In this article, we will take a look at the top 10 stock picks of Ryan Caldwell’s Chiron Investment.
Ryan Caldwell is the Managing Director at FS Investments and the Chief Investment Officer of Chiron Investment Management. Mr. Caldwell co-founded his hedge fund Chiron Investment Management in 2015, and then in 2020 when FS Investments acquired the company, he joined FS Investments as Managing Director. Before his career at FS Investments, Mr. Caldwell earned recognition for his time at Waddell & Reed where he co-managed funds, including the Ivy Asset Strategy. The Ivy Asset Strategy went up from $250 million to $40 billion in assets under management during Mr. Caldwell’s tenure. He has also served as a Director to Delta Topco Group and a board advisor to Legendary Entertainment. Mr. Caldwell holds a bachelor’s degree in Business Administration, BBA, from Texas State University.
Chiron Investment Management was founded by Ryan Caldwell and Enrico Gaglioti in 2015. The company had two headquarters, in New York and Kansas City.
Among the top holdings of Chiron Investment Management as of the third quarter include Netflix, Inc. (NASDAQ:NFLX), CVS Health Corporation (NYSE:CVS), and Constellation Brands, Inc. (NYSE:STZ). Mr. Caldwell has increased his stakes in these stocks. Mr. Caldwell manages over $631.93 million in 13F securities through Chiron Investment Management as of this September.
Our Methodology
With this context in mind, here are the top 10 stock picks of Ryan Caldwell’s Chiron Investment. These were ranked according to the investment portfolio of Chiron Investment Management at the end of the third quarter of 2021. We also included the hedge fund sentiment and analyst rating for each stock to aid our readers in making informed investment decisions.
Top 10 Stock Picks of Ryan Caldwell’s Chiron Investment
10. Nexstar Media Group, Inc. (NASDAQ:NXST)
Stake Value of Chiron Investment Management: $18,170,000
Percentage of Chiron Investment Management’s 13F Portfolio: 2.87%
Number of Hedge Fund Holders: 38
Nexstar Media Group, Inc. (NASDAQ:NXST) operates as a television broadcasting and digital media company that focuses on the acquisition, development, and operation of television stations and interactive community websites and digital media services in the United States. The company was founded in 1996 and is headquartered in Irving, Texas.
On November 3rd, Loop Capital analyst Alan Gould raised his price target on Nexstar Media Group, Inc. (NASDAQ:NXST) to $200 from $175 and maintained a Buy rating on the company’s shares in light of its third-quarter earnings for 2021.
By the end of the third quarter of 2021, 38 hedge funds held stakes in Nexstar Media Group, Inc. (NASDAQ:NXST), worth approximately $874 million. This is compared to 34 positions in the second quarter, with total stakes amounting to $927.86 million.
Here is what Richie Capital Group has to say about Nexstar Media Group, Inc. (NASDAQ:NXST) in their first-quarter 2021 investor letter:
“Nexstar Media Group (NXST – up 28.9%) – The television broadcasting and digital media company reported strong Q4 earnings with revenue growing 25% over the year prior. The company set records across every key financial metric and exceeded management outlook. For the full year, the company boosted free cash flow by 191% partly as a result of the full integration of their Tribune Media acquisition. The company still trades at an attractive valuation and offers a 17% FCF yield. The Supreme Court’s recent ruling allowing the FCC to loosen local media ownership restrictions will support more consolidation within the industry. This is a positive for NXST who is well positioned to acquire strategic assets. You can find our original investment thesis here.”
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Stake Value of Chiron Investment Management: $19,459,000
Percentage of Chiron Investment Management’s 13F Portfolio: 3.07%
Number of Hedge Fund Holders: 65
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through two segments, Computing & Graphics, and Enterprise, Embedded, and Semi-Custom. The company was founded in 1969 in Santa Clara, California, and serves worldwide.
Advanced Micro Devices, Inc. (NASDAQ:AMD) posted its third-quarter earnings this September and registered an EPS of $0.73, beating estimates by $0.07. The company’s revenue for the quarter was reported to be $4.31 billion, up 53.98% year over year.
Out of the 867 hedge funds in Insider Monkey’s database, 65 held stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) by the end of the third quarter of 2021. The value of these stakes was more than $5.25 billion. This is compared to 63 positions in the prior quarter, with stakes of $4.61 billion.
This November, Wedbush analyst Matt Bryson raised his price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $165 from $140 and kept an Outperform rating on the shares.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a new addition to Chiron Investment Management’s 13F portfolio as of the third quarter of 2021. Other stocks that are among the top picks of the fund are Netflix, Inc. (NASDAQ:NFLX), CVS Health Corporation (NYSE:CVS), and Constellation Brands, Inc. (NYSE:STZ).
8. AGCO Corporation (NYSE:AGCO)
Stake Value of Chiron Investment Management: $21,369,000
Percentage of Chiron Investment Management’s 13F Portfolio: 3.38%
Number of Hedge Fund Holders: 24
AGCO Corporation (NYSE:AGCO) manufactures and distributes agricultural equipment and related replacement parts worldwide. This September, AGCO Corporation (NYSE:AGCO) announced that it has acquired Farm Robotics and Automation S.L., which is a precision livestock farming company. The company was founded in 1990 and is headquartered in Duluth, Georgia.
By the end of the third quarter of 2021, 24 hedge funds, out of the 867 being tracked by us at Insider Monkey, held stakes worth $332.49 million in the company.
AGCO Corporation (NYSE:AGCO) reported earnings per share of $2.41, beating EPS estimates by $0.56, for the third quarter of 2021. The company’s revenue grew by 9.11% year over year and came in at $2.73 billion, up from $2.50 billion.
7. Raytheon Technologies Corp (NYSE:RTX)
Stake Value of Chiron Investment Management: $21,591,000
Percentage of Chiron Investment Management’s 13F Portfolio: 3.41%
Number of Hedge Fund Holders: 48
Raytheon Technologies Corp (NYSE:RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government clients all over the world. It operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. On November 19th, Raytheon Missiles & Defense was selected by the Missile Defense Agency for the development and testing of the first interceptor which is designed to beat hypersonic threats. The company is headquartered in Waltham, Massachusetts.
By the end of the third quarter, 48 hedge funds had Raytheon Technologies Corp (NYSE:RTX) among their 13F holdings. The total stake of these funds in the company was more than $2.25 billion. Comparing this to the second quarter of 2021, the company was a part of 53 hedge fund portfolios, with their stakes totaling $2.11 billion.
ClearBridge Investments, an investment management firm, published its “Large Cap Value Strategy” second quarter 2021 investor letter, in which it shared it mentioned Raytheon Technologies Corp (NYSE:RTX). Here’s what they had to say:
“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.”
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
Stake Value of Chiron Investment Management: $24,797,000
Percentage of Chiron Investment Management’s 13F Portfolio: 3.92%
Number of Hedge Fund Holders: 94
Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and services worldwide. This November, the company announced that it will build a plant in North Carolina. The manufacturing facility is being built on a $192.5 million contract with the U.S. government and the U.S. Department of Health and Human Services for the production of laboratory pipette tips. The site is expected to create 150 to 200 jobs in manufacturing, engineering, and business operations.
On October 28, 2021, Baird analyst Catherine Ramsey Schulte raised the price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $657 from $635 and reiterated an Outperform rating on the shares.
The hedge fund sentiment for Thermo Fisher Scientific Inc. (NYSE:TMO) can be observed to be positive. Insider Monkey was able to identify 94 hedge funds that held stakes in Thermo Fisher Scientific Inc. (NYSE:TMO) by the end of the third quarter of 2021. The total value of these stakes came in at $8.2 billion. This is compared to 87 positions in the prior quarter, with stakes amounting to $7.39 billion.
Just like Advanced Micro Devices, Inc. (NASDAQ:AMD), Thermo Fisher Scientific Inc. (NYSE:TMO) is also a new stock that gained the attention of Chiron Investment Management in the third quarter of 2021. However, the hedge fund’s investment portfolio is dominated by Netflix, Inc. (NASDAQ:NFLX), CVS Health Corporation (NYSE:CVS), and Constellation Brands, Inc. (NYSE:STZ).
Here is what L1 Capital has to say about Thermo Fisher Scientific Inc. (NYSE:TMO) in its third-quarter 2021 investor letter:
“Included in these adjustments, in early July 2021, we divested our remaining small investment in Thermo Fisher Scientific (Thermo Fisher), the world leader in the provision of equipment, consumables, and services to the Life Sciences industry. Thermo Fisher has benefited from elevated demand for its products and services associated with COVID-19 and we sold our residual investment at a gain of more than 70% compared to our average investment cost. Thermo Fisher subsequently held an Investor Day and positively surprised many people, including us, with very strong medium-term growth targets, notwithstanding a headwind from normalisation of COVID-19-related business. Thermo Fisher is a high-quality business and remains on our ‘Bench’ for potential reinvestment.”
5. Philip Morris International Inc. (NYSE:PM)
Stake Value of Chiron Investment Management: $30,378,000
Percentage of Chiron Investment Management’s 13F Portfolio: 4.8%
Number of Hedge Fund Holders: 48
Philip Morris International Inc. (NYSE:PM) manufactures and sells cigarettes, various nicotine-containing products, smoke-free products, and related electronic devices and accessories. This October, it was reported by Philip Morris International Inc. (NYSE:PM) that despite the semi-conductor shortage that has resulted in low growth rates for IQOS device users throughout the third quarter of 2021, and is expected to persist during the first half of 2022, the company is still optimistic about achieving its 2021-2023 growth targets.
By the end of the third quarter of 2021, Insider Monkey was able to identify 48 hedge funds that held a stake in Philip Morris International Inc. (NYSE:PM). The total value of these stakes was $5.92 billion.
For the third quarter of 2021, Philip Morris International Inc. (NYSE:PM) generated revenues of up to $8.12 billion, up 9.08% year over year, beating estimates by $175.15 million. The company’s earnings per share for the quarter were reported at $1.58, beating EPS estimates by $0.02.
Broyhill Asset Management, an investment management firm, published its second-quarter 2021 investor letter in which they gave their take on whether or not to invest in Philip Morris International Inc. (NYSE:PM). Here’s what they said:
“Philip Morris (PM) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 23%. We shared our thoughts on these regulations during the quarter, which are available here.
‘PM Valuation. PM is up ~ 15% YTD and would have the most to gain under a nicotine cap. A cap would likely accelerate conversion to iQOS, which is 100% incremental for PM (PM also has zero exposure to combustible cigarettes in the U.S. and licenses its IQOS product for MO to distribute domestically). As such, the decline in PM was much more muted, with the stock hitting new 52 week highs a day after the Biden headline, driven by yesterday’s earnings release. It didn’t take long for investors to shift their attention back to fundamentals and the fundamentals here are best in class. In short, results beat estimates across the board (a recurring theme here), and management raised guidance for the full year (another recurring theme). IQOS continued to deliver impressive growth, recording continued market share gains on the heels of continued user acquisition growth, up 1.5M to 19.1M total users. Importantly, IQOS now represents nearly 30% of PM net revenues (management expects “smoke-free” products to represent more than half of their business by 2025, which should make the ESG folks happy), which is driving top-line growth and margin expansion. Hard to believe that they have created a product with higher margins than combustible cigarettes!! We expect PM operating margins to increase by 100bps – 200bps annually as IQOS continues to gain share. The stock trades at ~ 15x today or 2/3 of the market’s multiple for a business likely to generate $35B in cash flow – or 25% of the market cap – in just the next three years. Over the last decade, shares have traded at an average multiple of 18x and within a range of ~ 14x – 22x (+/-1 standard deviation). The stock yields 5.1% at the current price, and we expect management to resume share purchases in the back half of this year.’”
4. Constellation Brands, Inc. (NYSE:STZ)
Stake Value of Chiron Investment Management: $30,781,000
Percentage of Chiron Investment Management’s 13F Portfolio: 4.87%
Number of Hedge Fund Holders: 53
Constellation Brands, Inc. (NYSE:STZ) produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company was founded in 1945 and is headquartered in Victor, New York.
Insider Monkey was able to identify 53 hedge funds, out of 867, that had a stake in Constellation Brands, Inc. (NYSE:STZ) by the end of the third quarter of 2021. The value of these stakes was $1.71 billion, up from $1.60 billion in the prior quarter when 50 hedge funds held a stake in the company.
On October 13th, HSBC analyst Carlos Laboy upgraded Constellation Brands, Inc. (NYSE:STZ) to Buy from Hold and gave it a $262 price target.
3. LPL Financial Holdings Inc (NASDAQ:LPLA)
Stake Value of Chiron Investment Management: $31,063,000
Percentage of Chiron Investment Management’s 13F Portfolio: 4.91%
Number of Hedge Fund Holders: 37
LPL Financial Holdings Inc. (NASDAQ:LPLA) provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and business development companies.
This November, Citi analyst William Katz raised his price target on LPL Financial Holdings Inc. (NASDAQ:LPLA) to $240 from $233 and reiterated a Buy rating on the shares.
We were able to identify 37 hedge fund positions for LPL Financial Holdings Inc. (NASDAQ:LPLA) by the end of the third quarter of 2021.
Carillon Tower Advisers, an investment management firm, shared their stance on LPL Financial Holdings Inc. (NASDAQ:LPLA) in their “Carillon Eagle Mid Cap Growth Fund” third quarter 2021 investor letter. Here’s what they had to say:
“LPL Financial is an independent broker-dealer that offers technology, brokerage, and investment advisory services to financial professionals and financial institutions. The firm contributed to performance notably in the quarter due to a combination of accelerating net new asset growth, better than expected asset retention at newly acquired Waddell & Reed, and improved visibility on cash income. The move higher in Treasury yields also provided an additional boost for the firm’s shares at the end of the quarter.”
2. CVS Health Corporation (NYSE:CVS)
Stake Value of Chiron Investment Management: $32,077,000
Percentage of Chiron Investment Management’s 13F Portfolio: 5.07%
Number of Hedge Fund Holders: 61
CVS Health Corporation (NYSE:CVS) provides health services in the United States. The company operates through four segments, namely, Pharmacy Services, Retail/LTC, Health Care Benefits, and Corporate/Other.
This November, JPMorgan analyst Lisa Gill raised her price target on CVS Health Corporation (NYSE:CVS) to $115 from $107 and kept an Overweight rating on the shares, in light of “strong” third-quarter earnings.
For the third quarter of 2021, CVS Health Corporation (NYSE:CVS) registered an EPS of $1.97, beating estimates by $0.18. The company’s revenue for the quarter was $73.79 billion, up from $67.06 billion, which shows a year-over-year growth of 10.05%.
Insider Monkey’s research was able to spot CVS Health Corporation (NYSE:CVS) on 61 hedge fund portfolios by the end of the third quarter of 2021. The hedge funds’ stakes in the company were more than $1.06 billion.
ClearBridge Investments published its “Sustainability Leaders Strategy” second quarter 2021 investor letter, in which the firm mentioned CVS Health Corporation (NYSE:CVS). Here’s what the experts at ClearBridge had to say:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector.CVS Health saw strength in its pharmacy benefits manager business as well as its managed care business, Aetna, helping to confirm our positive view of CVS’s repositioning of its business model from a dispensary model to a service model. With CVS store-based health care services offering patients better convenience, encouraging better health care compliance and ultimately lower costs, we believe the company is at the forefront of a changing mindset in the health care services sector.”
1. Netflix, Inc. (NASDAQ:NFLX)
Stake Value of Chiron Investment Management: $33,008,000
Percentage of Chiron Investment Management’s 13F Portfolio: 5.22%
Number of Hedge Fund Holders: 106
Netflix, Inc. (NASDAQ:NFLX) is an entertainment provider, serving worldwide. The company offers TV series, documentaries, and feature films across various genres and languages. This November, the company announced that it is planning on acquiring Scanline VFX, which is a company renowned for its “complex, photo-realistic effects and expertise in virtual production.” Netflix, Inc. (NASDAQ:NFLX) was founded in 1997 and is headquartered in California.
On November 15th, KeyBanc analyst Justin Patterson raised his price target on Netflix, Inc. (NASDAQ:NFLX) to $725 from $690 and reiterated an Overweight rating on the shares.
By the end of the third quarter of 2021, 106 hedge funds held stakes in Netflix, Inc. (NASDAQ:NFLX) worth $14.75 billion. This is compared to 113 positions in the second quarter, with stakes of $13.21 billion.
Ensemble Capital, an investment management firm, mentioned Netflix, Inc. (NASDAQ:NFLX) in its third-quarter 2021 investor letter. Here’s what they had to say:
“Netflix stock had a disappointing first half of 2021 performance, treading water while the S&P 500 rallied, after a very strong 67% return in 2020. It benefited from the global pandemic in 2020, signing on 36.6 million new subscribers vs the typical 25 million or so it typically does. Total subscribers exceeded 200 million, up 22% over the previous year. However, in the first half of 2021, new subscriber additions slowed substantially, totaling only 5.5 million due to slower new content additions impacted by production delays, a resumption of outdoor activity as people everywhere adjusted to living with COVID, and the impact of a “pull-forward effect” on subscriber growth in last year’s very strong results. The third quarter saw new content velocity start to pick up, which is usually what drives new subscribers to the service, with expectations of an even stronger content slate going into the final quarter of the year, causing the stock to increase 15% in the quarter.”
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Disclosure. None. Top 10 Stock Picks of Ryan Caldwell’s Chiron Investment is originally published on Insider Monkey.
