In this article, we take a look at the top 10 stock picks of Invenomic Capital Management.
Invenomic Capital Management is a US-based investment advisory firm that offers services like portfolio management, investment advice and strategic financial planning. Ali Motamed is the founder of Invenomic Capital Management. He’s also the portfolio manager of the fund. Invenomic Capital Management is centered around the US market and manages a diversified portfolio in order to mitigate any potential investment risk. The investment philosophy at Invenomic Capital Management is diversification, quantitative analysis of annual reports from companies and research.
The hedge fund has a portfolio value of $417 million and the sectors of investment include services, healthcare, financial, consumer goods, technology and utilities among others. The top 10 stock picks of Invenomic Capital Management include names like Kinross Gold Corporation (NYSE: KGC), Stride, Inc. (NYSE: LRN) and H&R Block, Inc. (NYSE: HRB).
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Let’s move down to the top 10 stock picks of Invenomic Capital Management and discuss the stocks in detail.
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10. Triple-S Management Corporation (NYSE:GTS)
ICM’s Stake Value: $5.1 million
Percentage of ICM’s 13F Portfolio: 1.21%
Number of Hedge Fund Holders: 10
Triple-S Management Corporation (NYSE: GTS) is an insurance company headquartered in Puerto Rico. It caters to over 1 million customers. Its primary domain is providing healthcare insurance. It is also the license provider for Blue Cross and Shield Association and holds exclusive rights to it.
Invenomic Capital Management holds over 0.22 million shares in Triple-S Management Corporation increasing their stake in the company by 129% in the Q2 of 2021 and is also the most bullish hedge fund on the stock.
9. Reinsurance Group of America, Incorporated (NYSE:RGA)
ICM’s Stake Value: $5.2 million
Percentage of ICM’s 13F Portfolio: 1.23%
Number of Hedge Fund Holders: 28
Reinsurance Group of America, Incorporated (NYSE: RGA) is one of the leading global life and health reinsurance companies headquartered in Missouri, USA. Invenomic Capital Management holds over 45K shares in the company increasing their stake by 51% in the Q2 of 2021.
As of Q2 of 2021, Harris Associates is the leading stakeholder in Reinsurance Group of America, Incorporated with over 3.9 million shares, representing 0.71% of their portfolio.
8. Travelzoo (NASDAQ:TZOO)
ICM’s Stake Value: $5.4 million
Percentage of ICM’s 13F Portfolio: 1.29%
Number of Hedge Fund Holders: 8
Travelzoo (NASDAQ: TZOO) is an internet company centered around tourism, entertainment and lifestyle. It has 30 million members according to its website.
For Q2 of 2021, Travelzoo filed a revenue of $19 million with EPS of $0.23 beating analyst estimates by $0.17. The company suffered financially due to decrease in holiday travel amid the pandemic but in July of 2021, the company issued a statement that they expect to file a higher revenue and profitability in Q3 of 2021 because “a pattern of recovery is being observed”.
7. Prudential Financial, Inc. (NYSE:PRU)
ICM’s Stake Value: $5.7 million
Percentage of ICM’s 13F Portfolio: 1.36%
Number of Hedge Fund Holders: 28
Prudential Financial, Inc. (NYSE: PRU) is an American company providing services like insurance, investment management, expertise among other financial services. Invenomic Capital Management holds more than 55000 shares in the company after decreasing them by 4% as of Q2 of 2021.
Prudential Financial, Inc. filed a revenue of $13 billion for Q2 of 2021 with EPS at $3.79 beating analyst estimates by $0.69. Barclays analyst Tracy Benguigui raised the her price target on Prudential Financial, Inc. to $110 from $102 and kept an Equal-Weight rating on the shares.
As of Q2 of 2021, the hedge fund Arrowstreet Capital is the leading stakeholder in the company with over 2.2 million shares, making up 0.28% of their portfolio.
6. Koppers Holdings Inc. (NYSE:KOP)
ICM’s Stake Value: $6.1 million
Percentage of ICM’s 13F Portfolio: 1.47%
Number of Hedge Fund Holders: 9
Koppers Holdings Inc. (NYSE: KOP) is a company headquartered in Pennsylvania with facilities virtually all over the world. The company produces carbon compounds, provides treated wood products and chemicals used for wood treatment. Invenomic Capital Management holds nearly 0.2 million shares in the company after increasing their stake by 92% as of the Q2 of 2021.
Rubric Capital Management has the biggest stake in Koppers Holdings Inc. with 1 million shares making up 2.03% of the hedge fund’s portfolio.
5. Teck Resources Limited (NYSE:TECK)
ICM’s Stake Value: $6.4 million
Percentage of ICM’s 13F Portfolio: 1.53%
Number of Hedge Fund Holders: 40
Teck Resources Limited (NYSE: TECK) is a company based in British Columbia that is involved in the mining and mineral development business. Invenomic Capital Management holds 0.27 million shares in the company after increasing their stake by 132% in the second quarter of 2021.
Contrarius Investment Management is the biggest stakeholder in the company with over 7 million shares, representing 8.27% of their portfolio as of the Q2 of 2021 even though they decreased their stake by 7%.
4. Kinross Gold Corporation (NYSE:KGC)
ICM’s Stake Value: $6.96 million
Percentage of ICM’s 13F Portfolio: 1.67%
Number of Hedge Fund Holders: 28
Kinross Gold Corporation is a gold and silver mining company. It is headquartered in Toronto, Canada. It runs mining projects in various countries like Mauritania, Brazil and Russia among others. Invenomic Capital Management holds over 1 million shares in the company after increasing their stake by 20% in the Q2 of 2021.
Kinross Gold Corporation posted a revenue of $1.00 billion in the Q2 of 2021 with EPS at $0.09, missing analyst estimates by -$0.03.
3. Bonanza Creek Energy, Inc. (NYSE:BCEI)
ICM’s Stake Value: $7.8 million
Percentage of ICM’s 13F Portfolio: 1.86%
Number of Hedge Fund Holders: 21
Bonanza Creek Energy, Inc. (NYSE: BCEI) is an energy company headquartered in Denver, Colorado. It is involved in the extraction of oil and natural gas across the United States. Invenomic Capital Management holds over 0.16 million shares in the company after a decrease in stake by 6% in the second quarter of 2021.
The hedge fund Driehaus Capital is the leading stakeholder in Bonanza Creek Energy, Inc. with over 0.6 million shares, representing 0.4% of their portfolio in the Q2 of 2021.
2. H&R Block, Inc. (NYSE:HRB)
ICM’s Stake Value: $8.3 million
Percentage of ICM’s 13F Portfolio: 1.99%
Number of Hedge Fund Holders: 30
H&R Block, Inc. is a company headquartered in Kansas City, Missouri. The company provides tax preparation services to its clients and operates in many countries other than the United States. Invenomic Capital Management holds 0.35 million shares in the company after an increase of stake by 2% in the Q2 of 2021.
The biggest stakeholder hedge fund in H&R Block, Inc. as of Q2 of 2021 is D E Shaw that holds over 1.5 million shares in the company, representing 0.03% of their portfolio.
1. Stride, Inc. (NYSE:LRN)
ICM’s Stake Value: $8.96 million
Percentage of ICM’s 13F Portfolio: 2.15%
Number of Hedge Fund Holders: 21
Stride, Inc. is an education company headquartered in Herndon, Virginia. It is focused on providing services related to career learning, digital learning and personalized education. Invenomic Capital Management holds 0.27 million shares in the company after increasing their stake by 50% in the Q2 of 2021.
Stride, Inc. posted a revenue of $397 million in the Q2 of 2021 with EPS at $0.25 beating the analyst estimates by $0.09. On September 14, Citi analyst Thomas Singlehurst initiated the coverage of Stride, Inc. with a ‘Buy’ rating and a price target of $65.
You can also take a peek at the 30 Most Popular Stocks Among Hedge Funds: 2021 Q2 Rankings and Jim Simons’ Quant Hedge Fund is Buying These 10 Stocks.
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originally published on Insider Monkey.