In this article, we discuss the 10 stocks to consider in the portfolio of Ro Khanna.
Rohit Khanna, also called “Ro” Khanna, is a Pennsylvania-born lawyer, politician and academic. He is a member of the US House of Representatives from the seventeenth congressional district of California. Khanna has served in the position since 2017. Khanna has a net worth in the tens of millions and is one of the richest men in California. Khanna belongs to the Democratic Party and is one of the most active members of Congress on Wall Street. In the last twelve months, his family has been involved in 4,872 stock trades.
An initial glance at these trades reveals that they were disclosed by Khanna on behalf of his wife and children. A spokesperson for the lawmaker has previously said that the assets held by his wife and children are not in joint accounts and do not belong to Khanna. Of the over 4,000 trades made in the past year, 2,985 involved buying of stocks while 1,887 involved selling. The former were worth more than $43 million and the latter worth close to $26 million. The net spend around this period was $17 million.
According to public disclosures, Khanna and his family had been involved in stock trades worth $52 million in 2021. Many of these trades involve defense contractors. Since Khanna serves on the House Armed Services Committee, there has been a huge public outcry against these trades. In early February, Khanna appeared on news platform CNBC to say that he supported a move made by several lawmakers that would ban stock trading for Congress members. He clarified the ban should not extend to assets of family members, especially before marriage.
In the past few months, as inflation rises and the Fed prepares to raise interest rates, the attention of Khanna and his family has been on stocks in the finance sector. Some of the top stocks to consider in the portfolio of Ro Khanna include Berkshire Hathaway Inc. (NYSE:BRK-B), Citigroup Inc. (NYSE:C), and Morgan Stanley (NYSE:MS), among others discussed in detail below.
The stocks listed below were picked from the Periodic Transaction Report(s) that Ro Khanna is obliged to file. It is important to clarify that the stocks listed below were picked from the public record of investments Khanna and his family have made in the past few months. The purchases may not have been made by Khanna himself but only disclosed on behalf of his family.
U.S. Congress/Eric Connolly – https://khanna.house.gov/sites/khanna.house.gov/files/featured_image/RepRoKhanna_CA17_hires.jpg
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Ro Khanna Stock Portfolio: Stocks To Consider
10. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Number of Hedge Fund Holders: 29
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional services company. Hedge funds have been offloading the stock in recent months. At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Cognizant Technology Solutions Corporation, compared to 41 in the preceding quarter worth $2.9 billion.
Khanna disclosed two transactions related to Cognizant Technology Solutions Corporation on behalf of his spouse on February 10. Both relate to sales and fall in the $1,000–$15,000 range. The transactions were made on January 31.
Just like Berkshire Hathaway Inc., Citigroup Inc., and Morgan Stanley, Cognizant Technology Solutions Corporation is one of the stocks that investors are flocking to.
In its Q1 2020 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Cognizant Technology Solutions Corporation was one of them. Here is what the fund said:
“Cognizant Technology Solutions Corp. (Cl A) is an information technology services company that has encountered challenges in its financial services and health care industry verticals, which combined represent over 60% of revenue. We are supportive of steps the company is taking to reaccelerate revenue growth after a period of overemphasizing operating margin expansion.”
9. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 34
Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics firm. Latest filings show that Khanna disclosed two transactions related to Phillips 66 (NYSE:PSX) stock on behalf of his spouse. Both involve selling the stock and are worth $15,000-$50,000 each.
Elite hedge funds hold large stakes in Phillips 66 (NYSE:PSX). Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Phillips 66 (NYSE:PSX) with 1.9 million shares worth more than $138 million.
In its Q3 2020 investor letter, Black Bear Value Partners, an asset management firm, highlighted a few stocks and Phillips 66 (NYSE:PSX) was one of them. Here is what the fund said:
“PSX has been a top 5 position in years past. Its long-term value is similar to when we last owned it but is down 50+% in price in sympathy with broader energy concerns.
PSX is an integrated energy company with 4 central divisions: refining, chemicals, midstream (pipelines etc.) and marketing (gas stations). Due to downstream demand destruction, the refining businesses is taking it on the chin. This could persist for the remainder of 2020 and into 2021. As in years past, a lot of focus is given to the refining business as it has historically been the lion’s share of the value for PSX. Management has invested in the non-refining businesses who now make up most of the value of the company.
Management is extremely thoughtful with capital allocation and has focused on a healthy balance sheet with opportunistic share repurchases. They do not spend capex on projects unless they meet a healthy margin of safety for returns.
PSX should be able to generate substantial amounts of cash in the coming years and generate a 15+% free cash flow yield on quarter-end pricing. If the stock remains low management will be buying in a lot of stock.”
8. The Hartford Financial Services Group, Inc. (NYSE:HIG)
Number of Hedge Fund Holders: 34
The Hartford Financial Services Group, Inc. (NYSE:HIG) provides insurance and financial services. Several top hedge funds hold bullish positions on the stock. At the end of the third quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $941 million in The Hartford Financial Services Group, Inc., compared to 43 in the preceding quarter worth $1.4 billion.
Mandatory filings reveal that Khanna, on behalf of his wife, disclosed two transactions involving The Hartford Financial Services Group, Inc. stock on February 10. Both $1,000-$15,000 and were made on January 31.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Hartford Financial Services Group, Inc. was one of them. Here is what the fund said:
“Financials continued to gain from the economic recovery from COVID-19. Insurance companies, such as Hartford Financial Services Group, benefited from rate increases and margin improvements during the quarter, as well as historically high retention and premium growth driving an improvement in ROE.”
7. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 35
Public Storage (NYSE:PSA) is a real estate investment trust that owns and runs self-storage facilities. The family of Ro Khanna have been selling the stock, per new data. Disclosures made by the lawmaker on behalf of his children and his wife show four trades related to Public Storage made on January 27. The trades were worth $1,000-$15,000 each and all involved selling the stock.
There is positive hedge fund sentiment around Public Storage. At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Public Storage, up from 27 in the preceding quarter worth $1 billion.
In its Q3 2020 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and Public Storage was one of them. Here is what the fund said:
“During the period, the Fund reduced its exposure to the common stock of Public Storage, Incorporated.- The proceeds from this reduction was primarily used to fund a new investment position.”
6. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 42
Marsh & McLennan Companies, Inc. is a professional services firm based in New York. It has witnessed a flurry of hedge fund activity in recent months. At the end of the third quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Marsh & McLennan Companies, Inc., up from 41 in the preceding quarter worth $2.5 billion.
The wife of Ro Khanna was involved in two separate trades related to Marsh & McLennan Companies, Inc. stock on January 27, per latest filings by the lawmaker. Both purchases were worth $1,000-$15,000.
Along with Berkshire Hathaway Inc., Citigroup Inc., and Morgan Stanley, Marsh & McLennan Companies, Inc. is one of the stocks that hedge funds are buying.
5. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 65
Morgan Stanley provides financial products and services. It is one of the favorite bank stocks among hedge funds. At the end of the third quarter of 2021, 65 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in Morgan Stanley, compared to 69 in the preceding quarter worth $5.3 billion.
Khanna disclosed two trades involving Morgan Stanley on behalf of his children on February 10. Both involved buying of the stock worth $1,000-$15,000 on January 27. The disclosures were made through a Periodic Transaction Report.
In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Morgan Stanley was one of them. Here is what the fund said:
“Top three contributor Morgan Stanley, a leading global financial services company, came into the portfolio in Q4 as a result of its purchase of E*TRADE. E*TRADE is a great fit on Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily de-risked Morgan Stanley’s business by adding less volatile fee streams and deemphasizing the risk-obtuse culture of prior management. We believe the market will come to appreciate this mix shift over time.”
4. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 69
The Procter & Gamble Company markets branded consumer packaged goods. The family of Khanna have been selling the stock. Six trades related to the firm, all made on January 27 and worth around $1,000-$15,000, were made by his children and wife, per latest data.
Major hedge funds hold large stakes in The Procter & Gamble Company. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Cedar Rock Capital is a leading shareholder in The Procter & Gamble Company with 7.4 million shares worth more than $1 billion.
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 79
Citigroup Inc. operates as a diversified financial services firm. Top hedge funds are exceedingly bullish on the stock. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Citigroup Inc. with 28 million shares worth more than $1.9 billion.
Khanna recently disclosed two trades related to Citigroup Inc. stock on behalf of his children. The transactions in this regard were made on January 28 and involved selling the stock. They were worth $1,000-$15,000 each.
In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. was one of them. Here is what the fund said:
“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 106
Berkshire Hathaway Inc. is a diversified holding company with interests in finance, transport, and utility businesses. The family of Ro Khanna made six trades related to the firm in January. All involved selling the shares. Each transaction was worth $1,000-$15,000.
Berkshire Hathaway Inc. is one of the most popular stocks on Wall Street. At the end of the third quarter of 2021, 106 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc., compared to 116 in the preceding quarter worth $22 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc.) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) is a technology company that operates from California. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. with 2.9 million shares worth more than $7.8 billion.
The wife of Ro Khanna bought Alphabet Inc. stock on January 31, per latest filings. The shares were bought in two separate transactions. Each transaction was worth between $1,000 and $15,000.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Biggest Short Squeezes of All Time
- 10 Best Tech ETFs to Buy According to Reddit
- 10 Best SPACs to Invest In According to Reddit
This article is originally published at Insider Monkey.
