In this article, we are going to discuss the top 10 stock picks of David Dattels’ NewGen Asset Management.
David Dattels is the founder and president of NewGen Asset Management. Dattles completed his bachelor’s in Economics from the University of Western Ontario in 2001 and started working as a Research Associate at Octagon Capital. He left Octagon Capital in 2004 and joined Canaccord Genuity Inc. as a Metals and Mining Associate.
A year later, David Dattles was promoted to Metals and Mining analyst, a position he held till August 2006. Later in the same year, Dattles joined RAB Capital as a senior analyst for RAB Special Situations Fund and was promoted to Co-portfolio Manager of the same fund in 2008. In 2009, David Dettels founded his Asset Management firm by the name of NewGen Asset Management.
NewGen Asset Management is a privately owned Canadian investment fund manager. The firm specializes in short selling, futures, arbitrage, leverage, and unconventional assets. NewGen Asset Management has been known to be consistent even during periods of high market volatility.
Enbridge Inc. (NYSE:ENB), Suncor Energy Inc. (NYSE:SU), and Shaw Communications Inc. (NYSE:SJR) are some of the notable names in NewGen Asset Management’s portfolio. Shaw Communications Inc. (NYSE:SJR) is NewGen Asset Management’s largest holding and represents 12.09% of the fund’s portfolio.
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Our Methodology
Here is our list of top 10 stock picks of NewGen Asset Management. These were picked from the NewGen Asset Management’s investment portfolio at the end of the third quarter of 2021.
The list is compiled according to the value of each holding in the NewGen Asset Management portfolio. The list exclusively contains the companies that operate commercially.
The hedge fund sentiment around each stock was taken from the data of 867 hedge funds tracked by Insider Monkey.
Top 10 Stock Picks of NewGen Asset Management
10. Precision Drilling Corporation (NYSE:PDS)
NewGen Asset Management’s Stake Value: $4.648 million
Percentage of NewGen Asset Management’s 13F Portfolio: 2.6%
Number of Hedge Fund Holders: 6
Precision Drilling Corporation (NYSE:PDS) is an oil well services company and is currently Canada’s largest drilling rig contractor. It was founded in 1951 and presently owns land drilling rigs in the United States, Canada, Saudi Arabia, Georgia, and Southern Kurdistan.
According to Insider Monkey’s database of 867 hedge funds, 6 funds had stakes worth $49.3 million in Precision Drilling Corporation (NYSE:PDS) at the end of the third quarter of 2021, down from 9 hedge funds having stakes worth $50.1 million in the previous quarter. NewGen Asset Management also decreased its activity in the company by 26% in the third quarter.
On October 22, National Bank analyst Dan Payne raised the price target of Precision Drilling Corporation (NYSE:PDS) from $55 to $65 and kept an Outperform rating on the company’s shares.
Precision Drilling Corporation (NYSE:PDS) is one of NewGen Asset Management’s top picks alongside Enbridge Inc. (NYSE:ENB), Suncor Energy Inc. (NYSE:SU), and Shaw Communications Inc. (NYSE:SJR).
9. Algonquin Power & Utilities Corp. (NYSE:AQN)
NewGen Asset Management’s Stake Value: $5.37 million
Percentage of NewGen Asset Management’s 13F Portfolio: 3.01%
Number of Hedge Fund Holders: 15
Algonquin Power & Utilities Corp. (NYSE:AQN) is a renewable energy company headquartered in Canada. It has invested in solar, wind, hydroelectric facilities, and other utilities such as water and electricity.
According to the third-quarter 2021 filings, NewGen Asset Management owned 366,200 shares of Algonquin Power & Utilities Corp. (NYSE:AQN) worth $5.37 million, representing 3.01% of the fund’s portfolio.
On October 26, American Electric Power Company, Inc. (NASDAQ:AEP) announced to sell its Kentucky business for $2.846 billion to Liberty Power, a subsidiary of Algonquin Power & Utilities Corp (NYSE:AQN). The deal is expected to close around the second quarter of 2022 as the companies are awaiting regulatory approvals.
8. Manulife Financial Corporation (NYSE:MFC)
NewGen Asset Management’s Stake Value: $5.77 million
Percentage of NewGen Asset Management’s 13F Portfolio: 3.24%
Number of Hedge Fund Holders: 18
Manulife Financial Corporation (NYSE:MFC) is a multinational insurance company that operates in Canada, the United States, and Asia. It is the largest insurance company in Canada and ranks as one of the largest fund managers around the globe.
For the third quarter of 2021, Manulife Financial Corporation (NYSE:MFC) posted an EPS of $0.61, missing the estimates by $0.03, which was $0.64. The company generated revenue of $31.06 billion in the same quarter, beating the estimates by $2.43, around 8.50% more than the forecast.
On November 17, the price target of Manulife Financial Corporation (NYSE:MFC) was raised from $27 to $28 by National Bank analyst Gabriel Dechaine.
7. TransAlta Corporation (NYSE:TAC)
NewGen Asset Management’s Stake Value: $6.85 million
Percentage of NewGen Asset Management’s 13F Portfolio: 3.84%
Number of Hedge Fund Holders: 12
TransAlta Corporation (NYSE:TAC) is a Canada-based electricity operating and development company. It handles solar, wind, and coal power generation facilities across the United States, Canada, and Australia.
As of the third quarter of 2021, David Rosen’s Rubric Capital Management holds the largest stake in TransAlta Corporation (NYSE:TAC), with close to 5.19 million shares worth $54.8 million, making up 1.53% of the fund’s total portfolio.
6. Enbridge Inc. (NYSE:ENB)
NewGen Asset Management’s Stake Value: $7.36 million
Percentage of NewGen Asset Management’s 13F Portfolio: 4.13%
Number of Hedge Fund Holders: 24
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline transportation company founded in 1949. The company owns more than 17,000 miles of a crude oil pipeline across the United States and Canada. Enbridge Inc.’s (NYSE:ENB) natural gas pipeline is around 24,000 miles and connects Canada to the United States and the Gulf of Mexico.
According to its third-quarter 2021 filings, NewGen Asset Management owned 185,000 shares of Enbridge Inc. (NYSE:ENB) worth $7.36 million, comprising 4.13% of the fund’s portfolio. The recent quarter has also seen a 19% increase in Enbridge Inc.’s (NYSE:ENB) stake by the fund.
Suncor Energy Inc. (NYSE:SU) and Shaw Communications Inc. (NYSE:SJR) are also some of the significant stocks of NewGen Asset Management along with Enbridge Inc. (NYSE:ENB).
The investment management firm ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in their second-quarter 2021 investor letter. Here is what the firm said:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which Canadian energy infrastructure company Enbridge was one of the lead performers. Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. Moreover, the company owns regulated gas distribution utilities in Ontario, Canada. Enbridge’s Line 3 Replacement Project received a favorable court ruling regarding the adequacy of its Environmental Impact Statement. This significantly lowers the execution risk for the project and enables the company to place the project into service later in the year.”
5. TC Energy Corporation (NYSE:TRP)
NewGen Asset Management’s Stake Value: $7.38 million
Percentage of NewGen Asset Management’s 13F Portfolio: 4.14%
Number of Hedge Fund Holders: 15
TC Energy Corporation (NYSE:TRP) is an energy company that operates natural gas and liquids pipelines across Canada, the United States, and Mexico. The company transports more than 25% of North America’s natural gas through its 57,500 miles of pipeline. The liquids pipeline transports close to 600,000 barrels of crude oil per day through a 3000-mile oil pipeline. The energy sector of TC Energy Corporation (NYSE:TRP) owns facilities that generate more than 6,500 MW through nuclear and natural gas sources.
TC Energy Corporation (NYSE:TRP) recently announced its collaboration with Hyzon Motors Inc. (NASDAQ:HYZN) on the development and operation of hydrogen production facilities across North America. TC Energy Corporation (NYSE:TRP) is set to operate the hubs, which will produce around 20 tons of hydrogen per hub each day.
TC Energy Corporation (NYSE:TRP) represents 4.14% of NewGen Asset Management’s portfolio. The fund owns 153,500 shares of the company, worth $7.38 million.
4. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
NewGen Asset Management’s Stake Value: $8.618 million
Percentage of NewGen Asset Management’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 15
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a Canada-based company that acquires, owns, develops, and operates infrastructure networks across the globe. The company’s core business revolves around transportation and storage of energy, water, freight, and passengers.
For the last 12 months, Brookfield Infrastructure Partners L.P. (NYSE:BIP) has been beating the EPS and revenue estimates by a considerable margin. In the third quarter of 2021, the company’s EPS was $0.72 against the $0.03 estimate. Similarly, Brookfield Infrastructure Partners L.P. (NYSE:BIP) also beat the revenue estimates by 151.98% after generating $2.94 billion compared to $1.17 billion analyst estimates.
On September 9, Brookfield Infrastructure Partners L.P.’s (NYSE:BIP) coverage was resumed with an Outperform rating by BMO Capital analyst Devin Dodge. Dodge raised the company’s price target from $61 to $63 and noted that the liquidity for the company was at record levels.
3. Suncor Energy Inc. (NYSE:SU)
NewGen Asset Management’s Stake Value: $10.37 million
Percentage of NewGen Asset Management’s 13F Portfolio: 5.82%
Number of Hedge Fund Holders: 32
Suncor Energy Inc. (NYSE:SU) is a Canadian integrated energy company. The company’s primary focus is the production of synthetic crude in Canada’s Athabasca oil sands. Additionally, it works with petroleum refining in the USA and Canada. Suncor Energy Inc. (NYSE:SU) is working towards becoming a net-zero greenhouse gas emissions company by 2050.
According to Insider Monkey’s database of 867 hedge funds, the hedge fund sentiment of Suncor Energy Inc. (NYSE:SU) has remained the same in the second and the third quarter of 2021, with 32 funds having a stake in the company.
2. Colliers International Group Inc. (NASDAQ:CIGI)
NewGen Asset Management’s Stake Value: $11.49 million
Percentage of NewGen Asset Management’s 13F Portfolio: 6.45%
Number of Hedge Fund Holders: 16
Colliers International Group Inc. (NASDAQ:CIGI) is an investment management company headquartered in Ontario, Canada. The company’s primary focus is real estate brokerage and management services. Furthermore, Colliers International Group Inc. (NASDAQ:CIGI) works in 68 countries worldwide and employs more than 15,000 people.
On October 26, the company’s price target was raised to $180 from $160 by RBC Capital analyst Matt Logan who kept an Outperform rating on Colliers International Group Inc.’s (NASDAQ:CIGI) shares.
Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management holds the most valuable stake in Colliers International Group Inc. (NASDAQ:CIGI) with 2.475 million shares worth $316.4 million, representing 8.19% of their portfolio.
LRT Capital Management mentioned Colliers International Group Inc. (NASDAQ:CIGI) in their second-quarter 2021 investor letter. Here is what it said:
“Colliers International Group is a commercial real estate brokerage and investment management company founded by Jay S. Hennick in 1976 in Toronto, Canada. From humble beginnings, the company has grown, primarily through acquisitions, to become one of the five largest commercial real estate brokerages in the world (the others being CBRE, Jones Lang LaSalle, Cushman & Wakefield, and Savills). The company today offers a full range of services and reports in the following segments: Outsourcing & Advisory (45% of revenue; this includes Engineering & Design services, Valuation services, and Property Management), Capital Markets (25% of revenue), Commercial Real Estate Leasing (24% of revenue), and Investment Management (6% of revenue). The company believes that about half of its revenue is recurring in nature. The Investment Management segment deserves special attention, as it is the result of an acquisition of the real estate investment management company Harrison Street in 2018. While the segment contributes the smallest part of revenues, it has a very high margin, contributing over 17% of the company’s EBITDA.
Colliers has historically grown by acquisition and we expect it to continue to do so. The real estate services market is highly fragmented outside of North America presenting ample opportunities for Colliers to continue its growth strategy. The company has been a good steward of shareholder capital and spun out FirstService Residential (FSV) in 2014 to maximize the value of that business. This spinout accounts for the drop in revenue in 2014 seen in the chart below.
Shares are +44.34% year-to-date and +133.44% over the past twelve months.”
1. Shaw Communications Inc. (NYSE:SJR)
NewGen Asset Management’s Stake Value: $21.545 million
Percentage of NewGen Asset Management’s 13F Portfolio: 12.09%
Number of Hedge Fund Holders: 21
Shaw Communications Inc. (NYSE:SJR) is a Canada-based telecommunications company founded in 1966. The company provides internet, television, telephone, and mobile services in Canada. On March 15, 2021, Rogers Communications Inc. (NYSE:RCI) announced acquiring Shaw Communications Inc. (NYSE:SJR) for $26 billion.
On October 29, the board of directors of Shaw Communications Inc. (NYSE:SJR) declared monthly dividends of $0.098542 per Class A Participating Share and of $0.09875 per Class B Non-Voting Participating Share payable on December 30, 2021, January 18, and February 25, 2022, to registered owners of the security.
Shaw Communications Inc. (NYSE:SJR) is the most significant investment in NewGen Asset Management’s portfolio. The firm owns 741,900 shares of Shaw Communications Inc. (NYSE:SJR) worth $21.545 million, making up 12.09% of the fund’s portfolio. Compared to the previous quarter NewGen Asset Management has increased its activity by 18% in Shaw Communications Inc. (NYSE:SJR).
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Disclosure: None. Top 10 Stock Picks of NewGen Asset Management is originally published on Insider Monkey.
