In this article, we will take a look at the top 10 stock picks of Paul Singer.
Paul Singer is the founder and president of Elliot Management. He obtained his degree in BS Psychology from the University of Rochester in 1966. In 1969, He got his JD from Harvard Law School. In 1974, he started working as an attorney in the real estate division of investment bank Donaldson, Lufkin & Jenrette. In 1977, he founded Elliot Management with an asset of $1.3 million.
Singer is often known as a “vulture capitalist” because of his strategy of buying distressed debt of sovereign states and troubled companies and going after them in court.
Elliot Management is hailed as one of the oldest hedge funds on Wall Street. At the end of the September quarter, Elliot Investment Management has accumulated a total of $48 billion in assets under management with $13.94 billion in managed 13F securities. Elliot Investment Management is known as an “activist investor” for engaging in one of the highest numbers of activist campaigns. In the third quarter of 2021, Elliot Management engaged in 6 activist campaigns.
The fund returned 12.7% on its investments in 2020, making the year one of its strongest of the decade, as reported by Bloomberg. Over the period of 45 years since its inception, the fund has posted an annualized return of 13.1%, beating the S&P 500 Index’s annualized return of 11.8%.
Elliot Management has allocated up to 31% of its portfolio in the IT sector. In the IT sector, one of the major companies in Singer’s portfolio is Snap Inc. (NYSE:SNAP), with 500,000 shares as of the end of the September quarter, valued at $36.94 million.
Followed by the IT sector is the energy sector with a 14% allocation. Valaris Limited (NYSE:VAL) is a notable company working in the energy sector in which Elliot Management has 1.81 million shares, valued at $63 million, in the third quarter of 2021.
Paul Singer of Elliott Management
Our Methodology
This list is compiled by picking the top companies in which Elliot Management has significant stakes at the end of the third quarter of 2021. The number of hedge funds, out of 867 as tracked by Insider Monkey in the third quarter of 2021, having stakes in each company is also mentioned.
With this context in mind, let’s now discuss our list of the Top 10 Stock Picks of Paul Singer.
Top 10 Stock Picks of Paul Singer
10. Arconic Corporation (NYSE:ARNC)
Elliot Management’s Stake Value: $262.68 million
Percent of 13F Portfolio: 1.88%
Number of Hedge Fund Holders: 26
Arconic Corporation (NYSE:ARNC) is a US-based company working in the materials sector. It manufactures and markets aluminum sheets, extrusions, and other aluminum products. Elliot Management held 8.33 million shares, worth $262.68 million, in Arconic Corporation (NYSE:ARNC) in the third quarter of 2021. This accounts for 1.88% of the 13F portfolio.
On November 16, 2021, Wolfe Research initiated its coverage of Arconic Corporation (NYSE:ARNC) with an “Outperform” rating and a price target of $42 on the stock.
According to the Insider Monkey’s database tracking 867 hedge funds in the third quarter of 2021, 26 hedge funds have stakes in Arconic Corporation (NYSE:ARNC), valued at $763.6 million.
9. E2open Parent Holdings, Inc. (NYSE:ETWO)
Elliot Management’s Stake Value: $282.54 million
Percent of 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 33
With 25 million shares valued at $282.54 million, E2open Parent Holdings, Inc. (NYSE:ETWO) accounts for 2.02% of the Q3 portfolio of Elliot Management. E2open Parent Holdings, Inc. (NYSE:ETWO) is a Texas-based company that provides cloud-based software platforms to assist the global supply chain businesses.
On November 17, 2021, E2open Parent Holdings, Inc. (NYSE:ETWO) went into collaboration with Jaguar Land Rover, the UK’s largest automotive manufacturer, to digitize the supply chain model of the latter.
According to Insider Monkey’s database, E2open Parent Holdings, Inc. (NYSE:ETWO) is in the portfolio of 33 hedge funds at the end of the third quarter of 2021, valued at $1.13 billion.
In the third quarter filings, E2open Parent Holdings, Inc. (NYSE:ETWO) reported an EPS of -$0.11, missing the market estimates of -$0.01. For the same quarter, the company reported revenue of $92.3 million, beating the market estimates by $1.3 million.
On October 11, 2021, Loop Capital assumed a “Buy” rating on the stock and kept the price target to $16.
8. Nielsen Holdings plc (NYSE:NLSN)
Elliot Management’s Stake Value: $318.55 million
Percent of 13F Portfolio: 2.28%
Number of Hedge Fund Holders: 24
Nielsen Holdings plc (NYSE:NLSN) is based in New York and provides services in the communication sector. The company is engaged in the provision of analytical services and marketing data collection. Founded in 2015, the company has attracted investments from 24 hedge funds, valued at $1.47 billion, as tracked by Insider Monkey at the end of the third quarter of 2021.
Nielsen Holdings plc (NYSE:NLSN) reported an EPS of $0.45 in the third quarter of 2021, beating the market consensus by $0.09.
For the third quarter, the company reported revenue at $882 million, beating the market estimates by $12.59 million.
Paul Singer’s Elliot Management held over 16.6 million shares in Nielsen Holdings plc (NYSE:NLSN) in the third quarter of 2021, valued at $318.55 million.
7. Peabody Energy Corporation (NYSE:BTU)
Elliot Management’s Stake Value: $401.2 million
Percent of 13F Portfolio: 2.87%
Number of Hedge Fund Holders: 29
Peabody Energy Corporation (NYSE:BTU) is operating in the energy sector and provides mining services for coal. With 27.125 million shares in the third quarter, valued at $401.2 million, Peabody Energy Corporation (NYSE:BTU) accounts for 2.87% of the 13F portfolio of Paul Singer.
29 hedge funds have stakes in Peabody Energy Corporation (NYSE:BTU), valued at $639.3 million, as of the third quarter end of 2021, according to the database of Insider Monkey.
On October 19, 2021, B. Riley raised its price target on Peabody Energy Corporation (NYSE:BTU) to $23 from $22 and kept a “Buy” rating on the stock.
6. Santander Consumer USA Holdings Inc. (NYSE:SC)
Elliot Management’s Stake Value: $521.2 million
Percent of 13F Portfolio: 3.73%
Number of Hedge Fund Holders: 18
In addition to Snap Inc. (NYSE:SNAP), Valaris Limited (NYSE:VAL), AT&T Inc. (NYSE:T), Elliot Management has significant investments in Texas-based Santander Consumer USA Holdings Inc. (NYSE:SC). The company offers financial products and services related to vehicles.
In the September quarter of 2021, Santander Consumer USA Holdings Inc. (NYSE:SC) posted an EPS of $2.49, beating the market consensus by $0.57. Revenue for the third quarter totaled $1.34 billion, missing the market estimates by $57 million.
As of the end of the third quarter of 2021, Elliot Management held 12.498 million shares of the company, worth $521.2 million, making it 3.73% of the portfolio.
According to the database of Insider Monkey tracking 867 hedge funds in Q3 2021, 18 hedge funds were bullish on Santander Consumer USA Holdings Inc. (NYSE:SC), having stakes worth $752 million.
5. Twitter, Inc. (NYSE:TWTR)
Elliot Management’s Stake Value: $603.9 million
Percent of 13F Portfolio: 4.33%
Number of Hedge Fund Holders: 94
According to the hedge fund data tracked by Insider Monkey, 94 hedge funds have investments in Twitter, Inc. (NYSE:TWTR), worth over $6.3 billion, as of the end of the third quarter of 2021. Twitter, Inc. (NYSE:TWTR) provides a platform to share public opinion and initiate conversations.
On November 09, 2021, Morgan Stanley kept an “Equal-Weight” rating on the stock and lowered its price target to $62 from $68. Elliot Management held 10 million shares in Twitter, Inc. (NYSE:TWTR), valued at $603.9 million, in the third quarter of 2021.
4. Marathon Petroleum Corporation (NYSE:MPC)
Elliot Management’s Stake Value: $653.33 million
Percent of 13F Portfolio: 4.68%
Number of Hedge Fund Holders: 43
Marathon Petroleum Corporation (NYSE:MPC) is an Ohio-based company operating in the energy sector. It provides petroleum refining, marketing, and transportation services in the US. Insider Monkey tracked that Marathon Petroleum Corporation (NYSE:MPC) was in the portfolio of 43 hedge funds in the September quarter of 2021, valued at $2.687 billion.
In the third quarter of 2021, Elliot Management held 10.57 million shares in Marathon Petroleum Corporation (NYSE:MPC), valued at $653.33 million, accounting for 4.68% of its 13F portfolio.
3. Evergy, Inc. (NYSE:EVRG)
Elliot Management’s Stake Value: $655.7 million
Percent of 13F Portfolio: 4.7%
Number of Hedge Fund Holders: 25
With 10.5 million shares valued at $655.7 million, Elliot Management is the leading hedge fund investor in Evergy, Inc. (NYSE:EVRG). Evergy, Inc. (NYSE:EVRG) works in the utility sector and provides electricity in Kansas to residential, commercial, and industrial consumers.
For the September quarter of 2021, the company reported an EPS of $1.98, beating the market estimates by $0.21.
25 hedge funds have stakes in Evergy, Inc. (NYSE:EVRG), valued at $908 million, in the third quarter of 2021, according to the database of Insider Monkey.
2. Howmet Aerospace Inc. (NYSE:HWM)
Elliot Management’s Stake Value: $1.28 billion
Percent of 13F Portfolio: 9.19%
Number of Hedge Fund Holders: 44
Insider Monkey tracked that 44 hedge funds had stakes in Howmet Aerospace Inc. (NYSE:HWM) in the September quarter of 2021. These stakes are valued at $3.495 billion. In the same quarter, the company reported an EPS of $0.27, beating the market consensus of $0.02. Howmet Aerospace Inc. (NYSE:HWM) develops and manufactures advanced aerospace and transportation products for the US market.
Elliot Management held 41 million shares, worth $1.28 billion, in the third quarter of 2021. Elliot Management is also the leading hedge fund investor in Howmet Aerospace Inc. (NYSE:HWM). On November 16, 2021, Wolfe Research initiated its coverage on Howmet Aerospace Inc. (NYSE:HWM) with its price target of $38 and kept an “Outperform” rating on the stock.
1. Dell Technologies Inc. (NYSE:DELL)
Elliot Management’s Stake Value: $2.58 billion
Percent of 13F Portfolio: 18.53%
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) is a Texas-based IT company that develops, sells, repairs computers and related products. The company also provides cloud storage services.
Stakes worth $6.14 billion are invested in Dell Technologies Inc. (NYSE:DELL) by 60 hedge funds as of the end of September quarter of 2021, as tracked by Insider Monkey. Morgan Stanley, on November 24, 2021, raised its price target on Dell Technologies Inc. (NYSE:DELL) to $75 from $72.
Elliot Management held 24.8 million shares in Dell Technologies Inc. (NYSE:DELL), valued at $2.58 billion, in the third quarter of 2021, making it the top holding of the 13F portfolio. Elliot Management is also the leading hedge fund investor in Dell Technologies Inc. (NYSE:DELL).
You can also take a look at 10 Best Stocks to Buy According to Warren Buffett and 10 Healthcare Stocks to Buy According to John Rogers’ Ariel Investments.
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Disclosure. None. Top 10 Stock Picks of Paul Singer is originally published on Insider Monkey.
