In this article, we discuss the 10 recent additions to the stock portfolio of Jim Cramer. If you want to skip our detailed analysis of these stocks, go directly to the Jim Cramer Stock Portfolio: 5 Recent Additions.
Jim Cramer, the host of Mad Money on CNBC and a former hedge fund manager, has built a cult following over the years in the finance world through a broadcast career that places an emphasis on helping investors build long-term wealth through smart investments. Cramer has been bullish on new technology like crypto and cloud services for a long time, unlike other money managers from his generation that generally scoff at the growth-focused ideas Cramer often espouses. The journalist and investor has a net worth of around $150 million.
Cramer recently launched the CNBC Investor Club, a subscriber-based platform for investors where they can access exclusive behind-the-scenes knowledge about the portfolio management activities of the legendary investor. He has left his position with The Street, a publication he co-founded more than two decades ago, for the club. Cramer made his name in the finance world through a successful stint as a stockbroker at Goldman Sachs, and then as the manager of Cramer Levy Partners, a hedge fund. He subsequently pursued a career in the news industry.
The deal with CNBC is testament to the incredible popularity of Cramer among young investors in particular. News outlets have been transitioning to digital and testing subscriber-based models as they seek to reinvent themselves for the digital age. Cramer, whose hedge fund generated returns of over 20% for fourteen years, per a report in Bloomberg, is one of the few investors whose philosophy resonates with the retail frenzy at the market. The CNBC deal could prove to cement his place in the community even further.
Investors who want to follow the footsteps of Cramer should look into some of the stocks he recently recommended on his show, including General Electric Company (NYSE:GE), Roblox Corporation (NYSE:RBLX), and DexCom, Inc. (NASDAQ:DXCM), among others discussed in detail below.
Our Methodology
These were picked keeping in mind the latest calls that Cramer made on these equities on his Mad Money show aired by news platform CNBC. Analyst ratings and latest news about each stock is discussed in detail below to provide readers with some context for their investment decisions.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Jim Cramer Stock Portfolio: Recent Additions
10. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 15
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust with core interests in medical-use cannabis facilities. The firm recently beat market estimates on revenue for the third quarter by $1.35 million. It has also announced that it will be purchasing a $51 million property in California and has entered into a long-term lease agreement with Gold Flora, an integrated cannabis firm, for the facility.
Cramer gave Innovative Industrial Properties, Inc. (NYSE:IIPR) a Buy recommendation during the lightning round of his show. JMP Securities analyst Aaron Hecht has an Outperform rating on the stock with a price target of $300.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $200 million in Innovative Industrial Properties, Inc. (NYSE:IIPR), up from 13 in the preceding quarter worth $192 million.
Just like General Electric Company (NYSE:GE), Roblox Corporation (NYSE:RBLX), and DexCom, Inc. (NASDAQ:DXCM), Innovative Industrial Properties, Inc. (NYSE:IIPR) is one of the stocks attracting the attention of elite investors.
9. Big 5 Sporting Goods Corporation (NASDAQ:BGFV)
Number of Hedge Fund Holders: 19
Big 5 Sporting Goods Corporation (NASDAQ:BGFV) is a sporting goods retailer. The short interest on the stock has reached a remarkable 40%. However, Cramer recommended it as a Buy during the lightning round of his show since the shares are presently in a short squeeze. In early November, the stock jumped 25% even after the firm posted disappointing earnings results that missed market expectations on earnings per share and revenue.
Steve Miller, the CEO of Big 5 Sporting Goods Corporation (NASDAQ:BGFV), said during the earnings call that the firm was well-positioned to deal with supply chain issues impacting peers and had enough inventory to tackle the upcoming holiday season.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $43 million in Big 5 Sporting Goods Corporation (NASDAQ:BGFV), up from 14 in the preceding quarter worth $27 million.
8. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 26
Nokia Corporation (NYSE:NOK) has reinvented itself from a mobile phone manufacturer into a communications and network solutions provider in the past few years. The results are promising as the firm recently beat market estimates on earnings for the third quarter. Morgan Stanley analyst Dominik Olszewski has an Overweight rating on the stock with a price target of EUR 6.5. The firm has recently ventured into the cloud market with the launch of the Nokia MX Industrial Edge.
Nokia Corporation (NYSE:NOK) has also been investing heavily in 5G. In October, it was selected by the SoftBank Group in Japan to deploy 5G networks in the country. T-2, a Slovenian firm, has also partnered with Nokia under a five-year deal for 5G equipment supply.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $494 million in Nokia Corporation (NYSE:NOK), up from 21 in the previous quarter worth $352 million.
7. Avnet, Inc. (NASDAQ:AVT)
Number of Hedge Fund Holders: 28
Avnet, Inc. (NASDAQ:AVT) stock was given a Buy rating by Cramer during the Guest Interview round of his show. The company, which operates as a technology solutions provider, has solid fundamentals, recently raising the quarterly dividend payout for the second time in a row to $0.24 per share, up 9% from previous payout of $0.22 per share. The firm primarily markets electronic components for different industries.
On October 29, investment advisory Truist maintained a Hold rating on Avnet, Inc. (NASDAQ:AVT) stock but raised the price target to $45 from $40, underlining “solid” earnings results and improved guidance as some of the reasons behind the target raise.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $817 million in Avnet, Inc. (NASDAQ:AVT), up from 27 the preceding quarter worth $850 million.
6. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)
Number of Hedge Fund Holders: 32
Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is a healthcare equipment manufacturer. The stock stands to gain in the coming months as the regulators in the United States give approvals for launch and development of diabetes devices, a key product of the firm, that had been in limbo due to the urgency of the work related to the coronavirus. The firm recently beat market estimates on earnings per share and revenue in the third quarter.
Raymond James analyst Jayson Bedford recently kept an Outperform rating on Tandem Diabetes Care, Inc. (NASDAQ:TNDM) stock and raised the price target to $138 from $120, noting the firm would gain in the post-pandemic economy.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Consonance Capital Management is a leading shareholder in Tandem Diabetes Care, Inc. (NASDAQ:TNDM) with 979,226 shares worth more than $95 million.
Alongside General Electric Company (NYSE:GE), Roblox Corporation (NYSE:RBLX), and DexCom, Inc. (NASDAQ:DXCM), Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is one of the stocks that hedge funds are buying.
In its Q4 2020 investor letter, Alger, an asset management firm, highlighted a few stocks and Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was one of them. Here is what the fund said:
“Tandem Diabetes Care provides the t:slim X2 Insulin Delivery System for treating insulin-dependent diabetes. Tandem offers the smallest durable insulin pump available, and with DexCom CGM (continuous glucose monitoring) integration. Tandem has led the development of more automated control of insulin dosing featuring its BasalHQ and Control-IQ algorithms. The company also sells insulin reservoir cartridges and infusion sets for use with its pumps. Tandem stock underperformed after the company announced third quarter results and 2020 guidance that was somewhat weaker than expected. As a durable insulin pump company, Tandem is more tied to new patient demand, which has been suppressed due to the pandemic. There are also some competitive concerns in 2021. with two other established companies planning to launch new products. However, Tandem also has a series of new products for 2021. including its mobile bolus feature, its new t-sport pump and an enhanced version of its current Control-IQ algorithm. We believe these new products are being underappreciated by investors.”
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Disclosure. None. Jim Cramer Stock Portfolio: 10 Recent Additions is originally published on Insider Monkey.
