Top 4 Stock Picks of Jacob Rothschild’s RIT Capital Partners

In this article, we discuss the top 4 stock picks of Jacob Rothschild’s RIT Capital Partners. If you want our detailed analysis of these stocks, go directly to the Top 9 Stock Picks of Jacob Rothschild’s RIT Capital Partners. 

4. T-Mobile US, Inc. (NASDAQ:TMUS)

RIT Capital Partners’ Stake Value: $36,211,000

Percentage of RIT Capital Partners’ 13F Portfolio: 14.13%

Number of Hedge Fund Holders: 89

Based in Seattle, T-Mobile US, Inc. (NASDAQ:TMUS) is the second largest wireless network operator in the United States, after Verizon Communications Inc. (NYSE:VZ). RIT Capital Partners owns 283,500 shares in T-Mobile US, Inc. (NASDAQ:TMUS), valued at $36.2 million as of Q3, representing 14.13% of the firm’s portfolio. 

T-Mobile US, Inc. (NASDAQ:TMUS) posted on November 2 its Q3 earnings. EPS for the quarter came in at $1.31, beating estimates by $0.82. The $19.62 billion revenue missed estimates by $593.78 million. As of Q3 2021, T-Mobile US, Inc. (NASDAQ:TMUS) reported 106.9 million subscribers. 

Morgan Stanley analyst Simon Flannery raised the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $152 from $148 and kept an Overweight rating on the shares, following a Q3 earnings beat. T-Mobile US, Inc. (NASDAQ:TMUS) remained a top stock pick of the analyst due to its solid growth history, paired with expanding margins and free cash flow from merger synergies.

Andreas Halvorsen’s Viking Global is the largest T-Mobile US, Inc. (NASDAQ:TMUS) stakeholder, with over 10 million shares valued at $1.3 billion. Insider Monkey reported a total of 89 hedge funds who were bullish on T-Mobile US, Inc. (NASDAQ:TMUS) as of Q3 2021, down from 100 in the preceding quarter. The total stakes owned by the Q3 funds amounted to $6.92 billion. 

Here is what ClearBridge Investments had to say about T-Mobile US, Inc. (NYSE:TMUS) in its Q1 2021 investor letter:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”