Jonathan Bloomberg’s Top 10 Stock Picks

In this article article, we reviewed Jonathan Bloomberg’s investment philosophy and portfolio management strategies. We also examined Jonathan Bloomberg’s top 10 stock picks.

Jonathan Bloomberg is a long-term value investor and the co-founder of Toronto-based BloombergSen, an investment firm that builds a stock portfolio by investing in companies that are projected to make substantial returns over time. Using a pure value investing strategy, the firm buys the stocks of businesses with strong growth prospects at low valuations and then holds them for the long term until the market realizes their true value.

The Progressive Corporation (NYSE:PGR), W. R. Berkley Corporation (NYSE:WRB), HCA Healthcare, Inc. (NYSE:HCA), Wayfair Inc. (NYSE:W), and Meta Platforms, Inc. (NASDAQ:FB) are among the most notable stocks in Jonathan Bloomberg’s top 10 stock picks list.   

Jonathan Bloomberg of BloombergSen has also been investing significant capital in high-quality large-cap growth stocks such as Alphabet Inc. (NASDAQ:GOOG) and Charter Communications, Inc. (NASDAQ:CHTR). 

Alphabet Inc. stock has generated substantial gains for investors so far this year, driven by economic reopening and prospects for increased advertisement revenue. Year to date, Alphabet Inc. shares are up more than 60%. Insider Monkey’s calculations show that Alphabet Inc. is ranked 7th among the 30 most popular stocks among hedge funds. 

Our Methodology

For this article, we made use of BloombergSen’s 13F portfolio as of June.

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.

Jonathan Bloomberg’s Top 10 Stock Picks

10. HCA Healthcare, Inc. (NYSE:HCA)

BloombergSen’s Stake Value: $75.4 million

Percentage of BloombergSen’s 13F Portfolio: 3.96%

Number of Hedge Fund Holders: 60

Jonathan Bloomberg’s long-running position in HCA Healthcare, Inc. contributed strongly to his hedge fund’s overall returns. This is because HCA Healthcare, Inc. stock price doubled in value in the last twelve months, thanks to strong financial performance and a robust outlook. Its third-quarter revenue of $15.28 billion jumped 14.8% year over year and topped analysts’ expectations by $770 million. Moreover, HCA Healthcare, Inc. anticipates full-year revenue in the range of $58.7-$59.3 billion compared to the consensus estimate of $57.85 billion. 

Of the 873 elite funds tracked by Insider Monkey, HCA Healthcare Inc was in 60 hedge funds’ portfolios as of June. Winton Capital Management and Sciencast Management were among the two leading stakeholders in the company. 

9. Wayfair Inc. (NYSE:W)

BloombergSen’s Stake Value: $77.8 million

Percentage of BloombergSen’s 13F Portfolio: 4.09%

Number of Hedge Fund Holders: 35

BloombergSen first initiated a position in Wayfair Inc. at the beginning of 2020 and lifted its exiting position by 277% during the June quarter of 2021. Shares of Wayfair Inc. are currently trading around $250 after hitting an all-time high of about $370 during the pandemic year. Analysts’ price target downgrades and slowing sales growth negatively impacted Wayfair Inc. stock price in the past couple of months. For instance, Morgan Stanley slashed its price target on Wayfair Inc. to $195 from $290 due to slowing sales and trading multiples.    

Like BloombergSen, leading stakeholders such as Winton Capital Management saw the dip in Wayfair Inc. stock price as a buying opportunity. As of June, Wayfair Inc. was in 35 hedge funds’ portfolios compared to 37 positions in the previous quarter.

8. The Progressive Corporation (NYSE:PGR)

BloombergSen’s Stake Value: $92.13 million

Percentage of BloombergSen’s 13F Portfolio: 4.84%

Number of Hedge Fund Holders: 44

Jonathan Bloomberg’s hedge fund held a stake in The Progressive Corporation since the first quarter of 2020. The Progressive Corporation (NYSE:PGR) is an insurance holding company. Along with steady share price gains, the company offers hefty dividends to shareholders. Currently, The Progressive Corporation (NYSE:PGR) offers a quarterly dividend of $0.10 per share, yielding above 5%. 

In the third quarter investor letter, Wedgewood Partners, an investment management firm, claimed that The Progressive Corporation stock is trading at a discount. Here is what Wedgewood Partners stated about The Progressive Corporation: 

“Progressive reported higher than expected loss trends during the summer months. Much of this was due to inflation in the automobile supply chain. Over the past few years, its policy pricing actions have been relatively benign, so we think the Company has plenty of room with customers and pent-up goodwill with regulators to take up pricing and offset this pressure while maintaining its double-digit policy volume growth. The stock trades at a significant discount to the market, as financials – particularly insurers – are out of favor with “growth technology” investors. Progressive represents the rare financial that can post attractive growth due to its best-in-class ability to segment its markets and leverage its low-cost direct distribution.”

7. Meta Platforms, Inc. (NASDAQ:FB)

BloombergSen’s Stake Value: $109.9 million

Percentage of BloombergSen’s 13F Portfolio: 5.78%

Number of Hedge Fund Holders: 266

Meta Platforms, Inc., previously known as Facebook, is one of Jonathan Bloomberg’s top 10 stock picks since the final quarter of 2020. The company changed its name to Meta Platforms, Inc. in a broad-based effort to capture the supposed next frontier of the internet. Thus, Meta Platforms, Inc. will separately report the financial results for its virtual reality business. Meta Platforms, Inc. stock price is up 20% so far in 2021.  

In the third quarter investor letter, Polen Capital, an investment management firm, stated that chances are very little for an adverse impact of regulation changes on Meta Platforms, Inc.. Here is what the firm stated about Meta Platforms, Inc.:

“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”

6. W. R. Berkley Corporation (NYSE:WRB)

BloombergSen’s Stake Value: $110 million

Percentage of BloombergSen’s 13F Portfolio: 5.82%

Number of Hedge Fund Holders: 36

W. R. Berkley Corporation, an insurance holding company, is a member of Jonathan Bloomberg’s 13F stock portfolio since the third quarter of 2020. Over the years, W. R. Berkley Corporation has been returning significant cash to investors in the form of dividends and steady share price appreciation. Currently, W. R. Berkley Corporation offers a quarterly dividend of $0.13 per share. Moreover, its shares are also up 20% year to date.

W.R. Berkley Corporation was in 36 hedge funds portfolios at the end of June. Leading stakeholders like Winton Capital Management lifted its existing position by 26% to almost 16000 shares, according to data tracked by Insider Monkey. 

Unlike Wayfair Inc., The Progressive Corporation, and Charter Communications, Inc., shares of W.R. Berkley Corporation (NYSE:WRB), Alphabet Inc., HCA Healthcare, Inc. and Meta Platforms, Inc. outperformed the broader market trends so far in 2021.