Top 5 Stock Picks of Dmitry Balyasny’s Hedge Fund

In this article, we discuss the top 5 stock picks of Dmitry Balyasny’s hedge fund. If you want to read our detailed analysis of Balyasny’s investment philosophy and performance, go directly to the Top 10 Stock Picks of Dmitry Balyasny’s Hedge Fund.

05. Trane Technologies plc (NYSE:TT)

Balyasny Asset Management’s Stake Value: $178.611 million

Percentage of Balyasny Asset Management’s 13F Portfolio: 0.58%

Number of Hedge Fund Holders as of Q2, 2022: 38

Trane Technologies plc (NYSE:TT) was founded in 1885 and is situated in Swords, Ireland. Trane Technologies plc (NYSE:TT), together with its subsidiaries, engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration.

After Trane Technologies plc (NYSE:TT) Q2 earnings beat and narrowed outlook, BMO Capital analyst Joel Tiss, on August 15, raised his price target for the company to $180 from $155 and kept an Outperform rating on the shares. The company’s industry-leading HVAC franchisees and strong management team continue to excite the analyst. According to Tiss, Trane Technologies plc (NYSE:TT) “appears increasingly well suited” to gain from increased efforts toward air-quality tests and retrofits.

In its Q1 2022 investor letter, ClearBridge Investments Sustainability Leaders Strategy mentioned Trane Technologies plc (NYSE:TT) and explained its insights for the company. Here is what the fund said:

“Trane Technologies (NYSE:TT), another energy efficiency play in the industrials sector that should benefit from trends highlighted in the REPowerEU energy security plan, was a top detractor for the quarter, mainly due to continued supply chain headwinds raising costs. We think there is a strong secular tailwind for the cost and emissions savings Trane provides: the company makes products that help reduce energy consumption and emissions for residential and commercial HVAC and transport refrigeration, the minimization of food waste and other perishable goods and the increased productivity for Trane’s customers. Trane estimates ~15%-25% of all greenhouse gas emissions in the world are emitted through HVAC systems and buildings.”