Top 5 Stock Picks of John Overdeck and David Siegel’s Two Sigma Advisors

3. Johnson & Johnson (NYSE:JNJ)

Two Sigma Advisors’ Stake Value: $527,944,000

Percentage of Two Sigma Advisors’ 13F Portfolio: 1.36%

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ), one of the leading multinational healthcare corporations, is one of the top stock picks of Two Sigma Advisors, with the hedge fund owning 3.26 million Johnson & Johnson (NYSE:JNJ) shares as of September, worth almost $528 million, representing 1.36% of the firm’s Q3 portfolio.

Johnson & Johnson (NYSE:JNJ) is a popular stock among the smart money, with 88 funds owning stakes in the company as of Q3 2021, according to Insider Monkey’s database of elite hedge funds. The leading Johnson & Johnson (NYSE:JNJ) stakeholder is Terry Smith’s Fundsmith LLP, with 7.2 million shares valued at $1.16 billion.

Johnson & Johnson (NYSE:JNJ), on October 19, announced a Q3 EPS of $2.60, beating estimates by $0.25. The $23.34 billion revenue was up 10.70% year-over-year, but missed analysts’ consensus estimates by almost $380 million.

Here is what Distillate Capital has to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”