Top 5 Stock Picks of Benjamin Smith’s Laurion Capital Management

In this article, we discuss the top 5 stock picks of Benjamin Smith’s Laurion Capital Management. If you want to see our detailed analysis of Smith’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Benjamin Smith’s Laurion Capital Management.

5. Dell Technologies Inc. (NYSE:DELL)

Laurion Capital Management’s Stake Value: $236.6 million
Percentage of Laurion Capital Management’s 13F Portfolio: 0.99%
Number of Hedge Fund Holders: 62

Dell Technologies Inc. (NYSE:DELL) is an American multinational technology company headquartered in Round Rock, Texas. Formed as a result of the September 2016 merger of Dell and EMC Corporation, the company provides numerous tech products and information security services.

At the end of the third quarter, Laurion Capital Management held 2.27 million shares of Dell Technologies Inc. (NYSE:DELL), worth $236.6 million, making up 0.99% of the fund’s portfolio holdings.

Paul Singer of Elliot Management is one of the biggest stakeholders of Dell Technologies Inc. (NYSE:DELL) as of the end of the third quarter, according to the data tracked by Insider Monkey. Overall, 62 funds were bullish on the company by the end of the June quarter, compared to 54 in the previous quarter.

On November 4, Citi analyst Jim Suva raised the price target on Dell Technologies Inc. (NYSE:DELL) to $70 from $65.76 and kept a Buy rating on the shares of the company.

Here is what Third Point Management has to say about Dell Technologies Inc. in its Q3 2021 investor letter:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”