In this article, we are going to discuss the top 10 stock picks of Seth Rosen’s Nitorum Capital.
Seth Rosen is the founder and Managing Director of Nitorum Capital. Mr. Rosen graduated Summa Cum Laude from Boston University School of Management in 1992 with a Bachelor’s in Business Administration and received his MBA from Columbia Business School in 1998. He started his career as an Associate in National Westminster Bank Plc’s corporate banking division and later became an Analyst at New York-based Fusion Capital Management.
In 1999, Seth Rosen joined Eminence Capital, LLC as a Senior Analyst and was promoted to Portfolio Manager in 2002. Mr. Rosen worked at Eminence Capital till 2014 and founded Nitorum Capital in the same year.
Seth Rosen founded Nitorum Capital in New York with a long/short strategy. The fund has discretionary assets under the management of $4.66 billion. According to the third-quarter 2021 13F filings, Nitorum Capital’s managed securities are worth $2.1 billion.
Dell Technologies Inc. (NYSE:DELL), Fiserv, Inc. (NASDAQ:FISV) and eBay Inc. (NASDAQ:EBAY) are some of Nitorum Capital’s notable holdings.
Photo by Joshua Mayo on Unsplash
Our Methodology
The stocks were picked from the third-quarter regulatory filings of Seth Rosen’s Nitorum Capital.
Top 10 Stock Picks of Seth Rosen’s Nitorum Capital
10. Dell Technologies Inc. (NYSE:DELL)
Nitorum Capital’s Stake Value: $68.36 million
Percentage of Nitorum Capital’s 13F Portfolio: 3.25%
Number of Hedge Fund Holders: 60
Dell Technologies Inc. is a Texas-based tech company that focuses on information technology by offering products and related services like software, computers, network servers, and security services. Dell is ranked 28th on Fortune 500 rankings as of 2021.
Third Point Management mentioned Dell Technologies Inc. in its third-quarter investor letter. Here is what the firm said:
“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”
9. Sealed Air Corporation (NYSE:SEE)
Nitorum Capital’s Stake Value: $72.927 million
Percentage of Nitorum Capital’s 13F Portfolio: 3.46%
Number of Hedge Fund Holders: 33
Sealed Air Corporation (NYSE:SEE) is a North Carolina-based conglomerate and is best known for its packaging products such as Bubble Wrap and Cryovac. The company has more than 200 locations and 16,500 employees.
According to third-quarter 2021 13F filings, Nitorum Capital owned 1.3 million shares of Sealed Air Corporation worth $72.927 million, making up 3.46% of the fund’s portfolio.
On December 17, Jefferies analyst Philip Ng raised the price target of Sealed Air Corporation to $78 up from $74 and kept a Buy rating on the company’s shares. Moreover, the analyst sees room for multiple expansion at the company.
8. Fiserv, Inc. (NASDAQ:FISV)
Nitorum Capital’s Stake Value: $73.675 million
Percentage of Nitorum Capital’s 13F Portfolio: 3.5%
Number of Hedge Fund Holders: 65
Fiserv, Inc. is an American company that provides financial services and technology. It was founded in 1984 and the company acquired NetPay in 2021 to improve its payment facilitation.
On December 18, Fiserv, Inc. COO Guy Chiarello sold 43,292 shares of the company at $104.81 per share, bringing the total sale to about $4.5 million.
As of the third quarter of 2021, Natixis Global Asset Management owns the largest stake in Fiserv, Inc. with 16.28 million shares worth $1.766 billion, representing 2.81% of Natixis’ portfolio. The company increased its holdings by 35% in the company in the same quarter.
Fiserv, Inc. was mentioned by Madison Funds in its first quarter 2021 investor letter. Here is what it said:
“This quarter we researched several new stock ideas, but because of high prices, acted on only one. Thus, a new portfolio name is Fiserv, with corporate headquarters in Brookfield, WI, just down I-94 from us. Fiserv is a technology company serving financial institutions (“FIs”) and retail merchants. It has two main business lines. In the first, it’s a market leader in outsourced IT solutions for banks and credit unions, online and mobile banking technology, digital money movement solutions, and card issuing services. Fiserv’s second core business is merchant acquiring and processing, where it’s a leader in providing a variety of solutions to help all types of merchants accept digital payments. They entered this business through the acquisition of First Data in 2019.
Within the first business, Fiserv’s software is critical to the daily operations of FI clients. Their solutions not only provide the vital central processing systems, but also enable services such as electronic bill pay and digital money transfers at both large institutions and local banks and credit unions alike. As such, it is an incredibly sticky business that is resilient through economic cycles. On the merchant acquiring side of Fiserv, they process trillions of dollars annually for millions of merchant clients. Their solutions cater to all types of merchants and optimize for seamless acceptance and high authorization rates while also limiting fraud. Similar to the IT outsourcing business, Fiserv’s merchant solutions are critical to their customers’ daily operations. Furthermore, we are especially encouraged by their investments in new solutions, particularly Clover and Carat. Clover is a small and midsize business merchant acquiring platform and Carat is an e-commerce acquiring platform. Both these products hit the bullseye in terms of the way people are interacting with the retail industry, and both are growing at above market rates, which we believe will sustain into the future… (Click here to see the full text)
7. First Citizens BancShares, Inc. (NASDAQ:FCNCA)
Nitorum Capital’s Stake Value: $76.96 million
Percentage of Nitorum Capital’s 13F Portfolio: 3.66%
Number of Hedge Fund Holders: 24
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a bank holding company with close to 600 branches in 19 states. First Citizens Bank is First Citizens BancShares, Inc.’s primary subsidiary which is also one of the largest banks of the United States. Most of the company’s branches are in North and South Carolina.
Oakmark Funds mentioned First Citizens BancShares, Inc. in its investor letter for the first quarter of 2021. Here is what the letter said:
“We bought two new positions in the Fund this quarter: Humana and First Citizens BancShares. First Citizens BancShares is a well-run, undervalued community bank that we believe is creating significant shareholder value through a nicely timed merger with CIT Group. Note that we consider our purchases of the A & B share classes of First Citizens and of CIT Group to be investments in the same entity.”
6. Alight, Inc. (NYSE:ALIT)
Nitorum Capital’s Stake Value: $83.35 million
Percentage of Nitorum Capital’s 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 42
Alight, Inc. (NYSE:ALIT) is an Illinois-based firm that provides a range of digital human capital and various business solutions via cloud. Employer Solutions is the software designed by the company through which organizations can manage their workforce digitally. The professional services by the company are cloud-related consultation and deployment.
5. Webster Financial Corporation (NYSE:WBS)
Nitorum Capital’s Stake Value: $87.28 million
Percentage of Nitorum Capital’s 13F Portfolio: 4.15%
Number of Hedge Fund Holders: 20
Webster Financial Corporation (NYSE:WBS) is a Connecticut-based company with more than 170 branches and close to 320 ATMs in several states across the United States. The bank has 3,346 full-time employees and a market cap of $4.886 billion.
In the third quarter of 2021, Nitorum Capital’ Webster Financial Corporation held the second position in the company’s stakes with 1.6 million shares worth $87.28 million. The top position was held by Pzena Investment Management with 2.27 million shares worth $123.67 million.
4. Cannae Holdings, Inc. (NYSE:CNNE)
Nitorum Capital’s Stake Value: $106.26 million
Percentage of Nitorum Capital’s 13F Portfolio: 5.05%
Number of Hedge Fund Holders: 35
Cannae Holdings, Inc. (NYSE:CNNE) is a holding company headquartered in Las Vegas, Nevada. The principal investment firm mostly invests in restaurants, health care services, and financial services among a few others. Moreover, it takes both majority and minority stakes.
On December 21, RBC Capital analyst Kenneth Lee initiated coverage of Cannae Holdings, Inc. with a $42 price target and an Outperform rating.
Cannae Holdings, Inc. was mentioned by Madison Funds in its third-quarter 2021 investor letter. Here is what the firm said:
“Our investment in Cannae was raised to a more typical position size. The underlying business continue to perform well and as we’ve gotten to know the management teams better over the past year, our confidence in their companies’ futures have increased, even as the market continues to undervalue both stocks. Cannae shares trade a large discount to its net asset value as computed using the market prices of its holdings.”
3. eBay Inc. (NASDAQ:EBAY)
Nitorum Capital’s Stake Value: $122.92 million
Percentage of Nitorum Capital’s 13F Portfolio: 5.84%
Number of Hedge Fund Holders: 49
eBay Inc. is a California-based multinational e-commerce company that provides customer-to-customer and retail sales services through its website. Auction Co., iBazar, GittiGidiyor, G-Market, and Half.com are some of the company’s subsidiaries.
UBS analyst Kunal Madhukar upgraded eBay Inc. from Neutral to Buy on December 2. The analyst set a price target of $80 for the company.
2. Cerner Corporation (NASDAQ:CERN)
Nitorum Capital’s Stake Value: $128.97 million
Percentage of Nitorum Capital’s 13F Portfolio: 6.13%
Number of Hedge Fund Holders: 36
Cerner Corporation (NASDAQ:CERN) is an American health information technology company founded in 1979. On December 20, Oracle Corporation (NYSE:ORCL) purchased the company for roughly $28.3 billion.
According to the third-quarter 2021 13F filings, Nitorum Capital owned 1.8 million shares of Cerner Corporation worth $128.97 million, making up 6.13% of the fund’s portfolio. The largest stake in the company was owned by Starboard Value LP with 3.2 million shares worth $228.91 million.
After Cerner Corporation’s acquisition by Oracle Corporation for $95 per share, Edward Jones analyst Ashtyn Evans downgraded the company’s shares from Buy to Hold on December 21.
Cooper Investors mentioned Cerner Corporation in their first-quarter 2021 investor letter. Here is what it said:
“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilise balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”
1. Churchill Downs Incorporated (NASDAQ:CHDN)
Nitorum Capital’s Stake Value: $195.83 million
Percentage of Nitorum Capital’s 13F Portfolio: 9.31%
Number of Hedge Fund Holders: 29
Churchill Downs Incorporated (NASDAQ:CHDN) is Nitorum Capital’s largest holding with a concentration of 9.31% of the fund’s total portfolio. The company started with a single horse racing track and now it is an online gaming, gaming, entertainment, and racing company.
You can also take a peek at 10 Top Stock Picks of Ray Dalio and 10 Artificial Intelligence Stocks in Cathie Wood’s Portfolio.
Follow Insider Monkey on Twitter
Suggested articles:
- 10 High Dividend Stocks to Buy According to Billionaire Lee Cooperman
- 10 Dividend Stocks to Buy According to Billionaire Jim Simons’ Hedge Fund
- 10 Top Stock Picks of Mario Gabelli
originally published on Insider Monkey.
