In this article, we discuss the top 10 stock picks of Ali Motamed’s Invenomic Capital Management based on Q3 holdings of the fund.
Mr. Ali Motamed graduated from the University of California, Los Angeles, with a B.A. in economics and a minor in accounting and an M.B.A. from Harvard Business School. In addition, he holds the Chartered Financial Analyst designation. He’s been working in the sector for seventeen years. Ali was the Co-Portfolio Manager for the Boston Partners Long/Short Equity Fund. Mr. Motamed founded Invenomic Capital Management in 2015. He is presently the Managing Partner and Portfolio Manager of Invenomic Capital Management.
As of the third quarter of 2021, Ali Motamed’s Invenomic Capital Management has stakes in several big companies like Airbnb, Inc. (NASDAQ:ABNB), Cigna Corporation (NYSE:CI), and Centene Corporation (NYSE:CNC).
In Airbnb, Inc. (NASDAQ:ABNB), Ali Motamed owns 10,308 shares. The investment covers 0.56% of the fund’s portfolio. In December, RBC Capital analyst Brad Erickson downgraded Airbnb, Inc. (NASDAQ:ABNB) to “Sector Perform” from “Outperform” with a price target of $175, down from $195.
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Let’s start our list of top 10 stock picks of Ali Motamed’s Invenomic Capital Management. We used Motamed’s 13F portfolio for Q3 2021 for this analysis.
Top Stock Picks of Ali Motamed’s Invenomic Capital Management
10. Cardinal Health, Inc. (NYSE:CAH)
Invenomic Capital Management Stake Value: $6,034,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 1.95%
Number of Hedge Fund Holders: 36
Cardinal Health, Inc. (NYSE:CAH) is a global healthcare service and products firm with operations in the United States, Canada, Europe, Asia, and other countries. Invenomic Capital Management increased its hold in Cardinal Health, Inc. (NYSE:CAH) by 39% in the third quarter, ending the period with 121,999 shares of the company.
In November, Deutsche Bank analyst George Hill boosted Cardinal Health, Inc.’s (NYSE:CAH) price objective to $59 from $51 and maintained a “Hold” rating on the stock.
At the end of the third quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $664.97 million in Cardinal Health, Inc. (NYSE:CAH), down from 40 in the preceding quarter worth $897.22 million.
Along with Airbnb, Inc. (NASDAQ:ABNB), Cigna Corporation (NYSE:CI), and Centene Corporation (NYSE:CNC), Cardinal Health, Inc. (NYSE:CAH) is one of the stocks to buy according to Ali Motamed’s Invenomic Capital Management.
9. Kinross Gold Corporation (NYSE:KGC)
Invenomic Capital Management Stake Value: $6,276,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.03%
Number of Hedge Fund Holders: 27
Kinross Gold Corporation (NYSE:KGC) and its subsidiaries are primarily involved in the purchase, exploration, and development of gold assets in the United States, Russia, Brazil, Chile, Ghana, and Mauritania.
Jim Simons’ Renaissance Technologies is the leading stakeholder of Kinross Gold Corporation (NYSE:KGC), with 32.87 million shares worth $176.18 million. In the third quarter, Invenomic Capital Management increased its stake in Kinross Gold Corporation (NYSE:KGC) by 7%.
As of the end of the third quarter, 27 hedge funds in Insider Monkey’s database held stakes in Kinross Gold Corporation (NYSE:KGC), compared to 28 funds in the preceding quarter.
8. Immersion Corporation (NASDAQ:IMMR)
Invenomic Capital Management Stake Value: $6,459,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.09%
Number of Hedge Fund Holders: 16
Immersion Corporation (NASDAQ:IMMR) develops, designs, and licenses proprietary haptic inventions and software. Colliers analyst Derek Soderberg lowered Immersion Corporation (NASDAQ:IMMR) from “Buy” to “Neutral” in November.
The hedge fund chaired by Ali Motamed holds 944,269 shares in Immersion Corporation (NASDAQ:IMMR) worth $6.46 million. Invenomic Capital Management’s stake in the company shares increased by 239% in the third quarter of 2021.
Immersion Corporation (NASDAQ:IMMR) was in 16 hedge fund portfolios at the end of the third quarter of 2021.
7. Popular, Inc. (NASDAQ:BPOP)
Invenomic Capital Management Stake Value: $7,079,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.29%
Number of Hedge Fund Holders: 33
Popular, Inc. (NASDAQ:BPOP) provides a range of retail, mortgage, and commercial banking products and services through its subsidiaries. In November, Popular, Inc. (NASDAQ:BPOP) declared a quarterly dividend of $0.45 per share, in line with previous.
In November, Wells Fargo analyst Timur Braziler initiated coverage of Popular, Inc. (NASDAQ:BPOP) with an “Overweight” and a price target of $115. Bernard Horn’s Polaris Capital Management owns 3.35 million shares of Popular, Inc. (NASDAQ:BPOP), worth over $50 million, topping the list of over 867 hedge funds tracked by Insider Monkey. Next on the list is AQR Capital Management that owns 1.21 million shares of the company, worth over $93.88 million.
Overall, 33 hedge funds monitored by Insider Monkey were bullish on Popular, Inc. (NASDAQ:BPOP) in the third quarter. The stakes of these funds are valued at $772.51 million.
6. Reinsurance Group of America, Incorporated (NYSE:RGA)
Invenomic Capital Management Stake Value: $7,730,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.5%
Number of Hedge Fund Holders: 32
Reinsurance Group of America, Incorporated (NYSE:RGA) is a holding company for a worldwide life and health reinsurance institution. Invenomic Capital Management started building its position in Reinsurance Group of America, Incorporated (NYSE:RGA) in the fourth quarter of 2020 and currently holds 69,480 shares in the company, valued at $7.73 million.
In December, Goldman Sachs analyst Alex Scott initiated coverage of Reinsurance Group of America, Incorporated (NYSE:RGA), rating the stock as “Buy” and $134 price target. Reinsurance Group of America, Incorporated (NYSE:RGA) issued a quarterly dividend of $0.73 per share in November.
Hedge fund sentiment increased for Reinsurance Group of America, Incorporated (NYSE:RGA) in the third quarter. Insider Monkey’s data shows that 32 elite hedge funds held stakes in the company at the end of the third quarter, up from 28 funds a quarter earlier.
Airbnb, Inc. (NASDAQ:ABNB), Cigna Corporation (NYSE:CI), and Centene Corporation (NYSE:CNC) are some of the stocks attracting the attention of Ali Motamed, just like Reinsurance Group of America, Incorporated (NYSE:RGA).
5. Koppers Holdings Inc. (NYSE:KOP)
Invenomic Capital Management Stake Value: $8,168,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.65%
Number of Hedge Fund Holders: 8
Koppers Holdings Inc. (NYSE:KOP) distributes treated wood products, wood treatment chemicals, and carbon compounds in the United States, Australasia, Europe, and other regions of the globe.
Invenomic Capital Management holds 261,302 shares in Koppers Holdings Inc. (NYSE:KOP), worth $8.17 million. This represents 2.65% of its portfolio. The hedge fund’s stake in Koppers Holdings Inc. (NYSE:KOP) increased by 38% in the third quarter of 2021.
4. Civitas Resources, Inc. (NYSE:CIVI)
Invenomic Capital Management Stake Value: $8,364,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.71%
Number of Hedge Fund Holders: 12
Civitas Resources, Inc. (NYSE:CIVI) makes carbon-neutral oil and gas. In Colorado’s Denver-Julesburg Basin, Civitas Resources, Inc. concentrates on developing and producing crude oil, natural gas, and natural gas liquids. Civitas Resources, Inc. (NYSE:CIVI) declared a quarterly dividend of $0.4625 per share on December 13, up 32.1% from the previous payout of $0.3500 per share.
In the third quarter, Invenomic Capital Management strengthened its position in Civitas Resources, Inc. (NYSE:CIVI) by buying 9,322 additional shares. Richard Driehaus’ Driehaus Capital is Civitas Resources, Inc.’s (NYSE:CIVI) most significant stakeholder, with 391,292 shares worth $18.74 million.
3. Triple-S Management Corporation (NYSE:GTS)
Invenomic Capital Management Stake Value: $8,603,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.79%
Number of Hedge Fund Holders: 16
Triple-S Management Corporation (NYSE:GTS) is a holding business that provides health insurance services. Out of the hedge funds being tracked by Insider Monkey, Alec Litowitz and Ross Laser’s Magnetar Capital is a leading shareholder in Triple-S Management Corporation (NYSE:GTS) with 1.81 million shares worth $63.89 million.
Overall, hedge funds are loading up on Triple-S Management Corporation (NYSE:GTS), as 16 out of the 867 funds tracked by Insider Monkey held stakes in the company in the third quarter, compared to 10 funds a quarter earlier.
2. Stride, Inc. (NYSE:LRN)
Invenomic Capital Management Stake Value: $8,957,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 2.9%
Number of Hedge Fund Holders: 21
Stride, Inc. (NYSE:LRN) is a tech-based educational firm that provides proprietary and third-party curriculum, software systems, and educational services.
Invenomic Capital Management made its first investment in Stride, Inc. (NYSE: LRN) during the fourth quarter of 2020, worth $4.64 million. In the third quarter of 2021, the fund managed shares worth $8.96 million in the company, which represented 2.9% of the hedge fund’s 13F portfolio.
At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $145.36 million in Stride, Inc. (NYSE: LRN).
1. H&R Block, Inc. (NYSE:HRB)
Invenomic Capital Management Stake Value: $9,798,000
Percentage of Invenomic Capital Management’s 13F Portfolio: 3.17%
Number of Hedge Fund Holders: 25
H&R Block, Inc. (NYSE:HRB) specializes in tax preparation and other financial services. The company operates a network of retail locations that provide income tax return preparation and related services, either directly or through franchisees. Among the hedge funds being tracked by Insider Monkey, D E Shaw is a leading shareholder in H&R Block, Inc. (NYSE:HRB) with 1.43 million shares worth $35.75 million.
In November, H&R Block, Inc. (NYSE:HRB) announced a quarterly dividend of $0.27 per share. In Q1 2022, H&R Block, Inc. (NYSE:HRB) posted revenue of $192.62 million, down 53.8% year over year.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $196.31 million in H&R Block, Inc. (NYSE:HRB), down from 30 in the preceding quarter worth $229.56 million.
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Disclosure: None. Top 10 Stock Picks of Ali Motamed’s Invenomic Capital Management is originally published on Insider Monkey.
