI) are Caesars Palace, Century Casinos, Inc. (NASDAQ:CNTY), Hard Rock International Inc., and JACK Entertainment, among several others. VICI Properties Inc. (NYSE:VICI) is one of the top stock picks of David Zorub for Q2.
Parsifal Capital Management owns 2.87 million shares in VICI Properties Inc. (NYSE:VICI), worth over $89 million, representing 7.27% of the firm’s investment portfolio.
VICI Properties Inc. (NYSE:VICI)’s Q3 EPS on October 27 came in at $0.28, missing estimates by -$0.17. Revenue for the third quarter was $375.70 million, exceeding estimates by $0.29 million.
As of the end of the second quarter, 37 hedge funds tracked by Insider Monkey were long VICI Properties Inc. (NYSE:VICI), down from 41 in the previous quarter.
3. OneMain Holdings, Inc. (NYSE:OMF)
Parsifal Capital Management’s Stake Value: $123,520,000
Percentage of Parsifal Capital Management’s 13F Portfolio: 10.08%
Number of Hedge Fund Holders: 41
OneMain Holdings, Inc. (NYSE:OMF) is a financial services holding company, with wholly earned subsidiaries that facilitate customers in the consumer finance and insurance sectors. OneMain Holdings, Inc. (NYSE:OMF) offers personal loans and insurance products to clients via its finance subsidiaries under the moniker of OneMain Financial. OneMain Holdings, Inc. (NYSE:OMF) is one of the top stocks in David Zorub’s Q2 portfolio.
Parsifal Capital Management owns 2.06 million shares worth $123.52 million in OneMain Holdings, Inc. (NYSE:OMF), accounting for 10.08% of the firm’s 13F portfolio.
On October 20, the Q3 EPS for OneMain Holdings, Inc. (NYSE:OMF) came in at $2.37, surpassing estimated EPS by $0.09. Similarly, revenue for the quarter also beat estimates by $0.26 million at $1.03 billion.
James Fotheringham from BMO Capital, on October 22, kept a Market Perform rating on OneMain Holdings, Inc. (NYSE:OMF), lowering the price target from $65 to $60. He stated that Q3 earnings were slightly better than expected, and while there is a strong demand for installment loans, OneMain Holdings, Inc. (NYSE:OMF) is facing shrinking loan yields and higher operational costs.
Here is what Miller Value Partners has to say about OneMain Holdings, Inc. (NYSE:OMF) in their Q4 2020 investor letter:
“OneMain Holdings (OMF) was the top contributor over the quarter, advancing 56.0% after reporting Q3 Earnings Per Share (EPS) of $2.19, well above consensus of $1.26 and the quarterly dividend, which was increased 36% to $0.45/share (3.5% annualized yield and 11.5% Trailing Twelve Month (TTM) yield). Net interest income of $836M beat estimates of $778M, implying a 24.3% asset yield and 18.7% net interest margin. Origination volumes increased 41% sequentially to $2.9Bn on continued strength in digital while end-of-period net receivables were flat at $17.8Bn. Credit quality remains excellent with net charge-offs of 5.2%, the lowest level since 3Q 2015. Management guided to year-end receivables of $18.1Bn, net charge-offs of 5.6% (from 5.8%-6.0%), and net leverage of 4.3x-4.5x.”
2. Bath & Body Works, Inc. (NYSE:BBWI)
Parsifal Capital Management’s Stake Value: $145,034,000
Percentage of Parsifal Capital Management’s 13F Portfolio: 11.84%
Number of Hedge Fund Holders: N/A
Bath & Body Works, Inc. (NYSE:BBWI) is an American retail chain that deals in scented candles, soaps, lotions, shower gels, and fragrances. Bath & Body Works, Inc. (NYSE:BBWI) sells its products across 6 continents, and they are sought after by customers due to excellent quality, affordability, and value for money. Bath & Body Works, Inc. (NYSE:BBWI) is one of David Zorub’s top stock picks as of the second quarter.
Parsifal Capital Management holds a $145 million stake in Bath & Body Works, Inc. (NYSE:BBWI), which accounts for 11.84% of the firm’s Q2 portfolio.
Stephen Mandel’s Lone Pine Capital is the biggest stakeholder in Bath & Body Works, Inc. (NYSE:BBWI), with an approximate stake value of $1.89 billion.
1. Hilton Grand Vacations Inc. (NYSE:HGV)
Parsifal Capital Management’s Stake Value: $162,579,000
Percentage of Parsifal Capital Management’s 13F Portfolio: 13.27%
Number of Hedge Fund Holders: 34
Hilton Grand Vacations Inc. (NYSE:HGV) is engaged in managing and operating top-notch vacation ownership resorts, where one property has joint owners who can use the establishment for a limited time before the next owner gets their turn, also referred to as timeshares. Hilton Grand Vacations Inc. (NYSE:HGV) has properties across the US, Europe, and Asia, and it ranks first on our list of David Zorub’s Parsifal Capital Management’s top 10 stocks.
Parsifal Capital Management owns 3.92 million shares in Hilton Grand Vacations Inc. (NYSE:HGV), worth $162.57 million. The stock accounts for 13.27% of the firm’s 13F portfolio for Q2.
At the end of the second quarter, 34 hedge funds in Insider Monkey’s database of elite funds reported owning stakes worth $973.46 million. This is compared to the same number of hedge funds in Q1, with an approximate stake value of $783.1 million.
You can also take a look at Yale University Stock Portfolio: Top 10 Picks and 10 Most Shorted Stocks Hedge Funds Are Buying.
