In this article, we discuss the top 11 stock picks of Jacob Rothschild’s RIT Capital Partners.
Jacob Rothschild is a British investment banker and a notable member of the Rothschild banking family. His alma mater is Christ Church, Oxford, and his family established Rothschild Investment Trust in 1961, which is now known as RIT Capital Partners. Jacob Rothschild chaired RIT Capital Partners from 1988 till September 2019, when he formally retired from the position. He remains the honorary president and a significant stakeholder of the hedge fund, with his family owning a 21% position.
The Q4 2021 portfolio of RIT Capital Partners is concentrated with investments in the consumer discretionary, consumer staples, healthcare, and finance sectors. The $282 million portfolio is now managed by Sir James Leigh-Pemberton, the non-executive chairman of the fund, and Francesco Goedhuis, the chief executive officer of RIT Capital Partners.
The hedge fund made 4 new purchases in the fourth quarter of 2021, sold out of 2 securities, and reduced positions in 3 equities. The most notable stocks in the Q4 portfolio of Jacob Rothschild’s RIT Capital Partners include Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V), among others discussed in detail below.
Our Methodology
We used the fourth quarter portfolio of Jacob Rothschild’s RIT Capital Partners to analyze the hedge fund’s top 11 stock picks. We have mentioned the analyst ratings and hedge fund sentiment for all companies. The list is ranked according to the RIT Capital Partners’ stake value in each holding.
Top Stock Picks of Jacob Rothschild’s RIT Capital Partners
11. Hippo Holdings Inc. (NYSE:HIPO)
RIT Capital Partners’ Stake Value: $815,000
Percentage of RIT Capital Partners’ 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 29
Hippo Holdings Inc. (NYSE:HIPO) is a California-based company that offers home protection insurance in the United States and the District of Columbia. Jacob Rothschild’s RIT Capital Partners owned 287,968 shares of Hippo Holdings Inc. (NYSE:HIPO) in the fourth quarter of 2021, worth $815,000, representing 0.28% of the total 13F securities.
On February 9, JMP Securities analyst Matthew Carletti initiated coverage of Hippo Holdings Inc. (NYSE:HIPO) with an Outperform rating and a $4 price target. The analyst is positive on the way Hippo Holdings Inc. (NYSE:HIPO) “re-thinks” homeowners insurance coverage, stating that its “modern, proactive” approach, paired with its omni-channel distribution and strong customer retention will lead to robust growth for several years.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were long Hippo Holdings Inc. (NYSE:HIPO) at the end of December 2021, with collective stakes worth about $52 million, compared to 23 funds in the previous quarter, holding stakes in the company valued at $88 million. Scott W. Clark’s Darlington Partners Capital is the leading shareholder of the company, with a position worth $8.49 million.
In addition to Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V), Hippo Holdings Inc. (NYSE:HIPO) is a notable stock in the Q4 portfolio of RIT Capital Partners.
10. NerdWallet, Inc. (NASDAQ:NRDS)
RIT Capital Partners’ Stake Value: $3,888,000
Percentage of RIT Capital Partners’ 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 13
NerdWallet, Inc. (NASDAQ:NRDS) was founded in 2009 and is based in San Francisco, California. The company operates a digital platform that offers personal finance advice by connecting individuals and corporate customers with providers of financial products and services.
In the fourth quarter of 2021, Jacob Rothschild’s RIT Capital Partners acquired 250,000 shares of NerdWallet, Inc. (NASDAQ:NRDS), worth $3.8 million, representing 1.37% of the total holdings. NerdWallet, Inc. (NASDAQ:NRDS) is a new addition in the hedge fund’s 13F portfolio. According to Insider Monkey’s Q4 data, 13 hedge funds were bullish on NerdWallet, Inc. (NASDAQ:NRDS), with collective stakes amounting to more than $46 million.
On March 15, Citi analyst Peter Christiansen maintained a Buy rating on NerdWallet, Inc. (NASDAQ:NRDS) but lowered the price target on the stock to $15 from $30. The analyst cited “tough external conditions” for the reduced price target, but told investors that his bullish thesis remains intact. He believes that NerdWallet, Inc. (NASDAQ:NRDS) should be a “strong rebounder” if the macro backdrop stabilizes.
9. NovaGold Resources Inc. (NYSE:NG)
RIT Capital Partners’ Stake Value: $4,494,000
Percentage of RIT Capital Partners’ 13F Portfolio: 1.59%
Number of Hedge Fund Holders: 18
NovaGold Resources Inc. (NYSE:NG) is based in Vancouver, Canada, exploring for and developing gold mineral properties in the United States. Jacob Rothschild’s RIT Capital Partners held 656,971 shares of NovaGold Resources Inc. (NYSE:NG) in Q4 2021, worth $4.49 million, representing 1.59% of the total 13F portfolio.
On April 5, NovaGold Resources Inc. (NYSE:NG) reported a FQ1 GAAP loss per share of $0.03, in line with analysts’ predictions. At the conclusion of the first quarter of 2022, the company’s cash and term deposits amounted to $155.1 million. The company expects an expenditure of $46 million in 2022, including corporate costs, withholding tax, expenditures at the Donlin Gold project, the 2022 drill program, external affairs, and project planning and fieldwork.
RBC Capital analyst Michael Siperco assumed coverage of NovaGold Resources Inc. (NYSE:NG) on February 7 with a Sector Perform rating and an $8 price target. The analyst was positive on the high quality deposits and the potential for more than 1 million ounces annual production over a course of 30+ years for the company’s Donlin project. However, he had a “more conservative” long-term gold price forecast around $1,500 per oz.
According to Insider Monkey’s Q4 data, 18 hedge funds reported long positions in NovaGold Resources Inc. (NYSE:NG), up from 16 funds in the prior quarter. John Paulson’s Paulson & Co is the leading shareholder of the company, with 22.2 million shares worth $152.4 million.
8. Panacea Acquisition Corp. II (NASDAQ:PANA)
RIT Capital Partners’ Stake Value: $8,721,000
Percentage of RIT Capital Partners’ 13F Portfolio: 3.08%
Number of Hedge Fund Holders: N/A
Panacea Acquisition Corp. II (NASDAQ:PANA) was incorporated in 2021 and is based in San Francisco, California. It operates as a special purpose acquisition company that aims to effect a merger, share exchange, asset acquisition, corporate reorganization, or similar business combinations with one or more firms in the biotechnology sector.
Securities filings for Q4 2021 reveal that Jacob Rothschild’s RIT Capital Partners held 900,000 shares of Panacea Acquisition Corp. II (NASDAQ:PANA), worth $8.72 million, representing 3.08% of the total 13F securities.
7. Meta Platforms, Inc. (NASDAQ:FB)
RIT Capital Partners’ Stake Value: $12,511,000
Percentage of RIT Capital Partners’ 13F Portfolio: 4.43%
Number of Hedge Fund Holders: 224
Meta Platforms, Inc. (NASDAQ:FB) is one of the Big Five American tech giants. Meta Platforms, Inc. (NASDAQ:FB)’s Reality Labs segment provides augmented and virtual reality products, making the company one of the leading metaverse contenders.
According to 13F filings for Q4 2021, Jacob Rothschild’s hedge fund acquired 37,200 Meta Platforms, Inc. (NASDAQ:FB) shares, worth $12.5 million, accounting for 4.43% of the total 13F holdings.
On April 27, Meta Platforms, Inc. (NASDAQ:FB) reported its Q1 2022 financial results, posting earnings per share of $2.72, above consensus by $0.21. Revenue for the period grew 6.64% from the prior-year quarter to $27.91 billion, but fell short of analysts’ predictions by approximately $314 million.
Evercore ISI analyst Mark Mahaney on April 28 reiterated an Outperform rating on Meta Platforms, Inc. (NASDAQ:FB) but lowered the firm’s price target on shares to $325 from $350. He observed three main concerns – ad platform impairment due to Apple’s privacy changes, monetization challenges due to Reels, and the competition from TikTok. However, he remains increasingly confident that Meta Platforms, Inc. (NASDAQ:FB) can successfully address these overhangs. Although he trimmed his price target, the analyst views the reward/risk outlook for Meta Platforms, Inc. (NASDAQ:FB) shares as “truly compelling” at present levels.
According to Insider Monkey’s database of elite funds, Meta Platforms, Inc. (NASDAQ:FB) was found in the public stock portfolios of 224 hedge funds, compared to 248 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a significant shareholder of the company, with a position worth $3.2 billion.
Here is what Bireme Capital has to say about Meta Platforms, Inc. (NASDAQ:FB) in its Q1 2022 investor letter:
“During the quarter we reinvested in Facebook. This is not the first time we’ve held a position in the company, which operates the largest and most profitable social media business in the world. We first bought shares in Q4 2018, after the Cambridge Analytica scandal caused the stock to drop to less than 20x earnings.
That investment was successful, with users and advertisers largely shrugging off the scandal and causing revenues to grow from $40b in 2017 to $86b in 2020. EPS rose from $6 to more than $10 in 2020, and we sold our shares between $250 and $300 in mid-2020 to reinvest in stocks that had seen share price dislocations due to the COVID-19 pandemic.
In Q1, Facebook investors once again got spooked, with shares falling almost 50% to under $200 per share. Today, shares trade at their lowest valuation ever: 12x earnings net of cash. We think the core business remains one of the best in the world and that issues surrounding TikTok competition, Zuckerberg’s investments in virtual reality, and changes to iOS tracking policies are largely overblown or over-discounted in today’s price. For our full thoughts on Facebook, please see our blog post here.”
6. Ribbit LEAP, Ltd. (NYSE:LEAP)
RIT Capital Partners’ Stake Value: $14,925,000
Percentage of RIT Capital Partners’ 13F Portfolio: 5.28%
Number of Hedge Fund Holders: 23
Ribbit LEAP, Ltd. (NYSE:LEAP) is a blank check company that was incorporated in 2020 and is based in Palo Alto, California. It does not have significant operations as of now. In the fourth quarter of 2021, Jacob Rothschild’s RIT Capital Partners held 1.50 million shares of Ribbit LEAP, Ltd. (NYSE:LEAP), worth approximately $15 million, representing 5.28% of the total 13F holdings.
According to the fourth quarter database of Insider Monkey, 23 hedge funds were bullish on Ribbit LEAP, Ltd. (NYSE:LEAP), with combined stakes worth $219 million. Daniel Sundheim’s D1 Capital Partners is the biggest shareholder of the company, with 3 million shares worth roughly $30 million.
Elite investors are piling into Ribbit LEAP, Ltd. (NYSE:LEAP), just like Mastercard Incorporated (NYSE:MA), Meta Platforms, Inc. (NASDAQ:FB), and Visa Inc. (NYSE:V).
5. Visa Inc. (NYSE:V)
RIT Capital Partners’ Stake Value: $16,251,000
Percentage of RIT Capital Partners’ 13F Portfolio: 5.75%
Number of Hedge Fund Holders: 142
Visa Inc. (NYSE:V) is a California-based multinational financial services company that offers online payment solutions. Jacob Rothschild’s RIT Capital Partners held 75,000 Visa Inc. (NYSE:V) shares, worth $16.25 million, representing 5.75% of the total 13F portfolio.
On April 26, Visa Inc. (NYSE:V) reported its financial results for the first fiscal quarter of 2022. The company announced earnings per share of $1.79, above consensus by $0.14. Revenue for the period climbed 25.5% year-over-year to $7.19 billion, topping market estimates by $366.88 million.
According to Insider Monkey’s Q4 data, 142 hedge funds held long positions in Visa Inc. (NYSE:V), with collective stakes exceeding $29 billion. Chris Hohn’s TCI Fund Management is the biggest shareholder of the company, with a position worth $5 billion.
Piper Sandler analyst Christopher Donat on April 29 downgraded Visa Inc. (NYSE:V) to Neutral from Overweight with a price target of $239, down from $283. The analyst cited macro pressures, especially in Europe, for the downgrade. The analyst sees a European recession in 2023, which would impact payment transactions that drive revenue for Visa Inc. (NYSE:V).
Here is what Wedgewood Partners has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“Visa continued to benefit from strong consumer spending as well as a recovery in crossborder payment volumes, more recently driven by the return of travelers. While the emergence of the “Omicron” variant of COVID early in the quarter posed a risk to this travel recovery, it proved short-lived, with most of Europe, North America, and Latin American re-engaging in cross-border travel. Visa continues to extend its network to all comers. By processing over $10 trillion in volume per year, Visa has unparalleled scale and, as a result, can sell this scale to its customers at very attractive economics. For example, “FinTech” businesses will often charge customers upwards of 3-5% to transact, while Visa takes mere basis points on most transactions, despite enabling service levels historically reserved for only the largest financial institutions. After adding to Visa late last year, we are most pleased that Visa is back to one of our top 5 holdings.”
4. IQVIA Holdings Inc. (NYSE:IQV)
RIT Capital Partners’ Stake Value: $22,426,000
Percentage of RIT Capital Partners’ 13F Portfolio: 7.94%
Number of Hedge Fund Holders: 63
IQVIA Holdings Inc. (NYSE:IQV) was founded in 1982 and is headquartered in Durham, North Carolina. The company operates in the life sciences industry, offering advanced analytics, technology solutions, and clinical research services. Securities filings for Q4 2021 reveal that RIT Capital Partners owned a $22.4 million stake in IQVIA Holdings Inc. (NYSE:IQV), representing 7.94% of the total 13F portfolio.
IQVIA Holdings Inc. (NYSE:IQV) reported its Q1 earnings on April 27, posting an EPS of $2.47, beating market estimates by $0.05. The $3.57 billion revenue jumped 4.66% year-over-year, outperforming analysts’ predictions by $29.04 million.
On April 28, Piper Sandler analyst Jeff Garro upgraded IQVIA Holdings Inc. (NYSE:IQV) to Overweight from Neutral with a price target of $255, up from $231, after the company’s Q1 results went live. He believes that there is a strong buying opportunity in IQVIA Holdings Inc. (NYSE:IQV), whose “wide, deep, and global data assets are meaningfully ahead of competitors”, in addition to solid free cash flow and an improved balance sheet.
According to Insider Monkey’s Q4 data, IQVIA Holdings Inc. (NYSE:IQV) was found in the public stock portfolios of 63 hedge funds, with collective stakes in the company worth $4.2 billion. Thomas Steyer’s Farallon Capital is the leading shareholder of the company, with 2.93 million shares worth $826.8 million.
Here is what Cooper Investors has to say about IQVIA Holdings Inc. (NYSE:IQV) in its Q4 2021 investor letter:
“During the quarter, IQVIA held an Investor Relations day. Today IQVIA is a leading provider of technology solutions and clinical research services to the life science industry. The portfolio first invested in the IQVIA predecessor IMS Health in late 2015. IMS Health was taken private by private equity in 2010 and re-listed in 2014. Current CEO Ari Bousbib, a former executive at United Technologies was appointed CEO at its privatization and has been the driving force ever since.
Under Ari’s watch IMS first transformed itself from a drug prescription data business to a broader pharmaceutical services provider and then in 2016 merged with Quintiles, the leading Contract Research Organisation (CRO), a business that runs drug trials for pharmaceutical and biotech companies. This merger created the IQVIA we know today. While this was a merger on the surface it was anything but as IMS effectively took control of Quintiles with no premium paid, another in the long line of savvy moves made by Ari and the team.
Along the journey IQVIA management has consistently increased growth rates and expanded the opportunity set for the company. This is a highly commercial team that has built or sought out great quality businesses in attractive and growing life science markets. IMS was an ex-growth business in 2010 and by the time of the Quintiles merger had accelerated to low-to-mid single digits. With the addition of Quintiles and improvement across all aspects of the business revenue growth has been averaging high-single-digits.
At the IR day management now talked to a double-digit revenue growth opportunity. Their markets are growing as fast as they have ever been as more capital flows into biotech and life sciences development. While we have owned the shares for over six years, the business outlook today is the strongest we’ve ever seen it and IQVIA remains a core position.”
3. Mastercard Incorporated (NYSE:MA)
RIT Capital Partners’ Stake Value: $25,081,000
Percentage of RIT Capital Partners’ 13F Portfolio: 8.88%
Number of Hedge Fund Holders: 144
Mastercard Incorporated (NYSE:MA) is an American multinational fintech corporation that offers Mastercard-branded debit, credit, and prepaid cards to customers worldwide. Jacob Rothschild’s fund added Mastercard Incorporated (NYSE:MA) to its fourth quarter portfolio by buying 69,800 shares worth $25 million.
In its Q1 2022 earnings report, published on April 28, Mastercard Incorporated (NYSE:MA) posted earnings per share of $2.76, beating market consensus by $0.60. The $5.17 billion revenue also outperformed estimates by $267.59 million. Deutsche Bank analyst Bryan Keane on April 29 raised the firm’s price target on Mastercard Incorporated (NYSE:MA) to $440 from $420 and maintained a Buy rating on the shares, citing a “solid” Q1 beat and better than expected guidance.
According to the database of Insider Monkey, 144 hedge funds were long Mastercard Incorporated (NYSE:MA), compared to 146 funds in the preceding quarter. Charles Akre’s Akre Capital Management held the biggest stake in the company, with 5.8 million shares worth $2.10 billion.
Here is what Ensemble Capital has to say about Mastercard Incorporated (NYSE:MA) in its Q1 2022 investor letter:
“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”
2. Keurig Dr Pepper Inc. (NASDAQ:KDP)
RIT Capital Partners’ Stake Value: $67,731,000
Percentage of RIT Capital Partners’ 13F Portfolio: 23.98%
Number of Hedge Fund Holders: 31
Keurig Dr Pepper Inc. (NASDAQ:KDP) is a Massachusetts-based beverage company that operates through Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages divisions. Jacob Rothschild’s RIT Capital Partners held a $67.7 million position in the company as of Q4 2021, representing roughly 24% of the total 13F securities.
On April 28, Keurig Dr Pepper Inc. (NASDAQ:KDP)’s earnings for Q1 2022 were posted. The company reported an EPS of $0.33, in line with consensus estimates. The $3.08 billion revenue grew 6.06% year-over-year and outperformed market predictions by $64.29 million.
Truist analyst Bill Chappell downgraded Keurig Dr Pepper Inc. (NASDAQ:KDP) on March 22 to Hold from Buy with a $40 price target. The analyst noted that the company’s coffee segment experienced an artificial lift over the past two years due to pandemic-driven consumer spending patterns. Heading into 2022, he sees a slowdown in the coffee segment, warning that the decline will be faster than anticipated by the Street.
According to the fourth quarter database of Insider Monkey, 31 hedge funds placed long calls on Keurig Dr Pepper Inc. (NASDAQ:KDP), compared to 33 funds in the prior quarter. Harris Associates is the leading shareholder of the company, with almost 49 million shares worth $1.80 billion.
Here is what ClearBridge Investments has to say about Keurig Dr Pepper Inc. (NASDAQ:KDP) in its Q1 2021 investor letter:
“Our underweights in health care and staples contributed to relative performance during the period. We also prefer to act with some caution in a sector where regulatory risks persist. In consumer staples, we are broadly finding valuations uncompelling and sold Keurig Dr Pepper during the quarter.”
1. Coupang, Inc. (NYSE:CPNG)
RIT Capital Partners’ Stake Value: $105,527,000
Percentage of RIT Capital Partners’ 13F Portfolio: 37.37%
Number of Hedge Fund Holders: 29
Coupang, Inc. (NYSE:CPNG) was incorporated in 2010 and is headquartered in Seoul, South Korea, operating as an e-commerce business. Jacob Rothschild’s RIT Capital Partners added Coupang, Inc. (NYSE:CPNG) to its Q4 2021 portfolio by purchasing 3.5 million shares worth $105.5 million. The stock represents 37.37% of the total 13F securities and is the biggest holding in the portfolio.
On April 7, Goldman Sachs analyst Eric Cha upgraded Coupang, Inc. (NYSE:CPNG) to Conviction Buy from Buy but lowered the price target to $37 from $52. The negative factors that have impacted the share price since the second half of 2021 include rising rates, industry growth deceleration on high comps, and the pandemic-driven capacity issues. However, the analyst also believes that the market is underestimating Coupang, Inc. (NYSE:CPNG)’s operating leverage potential, which he told investors has been hidden under COVID-19 induced expenditure.
Among the hedge funds tracked by Insider Monkey, 29 hedge funds were bullish on Coupang, Inc. (NYSE:CPNG) at the end of December 2021, down from 45 funds in the preceding quarter. Neil Mehta’s Greenoaks Capital is the biggest stakeholder of the company, with 115.8 million shares worth $3.40 billion.
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Disclosure: None. Top 11 Stock Picks of Jacob Rothschild’s RIT Capital Partners is originally published on Insider Monkey.
