Below we present the list of the top 5 stocks billionaire David Tepper was buying in Q4. For our methodology and a more comprehensive list please see The Only 10 Stocks Billionaire David Tepper Was Buying in Q4.
5. The Mosaic Company (NYSE:MOS)
Value of Appaloosa Management‘s 13F Position: $94.30 million
Number of Hedge Fund Shareholders: 46
David Tepper’s Appaloosa Management made a modest increase to its position in The Mosaic Company (NYSE:MOS) during Q4, buying 25,000 shares to give it an even 2.4 million. Mosaic has been extremely popular among hedge funds over the past nine quarters, with ownership of the stock more than doubling during that period.
The Mosaic Company (NYSE:MOS) delivered some of its strongest results in years during 2021, pulling in $5.40 in earnings per share, its highest total since 2011, and $3.6 billion in EBITDA. The company’s phosphate segment was a particular strength, with its $1.7 billion in EBITDA being up by 200% year-over-year. Mosaic used its robust earnings to raise its 2022 annual dividend by 50%, the second straight year it’s done so.
Ariel Investments’ Ariel Focus Fund talked about the success The Mosaic Company (NYSE:MOS) had in early 2021 with its core fertilizer business. Check out the fund’s comments from its Q3 2021 investor letter:
“Our third quarter contributors generally fit this “happy family” description. Mosaic Company is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed Mosaic is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, Mosaic’s focus began to pay off. Strong U.S. crop prices as well as growing transportation costs for imported fertilizer from overseas mines have led to improved earnings expectations. Last December, analysts showed a mean estimate for Mosaic 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”
