Top 5 Stock Picks of Peter Avellone’s Cartenna Capital

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In this article, we will discuss the top 5 stock picks of Peter Avellone’s Cartenna Capital. If you want to read our detailed analysis of Avellone’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Peter Avellone’s Cartenna Capital

5. General Dynamics Corporation (NYSE: GD)

Avellone’s Stake Value: $14,082,000
Percentage of Peter Avellone’s 13F Portfolio: 4.02%
Number of Hedge Fund Holders: 37

General Dynamics Corporation (NYSE: GD) is a publicly listed aerospace and military company based in the United States. It was founded in 1899 and is ranked fifth on the list of top 10 stock picks of Peter Avellone’s Cartenna Capital. Shares of General Dynamics Corporation (NYSE: GD) are up 32.37% in the past 12 months.

On August 19, a $136.5 million ID/IQ contract was awarded to General Dynamics Information Technologies, part of General Dynamics Corporation (NYSE: GD), to consolidate all Tier 1 information technology. On July 29, Credit Suisse raised the price target on General Dynamics Corporation (NYSE: GD) from $182 to $198 and maintained a “Neutral” rating on the shares. 

The hedge fund chaired by Peter Avellone holds 74,800 shares in General Dynamics Corporation (NYSE: GD), worth $14.08 million. Hedge funds are loading up on General Dynamics Corporation (NYSE: GD), as Insider Monkey’s data shows that 37 hedge funds held a stake in the company in the second quarter of 2021, compared to 31 funds in the previous quarter.

Oakmark Funds, in its first-quarter 2021 investor letter, mentioned General Dynamics Corporation (NYSE: GD). Here is what the fund said: 

“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”



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