The 5 Stocks Billionaire Louis Bacon Can’t Stop Buying

4. Palo Alto Networks Inc (NYSE:PANW)

Value of Moore Capital Management‘s 13F Position: $54.1 million

Number of Hedge Fund Shareholders: 87

Louis Bacon was betting big on cybersecurity stocks in Q1 amid the Russian invasion of Ukraine, hiking his stake in Palo Alto Networks Inc (NYSE:PANW) by 231% during the quarter to 86,881 shares. Other hedge funds were buying up the stock as well, as their ownership stakes in PANW jumped by 22% during the first quarter. Philippe Laffont’s Coatue Management was among the group of funds adding Palo Alto to their 13F portfolios in Q1.

Palo Alto Networks Inc (NYSE:PANW) grew revenue by 29% year-over-year to $1.4 billion in its latest fiscal quarter ended April 30, while billings rose by 40% to $1.8 billion. The strong quarter and demand allowed the company to raise its full-year revenue, billings, and EPS guidance. The company generated $1.31 billion in free cash flow during the first nine months of its fiscal 2022 and is well positioned to return some of that excess cash to shareholders in the form of buybacks.

The ClearBridge Investments Large Cap Growth Strategy was thinking along the same lines as many other hedge funds, having this to say about Palo Alto Networks Inc (NYSE:PANW) in its Q1 2022 investor letter:

“The portfolio also saw solid performance from cybersecurity names Palo Alto Networks (NYSE:PANW) which is gaining prominence as the risk of global cyberattacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included positions in Palo Alto Networks.”