In this article, we discuss the 10 stocks that Ken Fisher is dumping.
There has been a lot of speculation around the rising geo-political tensions in Ukraine and the impact that a Russian invasion of the country would have on the market. Ken Fisher, the chief of Fisher Asset Management, recently outlined his thoughts on the issue in an opinion piece for news publication Real Clear Markets. The famed investor was of the view that “regional conflicts” do not have the power to sway “coldhearted markets”. He noted that Ukraine accounted for just 0.2% of the global GDP and had an investable market of just $1 billion.
Fisher, who has a personal net worth of close to $6 billion, also sought to ease concerns around an energy crisis stemming from the invasion, highlighting that the role that Ukraine played in transporting gas to Europe had diminished significantly in recent years. However, Fisher cautioned that sanctions and the restriction of Russian energy exports could pressure prices “briefly”. Fisher manages a portfolio worth over $178 billion and his latest moves at the market give a clearer indication of his overall economic outlook.
Some of the stocks that Ken Fisher has been selling in the past few months include Walmart Inc. (NYSE:WMT), Starbucks Corporation (NASDAQ:SBUX), Intel Corporation (NASDAQ:INTC), among others discussed in detail below.
Our Methodology
The stocks were picked from the fourth quarter regulatory filings of Fisher Asset Management. Companies in which the fund trimmed a previously-held stake feature on the list.
Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Ken Fisher Is Selling These Stocks
10. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 63
Percentage Decrease in Stake in Q4: 45%
Cisco Systems, Inc. (NASDAQ:CSCO) provides internet-based networking and related products. The hedge fund sentiment around the stock is largely positive. At the end of the third quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $3.9 billion in Cisco Systems, Inc., up from 60 in the previous quarter worth $4.2 billion.
Cisco Systems, Inc. is one of the long-term holdings of Fisher. The firm has featured in the portfolio of Fisher Asset Management since late 2010. The fund sold-off a sizable portion of the stake during the fourth quarter. It still owns over 12.7 million shares of the company worth over $809 million, representing 0.45% of the portfolio.
Just like Walmart Inc., Starbucks Corporation, Intel Corporation, Cisco Systems, Inc. is one of the stocks on the radar of elite investors.
9. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 64
Percentage Decrease in Stake in Q4: 46%
Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas firm. Latest filings show that Fisher has decreased exposure to the stock substantially in the past few months. At the end of the fourth quarter of 2021, the fund owned 4.7 million shares of Exxon Mobil Corporation worth $293 million, representing 0.16% of the portfolio.
Exxon Mobil Corporation is one of the top energy stocks on Wall Street. At the end of the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $4.6 billion in Exxon Mobil Corporation.
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
8. Hexcel Corporation (NYSE:HXL)
Number of Hedge Fund Holders: 21
Percentage Decrease in Stake in Q4: 47%
Hexcel Corporation (NYSE:HXL) makes and sells structural materials. Elite hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $122 million in Hexcel Corporation, compared to 22 in the previous quarter worth $165 million.
Regulatory filings show that Fisher Asset Management owned just 57,042 shares of Hexcel Corporation worth close to $3 million at the end of December 2021. The firm has featured in the Fisher portfolio since the second quarter of 2019.
In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Hexcel Corporation was one of them. Here is what the fund said:
“Hexcel manufactures carbon fiber composite materials with the primary end markets being aerospace and defense. The company’s stock price was hit heavily last year due to the decline in the aerospace market, but the stock is making an impressive comeback this year as the outlook for travel and aerospace demand improves. The near-term demand for lightweight, high-performance carbon fiber composites is still uncertain, but the longer-term trend is clearly very strong. As airplane manufacturers look to improve the fuel efficiency and performance of their planes, the primary way of doing this is to reduce weight. The 787, 777X and A350 are just the most recent examples of planes from Boeing and Airbus that utilize an increasing amount of carbon fiber materials in their construction.
Hexcel Corporation reported a profit of $0.08 per share for Q2 2021, while revenue declined 15% year-over-year.56 Just as is the case with Marriott, we do not view these results as meaningful or indicative of a long-term trend, but rather a once in a century aberration due to the Covid-19 pandemic. Once Covid-19 recedes, we expect the demand for more fuel-efficient planes to return rather quickly, powering the demand for the company’s light weight carbon composites. Shares are +28.23% year-to-date and +67.38% over the past twelve months.”
7. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 95
Percentage Decrease in Stake in Q4: 53%
UnitedHealth Group Incorporated (NYSE:UNH) operates as a diversified healthcare firm. Securities filings reveal that Fisher Asset Management owned over 1.3 million shares of the company worth close to $700 million at the end of the fourth quarter of 2021, representing 0.39% of the portfolio.
UnitedHealth Group Incorporated is a top health stock in the finance world. At the end of the third quarter of 2021, 95 hedge funds in the database of Insider Monkey held stakes worth $11.7 billion in UnitedHealth Group Incorporated, compared to 105 in the preceding quarter worth $13.1 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated was one of them. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group Incorporated, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
6. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
Percentage Decrease in Stake in Q4: 54%
The Walt Disney Company (NYSE:DIS) is a media and entertainment firm. At the end of the third quarter of 2021, 101 hedge funds in the database of Insider Monkey held stakes worth $9.4 billion in The Walt Disney Company, compared to 112 in the preceding quarter worth $10.8 billion.
Latest data shows that Fisher Asset Management owned over 5.1 million shares of The Walt Disney Company worth $800 million at the end of the fourth quarter of 2021, representing 0.44% of the portfolio of the fund.
In addition to Walmart Inc., Starbucks Corporation, Intel Corporation, The Walt Disney Company is one of the stocks that institutional investors have their eye on.
In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company was one of them. Here is what the fund said:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, was ready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, The Walt Disney Company is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed The Walt Disney Company to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Percentage Decrease in Stake in Q4: 54%
Intel Corporation markets computer products and technologies. It is one of the top semiconductor stocks on Wall Street. At the end of the third quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Intel Corporation, compared to 78 in the previous quarter worth $6.7 billion.
Latest data shows that Fisher Asset Management owned over 15 million shares of Intel Corporation worth $775 million at the end of the fourth quarter of 2021, representing 0.43% of the portfolio of the fund.
4. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 58
Percentage Decrease in Stake in Q4: 62%
Starbucks Corporation is a specialty coffee retailer. Securities filings reveal that Fisher Asset Management owned over 3.2 million shares of the company worth close to $377 million at the end of the fourth quarter of 2021, representing 0.21% of the portfolio.
Elite hedge funds are bullish on Starbucks Corporation. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Starbucks Corporation with 10.7 million shares worth more than $1.1 billion.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Starbucks Corporation was one of them. Here is what the fund said:
“For Starbucks, we believe the underlying businesses for the company remain strong. Starbucks has grappled with the impact of the pandemic, but results have continued to show an ongoing post-pandemic recovery.”
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 71
Percentage Decrease in Stake in Q4: 62%
Walmart Inc. owns and runs retail stores. It is one of the most reliable retail stocks in the finance world. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Walmart Inc. with 13 million shares worth more than $1.8 billion.
Regulatory filings show that Fisher Asset Management owned more than 5 million shares of Walmart Inc. worth close to $729 million at the end of December 2021. The firm has featured in the Fisher portfolio since the fourth quarter of 2017.
2. Parker-Hannifin Corporation (NYSE:PH)
Number of Hedge Fund Holders: 39
Percentage Decrease in Stake in Q4: 72%
Parker-Hannifin Corporation (NYSE:PH) markets motion and control technologies. At the end of the fourth quarter of 2021, the fund owned just 1,124 shares of Parker-Hannifin Corporation worth $358,000.
Top hedge funds are largely bullish on Parker-Hannifin Corporation. Among the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Parker-Hannifin Corporation with 1.4 million shares worth more than $476 million.
In its Q1 2021 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Parker-Hannifin Corporation was one of them. Here is what the fund said:
“Parker Hannifin approached our estimates of intrinsic value and were, therefore, eliminated during the period. The company was a longstanding investment of the Fund and produced successful outcomes. We believe Parker Hannifin, one of our longest tenured positions, is a high-quality, well-managed industrial with strong competitive positions in good end markets. However, after the market price reflected these positives, we elected to sell to pursue more attractive alternatives that were priced at steeper discounts to our estimates of intrinsic value.”
1. Texas Pacific Land Corporation (NYSE:TPL)
Number of Hedge Fund Holders: 24
Percentage Decrease in Stake in Q4: 87%
Texas Pacific Land Corporation (NYSE:TPL) engages in land and resource management. At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Texas Pacific Land Corporation, up from 21 the preceding quarter worth $2.5 billion.
Texas Pacific Land Corporation had been featured in the Fisher portfolio since the first quarter of 2021. The fund sold off almost the entire holding during the fourth quarter of 2021. It now owns just 324 shares of Texas Pacific Land Corporation worth $405,000.
You can also take a peek at 10 Micro-Cap Stocks to Buy According to Cathie Wood and Top 10 Stocks to Buy According to Charles Pollnow’s Triple Frond Partners.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Stocks to Buy and Hold for Long Term According to Warren Buffett
- 10 Precious Metals Stocks to Buy Amid Market Volatility
- 10 Best SPACs to Invest In According to Reddit
This article is originally published at Insider Monkey.
