In this article, we will take a look at the top 10 stock picks of Osman Ozsan’s Deuterium Capital Management.
Deuterium Capital Management, LLC (DCM) is located in Florida. Osman Ozsan, fund manager and Chief Investment Officer at Deuterium Capital Management, established Deuterium Capital Management in 2018. Osman has had a long and successful career in investment banking, working at Barclays and UBS trading debt instruments, interest rate and currency derivatives, and other financial products. Before transferring to the Stern School of Business in New York to pursue graduate studies in finance, Osman first studied law at the University of Bristol. In December 2020, Deuterium Capital Management acquired Jupiter Asset Management’s Global Dynamic Allocation team for an undisclosed sum. Osman is currently serving as the investment manager of the Deuterium Global Dynamic Allocation Fund. In addition to his work on the GDA team, he oversees a private investment portfolio and a private equity pool for Deuterium Capital Management clients.
The investment strategy used by Deuterium Capital Management combines rigorous empirical analysis to influence investment choices that are founded on solid risk management and capital growth based on convex, asymmetrical protection against returns. The organization regularly innovates its methods and tactics and uses data science techniques extensively on large data sets. The fund’s filing for Q2 2022 showed managed 13F securities valued at $29.52 million with a top 10 holdings concentration of 67.46%. NVIDIA Corp. (NASDAQ:NVDA) is the largest holding of Deuterium Capital Management, with 34,200 shares held, comprising 17,56% of its 13F securities portfolio.
Deuterium Capital Management owns stocks in several well-known companies as of the end of the second quarter of 2022, such as Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), and UnitedHealth Group Incorporated (NYSE:UNH). The hedge fund also holds significant shares of Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Pfizer Inc. (NYSE:PFE).
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Our Methodology
These are the top 10 stock picks of Deuterium Capital, as of the end of the second quarter.
Stocks to Buy Today According to Osman Ozsan’s Deuterium Capital Management
10. Eli Lilly and Company (NYSE:LLY)
Deuterium Capital Management’s Stake Value: $0.603 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 2.04%
Number of Hedge Fund Holders as of Q1 2022: 53
Eli Lilly and Company (NYSE:LLY) was founded in 1876 and is headquartered in Indianapolis, Indiana. It discovers, develops, and markets human pharmaceuticals worldwide.
On August 5, Morgan Stanley analyst Terence Flynn stated that Eli Lilly and Company (NYSE:LLY) reported “mixed” second-quarter results, noting that 2022 EPS guidance had been lowered. However, he also noted that Mounjaro, a “key new product cycle and growth driver,” is “off to a strong start” and that the company’s revenue outlook had been maintained.
Deuterium Capital Management’s stake in Eli Lilly and Company (NYSE:LLY) during the second quarter remained the same as in the first quarter of 2022.
09. Johnson & Johnson (NYSE:JNJ)
Deuterium Capital Management’s Stake Value: $0.714 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 2.41%
Number of Hedge Fund Holders as of Q1 2022: 83
During the second quarter of 2022, Johnson & Johnson (NYSE:JNJ) had EPS valued at $2.59, beating estimates by $0.04, and reported a revenue figure of $24.02 billion, beating estimates by $195.47 million. The company has a gross profit margin of 67.95% based on the trailing twelve months’ data and has gained 0.74% in the past six months and lost 0.51% year to date.
On July 21, Johnson & Johnson (NYSE:JNJ) price target was decreased from $185 to $180 by UBS analyst Kevin Caliendo, who maintains a Neutral rating on the stock. The analyst informs investors in a research note that Johnson & Johnson (NYSE:JNJ) Q2 results reinforced the macro undercurrents, which include the significant swing in currency, the ongoing burden of inflation, and lagging elective procedure recovery. China will probably hurt MedTech, but Caliendo says that at 5% of J&J sales, the danger is “mostly manageable.”
Deuterium Capital Management’s stake in Johnson & Johnson (NYSE:JNJ) during the second quarter remained the same as in the first quarter of 2022.
08. UnitedHealth Group Incorporated (NYSE:UNH)
Deuterium Capital Management’s Stake Value: $0.897 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 3.03%
Number of Hedge Fund Holders as of Q1 2022: 103
During the second quarter of 2022, UnitedHealth Group Incorporated (NYSE:UNH) had EPS valued at $5.57, beating estimates by $0.36. The actual revenue figure of $80.33 billion also beat the estimates by $652.1 million. On August 10, following the “impressive” Q2 results, Mizuho analyst Ann Hynes increased his price target for UnitedHealth Group Incorporated (NYSE:UNH) to $600 from $550 and maintained a Buy rating on the shares. The analyst raised his expectations based on UnitedHealth Group Incorporated (NYSE:UNH) improved business outlook. Based on the trailing twelve months’ data, the stock has a gross profit margin of 24.01% and has gained 10.48% in the past six months and 7.06% year to date.
On August 10, Bloomberg reported that the U.S. Department of Justice argued in an antitrust trial that UnitedHealth’s (UNH) proposed acquisition of Change Healthcare (CHNG) should be stopped based on an internal audit of the company’s 2021 data practices. In the words of DOJ prosecutors, the audit of UnitedHealth’s data policy “showed that the business had no effective means of enforcement if or when data misuse is identified or reported.”
Deuterium Capital Management’s stake in UnitedHealth Group Incorporated (NYSE:UNH) during the second quarter remained the same as in the first quarter of 2022.
07. Palantir Technologies Inc. (NYSE:PLTR)
Deuterium Capital Management’s Stake Value: $0.980 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 3.31%
Number of Hedge Fund Holders as of Q1 2022: 36
Palantir Technologies Inc. (NYSE:PLTR) was incorporated in 2003 and is based in Denver, Colorado. It builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.
Deuterium Capital Management stake in Palantir Technologies Inc. (NYSE:PLTR) during the second quarter remained the same as in the first quarter of 2022.
On August 9, with an $8 price target, down from $11, Deutsche Bank analyst Brad Zelnick downgraded Palantir Technologies Inc. (NYSE:PLTR) from Hold to Sell. According to Zelnick, there is “nothing to hang our hat on” in the company’s Q2 report for investors. The analyst claims that given the company’s continued slowdown from better comps and decreased future visibility, the results provide little evidence to back up his earlier favourable thesis on the company’s government business. Palantir is “aggressively” spending in addition to having reduced revenue forecasts, which is raising its risk profile, according to Zelnick.
06. SPDR S&P 500 ETF Trust (NYSE:SPY)
Deuterium Capital Management’s Stake Value: $1.275 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 4.31%
Number of Hedge Fund Holders as of Q1 2022: 77
According to data produced by ETFGI, an independent research organization, exchange traded fund investors may have observed that the global ETF industry saw net inflows of more than $150 billion during the second quarter of 2022, which is less than half of what was taken in during the first quarter. Nearly $157 billion in ETFS/ETP inflows were made in the second quarter of 2022, which was far less than the $305.7 billion received in the first quarter. The space has generated $463.48 billion in new revenue so far this year. According to the same report by ETFGI, the three second quarter outflow leaders lost $18.98 billion together. The world’s largest exchange traded fund, the SPDR S&P 500 ETF Trust (NYSE:SPY), was on the third number in the list of outflow leaders as it lost $4.12 billion in the second quarter.
05. AbbVie Inc. (NYSE:ABBV)
Deuterium Capital Management’s Stake Value: $1.300 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 4.4%
Number of Hedge Fund Holders as of Q1 2022: 76
AbbVie Inc. (NYSE:ABBV) was incorporated in 2012 and is headquartered in North Chicago, Illinois. It discovers, develops, manufactures, and sells pharmaceuticals worldwide.
On August 1, Atlantic Equities analyst Steve Chesney downgraded AbbVie Inc. (NYSE:ABBV) to Neutral from Overweight with a price target of $162, down from $178. The analyst says “incremental weakness” across the company’s core franchises hints at a slowing pace of upward estimate revisions. The stock is a new addition to Deuterium Capital Management’s portfolio, with a total stake value of $1.3 million (4.4% of the portfolio).
04. Microsoft Corporation (NASDAQ:MSFT)
Deuterium Capital Management’s Stake Value: $1.618 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 5.48%
Number of Hedge Fund Holders as of Q1 2022: 259
Deuterium Capital Management’s stake in Microsoft Corporation (NASDAQ:MSFT) during the second quarter remained the same as in the first quarter of 2022.
On July 27, analyst Brad Zelnick of Deutsche Bank decreased his $350 price target for Microsoft Corporation (NASDAQ:MSFT) to $330 while maintaining a Buy rating for the stock. Zelnick informs investors in a research note that although macro pressures that were fully anticipated by investors nevertheless had an impact on the company’s fiscal Q4 results, they were better than feared. Aside from currency, the analyst claims that lower PC supply/demand dynamics in May and June as well as weaker consumer demand had the greatest influence on results.
03. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Deuterium Capital Management’s Stake Value: $3.652 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 12.37%
Number of Hedge Fund Holders as of Q1 2022: 65
Intuitive Surgical, Inc. (NASDAQ:ISRG) was incorporated in 1995 and is headquartered in Sunnyvale, California. It develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally.
On July 22, Truist analyst Richard Newitter lowered the firm’s price target on Intuitive Surgical to $255 from $270 and keeps a Buy rating on the shares. According to the analyst’s research note to investors, the company’s Q2 procedure growth outperformance was offset by weak systems in the face of declining trade-in opportunities and a softening cap-ex expenditure environment. The most significant longer-term driver of system demand, according to Newitter, is procedure growth, which is still growing.
02. Apple Inc. (NASDAQ:AAPL)
Deuterium Capital Management’s Stake Value: $3.691 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 12.5%
Number of Hedge Fund Holders as of Q1 2022: 131
On July 29, Evercore ISI analyst Amit Daryanani raised his price target on Apple to $185 from $180. He keeps an Outperform rating on the shares after the company reported June quarter results which were well ahead of Street fears, given worries around consumer demand.
The stock has a gross profit margin of 43.31% and has lost 1.67% in the past six months and 7.02% year to date. Deuterium Capital Management’s stake in Apple Inc. (NASDAQ:AAPL) during the second quarter remained the same as in the first quarter of 2022.
01. NVIDIA Corporation (NASDAQ:NVDA)
Deuterium Capital Management’s Stake Value: $5.184 million
Percentage of Deuterium Capital Management’s 13F Portfolio: 17.56%
Number of Hedge Fund Holders as of Q1 2022: 102
NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. The company provides graphics, computing, and networking solutions in the United States, Taiwan, China, and internationally. The company’s products are used in gaming, professional visualization, data center, and automotive markets.
Deuterium Capital Management’s stake in the technology company NVIDIA Corporation (NASDAQ:NVDA) during the second quarter remained the same as in the first quarter of 2022.
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Disclosure: None. Top 10 Stock Picks of Osman Ozsan’s Deuterium Capital Management is originally published on Insider Monkey.
