In this article, we discuss top 5 stock picks of Kenneth A. Moffet’s Hourglass Capital. If you want to read our detailed analysis of Moffet’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital.
5. The Goldman Sachs Group, Inc. (NYSE:GS)
Hourglass Capital Stake Value: $8,782,000
Percentage of Hourglass Capital’s 13F Portfolio: 2.94%
Number of Hedge Fund Holders: 74
The Goldman Sachs Group, Inc. (NYSE:GS) is a company that offers various financial services to businesses, financial institutions, governments, and individuals all over the world. In the fourth quarter, Kenneth A. Moffet reduced his stake in The Goldman Sachs Group, Inc. (NYSE:GS) by 34%, which is now worth about $8.78 million.
On January 28, Odeon Capital analyst Dick Bove downgraded The Goldman Sachs Group, Inc. (NYSE:GS) to Hold from Buy with a price objective of $350.65. According to the analyst, his downgrade was based on Federal Reserve Chairman Jay Powell’s assertion that the Fed may reduce its balance sheet size in 2022.
At the end of the third quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes totalling $5.45 billion in The Goldman Sachs Group, Inc. (NYSE:GS), up from 61 the preceding quarter worth $5.18 billion.
In the second-quarter 2021 investor letter, Ariel Investments mentioned a few stocks, and The Goldman Sachs Group, Inc. (NYSE:GS) was one of them. Here is what the fund said:
“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”
4. Morgan Stanley (NYSE:MS)
Hourglass Capital Stake Value: $9,389,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 65
Morgan Stanley (NYSE:MS) is a financial services corporation headquartered in New York City that provides brokerage, investment management, and venture capital services. Out of the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder of Morgan Stanley (NYSE:MS), with 10.45 million shares, the value of which came in at $1.03 billion.
Morgan Stanley (NYSE:MS) was downgraded to Hold by Odeon Capital analyst Dick Bove on January 28 after Federal Reserve Chair Jerome Powell stated that the central bank would trim its balance sheet in 2022.
In the third quarter of 2021, 65 hedge funds were bullish on Morgan Stanley (NYSE:MS), down from 69 funds in the preceding quarter. Morgan Stanley (NYSE:MS) issued a quarterly dividend of $0.70 per share on January 20, the same as the previous quarter.
In its third-quarter 2021 investor letter, Artisan Partners mentioned Morgan Stanley (NYSE:MS). Here is what the fund said:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
3. Apple Inc. (NASDAQ:AAPL)
Hourglass Capital Stake Value: $10,553,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.53%
Number of Hedge Fund Holders: 120
Apple Inc. (NASDAQ:AAPL) is a multinational corporation that designs, manufactures, and sells smartphones, laptops, tablets, wearables, and accessories. It also provides a variety of connected services. On February 8, Apple (NASDAQ:AAPL) purchased AI Music, a London-based business that helps create personalized music.
On January 31, Credit Suisse analyst Sami Badri raised his price target on Apple Inc. (NASDAQ:AAPL) to $168 from $150 and maintained a Neutral rating on the shares. Hourglass Capital holds 59,428 shares in Apple Inc. (NASDAQ:AAPL) worth over $10.55 million, representing 3.53% of its Q4 portfolio. The hedge fund reduced its stake in Apple Inc. (NASDAQ:AAPL) by 21% in the fourth quarter of 2021.
At the end of the third quarter of 2021, 120 hedge funds in the database of Insider Monkey held stakes in Apple Inc. (NASDAQ:AAPL), down from 138 the preceding quarter.
Alger, an investment management firm, in its fourth-quarter 2021 investor letter mentioned Apple Inc. (NASDAQ:AAPL). Here is what the fund said:
“Apple is a leading technology provider in telecommunications, computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives tight engagement with consumers and enterprises, fostering the growing purchases of high-margin services like music, apps and Apple Pay. Apple’s quarterly earnings exceeded street estimates on strong margin realization driven by a sales mix of more profitable services. The margin strength was even more impressive given significantly higher freight costs and supply constraints that prevented approximately $6 billion in revenue realization.”
2. Fifth Third Bancorp (NASDAQ:FITB)
Hourglass Capital Stake Value: $11,126,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.72%
Number of Hedge Fund Holders: 28
Through its subsidiary, Fifth Third Bank, Fifth Third Bancorp (NASDAQ:FITB) provides banking and financial services, retail and commercial banking, consumer loan services, and investment advisory services. On February 3, JPMorgan analyst Vivek Juneja raised his price target on Fifth Third Bancorp (NASDAQ:FITB) to $48.50 from $48 and kept an Overweight rating on the shares.
Fifth Third Bancorp (NASDAQ:FITB), on January 20, posted earnings for the fourth quarter. The reported EPS came in at $0.93, beating estimates by $0.03. In addition, revenue over the period gained 3.0% compared to the previous-year quarter, reaching $2.03 billion, outperforming forecasts by $10 million.
At the end of the third quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes valuing $283.75 million in Fifth Third Bancorp (NASDAQ:FITB), down from 41 in the preceding quarter totalling $360.35 million.
1. AbbVie Inc. (NYSE:ABBV)
Hourglass Capital Stake Value: $11,749,000
Percentage of Hourglass Capital’s 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 81
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company that develops and manufactures a variety of drugs to treat severe and chronic illnesses. On February 4, Mizuho analyst Vamil Divan raised his price target on AbbVie Inc. (NYSE:ABBV) to $166 from $154 and maintained a Buy rating on the shares.
Hourglass Capital first bought a stake in AbbVie Inc. (NYSE:ABBV) in the fourth quarter of 2015. In Q4 2021, the hedge fund holds 86,776 AbbVie Inc. (NYSE:ABBV) shares worth over $11.75 million. This represents 3.93% of its portfolio. The hedge fund’s stake in AbbVie Inc. (NYSE:ABBV) stock decreased by 20% in the fourth quarter of 2021.
As of the end of the third quarter, 81 hedge funds in Insider Monkey’s database held stakes in AbbVie Inc. (NYSE:ABBV), a decrease as compared to 82 funds in the preceding quarter.
In its third-quarter 2021 investor letter, Miller Howard Investments mentioned AbbVie Inc. (NYSE:ABBV). Here is what the fund said:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
You can also take a peek at 10 Biotech Stocks to Buy According to Matthew Strobeck’s Birchview Capital and Top 10 Stock Picks of Christopher Lyle’s SCGE Management
