Top 10 Stock Picks of Dmitry Balyasny’s Hedge Fund

Published on September 30, 2022 at 9:19 am by Umar Farooq in Hedge Fund Analysis, Hedge Funds, News

In this article, we discuss the top 10 stock picks of Dmitry Balyasny’s hedge fund. If you want to skip our detailed analysis of Balyasny’s investment philosophy and performance, go directly to the Top 5 Stock Picks of Dmitry Balyasny’s Hedge Fund.

Dmitry Balyasny is the managing partner and chief investment officer of Balyasny Asset Management, which was established in December 2001. Dmitry serves as the Executive Committee’s chair and actively participates in daily corporate investing. He started his trading career in 1994 with Schonfeld Securities, LLC, and has been a regular contributor to the hedge fund industry since 1999. Dmitry graduated from Loyola University in Chicago with a bachelor’s degree in finance. He serves on the boards of both the Chicago chapter of the Ayn Rand Institute and Teach for America Chicago. Dmitry assists in promoting the Institute’s educational and community engagement initiatives across the greater Chicago area.

As of March 1, 2022, Balyasny Asset Management had approximately $14.8 billion in client assets on a discretionary basis. The hedge fund last reported 13F filing for Q2 2022 included $30.721 billion in managed 13F securities and a top 10 holdings concentration of 8.45%. Balyasny Asset Management’s largest holding is SPDR S&P 500 ETF TRUST, with 1,259,397 shares. Other notable stocks in the 13F portfolio of Dmitry Balyasny during Q2 include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Oracle Corporation (NYSE:ORCL).

Dmitry Balyasny of Balyasny Asset Management

Our Methodology

At Insider Monkey, we cover the portfolios of 895 hedge funds, closely tracking the stocks they buy and sell. We selected the ten stocks discussed in this article based on the 13F regulatory filing submitted by Balyasny Asset Management with the SEC for the quarter ending June 30. These are the top ten stock picks from Balyasny’s latest portfolio.

10. Switch, Inc. (NYSE:SWCH)

Balyasny Asset Management’s Stake Value: $150.597 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.49%

Number of Hedge Fund Holders as of Q2, 2022: 31

Switch, Inc. (NYSE:SWCH) offers colocation space as well as related services through its subsidiary Switch, Ltd. It builds and manages data centers in Georgia, Michigan, and Nevada. The business provides services to the cloud, IT, and software suppliers as well as technology and digital media corporations, banks, governments, and other organizations. Switch, Inc. (NYSE:SWCH) was established in 2000 and it is based in Las Vegas, Nevada.

Brookfield Asset Management and Switch, Inc. (NYSE:SWCH) were in acquisition negotiations in May of this year, reported Bloomberg. However, DigitalBridge Group, Inc. (NYSE:DBRG) defeated Brookfield’s bid. Switch, Inc. (NYSE:SWCH) stated on May 11 that it had entered into a formal agreement with Australian infrastructure manager IFM and DigitalBridge Group, Inc. (NYSE:DBRG) to be acquired at $34.25 per share in an all-cash deal valued at around $11 billion. Switch, Inc. (NYSE:SWCH) has a solid dividend history. It has consistently paid a dividend to stockholders over the past three years. During this time, these payouts have also consistently increased.

According to the 13F filings for the second quarter of 2022, Balyasny Asset Management held 4.49 million shares of Switch, Inc. (NYSE:SWCH), amounting to more than $150.59 million. The company represented 0.49% of the hedge fund’s 13F portfolio. Pentwater Capital Management held the most prominent stake in Switch, Inc. (NYSE:SWCH), with 6.53 million shares worth $218.59 million.

09. Wells Fargo & Company (NYSE:WFC)

Balyasny Asset Management’s Stake Value: $153.219 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.49%

Number of Hedge Fund Holders as of Q2, 2022: 83

Wells Fargo & Company (NYSE:WFC), a diversified financial services company, provides banking, investment, mortgage, and consumer finance products and services in the United States and internationally. On September 12, Wells Fargo & Company (NYSE:WFC) price target was trimmed by Deutsche Bank analyst Matt O’Connor from $62 to $60 while maintaining a Buy rating for the stock. O’Connor informs investors in a research note that although there has been some reprieve in recent weeks, the banks have underperformed this year mostly due to recession fears. According to the analyst, banks are down approximately 25% since their January highs and are pricing in a 55%–60% likelihood of a moderate–to–severe recession.

Davis Opportunity Fund, in its Q4 2021 investor letter, mentioned Wells Fargo & Company (NYSE:WFC) and discussed its stance on the firm. Here is what the fund said.

“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.

Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund includes Wells Fargo.”

08. Eli Lilly and Company (NYSE:LLY)

Balyasny Asset Management’s Stake Value: $155.582 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.5%

Number of Hedge Fund Holders as of Q2, 2022: 70

Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. The latest data shows that the hedge fund led by Balyasny owned 479,851 shares in Eli Lilly and Company (NYSE:LLY) at the end of the second quarter of 2022, worth close to $155 million, representing 0.5% of the portfolio. Ken Fisher’s Fisher Asset Management is the leading shareholder of Eli Lilly and Company (NYSE:LLY) during Q2, holding 5.9 million shares worth $1.92 billion.

On September 22, Eli Lilly and Company (NYSE:LLY) was raised by UBS analyst Colin Bristow from Neutral to Buy with a $363 price target, up from $335. Eli Lilly and Company (NYSE:LLY) is now seen by the analyst to be the large-cap pharmaceutical company with the highest potential for growth. On September 26, the Equal Employment Opportunity Commission filed a lawsuit against Lilly USA, a division of Eli Lilly (NYSE:LLY), over claims of widespread age discrimination. The Commission is of the opinion that the Indianapolis-based business deliberately broke the law by refusing to hire elderly workers.

In its Q2 2022 investor letter, Baron Health Care Fund mentioned Eli Lilly and Company (NYSE:LLY) and explained its insights for the company. Here is what the fund said:

“Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of diabetes, oncology, immunology, and neuroscience. Stock performance was strong due to positive study results for Eli Lilly’s drug Tirzepatide (subsequently branded Mounjaro), which delivered up to 22.5% weight loss in adults with obesity. We think Tirzepatide is in the early innings of adoption in a large obesity market where penetration of anti-obesity medications is currently low. We continue to think Eli Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to solid revenue and earnings growth over many years.”

07. Allegion plc (NYSE:ALLE)

Balyasny Asset Management’s Stake Value: $157.046 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.51%

Number of Hedge Fund Holders as of Q2, 2022: 33

Allegion plc (NYSE:ALLE) is a global manufacturer and distributor of mechanical and electrical security devices and systems. The company was founded in 2013. It currently has a $7.82 billion market capitalization. The stock fell 34% in the past 12 months. On September 21, Mizuho analyst Brett Linzey cut his price target on Allegion plc (NYSE:ALLE) to $114 from $125 and reiterated a Buy rating on the shares.

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. Allegion plc (NYSE:ALLE) was incorporated in 2013 and is based in Dublin, Ireland. Nicolai Tangen’s Ako Capital is holding the largest stake in Allegion plc (NYSE:ALLE) during Q2, holding 2.46 million of its shares worth $241.75 million.

At the end of the second quarter of 2022, 33 hedge funds in the database of Insider Monkey held stakes worth $1.176 billion in Allegion plc (NYSE:ALLE), compared to 28 in the preceding quarter worth roughly $777 million. Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Oracle Corporation (NYSE:ORCL), Allegion plc (NYSE:ALLE) is one of the best stocks to buy, according to Balyasny Asset Management.

06. Lululemon Athletica Inc. (NASDAQ:LULU)

Balyasny Asset Management’s Stake Value: $158.685 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.51%

Number of Hedge Fund Holders as of Q2, 2022: 50

Lululemon Athletica’s (NASDAQ:LULU) Q2 comparable sales and margin performance surprised analysts, who now have a generally bullish outlook on the sports apparel firm. On September 16, analyst Matthew Boss with JPMorgan boosted his price target for Lululemon Athletica Inc. (NASDAQ:LULU) from $396 to $464 while maintaining an Overweight rating on the stock.

Balyasny Asset Management upped its stake in Lululemon Athletica’s (NASDAQ:LULU) during Q2 by a whopping 832%. The fund currently holds 582,095 of Lululemon Athletica’s (NASDAQ:LULU) shares worth $158.68 million. Out of the 895 hedge funds that Insider Monkey was following, 50 had Lululemon Athletica Inc. (NASDAQ:LULU) holdings at the end of the second quarter of 2022, with a total market value of $1.266 billion. When compared to the previous quarter, there were 44 hedge funds that held stakes totaling about $763 million.

Along with Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Oracle Corporation (NYSE:ORCL), Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best stocks to buy, according to Balyasny Asset Management.

Click to continue reading and see the Top 5 Stock Picks of Dmitry Balyasny’s Hedge Fund.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up