In this article, we discuss the top 10 stocks to invest in according to Kevin D. Eng’s Columbus Hill Capital Management.
Founded in 2006, Columbus Hill Capital Management is a New Jersey-based opportunistic investment management firm that seeks to achieve risk-adjusted returns by investing in equities with compelling growth and attractive valuations. Its founder, chief executive officer, and chief investment officer, Kevin D. Eng, holds a B.S. in Economics from The Wharton School of the University of Pennsylvania. Prior to forming Columbus Hill Capital Management, Kevin Eng served as a principal at Appaloosa Management, where he was employed from 1995 to 2003, and as a managing director at Duquesne Capital Management till 2006.
According to Columbus Hill Capital Management’s 13F filings for the third quarter of 2021, the fund manages more than $1.17 billion in investments, with its portfolio diversified across 9 sectors, of which the Consumer Discretionary sector is the largest.
As of the third quarter of 2021, Columbus Hill Capital Management holds stakes in some of the biggest companies, including Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), and Uber Technologies, Inc. (NYSE:UBER), among others discussed in more detail below.
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Our Methodology
With this context in mind, let us now analyze the top 10 stocks to invest in according to Kevin D. Eng’s Columbus Hill Capital Management. We made use of the investment firm’s 13F portfolio for the third quarter for this analysis, ranking the stocks based on the fund’s stake values.
Top 10 Stocks To Invest In According To Kevin D. Eng’s Columbus Hill Capital Management
10. The Boeing Company (NYSE:BA)
Columbus Hill Capital Management’s Stake Value: $30.45 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 2.59%
Number of Hedge Fund Holders: 59
One of the largest aerospace manufacturers worldwide, The Boeing Company (NYSE:BA) is a Chicago-based multinational corporation that manufactures airplanes, missiles, and satellites, among other aerospace and military equipment.
On October 21, RBC Capital analyst Ken Herbert initiated coverage of The Boeing Company with an Outperform rating and $275 price target.
According to the third quarter securities filings, Kevin Eng’s Columbus Hill Capital Management holds 138,484 shares of The Boeing Company. These shares are valued at approximately $30.45 million and account for 2.59% of the investment firm’s portfolio value.
Jim Simons’ Renaissance Technologies is one of the biggest stakeholders of The Boeing Company as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 59 funds were bullish on the company by the end of the June quarter, the same as the previous quarter.
9. CF Industries Holdings, Inc. (NYSE:CF)
Columbus Hill Capital Management’s Stake Value: $36 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 3.06%
Number of Hedge Fund Holders: 47
Founded in 1946 as the Central Farmers Fertilizer Company, CF Industries Holdings, Inc. (NYSE:CF) is an Illinois-based world leader in nitrogen fertilizer and a major producer of phosphate fertilizers and other products.
On November 5, BMO Capital analyst Joel Jackson raised his price target on CF Industries Holdings, Inc. to $70 from $63, and kept an Outperform rating on the shares of the company after its Q3 results.
Based on our Q3 data, Kevin Eng’s Columbus Hill Capital Management holds 645,249 shares of CF Industries Holdings, Inc.. These shares amount to more than $36 million and account for 3.06% of the hedge fund’s portfolio value.
Matthew Barrett of Glendon Capital Management is one of the biggest stakeholders of CF Industries Holdings, Inc. as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 47 funds were bullish on the company by the end of the June quarter, compared to 44 in the previous quarter.
Similar to Amazon.com, Inc., Meta Platforms, Inc., and Uber Technologies, Inc., CF Industries Holdings, Inc. is gaining the attention of hedge funds.
8. Shaw Communications Inc. (NYSE:SJR)
Columbus Hill Capital Management’s Stake Value: $43.39 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 3.69%
Number of Hedge Fund Holders: 23
Headquartered in Alberta, Canada, Shaw Communications Inc. (NYSE: SJR) is a leading telecommunications company that offers telephone, internet, television, and mobile services to its customers.
On November 8, RBC Capital analyst Drew McReynolds upgraded Shaw Communications Inc. to Outperform from Sector Perform with an unchanged price target of $32.27.
According to the third quarter securities filings, Columbus Hill Capital Management holds over 1.49 million shares of Shaw Communications Inc., amounting to more than $43.39 million in worth and representing 3.69% of the fund’s investment portfolio.
An increased number of hedge funds showed interest in Shaw Communications Inc. in the second quarter of 2021, as 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in the company in that quarter, worth roughly $697 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $384 million.
Out of the hedge funds being tracked by Insider Monkey, Seth Klarman’s Baupost Group is the leading shareholder in Shaw Communications Inc., with over 7.5 million shares worth more than $218.6 million.
7. Marriott International, Inc. (NASDAQ:MAR)
Columbus Hill Capital Management’s Stake Value: $44.28 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 3.76%
Number of Hedge Fund Holders: 49
Marriott International, Inc. (NASDAQ:MAR) is a Maryland-based multinational company that operates, franchises, and licenses lodging including hotel, residential, and timeshare properties. Encompassing a portfolio of roughly 7,800 properties under 30 leading brands, spanning 138 countries, the company has recently increased its activity in the Middle East.
Columbus Hill Capital Management owns 299,040 shares in Marriott International, Inc., amounting to $44.28 million, making up 3.76% of the fund’s 13F portfolio for the third quarter of 2021. Of the hedge funds tracked by Insider Monkey, 49 funds reported owning stakes in Marriott International, Inc. at the end of the second quarter. This is compared to 58 that held stakes in the company in the first quarter.
Out of the hedge funds being tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management is the leading shareholder in the company, with over 9.59 million shares worth more than $1.42 billion.
On November 8, Wells Fargo analyst Dori Kesten raised the price target on Marriott International, Inc. to $185 from $171, and kept an Overweight rating on the shares following the company’s Q3 earnings.
In addition to Amazon.com, Inc., Meta Platforms, Inc., and Uber Technologies, Inc., Marriott International, Inc. is a notable stock to invest in.
Here is what Artisan Partners has to say about Marriott International, Inc. in its Q2 2021 investor letter:
“Hotel operator Marriott had performed well in the pandemic reopening trade. Their subsequent weakness reflects that trade’s slowing momentum in Q2 as virus variants surged globally and rising uncertainty weighed on economic growth expectations. Still, we remain confident in this business. Each are leaders in their respective industries with wide moats and superior business economics. Each is led by a battle-tested management team we believe is executing well on an appropriately set strategy to deliver shareholder value. They are carefully and wisely financed, and they have undemanding valuations based on normalized earnings power.”
6. Uber Technologies, Inc. (NYSE:UBER)
Columbus Hill Capital Management’s Stake Value: $47.38 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 4.03%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. is a multinational ride-hailing, delivery and transportation company that operates in over 900 metropolitan areas worldwide. On November 8, Serve Robotics announced a partnership with Uber Technologies, Inc.. The on-demand robotic delivery service will be available to Uber Eats customers starting in Los Angeles early next year.
Columbus Hill Capital Management owns over 1.05 million shares in Uber Technologies, Inc., worth $47.38 million, making up 4.03% of Kevin Eng’s 13F portfolio for the third quarter.
At the end of the second quarter, 135 hedge funds in Insider Monkey’s database were long Uber Technologies, Inc., up from 130 in Q1. Brad Gerstner of Altimeter Capital Management is the leading stakeholder of the company.
On October 15, Evercore ISI analyst Mark Mahaney added Uber Technologies, Inc. to his “Tactical Outperform List” while keeping an Outperform rating on its shares with a $70 price target.
ClearBridge Investments mentioned Uber Technologies, Inc. in its Q2 2021 investor letter. Here is what they said:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
5. Meta Platforms, Inc. (NASDAQ:FB)
Columbus Hill Capital Management’s Stake Value: $52.67 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 4.48%
Number of Hedge Fund Holders: 266
Formerly known as Facebook, Multinational technology conglomerate Meta Platforms, Inc. announced a partnership with Microsoft Corporation (NASDAQ:MSFT) to integrate access and engagement for the workplace and teams, on November 12. Now known as Meta workplace, the users of the workplace of Meta Platforms, Inc. can comment and react to what will be posted inside Microsoft’s Teams, while the users of Microsoft can do the same at Meta.
According to the third quarter 13F filings, Columbus Hill Capital Management holds 155,202 shares of Meta Platforms, Inc., amounting to more than $52.67 million in worth and accounting for 4.48% of the hedge fund’s investment portfolio.
Ken Fisher of Fisher Asset Management is one of the biggest stakeholders of Meta Platforms, Inc. as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 266 funds were bullish on Meta Platforms, Inc. by the end of the June quarter, compared to 51 in the previous quarter.
On October 26, Truist analyst Youssef Squali lowered the price target on Meta Platforms, Inc. to $400 from $425, but kept a Buy rating on the shares after its Q3 results.
Here is what Polen Capital has to say about Meta Platforms, Inc. in its Q3 2021 investor letter:
“Facebook’s stock was pressured on concerns about regulation in the quarter. We are constantly monitoring the potential regulatory risks to Facebook (and all of our holdings). At this point, we see very little chance that regulation changes Facebook’s business model in a meaningful and adverse way. Regarding the recent data shared by a former Facebook employee and the company itself on some of the unfortunate negative consequences of social media, we recognize these types of issues will inevitably linger in different forms and fashions well into the future. We have been focused on the ability of Facebook to identify and mitigate these negative consequences while amplifying the value users typically cite for its apps across a long list of use cases. We continuously monitor the vibrance of the user base on Facebook’s apps to confirm that value.”
4. Sea Limited (NYSE:SE)
Columbus Hill Capital Management’s Stake Value: $53.19 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 4.52%
Number of Hedge Fund Holders: 104
Sea Limited (NYSE:SE) is a Singapore-based consumer technology company that operates in the digital entertainment, e-commerce, and financial services industries through its Garena, Shopee and SeaMoney platforms. The company’s share price rose 51% this year due to its expansion into the gaming market.
On November 2, Barclays analyst Jiong Shao initiated coverage of Sea Limited with an Overweight rating and $427 price target.
As of the end of the Q3, Columbus Hill Capital Management held 166,822 shares of Sea Limited, amounting to more than $53.19 million in worth, and representing 4.52% of the fund’s portfolio value. At the end of the second quarter of 2021, 104 hedge funds in the database of Insider Monkey held stakes worth $12.2 billion in Sea Limited, up from 98 the preceding quarter worth $10.4 billion.
Of the hedge funds being tracked by Insider Monkey, New York-based Tiger Global Management LLC is the biggest shareholder in Sea Limited, with 10.4 million shares worth approximately $3.3 billion.
In its second-quarter, 2021 investor letter, Tao Value mentioned Sea Limited. Here is what the fund said:
“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in established ASEAN & LatAm market and received positive reception from new markets
like US. On e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”
3. Humana Inc. (NASDAQ:HUM)
Columbus Hill Capital Management’s Stake Value: $54.72 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 4.65%
Number of Hedge Fund Holders: 59
The third largest health insurance provider in the United States, Humana Inc. (NASDAQ:HUM) is a Kentucky-based health and well-being company that operates through its Retail, Group and Specialty, and Healthcare Services segments.
On November 10, Deutsche Bank analyst George Hill raised the price target on Humana Inc. to $476 from $456, and kept a Hold rating on the shares of the company.
Kevin Eng’s hedge fund reported owing 140,742 shares of Humana Inc. as of Q3. These shares are valued at $54.72 million and represent 4.65% of his fund’s total portfolio value.
Of the 873 elite funds tracked by Insider Monkey, 59 were long Humana Inc. at the end of June, down from 65 in the first quarter of 2021. Andreas Halvorsen of Viking Global is among the leading stakeholders of the company.
2. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Columbus Hill Capital Management’s Stake Value: $61.51 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 5.23%
Number of Hedge Fund Holders: 42
Headquartered in Florida, Royal Caribbean Cruised Ltd. (NYSE:RCL) is the second largest cruise line operator in the world. Founded in 1968, the company has an active fleet of 24 ships as of 2021.
Based on our Q3 data, Kevin Eng’s Columbus Hill Capital Management holds 691,552 shares of Royal Caribbean Cruises Ltd., worth more than $61.51 million, accounting for 5.23% of the hedge fund’s portfolio value.
Ken Griffin of Citadel Investment Group is one of the biggest stakeholders of Royal Caribbean Cruises Ltd. as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 42 funds were bullish on the company by the end of the June quarter, the same as the previous quarter.
On September 24, Stifel analyst Steven Wieczynski raised the price target on Royal Caribbean Cruises Ltd. to $111 from $95, and kept a Buy rating on the shares of the company.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Columbus Hill Capital Management’s Stake Value: $70.25 million
Percentage of Columbus Hill Capital Management’s 13F Portfolio: 5.97%
Number of Hedge Fund Holders: 271
One of the big five companies in the US technology sector, multinational technology company Amazon.com, Inc. is the most valuable global brand, and remains the largest U.S. e-commerce player with a market share of about 40%. The company recently entered a contract with Rivian Automotive, Inc. (NASDAQ:RIVN) to build 100,000 electric vans by 2030.
Kevin D. Eng, as of Q3 2021, holds 21,385 shares in Amazon.com, Inc., worth more than $70.25 million, accounting for 5.97% of his hedge fund’s portfolio.
Of the 873 elite funds tracked by Insider Monkey, 271 held stakes in Amazon.com, Inc. worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to around $50.4 billion. Ken Fisher’s Fisher Asset Management is among the most notable stakeholders in Amazon.com, Inc., with over 1.93 million shares worth more than $6.34 billion.
On November 10, Tigress Financial analyst Ivan Feinseth raised his price target on Amazon.com, Inc. to $4,460 from $4,370, and kept a Buy rating on the shares as he sees the company being well-positioned to overcome near-term supply chain headwinds.
Polen Capital, in its Q3 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
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This article is originally published at Insider Monkey.
