Top 10 Stock Picks of Peter Avellone’s Cartenna Capital

Published September 29, 2021 at 11:34 am EDT Updated August 19, 2026 at 12:03 pm EDT

In this article, we discuss the top 10 stock picks of Peter Avellone’s Cartenna Capital based on Q2 holdings of the fund.

Peter Avellone founded Cartenna Capital in December 2019. He is the currently CIO at Cartenna Capital. Previously he worked for several multi-strategy businesses, including Millennium Management and Citadel. Peter Avellone also worked as the Portfolio Manager and Research Analyst at Point 72 Asset Management for six years.

Cartenna Capital’s 13F portfolio value as of the second quarter of 2021 stands at $349.74 million.

As of the second quarter, Cartenna Capital holds significant stakes in several companies including United Parcel Service, Inc. (NYSE: UPS), Mastercard Incorporated (NYSE: MA), and Raytheon Technologies Corporation (NYSE: RTX).

In United Parcel Service, Inc., Peter Avellone owns 48,600 shares worth $10.11 million. The investment covers 2.88% of the fund’s portfolio. On August 2, Credit Suisse analyst Brian Wright initiated coverage of United Parcel Service, Inc. with an “Outperform” rating and gave a price target of $240.

Based on the latest 13F holdings for the second quarter of 2021, Cartenna Capital owns 30,200 shares in Mastercard Incorporated, worth $11.03 million. The stock is a new arrival on Peter Avellone’s portfolio. On August 17, JPMorgan analyst Tien-Tsin Huang raised the price target on Mastercard Incorporated to $430 from $427 and kept an “Overweight” rating on the shares.

Cartenna Capital also has a $14.59 million stake in Raytheon Technologies Corporation. On August 11, Morgan Stanley analyst Kristine Liwag raised the price target on Raytheon Technologies Corporation to $110 from $97 and maintained an “Overweight” rating on the shares.

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Here are some of the stock picks of Peter Avellone’s Cartenna Capital. We picked these stocks from the Q2 portfolio of Avellone’s hedge fund.

Top Stock Picks of Peter Avellone’s Cartenna Capital

10. KBR, Inc. (NYSE: KBR)

Avellone’s Stake Value: $10,473,000

Percentage of Peter Avellone’s 13F Portfolio: 2.99%

Number of Hedge Fund Holders: 36

KBR, Inc. (NYSE: KBR) offers scientific, technological, and engineering solutions globally. It was founded in 1998, and it stands tenth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. KBR, Inc. shares have returned 48.97% to investors over the course of the past 12 months.

On August 31, PKN ORLEN awarded KBR, Inc. a feasibility study contract to assess plastics recycling projects in Central Europe using KBR’s Hydro-PRTSM technology. On August 23, Johnson Matthey, or JM, struck an alliance deal with KBR, Inc. to license the Formox Integrated UFC Technology. For higher-grade urea, the new method will make it simpler to generate UFC at a low cost.

Cartenna Capital holds 274,520 shares in KBR, Inc., worth over $10.47 million, representing 2.99% of their portfolio. In the second quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes in KBR, Inc., up from 31 the preceding quarter.

Like United Parcel Service, Inc., Mastercard Incorporated, and Raytheon Technologies Corporation, KBR, Inc. is one of the notable stocks gaining investors’ attention in 2021.

9. Mastercard Incorporated (NYSE: MA)

Avellone’s Stake Value: $11,026,000

Percentage of Peter Avellone’s 13F Portfolio: 3.15%

Number of Hedge Fund Holders: 156

Mastercard Incorporated is a technology firm, which provides transaction processing and other payment-related products and services. It was incorporated in 1966 and is placed ninth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Mastercard Incorporated currently has a $344.95 billion market capitalization.

On July 29, Mastercard Incorporated posted earnings for the second quarter of 2021. It reported earnings per share of $1.95, beating the estimates by $0.20. Revenue over the period was $4.5 billion, up 36.4% YoY, surpassing the expectations by $130 million.

The hedge fund managed by Peter Avellone holds 30,200 shares in Mastercard Incorporated, worth $11.03 million, representing 3.15% of their portfolio. Akre Capital Management is the most significant stakeholder in Mastercard Incorporated, with 5.87 million shares of the company worth $2.14 billion. Hedge fund sentiment increased for Mastercard Incorporated in the second quarter. Insider Monkey’s data shows that 156 elite hedge funds held stakes in the company in the second quarter of 2021, up from 151 funds a quarter earlier.

In addition to United Parcel Service, Inc., Mastercard Incorporated, and Raytheon Technologies Corporation, Dynatrace, Inc. (NYSE:DT) is one of the notable stocks gaining investors’ attention in 2021.

8. Allegion plc (NYSE: ALLE)

Avellone’s Stake Value: $11,870,000

Percentage of Peter Avellone’s 13F Portfolio: 3.39%

Number of Hedge Fund Holders: 37

Allegion plc (NYSE: ALLE) is a global manufacturer and distributor of mechanical and electrical security devices and systems. The company was founded in 2013, and it ranks eighth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Allegion plc (NYSE: ALLE) currently has a $12.97 billion market capitalization and was able to deliver a 45.41% return in the past 12 months.

On September 1, Allegion plc (NYSE: ALLE) declared a quarterly dividend of $0.36 per share, in line with the previous. On July 23, Barclays analyst Julian Mitchell raised the price target on Allegion plc (NYSE: ALLE) to EUR 176 from EUR 165 and kept an “Overweight” rating on the shares.

The hedge fund chaired by Peter Avellone holds 85,212 shares in Allegion plc (NYSE: ALLE), worth $11.87 million, representing 3.39% of their portfolio. In the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth in Allegion plc (NYSE: ALLE), up from 27 the preceding quarter.

7. Mohawk Industries, Inc. (NYSE: MHK)

Avellone’s Stake Value: $13,645,000

Percentage of Peter Avellone’s 13F Portfolio: 3.9%

Number of Hedge Fund Holders: 44

Mohawk Industries, Inc. (NYSE: MHK) creates, produces, sources, distributes, and promotes flooring materials for residential and commercial remodeling and new construction. It was incorporated in 1988 and is placed seventh on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.

On August 2, RBC Capital analyst Michael Dahl raised the price target on Mohawk Industries, Inc. to $170 from $154 and maintained an “Underperform” rating on the shares. On July 29, Mohawk Industries, Inc. posted earnings for the second quarter of 2021. It declared earnings per share of $4.45, beating the estimates by $0.76. Revenue for the second quarter of 2021 was $2.95 billion, up 43.9% YoY, surpassing the predictions by $200 million.

Cartenna Capital holds 71,000 shares in Mohawk Industries, Inc., worth $13.65 million, representing 3.9% of their portfolio. The company is also getting the attention of the smart money, as 44 hedge funds tracked by Insider Monkey reported owning stakes in Mohawk Industries, Inc. in the second quarter of 2021, up from 36 funds a quarter earlier.

Like United Parcel Service, Inc., Mastercard Incorporated, and Raytheon Technologies Corporation, Mohawk Industries, Inc. is one of the notable stocks gaining investors’ attention in 2021.

6. Amphenol Corporation (NYSE: APH)

Avellone’s Stake Value: $13,764,000

Percentage of Peter Avellone’s 13F Portfolio: 3.93%

Number of Hedge Fund Holders: 39

Amphenol Corporation (NYSE: APH) and its subsidiaries principally design, manufacture, and sell electrical, electronic, and fiber-optic connectors. The company was founded in 1932, and it stands sixth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.

On August 5, Amphenol Corporation declared a quarterly dividend of $0.145 per share, in line with the previous. While on August 3, Cowen analyst Joseph Giordano raised the price target on Amphenol Corporation to $80 from $75 and maintained an “Outperform” rating on the shares.

Peter Avellone’s Cartenna Capital holds 201,200 shares of Amphenol Corporation, worth $13.76 million. The hedge fund increased its stake in the firm by 249% in the second quarter of 2021. There were 39 hedge funds in our database that held stakes in Amphenol Corporation in the second quarter of 2021, compared to 42 funds in the first quarter of 2021.

In addition to United Parcel Service, Inc., Mastercard Incorporated, and Raytheon Technologies Corporation, Amphenol Corporation is one of the notable stocks gaining investors’ attention in 2021.

Richie Capital Group LLC, in its fourth–quarter 2020 investor letter, mentioned Amphenol Corporation. Here is what the fund said:

“Amphenol (APH – Up 18.7%) – In December, our high-speed, specialty connector manufacturer announced the acquisition of MTS Systems Corp for $1.7B to enhance their sensor products catalog. Having completed more than a dozen acquisitions since 2016, growth through acquisition is a key tenet of their business strategy and we view this transaction as business as usual. You can read more about our investment thesis for Amphenol here.”

5. General Dynamics Corporation (NYSE: GD)

Avellone’s Stake Value: $14,082,000
Percentage of Peter Avellone’s 13F Portfolio: 4.02%
Number of Hedge Fund Holders: 37

General Dynamics Corporation (NYSE: GD) is a publicly listed aerospace and military company based in the United States. It was founded in 1899 and is ranked fifth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Shares of General Dynamics Corporation are up 32.37% in the past 12 months.

On August 19, a $136.5 million ID/IQ contract was awarded to General Dynamics Information Technologies, part of General Dynamics Corporation, to consolidate all Tier 1 information technology. On July 29, Credit Suisse raised the price target on General Dynamics Corporation from $182 to $198 and maintained a “Neutral” rating on the shares.

The hedge fund chaired by Peter Avellone holds 74,800 shares in General Dynamics Corporation, worth $14.08 million. Hedge funds are loading up on General Dynamics Corporation, as Insider Monkey’s data shows that 37 hedge funds held a stake in the company in the second quarter of 2021, compared to 31 funds in the previous quarter.

Oakmark Funds, in its first-quarter 2021 investor letter, mentioned General Dynamics Corporation. Here is what the fund said:

“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”

4. Martin Marietta Materials, Inc. (NYSE: MLM)

Avellone’s Stake Value: $14,291,000
Percentage of Peter Avellone’s 13F Portfolio: 4.08%
Number of Hedge Fund Holders: 34

Martin Marietta Materials, Inc. (NYSE: MLM) is a natural resource-based building materials firm that sells aggregates and heavy construction materials. The company was incorporated in 1939 and is placed fourth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Martin Marietta Materials, Inc. shares have returned 79.32% to investors over the course of the past 12 months.

On August 31, Martin Marietta Materials, Inc. agreed to buy Ferrovial, S.A.’s (OTC: FRRVF) Southern Crushed Concrete operation in the United States for $140 million. On August 2, DA Davidson analyst Brent Thielman raised the price target on Martin Marietta Materials, Inc. to $400 from $350 but maintained a “Neutral” rating on the shares.

Martin Marietta Materials, Inc. is a new arrival on Peter Avellone’s portfolio, as his hedge fund owns about 40,620 shares of the company, worth $14.29 million. Robert Joseph Caruso’s Select Equity Group is Martin Marietta Materials, Inc.’s most significant stakeholder, with 3.09 million shares worth $1.09 billion.

3. Raytheon Technologies Corporation (NYSE: RTX)

Avellone’s Stake Value: $14,588,000
Percentage of Peter Avellone’s 13F Portfolio: 4.17%
Number of Hedge Fund Holders: 53

Raytheon Technologies Corporation is a defense and aerospace business that delivers products and services to commercial, military, and government clients worldwide. It was founded in 2020 and ranks third on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.

On August 13, The US Department of Defense awarded Raytheon Technologies Corporation a $960 million indefinite-delivery/indefinite-quantity (IDIQ) contract. On July 28, Raytheon Missiles and Defense, one of four business segments of Raytheon Technologies Corporation, was granted a $482.9 million modification to contract FA8675-21-C-0034 for Production Lot 35 of the Advanced Medium-Range Air-to-Air Missile (AMRAAM).

Cartenna Capital holds more than 171,000 shares in Raytheon Technologies Corporation, worth $14.59 million. This represents 4.17% of their portfolio. Raytheon Technologies Corporation saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 53 in the second quarter of 2021 compared to 58 positions in the previous quarter.

ClearBridge Investments, in its second-quarter 2021 investor letter, mentioned Raytheon Technologies Corporation. Here is what the fund has to say about Raytheon Technologies in its letter:

“Broader market leadership was a relative benefit for the ClearBridge Large Cap Value Strategy, which outperformed the Russell 1000 Value Index in the second quarter… Separately, Raytheon Technologies benefited from an improving health outlook that is contributing to a faster than anticipated recovery in air travel, which should drive stronger results for Raytheon’s commercial aerospace business.”

2. TE Connectivity Ltd. (NYSE: TEL)

Avellone’s Stake Value: $14,873,000
Percentage of Peter Avellone’s 13F Portfolio: 4.25%
Number of Hedge Fund Holders: 39

TE Connectivity Ltd. (NYSE: TEL) and its subsidiaries produce and market connectivity and sensor systems. It was incorporated in 2000 and stands second on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital.

On July 29, Truist analyst William Stein raised the price target on TE Connectivity Ltd. to $149 from $139 and maintained a “Hold” rating on the shares. On July 28, TE Connectivity Ltd. announced earnings for the third quarter of 2021. It reported earnings per share of $1.79, surpassing the estimates by $0.21. Revenue over the period was $3.8 billion, up 52.0% year over year, beating the analysts’ expectation by $70 million.

Cartenna Capital holds 110,000 shares in TE Connectivity Ltd., worth over $14.87 million, representing 4.25% of their portfolio. The stock is a new arrival on Peter Avellone’s portfolio. Harris Associates is a leading shareholder of TE Connectivity Ltd., with 9.38 million shares worth $1.27 million.

In its first quarter 2021 investor letter ClearBridge Investments, mentioned TE Connectivity Ltd.. Here is what the fund said:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included information technology (IT), where TE Connectivity performed well but trailed the sector in the first quarter after a strong 2020.”

1. Howmet Aerospace Inc. (NYSE: HWM)

Avellone’s Stake Value: $16,546,000
Percentage of Peter Avellone’s 13F Portfolio: 4.73%
Number of Hedge Fund Holders: 47

Howmet Aerospace Inc. (NYSE: HWM) is an international provider of sophisticated engineering solutions for the aerospace and transportation industries. Howmet Aerospace Inc. ranks first on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Howmet Aerospace Inc. shares have returned 79.92% to investors over the course of the past 12 months.

On August 19, Howmet Aerospace Inc. announced that it issued 3.000% notes due 2029, whose principal amount is $700 million. The proceeds will be used for general corporate purposes and to fund the purchase price for up to $600 million of outstanding 6.875% Notes due 2025. On August 4, Howmet Aerospace Inc. declared earnings for the second quarter of 2021. It posted earnings per share of $0.22, beating the estimates by $0.00. Revenue for the second quarter was $1.20 billion, down 4.63% YoY, missing the anticipation by $20.90 million.

Peter Avellone’s Cartenna Capital holds 480,000 shares in Howmet Aerospace Inc., worth $16.55 million, representing 4.73% of their portfolio. Cartenna Capital has increased its stake in the firm by 22% in the second quarter of 2021. Howmet Aerospace Inc. saw a decrease in hedge fund sentiment recently, as Insider Monkey’s data shows that 47 hedge funds held stake in the company in the second quarter of 2021, compared to 51 funds in the quarter earlier.

In its fourth-quarter 2020 investor letter, FPA Crescent Fund mentioned Howmet Aerospace Inc.. Here is what the fund said:

“Howmet saw its stock price decline by around two-thirds from their Q1 2020 highs. Howmet’s price increased about three times from its low and ended the year at its all-time high. The value of its necessary and large market share business did not fluctuate as much as its stock price.”

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