John Rogers’ Top 5 Stock Picks

2. Philip Morris International Inc. (NYSE: PM)

Value: $365,017,000
Change in Position Size: -3%
Percent of John Rogers’ 13F Portfolio: 4.1%

New York-based Philip Morris International Inc. recently beat Q4 estimates, posting upbeat earnings and revenue. The company’s net revenue of $7.44 billion came in above the estimates of $7.43 billion. With a $133.67 billion market capitalization, Philip Morris delivered an 11.36% return in the past 3 months.

According to our database, the number of PM’s long hedge funds positions increased at the end of the fourth quarter of 2020. There were 52 hedge funds that hold a position in Philip Morris International Inc. compared to the 50 funds in the third quarter. The biggest stakeholder of the company is Terry Smith’s Fundsmith LP, with 19.5 million shares, worth $1.6 billion.

In one of their investor letters, First Eagle Investment Management highlighted Philip Morris International Inc. (NYSE: PM). Here is what First Eagle has to say about the cigarette company:

“Philip Morris was able to recover some of the ground lost during the first quarter selloff but remains well below its early-year highs. Tobacco industry volumes were hurt by Covid-19, as lockdowns and other social-distancing restrictions in certain key markets hurt demand. Duty-free sales also suffered given the lack of global travel during the period. Given its pricing power, cost discipline and robust balance sheet, we believe Philip Morris appears well positioned to navigate the ongoing transition from traditional combustible tobacco products to “heat not burn” alternatives.”