In this article, we discuss the top 5 stock picks of Martin Taylor’s Crake Asset Management. If you want our detailed analysis of these stocks, go directly to Martin Taylor’s Crake Asset Management Portfolio: Top 10 Stock Picks.
5. ON Semiconductor Corporation (NASDAQ:ON)
Percentage of Crake Asset Management’s 13F Portfolio: 6.02%
Number of Hedge Fund Holders: 44
ON Semiconductor Corporation (NASDAQ:ON) is a manufacturer of semiconductors that are used for automotive, computing, consumer, industrial, medical, military, and aerospace applications, to name a few.
ON Semiconductor Corporation (NASDAQ:ON)’s Q3 EPS on November 1 totaled $0.87, exceeding estimates by $0.13. The revenue came in at $1.74 billion, up $29.22 million as compared to estimates.
At the end of the second quarter, 44 hedge funds monitored by Insider Monkey reported owning stakes in ON Semiconductor Corporation (NASDAQ:ON), up from 41 in the preceding quarter.
Truist analyst William Stein on November 2 raised the price target on ON Semiconductor Corporation (NASDAQ:ON) to $62 from $51 and kept a Buy rating on the shares after the Q3 performance. Stein also raised his FY22 EPS guidance for ON Semiconductor Corporation (NASDAQ:ON) to $3.3 from $2.81.
4. Cigna Corporation (NYSE:CI)
Percentage of Crake Asset Management’s 13F Portfolio: 9.55%
Number of Hedge Fund Holders: 63
Cigna Corporation (NYSE:CI) is a Connecticut-based managed healthcare and health insurance company that enables businesses, governments, unions, and associations to offer medical, dental, disability, life, and accident insurance to individuals.
Martin Taylor, via Crake Asset Management, owns 875,025 shares in Cigna Corporation (NYSE:CI).
Cigna Corporation (NYSE:CI) posted its Q3 earnings on November 4. EPS for the quarter equaled $5.73, beating estimates by $0.52. The revenue was up 8.6% year-over-year at $44.31 billion.
Seaport Global analyst Joseph France on November 16 initiated coverage of Cigna Corporation (NYSE:CI) with a Buy rating and $270 price target. The analyst expects the company’s strategic investments to increase earnings growth, reduce earnings volatility, and raise the stock valuation.
Here is what Artisan Value Fund has to say about Cigna Corporation (NYSE:CI) in their Q4 2020 investor letter:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
3. Marriott International, Inc. (NASDAQ:MAR)
Percentage of Crake Asset Management’s 13F Portfolio: 11.19%
Number of Hedge Fund Holders: 49
Marriott International, Inc. (NASDAQ:MAR) is an American multinational corporation that owns, manages, and operates hotel, residential, vacation, and timeshare properties. Marriott International, Inc. (NASDAQ:MAR) owns 30 flagship brands across 130 countries, including The Ritz-Carlton, Bulgari Hotels & Resorts, Marriott Hotels & Resorts, and St. Regis Hotels & Resorts, among others.
Marriott International, Inc. (NASDAQ:MAR) announced on November 3 its Q3 results. EPS for the period came in at $0.99, in line with analysts’ consensus estimates. Revenue for Marriott International, Inc. (NASDAQ:MAR) totaled $3.95 billion, up 75.07% year-over-year.
Wells Fargo analyst Dori Kesten raised the firm’s price target on November 8 to $185 from $171, keeping an Overweight rating on Marriott International, Inc. (NASDAQ:MAR) following the Q3 earnings.
Here is what Artisan Partners has to say about Marriott International, Inc. (NASDAQ:MAR) in its Q2 2021 investor letter:
“Hotel operator Marriott had performed well in the pandemic reopening trade. Their subsequent weakness reflects that trade’s slowing momentum in Q2 as virus variants surged globally and rising uncertainty weighed on economic growth expectations. Still, we remain confident in this business. Each are leaders in their respective industries with wide moats and superior business economics. Each is led by a battle-tested management team we believe is executing well on an appropriately set strategy to deliver shareholder value. They are carefully and wisely financed, and they have undemanding valuations based on normalized earnings power.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Percentage of Crake Asset Management’s 13F Portfolio: 12.94%
Number of Hedge Fund Holders: 266
Meta Platforms, Inc. (NASDAQ:FB) is the parent company of major social networking platforms, namely Facebook, Instagram, and WhatsApp. Meta Platforms, Inc. (NASDAQ:FB) was previously known as Facebook, until the company underwent a corporate rebranding that changed its name to Meta Platforms, Inc. (NASDAQ:FB) on October 28. On the same day, Piper Sandler analyst Thomas Champion declared that rebranding Facebook as Meta Platforms, Inc. (NASDAQ:FB) was a bold yet necessary move, and kept a Neutral rating on the shares with a $385 price target.
Crake Asset Management owns 699,352 shares in Meta Platforms, Inc. (NASDAQ:FB) as of September this year.
Meta Platforms, Inc. (NASDAQ:FB) posted its earnings for Q3 on October 25. EPS for the period came in at $3.22, topping estimates by $0.04. The $29.01 billion revenue failed to meet analysts’ estimates by -$513.23 million.
Meta Platforms, Inc. (NASDAQ:FB) is a popular stock among the smart money. Of the 873 hedge funds tracked by the database of Insider Monkey as of June, 266 funds were long Meta Platforms, Inc. (NASDAQ:FB), up from 257 in Q1. Alexander Becker’s Codex Capital is one of the top stakeholders in Meta Platforms, Inc. (NASDAQ:FB), with 27,400 shares worth $9.29 billion.
Here is what Polen Capital has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter:
“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.”
1. The Walt Disney Company (NYSE:DIS)
Percentage of Crake Asset Management’s 13F Portfolio: 14.06%
Number of Hedge Fund Holders: 112
The Walt Disney Company (NYSE:DIS) is a California-based entertainment conglomerate that houses flagship film and media brands including Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, 20th Century Studios, and 20th Century Animation, among others. The Walt Disney Company (NYSE:DIS) also owns and operates Disney World, which is the company’s biggest contribution to tourism.
The Walt Disney Company (NYSE:DIS) is the largest holding in Crake Asset Management’s Q3 portfolio, with the investment firm owning 1.52 million shares in The Walt Disney Company (NYSE:DIS).
At the end of June, 112 hedge funds tracked by Insider Monkey reported owning stakes in The Walt Disney Company (NYSE:DIS), down from 134 in the preceding quarter.
The Walt Disney Company (NYSE:DIS) posted its Q3 earnings results on November 10. EPS for the quarter came in at $0.38, missing estimated EPS by -$0.12. The Walt Disney Company (NYSE:DIS)’s Q3 revenue amounted to $18.53 billion, missing estimates by -$231.82 million. Citi analyst Jason Bazinet lowered the price target on November 17 to $210 from $230 and kept a Buy rating on The Walt Disney Company (NYSE:DIS).
Here is what RiverPark Funds has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2021 investor letter:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
You can also take a look at 12 Best Software Stocks To Buy According To Hedge Funds and 10 Best Stocks Under $10 According to Billionaire Daniel Och’s OZ Management.
