Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital

Published February 25, 2022 at 10:01 am EST Updated September 7, 2026 at 2:00 pm EDT

In this article, we discuss top 10 stock picks of Kenneth A. Moffet’s Hourglass Capital.

Kenneth A. Moffet is a member of Hourglass Capital’s Board of Managers and has been with the firm since June 2008. Hourglass Capital is situated in Houston, Texas. The hedge fund specializes in fixed income, investment, value, and growth equity strategies.

In its 13F filing for the fourth quarter of 2021, Hourglass Capital disclosed $298.62 million in long stock positions, with a top 10 holdings concentration of 30.16%. The hedge fund made purchases in 4 equities during the fourth quarter, increased interests in 12 stocks, dumped 7, and decreased holdings in 59 securities.

Kenneth A. Moffet likes to diversify his portfolio. Therefore, his hedge fund owns small and big firms with strong fundamentals and potential for future development. Some of these companies include Johnson & Johnson (NYSE:JNJ), Verizon Communications Inc. (NYSE:VZ), and General Motors Company (NYSE:GM).

In Johnson & Johnson, Kenneth A. Moffet’s Hourglass Capital owns 13,475 shares. The investment covers 0.77% of the fund’s Q4 portfolio. On January 26, Raymond James analyst Jayson Bedford raised his price target on Johnson & Johnson to $185 from $178 and kept an Outperform rating on the shares.

Top 10 Stock Picks of Kenneth A. Moffet's Hourglass Capital

Another notable stock in Kenneth A. Moffet’s portfolio is Verizon Communications Inc.. The investor owns a $2.39 million stake in the company. The fund increased its holding in Verizon Communications Inc. by 29% in the fourth quarter, ending the period with 46,036 shares of the company. On January 26, Deutsche Bank analyst Bryan Kraft raised his price target on Verizon Communications Inc. to $59 from $57 and maintained a Hold rating on the shares.

Kenneth A. Moffet’s Hourglass Capital also owns 27,597 shares of General Motors Company. On February 9, Nomura analyst Anindya Das downgraded General Motors Company to Neutral from Buy, with a price objective of $56, down from $66, citing a lower profit forecast from GM’s proposed North American cooperation with Honda (HMC).

Our Methodology

With this context in mind, here is a look at the top 10 stock picks of Kenneth A. Moffet’s Hourglass Capital. We used Moffet’s 13F portfolio for Q4 2021 for this analysis. Elite hedge funds tracked by Insider Monkey in Q3 2021 were used to determine the hedge fund sentiment around the holdings.

Top Stock Picks of Kenneth A. Moffet’s Hourglass Capital

10. The Home Depot, Inc. (NYSE:HD)

Hourglass Capital Stake Value: $7,351,000

Percentage of Hourglass Capital’s 13F Portfolio: 2.46%

Number of Hedge Fund Holders: 58

The Home Depot, Inc. (NYSE:HD) is a construction goods and home improvement business. On February 11, JPMorgan analyst Christopher Horvers trimmed his target on The Home Depot, Inc. to $406 from $413 and reiterated an Overweight rating on the shares. Horvers told investors in a research note that the consumer climate was encouraging, albeit slower than in 2020 and 2021.

Hourglass Capital started building its position in The Home Depot, Inc. during the fourth quarter of 2015. In Q4 2021, the hedge fund held shares worth over $7.35 million in the company, representing 2.46% of Kenneth A. Moffet’s portfolio.

The Home Depot, Inc. saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 58 at the end of the third quarter, down from 64 positions in the previous quarter.

Like Johnson & Johnson, Verizon Communications Inc., and General Motors Company, The Home Depot, Inc. is also one of the essential holdings of Kenneth A. Moffet’s Hourglass Capital in Q4.

Nelson Capital Management, an investment management firm, in its second-quarter 2021 investor letter, mentioned The Home Depot, Inc.. Here is what the fund said:

“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We also trimmed our position in Home Depot (tkr: HD), as it will be challenged by tough comparable statistics, supply chain issues, and rising commodity costs.”

9. HCA Healthcare, Inc. (NYSE:HCA)

Hourglass Capital Stake Value: $7,377,000

Percentage of Hourglass Capital’s 13F Portfolio: 2.47%

Number of Hedge Fund Holders: 72

HCA Healthcare, Inc. (NYSE:HCA) operates hospitals, emergency rooms, freestanding surgery centres, and urgent care facilities. Hedge funds are loading up on HCA Healthcare, Inc., as Insider Monkey’s data shows that 72 hedge funds held a stake in the company as of the end of the third quarter of 2021, compared to 60 funds at the end of the previous quarter.

On January 31, BMO Capital analyst Matt Borsch reduced his price target on HCA Healthcare, Inc. to $250 from $275 and maintained a Market Perform rating on the shares post its Q4 results. On January 27, HCA Healthcare, Inc.’s fourth-quarter EPS came in at $4.42, missing estimates by $0.10.

After selling 14,680 shares of HCA Healthcare, Inc. in the fourth quarter, Kenneth A. Moffet’s Hourglass Capital still holds 28,715 shares of HCA Healthcare, Inc., valuing at $7.38 million.

In its third-quarter 2021 investor letter, First Eagle Investment Management, an investment management firm, mentioned HCA Healthcare, Inc.. Here is what the fund said:

“HCA Healthcare owns and operates 185 hospitals and approximately 2,000 sites of care in the US and UK. Admissions to its facilities, depressed during the worst of the Covid-19 outbreak in 2020, have begun to rebound. HCA reported a nearly 20% year-over-year increase in admissions during the second quarter and a 14% increase in revenue, and forecast that volume would continue to improve throughout the year. We maintain our positive opinion of the company’s management team, believing them to be effective stewards of both the balance sheet and HCA’s business operations.”

8. Broadcom Inc. (NASDAQ:AVGO)

Hourglass Capital Stake Value: $7,433,000

Percentage of Hourglass Capital’s 13F Portfolio: 2.48%

Number of Hedge Fund Holders: 50

Broadcom Inc. (NASDAQ:AVGO) is a multinational technology firm that develops, manufactures, and sells semiconductors and infrastructure software. With approximately 1.01 million shares worth $669.40 million, Cantillon Capital Management is the largest shareholder of Broadcom Inc. as of Q4 2021.

After hosting management for an investor meeting on January 26, Piper Sandler analyst Harsh Kumar reiterated an Overweight rating on Broadcom Inc. with a price objective of $750.

In the third quarter, hedge fund sentiment increased for Broadcom Inc.. Insider Monkey’s data shows that 50 elite hedge funds held stakes in Broadcom Inc. at the end of the third quarter, up from 47 funds a quarter earlier.

In its third-quarter 2021 investor letter, Miller Howard Investments discussed its stance on Broadcom Inc.. Here is what the fund said:

“Technology remains important in our portfolios, although the sector weights have come down over the past year. We now hold Broadcom (AVGO) of which have strong growth prospects, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy.”

7. Schlumberger Limited (NYSE:SLB)

Hourglass Capital Stake Value: $7,556,000

Percentage of Hourglass Capital’s 13F Portfolio: 2.53%

Number of Hedge Fund Holders: 39

Schlumberger Limited (NYSE:SLB) is a technology company that serves the energy sector worldwide. On February 7, Schlumberger Limited declared a quarterly dividend of $0.125 per share, in line with the previous.

On January 26, Exane BNP Paribas analyst Nick Konstantakis upgraded Schlumberger Limited to Outperform from Neutral with a price objective of $45. On January 21, Schlumberger Limited reported financial results for the fourth quarter, posting earnings per share of $0.41, exceeding estimates by $0.02. In addition, the quarterly revenue was up 12.5% YoY, amounting to $6.22 billion, beating the forecast by $130 million.

Overall, in the third quarter, 39 hedge funds monitored by Insider Monkey were bullish on Schlumberger Limited. The stakes of these funds are valued at $1.06 billion.

ClearBridge Investments, in its second-quarter 2021 investor letter, mentioned Schlumberger Limited. Here is what the fund said:

“Schlumberger is a leading oilfield services company that should enjoy both cyclical and secular opportunities over the next market cycle and beyond. On the cyclical front, after years of declining energy service activity and negative pricing, service activity is increasing modestly and pricing is inflecting higher, which is always the key cyclical driver for energy services stocks. In addition, we expect the Middle East to gain share of oil production as ESG considerations limit upstream investment in other regions. As the dominant service provider in the Middle East, Schlumberger is very well-positioned for this shift. On the secular front, Schlumberger has a rapidly growing digital services capability that helps producers operate much more efficiently and with much less waste, which will be a core ESG focus. Finally, Schlumberger is investing directly, and with partners, in energy transition capabilities such as carbon capture, hydrogen and geothermal that should allow Schlumberger to grow and remain viable well beyond the current energy cycle.”

6. Cisco Systems, Inc. (NASDAQ:CSCO)

Hourglass Capital Stake Value: $8,748,000

Percentage of Hourglass Capital’s 13F Portfolio: 2.92%

Number of Hedge Fund Holders: 63

Cisco Systems, Inc. (NASDAQ:CSCO) is a technology firm that creates and sells devices and services that enable users to build up internet and communications networks in their homes and businesses. Ken Fisher’s Fisher Asset Management is the most significant shareholder of Cisco Systems, Inc., with 12.78 million shares worth $809.79 million.

On January 20, JPMorgan analyst Samik Chatterjee lowered his price target on Cisco Systems, Inc. to $69 from $70 and maintained an Overweight rating on the shares. The dip in growth firms was seen by analysts as an ideal entry point into the Q4 earnings season for networking and hardware.

Cisco Systems, Inc. is getting the attention of the smart money, as 63 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 60 funds a quarter earlier.

In addition to Johnson & Johnson, Verizon Communications Inc., and General Motors Company, Cisco Systems, Inc. is one of the stocks gaining the attention of Kenneth A. Moffet’s Hourglass Capital.

5. The Goldman Sachs Group, Inc. (NYSE:GS)

Hourglass Capital Stake Value: $8,782,000
Percentage of Hourglass Capital’s 13F Portfolio: 2.94%
Number of Hedge Fund Holders: 74

The Goldman Sachs Group, Inc. (NYSE:GS) is a company that offers various financial services to businesses, financial institutions, governments, and individuals all over the world. In the fourth quarter, Kenneth A. Moffet reduced his stake in The Goldman Sachs Group, Inc. by 34%, which is now worth about $8.78 million.

On January 28, Odeon Capital analyst Dick Bove downgraded The Goldman Sachs Group, Inc. to Hold from Buy with a price objective of $350.65. According to the analyst, his downgrade was based on Federal Reserve Chairman Jay Powell’s assertion that the Fed may reduce its balance sheet size in 2022.

At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes totalling $5.45 billion in The Goldman Sachs Group, Inc., up from 61 the preceding quarter worth $5.18 billion.

In the second-quarter 2021 investor letter, Ariel Investments mentioned a few stocks, and The Goldman Sachs Group, Inc. was one of them. Here is what the fund said:

“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”

4. Morgan Stanley (NYSE:MS)

Hourglass Capital Stake Value: $9,389,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 65

Morgan Stanley (NYSE:MS) is a financial services corporation headquartered in New York City that provides brokerage, investment management, and venture capital services. Out of the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder of Morgan Stanley, with 10.45 million shares, the value of which came in at $1.03 billion.

Morgan Stanley was downgraded to Hold by Odeon Capital analyst Dick Bove on January 28 after Federal Reserve Chair Jerome Powell stated that the central bank would trim its balance sheet in 2022.

In the third quarter of 2021, 65 hedge funds were bullish on Morgan Stanley, down from 69 funds in the preceding quarter. Morgan Stanley issued a quarterly dividend of $0.70 per share on January 20, the same as the previous quarter.

In its third-quarter 2021 investor letter, Artisan Partners mentioned Morgan Stanley. Here is what the fund said:

“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”

3. Apple Inc. (NASDAQ:AAPL)

Hourglass Capital Stake Value: $10,553,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.53%
Number of Hedge Fund Holders: 120

Apple Inc. (NASDAQ:AAPL) is a multinational corporation that designs, manufactures, and sells smartphones, laptops, tablets, wearables, and accessories. It also provides a variety of connected services. On February 8, Apple purchased AI Music, a London-based business that helps create personalized music.

On January 31, Credit Suisse analyst Sami Badri raised his price target on Apple Inc. to $168 from $150 and maintained a Neutral rating on the shares. Hourglass Capital holds 59,428 shares in Apple Inc. worth over $10.55 million, representing 3.53% of its Q4 portfolio. The hedge fund reduced its stake in Apple Inc. by 21% in the fourth quarter of 2021.

At the end of the third quarter of 2021, 120 hedge funds in the database of Insider Monkey held stakes in Apple Inc., down from 138 the preceding quarter.

Alger, an investment management firm, in its fourth-quarter 2021 investor letter mentioned Apple Inc.. Here is what the fund said:

“Apple is a leading technology provider in telecommunications, computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives tight engagement with consumers and enterprises, fostering the growing purchases of high-margin services like music, apps and Apple Pay. Apple’s quarterly earnings exceeded street estimates on strong margin realization driven by a sales mix of more profitable services. The margin strength was even more impressive given significantly higher freight costs and supply constraints that prevented approximately $6 billion in revenue realization.”

2. Fifth Third Bancorp (NASDAQ:FITB)

Hourglass Capital Stake Value: $11,126,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.72%
Number of Hedge Fund Holders: 28

Through its subsidiary, Fifth Third Bank, Fifth Third Bancorp (NASDAQ:FITB) provides banking and financial services, retail and commercial banking, consumer loan services, and investment advisory services. On February 3, JPMorgan analyst Vivek Juneja raised his price target on Fifth Third Bancorp to $48.50 from $48 and kept an Overweight rating on the shares.

Fifth Third Bancorp, on January 20, posted earnings for the fourth quarter. The reported EPS came in at $0.93, beating estimates by $0.03. In addition, revenue over the period gained 3.0% compared to the previous-year quarter, reaching $2.03 billion, outperforming forecasts by $10 million.

At the end of the third quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes valuing $283.75 million in Fifth Third Bancorp, down from 41 in the preceding quarter totalling $360.35 million.

1. AbbVie Inc. (NYSE:ABBV)

Hourglass Capital Stake Value: $11,749,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 81

AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company that develops and manufactures a variety of drugs to treat severe and chronic illnesses. On February 4, Mizuho analyst Vamil Divan raised his price target on AbbVie Inc. to $166 from $154 and maintained a Buy rating on the shares.

Hourglass Capital first bought a stake in AbbVie Inc. in the fourth quarter of 2015. In Q4 2021, the hedge fund holds 86,776 AbbVie Inc. shares worth over $11.75 million. This represents 3.93% of its portfolio. The hedge fund’s stake in AbbVie Inc. stock decreased by 20% in the fourth quarter of 2021.

As of the end of the third quarter, 81 hedge funds in Insider Monkey’s database held stakes in AbbVie Inc., a decrease as compared to 82 funds in the preceding quarter.

In its third-quarter 2021 investor letter, Miller Howard Investments mentioned AbbVie Inc.. Here is what the fund said:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”

You can also take a peek at 10 Biotech Stocks to Buy According to Matthew Strobeck’s Birchview Capital and Top 10 Stock Picks of Christopher Lyle’s SCGE Management

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