This article discusses the top 10 stock picks of Nicolai Tangen’s hedge fund Ako Capital at the end of the quarter on June 30. If you are interested in knowing only about Ako Capital’s top five picks, you can check them here: Top 5 Stock Picks of Nicolai Tangen’s Ako Capital.
Nicolai Tangen’s Ako Capital, a London-based investment management company, was founded by Norwegian hedge fund manager Nicolai Tangen. Nicolai Tangen received training in interrogation and Russian translation from the Norwegian Armed Forces School of Intelligence and Security. He also holds degrees in social psychology from the London School of Economics, a Bachelor’s in finance from the Wharton School of the University of Pennsylvania, and a Master’s in art history from the Courtauld Institute of Art. Nicolai Tangen worked as an analyst at Cazenove & Co. before joining Egerton Capital in 1997. He founded AKO Capital in 2005. To support activities in the arts and education, Tangen established the AKO Foundation in 2013. Tangen was named CEO of Norges Bank Investment Management in September 2020, with responsibility for making investments in the Norwegian Sovereign Wealth Fund.
As of June 30, AKO Capital manages more than $7.14 billion in 13F securities on behalf of several of the top endowments and charitable foundations worldwide, with the consumer discretionary sector accounting for around 20.67% of the portfolio. The fund has a top 10 holdings concentration of 62.39%. The fund’s largest holding is Thermo Fisher Scientific Inc. (NYSE:TMO), with shares held of 1.212 million.
Ako Capital owns stocks in several well-known companies as of the end of the second quarter of 2022, such as Thermo Fisher Scientific Inc. (NYSE:TMO), Visa Inc. (NYSE:V), and Accenture plc (NYSE:ACN). The hedge fund also holds significant stakes in Alphabet Inc. (NASDAQ:GOOG), Adobe Inc. (NASDAQ:ADBE), and NIKE, Inc. (NYSE:NKE).
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Our Methodology
Insider Monkey’s research shows that the consensus stock picks of the top hedge funds can produce returns that beat the broader market’s performance by a wide margin, which is why we actively track the portfolios of over 900 hedge funds. The stocks discussed in this article were selected from Ako Capital’s latest 13F filing for the quarter ending June 30.
Top 10 Stock Picks of Nicolai Tangen’s Ako Capital
10. Linde plc (NYSE:LIN)
Ako Capital’s Stake Value: $307.563 million
Percentage of Ako Capital’s 13F Portfolio: 4.3%
Number of Hedge Fund Holders as of Q1 2022: 54
Linde plc (NYSE:LIN) was founded in 1879 and is based in Woking, the United Kingdom. It operates as an industrial gas and engineering company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific.
For Q2, 2022, Linde plc (NYSE:LIN), with an EPS of $3.10 and revenue of $8.46 billion, has beaten the EPS and revenue forecast by $0.14 and $66.23 million, respectively. The stock has gained 3.78% in the past six months.
On August 10, Stifel analyst Andreas Heine raised Linde from Hold to Buy and increased his price target from EUR 257 to EUR 349. He is now suggesting that Linde can increase earnings even in a macro slowdown since headwinds in Europe might be exceeded by growth in Asia and North America, being more optimistic about the margin progression in an inflationary environment. Heine also claims that Linde’s valuation is more reasonable than that of other defensive equities.
09. Dollar General Corporation (NYSE:DG)
Ako Capital’s Stake Value: $318.787 million
Percentage of Ako Capital’s 13F Portfolio: 4.46%
Number of Hedge Fund Holders as of Q1 2022: 53
Dollar General Corporation (NYSE:DG) was founded in 1939 and is based in Goodlettsville, Tennessee. Being a discount retailer, it provides various merchandise products in the Southern, Southwestern, Midwestern, and Eastern United States.
Dollar General Corporation (NYSE:DG) stock has gained a value of 25.54% in the past six months and 6.96% year to date. Ako Capital upped its stake in Dollar General Corporation (NYSE:DG) by 51% during the second quarter, holding 1.29 million shares worth $318.787 million, representing 4.46% of the total 13F portfolio.
Prior to the release of Dollar General’s Q2 earnings, on August 5, Truist analyst Scot Ciccarelli increased his price target on the stock from $227 to $262 and maintained a Hold rating on the shares. The analyst informs investors in a research note that Truist credit card data indicates that sales trends would “meaningfully” exceed the previous in-line projections. He also raises his Q2 comps forecast to 7% from 3%. Consumers may start using the Dollar General channel sooner than they did during the 2007–2008 recession, says Ciccarelli.
08. Alcon Inc. (NYSE:ALC)
Ako Capital’s Stake Value: $327.654 million
Percentage of Ako Capital’s 13F Portfolio: 4.58%
Number of Hedge Fund Holders as of Q1 2022: 24
Alcon Inc. (NYSE:ALC) was founded in 1945 and is headquartered in Geneva, Switzerland. Being an eye care company, it researches, develops, manufactures, distributes, and sells eye care products for eye care professionals and their patients worldwide.
The stock has lost 9.07% in the past six months and 20.17% year to date. During Q2, 2022, it has beaten the EPS estimate by $0.07 with an actual EPS of $0.63 but has missed the revenue estimate by $0.263 million with an actual revenue figure of $2.20 billion. Alcon Inc. (NYSE:ALC) was downgraded by Societe Generale analyst Delphine Le Louet from Buy to Hold.
Ako Capital stake in Alcon Inc. (NYSE:ALC) has declined by 13% during the second quarter, holding 4.69 million shares worth $327.654 million, representing 4.58% of the total 13F portfolio.
Just like Alphabet Inc. (NASDAQ:GOOG), Adobe Inc. (NASDAQ:ADBE), and NIKE, Inc. (NYSE:NKE), Alcon Inc. (NYSE:ALC) is one of the best stocks to buy, according to Nicolai Tangen’s hedge fund Ako Capital.
07. The Estée Lauder Companies Inc. (NYSE:EL)
Ako Capital’s Stake Value: $330.886 million
Percentage of Ako Capital’s 13F Portfolio: 4.63%
Number of Hedge Fund Holders as of Q1 2022: 46
The Estée Lauder Companies Inc. (NYSE:EL) was founded in 1946 and is headquartered in New York. It manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide.
For the Q2, 2022, with an EPS of $1.90, The Estée Lauder Companies Inc. (NYSE:EL) has beaten the estimate by $0.23 but with a revenue figure of $4.25 billion missed the estimate by $74.65 million. The stock has lost 26.99% value year to date as compared to the loss in value of S&P 500 of 12.29% for the same period. Ako Capital upped its stake in The Estée Lauder Companies Inc. (NYSE:EL) by 1% during the second quarter, holding 1.29 million shares worth $330.886 million, representing 4.63% of the total 13F portfolio.
Recently, Deutsche Bank analyst Steve Powers decreased his price target for The Estée Lauder Companies Inc. (NYSE:EL) from $274 to $266 and maintained a Hold rating on the shares.
06. Intercontinental Exchange, Inc. (NYSE:ICE)
Ako Capital’s Stake Value: $ 387.187million
Percentage of Ako Capital’s 13F Portfolio: 5.42%
Number of Hedge Fund Holders as of Q1 2022: 60
Intercontinental Exchange, Inc. (NYSE:ICE) was founded in 2000 and is headquartered in Atlanta, Georgia. The company’s dividend has seen growth in the past five years, with a five year’s growth rate of 18.65%. A quarterly dividend of $0.38 per share was also announced by Intercontinental Exchange, Inc. (NYSE:ICE) to shareholders with records as of September 15th, and the dividend is payable on September 30th. The stock has lost 15.33% in the past six months and 20.40% year to date.
On August 12, analyst Brian Bedell with Deutsche Bank increased his price target on ICE to $131 from $124 while maintaining a Buy recommendation for the shares. In a research note, Bedell informs investors that the company had a “strong” Q2 with an improved underlying sales trend expectation.
Ako Capital upped its stake in Intercontinental Exchange, Inc. (NYSE:ICE) by 13% during the second quarter, holding 4.117 million shares worth $387.187 million, representing 5.42% of the total 13F portfolio. In addition to Alphabet Inc. (NASDAQ:GOOG), Adobe Inc. (NASDAQ:ADBE), and NIKE, Inc. (NYSE:NKE), Ako Capital is bullish on Intercontinental Exchange, Inc. (NYSE:ICE).
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Disclosure: None. Top 10 Stock Picks of Nicolai Tangen’s Ako Capital is originally published on Insider Monkey.
