In this article, we discuss the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP.
Marshall Wace is a London-based hedge fund co-founded by Paul Marshall and Ian Wace in 1997. Ian Wace worked at SG Warburg & Co Ltd for 11 years, where he became the youngest director at the age of 25. He went on to be appointed as the Head of Proprietary Trading in 1993 and a year later became the Head of International Trading. In 1995, Ian was appointed as the Global Head of Equity and Derivative Trading at Deutsche Morgan Grenfell. Ian Wace is currently serving as the Chief Executive Officer at Marshall Wace LLP.
Paul Marshall is the Chief Investment Officer and Chairman at Marshall Wace LLP. Prior to co-founding Marshall Wace, Paul worked at Mercury Asset Management as the Head of European Equities. Paul completed his MBA from INSEAD Business School.
The hedge fund manages long-short equity funds. Fundamental analysis, which aims to discover firms that are significantly mispriced on an absolute or relative basis, is at the heart of the investment process. Marshall Wace LLP has over 400 employees spread across five locations globally. The hedge fund has a portfolio of $55 billion in assets and uses fundamental, systematic, and quantitative strategies in taking long/short positions. According to reports, Marshall Wace’s turnover increased to £958 million this year, up by £388 million from the previous year, owing to resilient investment performance.
As of the third quarter of 2021, some popular stock picks of Paul Marshall and Ian Wace’s portfolio include Airbnb, Inc. (NASDAQ:ABNB), Microsoft Corporation (NASDAQ:MSFT), and Uber Technologies, Inc. (NYSE:UBER).
Paul Marshall of Marshall Wace
Our Methodology
In this article, we will be analyzing the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP. These stocks have been picked from the Q3 portfolio of Paul Marshall and Ian Wace’s Marshall Wace LLP.
Top 10 Stock Picks of Paul Marshall and Ian Wace’s Marshall Wace LLP
10. Seagen Inc. (NASDAQ:SGEN)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $162,432,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.67%
Number of Hedge Funds: 40
Seagen Inc. (NASDAQ:SGEN) is a biotech company working towards developing and commercializing cancer treatments. Three out of four approved therapeutics developed by Seagen Inc. (NASDAQ:SGEN) are based on antibody-drug conjugate (ADC) technology. The Bothell, Washington-based entity considers itself as an industry leader in technology. The stock has been a part of Paul Marshall and Ian Wace’s Marshall Wace LLP’s portfolio since Q4 2020, and the current holding as of Q3 2021 is the highest in terms of the number of stocks owned since a position in Seagen Inc. (NASDAQ:SGEN) stock was initiated.
Seagen Inc. (NASDAQ:SGEN) became publicly listed in 2001 and received the approval for its first therapeutic Adcetris in 2011, which is still the largest revenue generator for the company with a presence in over 65 countries. On December 17, Seagen Inc.’s (NASDAQ:SGEN) treatment of multiple myeloma obtained FDA orphan drug designation. The status provides the sponsors with incentives like exemption from user fees, tax credits for clinical trials, and market exclusivity for a period of up to seven years.
The company’s treatment for locally advanced or metastatic urothelial cancer Padcev received positive feedback from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). CHMP thinks that the therapeutic should receive approval.
In addition to Seagen Inc. (NASDAQ:SGEN), popular companies like Airbnb, Inc. (NASDAQ:ABNB), Microsoft Corporation (NASDAQ:MSFT), and Uber Technologies, Inc. (NYSE:UBER) are also a part of Marshall Wace LLP’s third-quarter portfolio.
9. Apple Inc. (NASDAQ:AAPL)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $171,924,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.71%
Number of Hedge Funds: 120
Apple Inc. (NASDAQ:AAPL) is the biggest publicly listed company in the world and one of the Big Five tech giants in the portfolio of Paul Marshall and Ian Wace’s Marshall Wace LLP.
In a note issued to investors on December 22, Jim Suva at Citi increased the target price on Apple Inc. (NASDAQ:AAPL) from $170 to $200 and maintained a Buy rating.
Distillate Capital shared its stance on Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter. Here’s what the investment management firm said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
8. Accenture plc (NYSE:ACN)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $175,149,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.72%
Number of Hedge Funds: 56
Accenture plc (NYSE:ACN) is a provider of technology and operations, strategy, and consulting services. The Dublin, Ireland-based corporation has 624,000 employees and a portfolio of over 6,000 clients spread across 120 countries. Moreover, Accenture plc (NYSE:ACN) has over 8,200 patents that are either approved or pending.
Accenture plc (NYSE:ACN) announced its Q1 FY22 revenue and GAAP EPS of $14.97 billion and $2.78, respectively, as compared to the analysts’ forecast of $14.22 billion and $2.63. The company also reported that new bookings stood at $16.8 billion, reflecting an increase of over 30% from the same period last year. For Q2 FY22, Accenture plc (NYSE:ACN) expects revenue of $14.30 billion to $14.75 billion.
Following the Q1 FY22 beat and strong guidance for Q2, James Faucette of Morgan Stanley maintained an Overweight rating on Accenture plc (NYSE:ACN) but increased the price target from $400 to $475. The analyst termed the results as well ahead of expectations.
Investment management firm Polen Capital shared its stance on Accenture plc (NYSE:ACN) in its Q3 2021 investor letter. Here’s what the firm said:
“Accenture continue to perform well as the business has grown through the pandemic. Accenture has benefited as businesses around the world have sought a trusted partner to enable their digital transformation. Those leading in the new world are accelerating investment, while those lagging are investing to close the gap. These are two great examples of the pandemic accelerating trends that were already in motion, making leaders more resilient.”
7. Amazon.com, Inc. (NASDAQ:AMZN)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $221,695,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.92%
Number of Hedge Funds: 242
Amazon.com, Inc. (NASDAQ:AMZN) is the second company amongst the Big Five tech giants in Marshall Wace’s portfolio. The Bellevue, Washington-based corporation has evolved into an e-commerce giant and has expanded its presence across artificial intelligence, cloud computing, and digital streaming.
Colin Sebastian at Baird and Mark Mahaney at Evercore ISI have termed Amazon.com, Inc. (NASDAQ:AMZN) as their top internet pick for 2022. Sebastian thinks the digital transformation and a shift towards recurring revenues will play in Amazon’s favor. Meanwhile, Mahaney thinks that Amazon.com, Inc. (NASDAQ:AMZN) is the best fundamental asset in the internet stock universe, and the significant investment in infrastructure in the last two years will start to give out returns from this year.
Davis Funds shared its stance on Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here’s what is said:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $230,676,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.95%
Number of Hedge Funds: 94
Thermo Fisher Scientific Inc. (NYSE:TMO) is a provider of analytical instruments, laboratory products and services, life sciences solutions, and specialty diagnostics across the world. The company has been at the forefront of the pandemic since it launched its COVID-19 detection kit using polymerase chain reaction (PCR) technology. Thermo Fisher Scientific Inc. (NYSE:TMO) also confirmed that the detection kit could produce accurate results for all variants of the Covid-19 virus, including Omicron.
On December 8, the Waltham, Massachusetts-based corporation announced the acquisition of PPD, Inc. (NASDAQ:PPD) for $17.4 billion. The deal is expected to generate synergies of $125 million by its third year and contribute $1.50 to the adjusted EPS of Thermo Fisher Scientific Inc. (NYSE:TMO) in 2022.
On December 14, Dan Leonard at Wells Fargo increased the target price on Thermo Fisher Scientific Inc. (NYSE:TMO) from $625 to $700 with an Equal Weight rating.
Apart from Thermo Fisher Scientific Inc. (NYSE:TMO), Airbnb, Inc. (NASDAQ:ABNB), and Microsoft Corporation (NASDAQ:MSFT), Uber Technologies, Inc. (NYSE:UBER) is also amongst the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP.
5. Airbnb, Inc. (NASDAQ:ABNB)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $234,355,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.97%
Number of Hedge Funds: 58
Airbnb, Inc. (NASDAQ:ABNB) is an online marketplace operator for lodging. Since its inception in 2017, Airbnb has expanded to 4 million hosts who have entertained over 1 billion guests. Paul Marshall and Ian Wace’s Marshall Wace LLP has a stake worth $234.4 million in the company as of Q3 2021.
In a note issued to investors on December 13, Kevin Kopelman at Cowen named Airbnb, Inc. (NASDAQ:ABNB) as the best idea for this year.
Tollymore Investment Partners discussed its stance on Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
4. Teleflex Incorporated (NYSE:TFX)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $259,409,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 1.07%
Number of Hedge Funds: 26
Teleflex Incorporated (NYSE:TFX) is a provider of specialized medical devices for the treatment of patients in critical care. The company operates in over 40 countries and employs more than 12,000 people.
On December 9, Shagun Singh at RBC Capital initiated coverage on Teleflex Incorporated (NYSE:TFX) with a $415 price target and an Outperform rating.
Teleflex Incorporated (NYSE:TFX) was mentioned in the Q1 2021 investor letter of ClearBridge Investments. Here’s what the investment management firm said:
“Teleflex is a diversified medical device company with leading market share in several low-cost consumable niche categories, creating high-margin recurring revenue streams with steady growth and pricing. Its unique UroLift product has the potential to accelerate growth of the company with its strong positioning as the only minimally invasive product to treat BPH in the prostate gland with no side effects, a treatment area with a large total addressable market.”
3. Microsoft Corporation (NASDAQ:MSFT)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $268,581,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 1.11%
Number of Hedge Funds: 250
Microsoft Corporation (NASDAQ:MSFT) is the second-largest publicly traded company in the world and one of the three Big Five tech giants in Paul Marshall and Ian Wace’s Marshall Wace LLP’s portfolio. The Redmond, Washington-based company is involved in the production and marketing of operating systems, consumer electronic products, personal computers, software, etc.
Microsoft Corporation (NASDAQ:MSFT) was mentioned in the Q3 2021 investor letter of Baron Funds. Here’s what the firm said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”
2. Bio-Rad Laboratories, Inc. (NYSE:BIO)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $327,728,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 1.36%
Number of Hedge Funds: 38
Bio-Rad Laboratories, Inc. (NYSE:BIO) is a Hercules, California-based corporation involved in the development, production, and marketing of clinical diagnostic products across the world. The life sciences tools and services entity operates through two segments, Clinical Diagnostics and Life Science.
Out of the 867 hedge funds being tracked by Insider Monkey, 38 funds reported owning a stake in Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of Q3 2021. Marshall Wace LLP is the leading shareholder in the company, with a stake worth over $327.7 million as of Q3.
1. Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN)
Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $377,583,000
Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 1.56%
Number of Hedge Funds: 33
Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) is the New Haven, Connecticut-based biopharmaceutical corporation behind Rimegepant. The breakthrough therapeutic aids in the acute treatment of migraine and received FDA approval. The company is also working on developing the drug as a preventive treatment for migraine. Paul Marshall and Ian Wace’s Marshall Wace LLP initiated a significant position of over 2.5 million shares in Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) in the third quarter of 2020.
On December 6, Christopher Raymond at Piper Sandler issued an Overweight rating on Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) stock with a price target of $156.
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Disclose. None. Top 10 Stock Picks of Paul Marshall and Ian Wace’s Marshall Wace LLP is originally published on Insider Monkey.
