Ken Griffin Stock Portfolio: Top 5 Stock Picks

In this article, we discuss the top 5 stock picks of Ken Griffin. If you want to see more stocks in this selection, check out Ken Griffin Stock Portfolio: Top 10 Stock Picks. 

5. Boston Scientific Corporation (NYSE:BSX)

Number of Hedge Fund Holders: 53

Citadel Investment Group’s Stake Value: $561,256,000

Boston Scientific Corporation (NYSE:BSX) is a Massachusetts-based company that develops, manufactures, and markets medical devices for use in interventional medical specialties worldwide. It operates through three segments – MedSurg, Rhythm and Neuro, and Cardiovascular. Ken Griffin raised his stake in Boston Scientific Corporation (NYSE:BSX) by 16% in Q3 2022, holding 14.5 million shares worth $561.25 million, representing 0.12% of the total 13F securities. 

On October 27, Canaccord analyst William Plovanic raised the price target on Boston Scientific Corporation (NYSE:BSX) to $48 from $45 and kept a Buy rating on the shares. The analyst believes his thesis remains intact and thinks the set up for 2023 is resilient given organic growth is very strong and one-time annual impacts in 2022 of higher tax and FX headwinds will not possibly repeat in 2023.

According to Insider Monkey’s data, 53 hedge funds were bullish on Boston Scientific Corporation (NYSE:BSX) at the end of September 2022, compared to 56 funds in the earlier quarter. Andreas Halvorsen’s Viking Global is the leading position holder in the company, with more than 16 million shares worth $626 million. 

Here is what Artisan Partners specifically said about Boston Scientific Corporation (NYSE:BSX) in its Q2 2022 investor letter:

“We took advantage of Boston Scientific Corporation (NYSE:BSX)’s share price pullback during the quarter. We believe the company is well-positioned to benefit from an expected return of elective medical procedures and several innovative product profit cycles in the periods ahead. Meanwhile, the company’s health care end market could prove relatively resilient in a recession scenario.”

4. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 110

Citadel Investment Group’s Stake Value: $573,064,000

JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services company that operates through four segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. In Q3 2022, Ken Griffin lifted his stake in JPMorgan Chase & Co. (NYSE:JPM) by a whopping 1243%, holding 5.4 million shares worth $573 million. 

On November 18, JPMorgan Chase & Co. (NYSE:JPM) announced that it is planning to expand its reach within US minority small business lending with a special-purpose credit program. The program has been tested out in Dallas, Texas, Detroit, Michigan, and Miami as part of the firm’s initiatives to offer more financing opportunities for minority businesses. Overall, JPMorgan Chase & Co. (NYSE:JPM) could have 100,000 new accounts opened over a span of five years with this lending, as well as another program starting in 2023.

Citi analyst Keith Horowitz reiterated a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) on October 17 with a $135 price target following the company’s Q3 results. The analyst noted that the bank is “hitting on all cylinders” and that present share levels provide an “excellent entry point” for a “quality franchise.”

According to Insider Monkey’s Q3 data, 110 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM), compared to 104 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with 7.85 million shares worth $821 million. 

Here is what Vltava Fund has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2022 investor letter:

“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.

JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.

A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 140

Citadel Investment Group’s Stake Value: $677,043,000

Apple Inc. (NASDAQ:AAPL) has been part of the Citadel portfolio since the last quarter of 2010. The hedge fund, as of Q3 2022, raised its stake in Apple Inc. (NASDAQ:AAPL) by 1075%, holding 4.89 million shares worth $677 million, representing 0.15% of the total 13F securities. On November 15, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook observed that the company would source some of its chips from Arizona as the company seeks to diversify its supply chain. 

On November 14, JPMorgan analyst Samik Chatterjee noted that the impact of the latest supply chain constraints Apple Inc. (NASDAQ:AAPL) is facing at its assembly facility in Zhengzhou, China is hard to quantify. However, he believes that iPhone demand remains resilient and reiterated an Overweight rating on Apple Inc. (NASDAQ:AAPL) with a $200 price target.

According to Insider Monkey’s Q3 data, 140 hedge funds were long Apple Inc. (NASDAQ:AAPL), compared to 128 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the biggest position holder in the company, with 894.80 million shares worth $123.60 billion. 

Here is what Wedgewood Partners specifically said about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

Citadel Investment Group’s Stake Value: $715,497,000

Ken Griffin has been a long-term stakeholder of Tesla, Inc. (NASDAQ:TSLA), holding a position in the company since Q4 2010, apart from minor breaks over the years. In Q3 2022, Griffin boosted his Tesla, Inc. (NASDAQ:TSLA) stake by 1241%, disclosing nearly 2.7 million shares worth $715.5 million. 

On November 10, Wedbush analyst Daniel Ives removed Tesla, Inc. (NASDAQ:TSLA) from the firm’s “Best Ideas” list, noting that in the near-term things are “increasingly becoming more challenged,” though his long-term bullish view of Tesla, Inc. (NASDAQ:TSLA) remains generally intact. He sees “a very nervous few months ahead for Tesla investors” as they “remain the ones that have been punched again and again by the Musk Twitter antics”. Although the stock is “deep in the investor penalty box until deliveries hit in early January,” he maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) shares.

According to Insider Monkey’s data, 88 hedge funds were long Tesla, Inc. (NASDAQ:TSLA) at the end of Q3 2022, compared to 73 funds in the prior quarter. Cathie Wood’s ARK Investment Management held a leading stake in the company, with more than 4 million shares worth $1.08 billion. 

Alger Capital made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares outperformed during the quarter despite covid 19 shutdowns at the company’s shanghai production plant early in the period. During this quarter, the company also ramped up production at its newer Germany and Texas plants. While investors were aware of these challenging variables, the company’s quarterly results exceeded expectations thanks to lower-than-expected operating expenses. Investors are aware that ramping up electric vehicle production is challenging and recognize it’s difficult to estimate production rates.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Citadel Investment Group’s Stake Value: $1,046,208,000

Ken Griffin’s Citadel Group lifted its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 94% in Q3 2022, holding 9.25 million shares worth $1.04 billion, representing 0.23% of the total 13F securities. Griffin has been a long-term position holder in Amazon.com, Inc. (NASDAQ:AMZN). 

On November 18, Erste Group analyst Hans Engel downgraded Amazon.com, Inc. (NASDAQ:AMZN) to Hold from Buy. The “outlook for earnings development has deteriorated in recent weeks,” the analyst told investors in a research note. He said Amazon.com, Inc. (NASDAQ:AMZN) recently reported a meaningful weakening of profitability in the retail business.

Among the hedge funds tracked by Insider Monkey, 269 funds reported owning stakes worth $34.60 billion in Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2022, compared to 252 funds in the prior quarter worth $30 billion. Jaime Sterne’s Skye Global Management is a prominent stakeholder of the company, with 15.5 million shares valued at $1.75 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

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