Echo Street Capital Management: Greg Poole’s Top 10 Stock Picks

Published November 28, 2021 at 5:00 am EST Updated September 7, 2026 at 1:46 pm EDT

In this article, we discuss Greg Poole’s Echo Street Capital Management’s top 10 stock picks.

In 2002, Greg Poole founded Echo Street Capital Management in New York. As of the 13F filings for the second quarter, the investment firm handles over $12.98 billion in managed securities, with assets under management worth more than $13 billion. The largest holding of Echo Street Capital Management is Microsoft Corporation (NASDAQ:MSFT), which represents 4.18% of the firm’s portfolio for the second quarter.

The top ten holdings concentration at Echo Street Capital Management is 20.74%, with investments concentrated in the healthcare, communications, information technology, finance, consumer discretionary, and real estate sectors.

As of June this year, Echo Street Capital Management made new purchases in 250 stocks, bought additional stakes in 171 equities, sold out of 175 securities, and reduced holdings in 125 stocks. The hedge fund’s top buys for Q2 were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Procore Technologies, Inc. (NYSE:PCOR), and Anaplan, Inc. (NYSE:PLAN). Whereas, the top sales for the second quarter included Arch Capital Group Ltd. (NASDAQ:ACGL), Church & Dwight Co., Inc. (NYSE:CHD), and SPDR S&P 500 ETF Trust (NYSE:SPY).

The most notable stock picks of Greg Poole’s Echo Street Capital Management are Microsoft Corporation, PayPal Holdings, Inc. (NASDAQ:PYPL), Alphabet Inc. (NASDAQ:GOOG), and Visa Inc. (NYSE:V), among others discussed in detail below.

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Our Methodology

Let’s take a look at Greg Poole’s Echo Street Capital Management’s top 10 stock picks. This list is ranked according to the value of each holding in Greg Poole’s Q2 portfolio. We have also mentioned the hedge fund sentiment around each stock, latest earnings, and analyst ratings to give potential investors a deeper insight into these companies.

Echo Street Capital Management: Greg Poole’s Top Stock Picks

10. S&P Global Inc. (NYSE:SPGI)

Echo Street Capital’s Stake Value: $188,954,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.45%

Number of Hedge Fund Holders: 71

S&P Global Inc., a top stock pick of Greg Poole, is an American corporation engaged in financial information and data analytics. Echo Street Capital Management owns 460,357 shares in S&P Global Inc., as of June this year, worth $188.95 million, representing 1.45% of the firm’s investment portfolio. In addition to financial information and analytics, S&P Global Inc. also owns S&P Global Ratings, which is a credit rating agency, and is the majority owner of the S&P Dow Jones Indices.

S&P Global Inc. announced on October 26 earnings for the third quarter. The Q3 EPS came in at $3.54, beating estimates by $0.39. S&P Global Inc.’s revenue also exceeded analysts’ estimates by $101.65 million at $2.09 billion.

S&P Global Inc. is set to merge with the London-based information provider, IHS Markit Ltd. (NYSE:INFO), as reports on October 22 suggest that the European Commission approved phase 1 of the $44 billion merger. The merger is expected to reach fruition by 2022, which will increase the free cash flow of the combined firm to almost $3.7 billion.

As of the second quarter of 2021, 71 hedge funds tracked by Insider Monkey were long S&P Global Inc., up from 66 in the preceding quarter.

Here is what Baron FinTech Fund has to say about S&P Global Inc. in its Q1 2021 investor letter:

“S&P Global Inc. provides credit ratings, indexes, data, and analytics to the financial and commodities markets. Shares increased on strong fourth quarter results and 2021 guidance that exceeded Street expectations. Although bond issuance is expected to moderate after two years of exceptional growth, management still expects revenue to grow mid-single-digits this year. Also, shareholders overwhelmingly voted to approve the merger with IHS Markit. We continue to own the stock as we see a long runway for growth and significant competitive advantages for the company.”

9. Equifax Inc. (NYSE:EFX)

Echo Street Capital’s Stake Value: $189,638,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.46%

Number of Hedge Fund Holders: 37

Equifax Inc. (NYSE:EFX) is a top stock in Greg Poole’s portfolio for the second quarter, with Echo Street Capital Management owning 791,774 shares in the consumer credit rating agency, worth $189.63 million, representing 1.46% of the firm’s portfolio. Equifax Inc. maintains an elaborate database for more than 800 million individuals and 88 million businesses around the world, in addition to providing credit monitoring and fraud prevention services to clients.

On October 20, the Q3 earnings were announced by Equifax Inc., where the EPS for the quarter came in at $1.85, beating estimates by $0.12. Equifax Inc.’s revenue beat analysts’ expectations as well, at $1.22 billion by $39.57 million.

David Coleman from the investment advisory Argus, on October 22 upgraded Equifax Inc. to Buy from Hold with a $285 price target. This was due to the strong Q3 earnings, and the excellent navigation by Equifax Inc. of the challenges put forward by the COVID-19 pandemic. Coleman raised his 2021 EPS estimate from $7.37 to $7.57, and the 2022 estimate from $8.57 to $8.75.

At the end of June, 37 hedge funds tracked by Insider Monkey were bullish on Equifax Inc., compared to the same number of funds in the preceding quarter.

Here is what Palm Capital has to say about Equifax Inc. in its Q2 2021 investor letter:

“We don’t invest in banks. It’s difficult for one established bank to differentiate itself from another. This results in low profit margins. These are not necessarily bad for a defensive business. But for a business such as a bank that has lots of debt, has high fixed costs and is dependent on economic and credit cycles, a small change in interest rates or bad debt has a magnified impact on future profits. The timing and length of these cycles and the bank’s navigation through them are all difficult to predict. There’s therefore high uncertainty around its revenue and profits.

Instead, we do invest in credit data bureaus. Equifax, for example, is a share that we owned for a long time. The data these bureaus have is unique. It takes decades to build up. Their customers can’t make their most important decision – lending – without this data. And the cost of this data is low relative to the value of the loans being made. These factors all result in attractive profit margins and give the bureaus an ability to raise prices above inflation. Furthermore, customers typically get data from more than one bureau to cross check it, so bureaus aren’t incentivized to undercut each other on prices.

Because these businesses are capital light, they need little debt to operate. So, while their revenue is dependent on the economic and credit cycle, low levels of debt, high profit margins and the uniqueness of their business models mean that profits are less easily disrupted and less sensitive than those of banks. Equifax stands apart because it is building up data in other areas such as employment records that reduces its dependence on the credit cycle even further.”

8. Intercontinental Exchange, Inc. (NYSE:ICE)

Echo Street Capital’s Stake Value: $203,500,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.56%

Number of Hedge Fund Holders: 47

Intercontinental Exchange, Inc. (NYSE:ICE), a top stock choice of Echo Street Capital’s Greg Poole, is an American company operating global exchanges, clearing houses, and facilitating customers with mortgage technology. Echo Street Capital Management holds a $203.5 million stake in Intercontinental Exchange, Inc., which represents 1.56% of the firm’s portfolio as of June 2021.

As of the second quarter, 47 hedge funds monitored by Insider Monkey reported owning stakes in Intercontinental Exchange, Inc., down from 58 in the previous quarter.

The third quarter earnings were reported on October 28 by Intercontinental Exchange, Inc., and the EPS came in at $1.30, beating estimates by $0.07. The firm’s revenue also beat analysts’ consensus estimates at $1.80 billion by $46.65 million.

On November 2, Piper Sandler analyst Richard Repetto said that the firm’s most worrisome segment, mortgage technology, also performed spectacularly, adding to the Q3 earnings beat. He thought that the positive events were not being included in Intercontinental Exchange, Inc.’s stock price, and kept an Overweight rating on the shares with a $145 price target.

In addition to Microsoft Corporation, PayPal Holdings, Inc., Alphabet Inc., and Visa Inc., Intercontinental Exchange, Inc. is also a notable stock in Greg Poole’s Q2 portfolio.

Here is what Oakmark Funds has to say about Intercontinental Exchange, Inc. in its Q2 2021 investor letter:

“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”

7. Sun Communities, Inc. (NYSE:SUI)

Echo Street Capital’s Stake Value: $204,180,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.57%

Number of Hedge Fund Holders: 30

A real estate investment trust from Michigan, Sun Communities, Inc. (NYSE:SUI) is particularly focused on manufactured housing communities, marinas, and RV resorts. Greg Poole’s Echo Street Capital Management owns 1.19 million shares in Sun Communities, Inc., valued at $204.18 million, representing 1.57% of the firm’s Q2 portfolio. Sun Communities, Inc. operates across the United States and Ontario, Canada.

The Q3 earnings were reported on October 25 by Sun Communities, Inc., and the EPS for the quarter beat estimates by $0.08 at $2.11. The revenue also surpassed expectations at $684.29 million by $137.49 million.

At the end of the second quarter of 2021, 30 hedge funds reported owning stakes in Sun Communities, Inc., worth $821.6 million. This is compared to 35 hedge funds in the preceding quarter, with an approximate stake value of over $1 billion.

6. Intuit Inc. (NASDAQ:INTU)

Echo Street Capital’s Stake Value: $212,168,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.63%

Number of Hedge Fund Holders: 66

Intuit Inc. (NASDAQ:INTU) is an American company providing financial software for tax, accounting, payroll, and credit management. Intuit Inc.’s products include TurboTax, QuickBooks, Credit Karma, and Mint. Echo Street Capital Management owns a $212.16 million stake in Intuit Inc., as of June this year, representing 1.63% of the firm’s investment portfolio.

Deutsche Bank analyst Brad Zelnick on November 1 initiated coverage of Intuit Inc. with a Buy rating and a $700 price target. According to Zelnick, Intuit Inc.’s shift from product to platform, continuing innovation, and growing market opportunities will result in revenue growth for the years to come.

At the end of the second quarter of 2021, 66 hedge funds in the database of Insider Monkey were bullish on Intuit Inc., down from 68 in the preceding quarter.

Like Microsoft Corporation, PayPal Holdings, Inc., Alphabet Inc., and Visa Inc., Intuit Inc. is a top stock in Greg Poole’s Q2 portfolio.

Here is what Cooper Investors has to say about Intuit Inc. in its Q3 2021 investor letter:

“The other meaningful deal during the quarter was Intuit’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.

Management has executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”

5. FactSet Research Systems Inc. (NYSE:FDS)

Echo Street Capital’s Stake Value: $216,266,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.66%

Number of Hedge Fund Holders: 28

FactSet Research Systems Inc. (NYSE:FDS), a top stock in Greg Poole’s portfolio, is a financial data and software company allowing companies to stay on top of worldwide market trends, company and industry intelligence, manage portfolio risk, monitor performance, and execute trades. Greg Poole, via Echo Street Capital Management, owns 644,398 shares in FactSet Research Systems Inc., worth over $216 million, representing 1.66% of the firm’s Q2 portfolio.

FactSet Research Systems Inc. on November 3 announced a quarterly cash dividend of $0.82 per common share, payable on December 16 to shareholders on record as of November 30.

At the end of the second quarter of 2021, 28 out of the 873 hedge funds tracked by Insider Monkey were long FactSet Research Systems Inc., down from 30 in the previous quarter.

Baron Growth Fund mentioned FactSet Research Systems Inc. in its Q4 2020 investor letter. Here is what they said:

“Shares of FactSet Research Systems, Inc., a leading provider of investment management tools, detracted from performance. The company reported resilient first fiscal quarter 2021 earnings results, but shares lagged during the quarter after outperforming earlier in the year. We retain conviction in FactSet due to the large addressable market, consistent execution on both new product development and financial results, and robust free cash flow generation.”

4. Agilent Technologies, Inc. (NYSE:A)

Echo Street Capital’s Stake Value: $227,464,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.75%

Number of Hedge Fund Holders: 39

Agilent Technologies, Inc. (NYSE:A) is a global provider of laboratory equipment and specialized solutions, which help improve the efficiency of the laboratory processes, from sample prep to data management and analysis. Echo Street Capital Management owns 1.53 million shares in Agilent Technologies, Inc., amounting to $227.4 million. This stock accounts for 1.75% of the firm’s portfolio for the second quarter.

Agilent Technologies, Inc. declared a quarterly dividend of $0.194 per share, payable on October 27 to shareholders on record as of October 5.

Cowen analyst Dan Brennan kept an Outperform rating on Agilent Technologies, Inc. on October 14, lowering the price target from $200 to $180.

At the end of June this year, 39 hedge funds were long Agilent Technologies, Inc., down from 42 in the previous quarter.

Here is what Pershing Square Holdings has to say about Agilent Technologies, Inc. in its Q2 2021 investor letter:

“Our large commitment to UMG required that we raise cash from the sale of one of our other investments. In light of the high quality of companies in our portfolio, this was a difficult decision to make. Ultimately, we chose to sell Agilent, as its current share price approached our conservative estimate of intrinsic value. If we did not need the capital, we would not have sold the stock.

Agilent has been a highly successful investment since our original purchase nearly two years ago, compounded by our additional investment in the company in the Covid market decline last year. Agilent’s stock price has increased 2.2 times since our initial purchase as a result of the company’s acceleration in revenue growth and profitability.10 Agilent has been a critical supplier of technology and services to labs around the world fighting the Covid pandemic. The company’s management team led by Mike McMullen deserves enormous credit for the company’s success and for its important contribution to science and the fight against Covid for which we all should be extremely grateful.”

3. Thermo Fisher Scientific Inc. (NYSE:TMO)

Echo Street Capital’s Stake Value: $230,611,000

Percentage of Echo Street Capital’s 13F Portfolio: 1.77%

Number of Hedge Fund Holders: 87

Thermo Fisher Scientific Inc. (NYSE:TMO), a top stock pick of Echo Street Capital Management as of the second quarter, is a company offering scientific instruments, laboratory reagents and consumables, and scientific software for research and data analysis. Echo Street Capital Management owns 457,136 shares in Thermo Fisher Scientific Inc., valued at $230.61 million, representing 1.77% of the firm’s Q2 portfolio.

Thermo Fisher Scientific Inc. announced on October 27 a Q3 EPS of $5.76, beating estimates by $1.06. The firm’s revenue also exceeded estimates at $9.33 billion by $925.71 million.

Morgan Stanley analyst Tejas Savant kept a $700 price target on Thermo Fisher Scientific Inc. on October 28, resuming coverage of the stock with an Overweight rating. He said that the Q3 performance was strong, and Thermo Fisher Scientific Inc. is positioned to outperform in 2022.

At the end of the second quarter of 2021, 87 hedge funds in Insider Monkey’s database of elite funds reported owning stakes in Thermo Fisher Scientific Inc., up from 79 in the preceding quarter.

Here is what ClearBridge Investments has to say about Thermo Fisher Scientific Inc. in its Q2 2021 investor letter:

“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”

2. PayPal Holdings, Inc. (NASDAQ:PYPL)

Echo Street Capital’s Stake Value: $474,927,000

Percentage of Echo Street Capital’s 13F Portfolio: 3.65%

Number of Hedge Fund Holders: 143

PayPal Holdings, Inc. is a top stock pick of Greg Poole, as of June this year. The financial technology company enables electronic transfer of funds in many countries around the world. Echo Street Capital Management owns 1.62 million shares in PayPal Holdings, Inc., amounting to $474.9 million, representing 3.65% of the firm’s portfolio for Q2.

SMBC Nikko analyst Andrew Bauch on November 3 kept an Underperform rating on PayPal Holdings, Inc., with a $200 price target. He believes that the organic growth potential of the company is insufficient, and PayPal Holdings, Inc.’s representatives were overly optimistic about the growth in their reports.

PayPal Holdings, Inc. is a popular stock with the smart money. At the end of June, 143 out of the 873 hedge funds tracked by Insider Monkey were bullish on PayPal Holdings, Inc..

Here is what Alger has to say about PayPal Holdings Inc. in its Q3 2021 investor letter:

“PayPal Holdings, Inc. was among top detractors from performance. PayPal is a pure play on e-commerce and electronic payments which is driving the company’s high unit volume growth. As a digital payments company, it is helping to facilitate the shift to a cashless society. The coronavirus pandemic has significantly accelerated the adoption of e-commerce and the utilization of digital payments platforms. In our view, PayPal is currently positioned to benefit the strength in e-commerce trends, including increasing net new active users and increased engagement per user. PayPal also has launched a service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account. PayPal’s vision is to become a Super App that integrates payments, commerce and financial services, as well as crypto capabilities. After outperforming earlier in the year, the performance of PayPal shares weakened in the third quarter with the company facing potentially higher transaction expenses and credit losses. The higher transaction expenses are driven by a shift by consumers to the higher cost travel and entertainment categories which skew toward less profitable credit transactions.”

1. Microsoft Corporation (NASDAQ:MSFT)

Echo Street Capital’s Stake Value: $543,852,000

Percentage of Echo Street Capital’s 13F Portfolio: 4.18%

Number of Hedge Fund Holders: 238

Microsoft Corporation is the largest holding of Echo Street Capital Management, which makes it the top stock pick of Greg Poole at the end of June this year.

Microsoft Corporation announced Q3 earnings on October 26. The EPS for the quarter was $2.27, beating estimates by $0.19. The actual revenue for Microsoft Corporation was $45.32 billion, also exceeding estimated revenue by $1.33 billion.

Deutsche Bank analyst Brad Zelnick on November 1 initiated coverage of Microsoft Corporation with a Buy rating and a $390 price target. The analyst believes that Microsoft Corporation is one of the strongest software stocks covered by Deutsche Bank, and will successfully seize the public cloud opportunity, which is estimated to be valued at $127 billion in 2021.

Here is what Alger has to say about Microsoft Corporation in its Q3 2021 investor letter:

“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”

You can also take a look at Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management and Top 10 Stocks to Buy According to Jeff Ubben’s ValueAct Capital.

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