In this article, we discuss the top 3 stocks to buy today according to Stephen Feinberg’s Cerberus Capital Management. If you want to read our detailed analysis of Feinberg’s history and hedge fund performance, go directly to the Top 6 Stocks to Buy Today According to Stephen Feinberg’s Cerberus Capital Management.
3. Frontier Communications Parent, Inc. (NASDAQ:FYBR)
Cerberus Capital Management Stake Value: $619,633,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 10.15%
Number of Hedge Fund Holders: 46
Frontier Communications Parent, Inc. (NASDAQ:FYBR) provides consumer and business communications services. Truist analyst Greg Miller initiated coverage of Frontier Communications Parent, Inc. (NASDAQ:FYBR) on March 15, rating the stock as Buy and giving a price target of $40. In a research note, Miller stated that the company has the opportunity to recapture some of the broadband market share that has been lost to cable.
Frontier Communications Parent, Inc. (NASDAQ:FYBR) was in 46 hedge fund portfolios at the end of the fourth quarter, according to Insider Monkey. The total stakes that these funds had in the company are valued at $3.62 billion, up from $3.54 billion the prior quarter with 43 positions. As of the fourth quarter of 2021, Cerberus Capital Management’s stake in Frontier Communications Parent, Inc. (NASDAQ:FYBR) was a hefty $619.63 million, which covers 10.15% of the hedge fund’s 13F portfolio.
2. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Cerberus Capital Management Stake Value: $777,141,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 12.73%
Number of Hedge Fund Holders: 14
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a Frankfurt-based global investment bank and financial services firm. At Q4’s end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in Deutsche Bank Aktiengesellschaft (NYSE:DB), down from 15 hedge funds in the third quarter of 2021.
Douglas Braunstein and James Woolery’s Hudson Executive Capital is the leading shareholder of Deutsche Bank Aktiengesellschaft (NYSE:DB) with 67.39 million shares worth $844.67 million. Cerberus Capital Management holds more than 62.04 million shares in Deutsche Bank Aktiengesellschaft (NYSE:DB) worth over $777.14 million. This represents 12.73% of their portfolio.
Third Avenue Management in its Q3 2021 investor letter mentioned Deutsche Bank Aktiengesellschaft (NYSE:DB). Here is what the fund said:
“Deutsche Bank AG (4.5% portfolio weight) – Similarly, Deutsche Bank Aktiengesellschaft (NYSE:DB) has in recent years undertaken profound cost cutting initiatives, albeit, in Deutsche’s case, as a result of scandal, business underperformance and a need to deleverage. Deutsche Bank, and other investment banks with large fixed income trading operations, clearly benefited from the pandemic in 2020 as a result of unusually large fixed income trading volumes and market volatility. This is one of the primary arguments for having trading operations alongside more traditional banking and asset management businesses—i.e., that their business performances are not correlated and strong trading performance can, at times, offset challenges in other parts of the business. And times are still challenging for Deutsche’s more traditional corporate and private banking businesses as a result of the interest rate environment. Clearly a higher (or even less negative) German rate environment would help, but it must be said that Germany has to be among the least attractive banking markets in Europe. The industry structure is unique and frustrates the ability of private banks to produce profit, which in turn limits the ability to accumulate capital, making the entire system more fragile than it ought to be. We value Deutsche’s various banking business lines accordingly. But, turning back to things Deutsche can control, it is indisputable that Deutsche Bank Aktiengesellschaft (NYSE:DB), under CEO Christian Sewing, has made considerable progress towards its critical cost cutting, deleveraging and capital accumulation goals. At the outset of our investment in Deutsche, our single largest concern was that the bank’s necessary exit from certain lines of business, along with sizable headcount reduction in others, could cause clients to seek other relationships with banks offering a full range of services and without any perception of counterparty risk. In a worst case scenario the result could have been an erosion of revenue even faster than the cost reduction, possibly precipitating a downward spiral. As we emerge from the pandemic with Deutsche Bank Aktiengesellschaft (NYSE:DB) now far down the road of transformation, and clear evidence that it is regaining market share in various lines of business, the largest risks appear to be behind us. To that point, in recent public comments Deutsche management has indicated that it intends to resume returning excess capital to shareholders in 2022.”
1. Albertsons Companies, Inc. (NYSE:ACI)
Cerberus Capital Management Stake Value: $4,583,406,000
Percentage of Cerberus Capital Management’s 13F Portfolio: 75.1%
Number of Hedge Fund Holders: 29
Albertsons Companies, Inc. (NYSE:ACI) operates a grocery and medicine shops chain. MKM Partners analyst Bill Kirk boosted his price target on Albertsons to $33 from $31 on January 13. He held a Neutral rating on the stock following the company’s Q3 earnings, which were better than expected, with an EBITDA margin of flat after a 20-basis-point drop in Q2.
During Q4, 29 of the 924 hedge funds tracked by Insider Monkey owned the Albertsons Companies, Inc. (NYSE:ACI)’s shares, up from 21 hedge funds in the previous quarter. Among the hedge funds being tracked by Insider Monkey, Cerberus Capital Management is the leading stakeholder of Albertsons Companies, Inc. (NYSE:ACI), holding 151.82 million shares worth $4.58 billion.
You can also take a peek at 10 Stocks to Buy According to Himanshu Gulati’s Antara Capital and 10 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital.
