In this piece, we’ll take a look at the Top 5 Stock Picks of Charles Clough’s Clough Capital Partners. For more stocks, the risk/reward, and the methodology of this list, head on to the Top 10 Stock Picks of Charles Clough’s Clough Capital Partners.
5. Microsoft Corporation (NASDAQ:MSFT)
Clough Capital Partners Stake: $32,873,000
Percentage of Clough Capital Partners’ Portfolio: 4.07%
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is one of the biggest technology companies in the world, famous for its Windows operating system and Office products. Amidst a broader market tech sell-off, Charles Clough also reduced his exposure to the I.T company by 44% during Q2 2022. The fund’s investment in Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter amounted to over $32 million.
On October 4, 2022, Timothy Horan, an analyst at Oppenheimer, reduced his price target on Microsoft Corporation (NASDAQ:MSFT) to $275. The analyst believes that due to the strengthening of the U.S. dollar, there would be a negative F/X impact on the company’s bottom-line in 2023 and 2024.
As per Insider’s Monkey database, 258 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) at the end of Q2 2022. Fisher Asset Management had the highest stake in the company, amounting to a value of over $7 billion. The fund increased its stake during the second quarter by 3%.
Here is what Baron Funds had to say about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2022 investor letter:
Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.
As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.
4. Exxon Mobil Corporation (NYSE:XOM)
Clough Capital Partners Stake: $33,614,000
Percentage of Clough Capital Partners’ Portfolio: 4.17%
Number of Hedge Fund Holders: 72
Exxon Mobil Corporation (NYSE:XOM) is an oil and gas firm involved in the exploration and refining of oil across the world. Clough Capital Partners’ stake in Exxon Mobil Corporation (NYSE:XOM) stood at over $33 million at the end of Q2 2022. The fund continued to invest in the company as it increased the total stake by 12% during the previous quarter.
At the end of the second quarter, GQG Partners was the biggest stakeholder of Exxon Mobil Corporation (NYSE:XOM), with an investment value of approximately $4 billion in the company’s stock. As per Insider’s Monkey database, 72 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM) at the end of Q2 2022.
First Eagle Investments mentioned Exxon Mobil Corporation (NYSE:XOM) in its second quarter 2022 investor letter. Here’s what it said:
Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the U.S., the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the U.S., which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.
3. Visa Inc. (NYSE:V)
Clough Capital Partners Stake: $34,365,000
Percentage of Clough Capital Partners’ Portfolio: 4.26%
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) is the biggest payment processor in the world. Clough Capital Partners stake in the company at the end of the June quarter stood at approximately $34 million. Visa Inc. (NYSE:V) shares constituted 4.26% of the total value of the fund’s portfolio at the end of Q2 2022.
Visa Inc. (NYSE:V) had a stellar fiscal Q3 2022 as the company posted a normalized EPS of $1.98, well above the consensus estimate of $1.75.
As per Insider’s Monkey database, 166 hedge funds were bullish on Visa Inc. (NYSE:V) at the end of the second quarter. TCI Fund Management turned out to be the biggest stakeholder of the company at the end of the second quarter, with a holding of 19,924,121 company shares, amounting to a value of approximately $4 billion.
Here is what Baron Fintech Fund has to say about Visa Inc. (NYSE:V) in its Q2 2022 investor letter:
The Fund’s holdings in the Payments and Information Services themes also contributed to relative performance. Within Payments, lower exposure to this lagging theme and outperformance of Visa, Inc. (NYSE:V). These global payment networks are viewed as safe havens during market downturns but are also benefiting from resilient payment volumes and a sharp rebound in international travel.
2. Starwood Property Trust, Inc. (NYSE:STWD)
Clough Capital Partners Stake: $44,272,000
Percentage of Clough Capital Partners’ Portfolio: 5.49%
Number of Hedge Fund Holders: 13
Starwood Property Trust, Inc. (NYSE:STWD) is a real estate investment firm managing and acquiring commercial mortgage loans. Charles Clough continued to raise his exposure to Starwood Property Trust, Inc. (NYSE:STWD) during the second quarter. The fund held 2,119,300 at the end of Q2 2022, an increase of 4% from the previous quarter.
On September 6, 2022, Derek Hewett, an analyst at Bank of America, initiated coverage of Starwood Property Trust, Inc. (NYSE:STWD) with a price target of $26. The analyst believes that the company’s robust liquidity profile and strong track record position the company to perform well in the future.
According to Insider’s Monkey database, 13 hedge funds were bullish on Starwood Property Trust, Inc. (NYSE:STWD) at the end of Q2 2022. Cardinal Capital had the highest stake in the company, with an investment value of approximately $104 million.
1. Raytheon Technologies Corporation (NYSE:RTX)
Clough Capital Partners Stake: $63,043,000
Percentage of Clough Capital Partners’ Portfolio: 7.82%
Number of Hedge Fund Holders: 45
Raytheon Technologies Corporation (NYSE:RTX) is a supplier of aerospace and defense equipment. Clough Capital Partners stake in Raytheon Technologies Corporation (NYSE:RTX) amounted to over $63 million at the end of Q2 2022. The fund continued to add to its stake during the second quarter, increasing its holding by 44%.
Raytheon Technologies Corporation (NYSE:RTX) had a good Q2 2022, reporting revenue of $16.3 billion, up 2.7%, and a normalized EPS of $1.16, beating the market estimate by $0.05. The management noted that inflation, labor shortages, and supply chain constraints pose challenges in the near-term for the company. On October 4, 2022, Raytheon Technologies Corporation (NYSE:RTX) entered into a $225 million contract with the Naval Air Systems Command.
Here is what Carillon Tower Advisers had to say about Raytheon Technologies Corporation (NYSE:RTX) in its first-quarter 2022 investor letter:
Raytheon (NYSE:RTX) outperformed along with other defense contractors on rising geopolitical concerns. Military sales account for more than half of revenue. Key franchise programs include the Patriot Missile and F-35 engine, which have provided visible support through most of the decade.
You can also take a look at 10 American Stocks That Will Benefit from the New Cold War and Long-Term Stock Portfolio: 11 Tech Stocks To Consider.
