In this article, we discuss the top 10 stock picks of Roberto Mignone’s Bridger Management.
Roberto Mignone established Bridger Management in the year 2000. He pursued his MBA at the Harvard University Graduate School of Business Administration after receiving a Bachelor of Arts in Classics from Harvard College. Before starting his own investment company, Mignone was one of the founding partners of Blue Ridge Capital in 1996, together with John Griffin. Blake Goodner, a junior analyst in healthcare, chose to help Mignone after he left Blue Ridge Capital to launch his hedge fund. This could be a contributing element as to why the fund decided to invest approximately 35% of the money in its portfolio in the healthcare industry, second only to the financial sector, which accounted for 49% of the portfolio’s value. Even further back, Mignone had worked for Julian Robertson’s Tiger Management, earning the prestigious title of “tiger cub”. Currently, he is the managing partner at Bridger Management.
Bridger Management, a multi-billion dollar investment management firm with offices in New York, focuses on long-term equity strategies. The company’s main investment objective is to produce long-term, risk-adjusted capital growth, frequently through making investments in equities, securities, and other products with a stock market connection. Bridger Management has focused on the healthcare sector since its establishment and amassed a large amount of research information to back its investments. The hedge fund also invests in communications, consumer goods, and financial services firms.
As of Q2 2022, Bridger Management holds a 13F portfolio valued at $443.62 million, down from $609.73 million in the previous quarter. Some of the hedge fund’s notable holdings in the second quarter included Charter Communications, Inc. (NASDAQ:CHTR), Morgan Stanley (NYSE:MS), and Centene Corporation (NYSE:CNC).
Our Methodology
Let’s start our list of the top 10 stocks selected by Roberto Mignone’s Bridger Management with this economic outlook in mind. These equities were selected from Mignone’s Q2 portfolio. Using a comprehensive database of 895 elite hedge funds monitored by Insider Monkey in the second quarter of 2022, the popularity of each firm among hedge funds was calculated.
Top Stock Picks of Roberto Mignone’s Bridger Management
10. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Bridger Management’s Stake Value: $17,220,000
Percentage of Bridger Management’s 13F Portfolio: 3.88%
Number of Hedge Fund Holders: 59
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), which is situated in San Rafael, California, creates medications to treat rare genetic diseases and conditions, including Duchenne muscular dystrophy and haemophilia. Bridger Management acquired a new position in BioMarin Pharmaceutical Inc. during the second quarter of 2022, owning 207,800 shares worth $17.22 million.
Among the hedge funds being tracked by Insider Monkey, Julian Baker and Felix Baker’s Baker Bros. Advisors is the most significant shareholder of BioMarin Pharmaceutical Inc., with a $631.51 million stake in the company.
On August 9, Christopher Raymond, an analyst at Piper Sandler, boosted his price objective on BioMarin Pharmaceutical Inc. from $125 to $128 while maintaining an ‘Overweight’ rating.
Fund managers added to their BioMarin Pharmaceutical Inc. holdings in the second quarter. Insider Monkey’s data shows that 59 elite hedge funds held stakes in the company at the end of the second quarter, up from 56 funds a quarter earlier.
Along with Charter Communications, Inc., Morgan Stanley, and Centene Corporation, BioMarin Pharmaceutical Inc. is one of the stocks that Bridger Management is monitoring.
9. Uber Technologies, Inc. (NYSE:UBER)
Bridger Management’s Stake Value: $20,323,000
Percentage of Bridger Management’s 13F Portfolio: 4.58%
Number of Hedge Fund Holders: 129
Uber Technologies, Inc. (NYSE:UBER) is a company that creates and runs proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Uber Technologies, Inc. stated on September 1 that it will collaborate with financial technology firm Moove to raise the number of electric vehicles in London by 10,000 over the ensuing few years.
On August 3, MKM Partners analyst Rohit Kulkarni reaffirmed a ‘Buy’ recommendation on Uber Technologies, Inc. while increasing his price objective to $40 from $32. The company’s Q2 witnessed another clean beat, and the Q3 bookings prediction was once more above consensus expectations, according to the analyst’s research note to investors.
Uber Technologies, Inc. was in 129 hedge fund portfolios at the end of the second quarter of 2022. There were 144 hedge funds in our database with UBER at the end of the previous quarter. In the second quarter, Bridger Management reduced its stake in Uber Technologies, Inc. by 3%, and its position is now worth about $20.32 million. Ken Fisher’s Fisher Asset Management is the most significant stakeholder of Uber Technologies, Inc., with 24.48 million shares worth $500.83 million.
ClearBridge Investments mentioned Uber Technologies, Inc. in its Q3 2021 investor letter. Here’s what the fund said:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber will also be a key player in the transition from internal combustion engines to EVs.”
8. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Bridger Management’s Stake Value: $20,591,000
Percentage of Bridger Management’s 13F Portfolio: 4.64%
Number of Hedge Fund Holders: 45
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company that conducts research and markets cystic fibrosis medications. The business boosted its 2022 revenue projection in its Q2 2022 report, which Vertex Pharmaceuticals Incorporated published on August 4. The biotech now expects full-year sales of $8.6 billion-$8.8 billion, up from $8.4 billion-$8.6 billion.
After Vertex Pharmaceuticals Incorporated’s Q2 results beat and revised expectations, Piper Sandler analyst Do Kim increased his price objective on the company to $288 from $256 on August 16 while retaining a ‘Neutral’ rating on the shares. Overall, 45 hedge funds were bullish on Vertex Pharmaceuticals Incorporated at the end of June 2022, holding collective stakes amounting to approximately $2.27 billion.
In the second quarter of 2022, Bridger Management held 73,072 shares of Vertex Pharmaceuticals Incorporated worth over $20.59 million, representing 4.64% of the firm’s total portfolio. As of June 30, Renaissance Technologies owned 1.76 million shares of Vertex Pharmaceuticals Incorporated and is the company’s largest shareholder.
On September 2, the FDA approved the use of Orkambi, a medication created by Vertex Pharmaceuticals Incorporated, to treat children between the ages of 12 and 24 months who have cystic fibrosis (CF). The FDA had previously advised using Orkambi for CF patients with two copies of the F508del mutation who were two years of age or older.
Baron Funds, an asset management firm, mentioned Vertex Pharmaceuticals Incorporated in its second quarter 2022 investor letter. Here is what the fund said:
“Vertex Pharmaceuticals Incorporated is a leader in the treatment of cystic fibrosis, a fatal lifelong disease that Vertex has made major steps towards curing. Shares increased mostly due to underlying business fundamentals that include strong free cash flow generation and a pipeline that is finally starting to add value. We expect Vertex’s kidney disease program and updates to treat Type 1 diabetes to drive future upside.”
7. Alcon Inc. (NYSE:ALC)
Bridger Management’s Stake Value: $21,884,000
Percentage of Bridger Management’s 13F Portfolio: 4.93%
Number of Hedge Fund Holders: 26
Alcon Inc. (NYSE:ALC) develops, manufactures, and markets products for treating eye disorders and diseases, such as surgical instruments, eye drops, and consumer vision care products. Alcon Inc. and Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) announced they had signed a legally binding merger agreement on August 23. As a result, Alcon would acquire Aerie for around $770 million.
Yigal Nochomovitz, a Citi analyst, downgraded Aerie Pharmaceuticals, Inc. on August 29 from ‘Buy’ to ‘Neutral’ with a price objective of $15.25, up from $14, highlighting the company’s upcoming acquisition by Alcon Inc..
26 hedge funds were long Alcon Inc. at the end of the second quarter, up from 24 in the preceding quarter. The total value of Q2 hedge fund holdings stood at $982.28 million. Nicolai Tangen’s Ako Capital, with 4.69 million shares worth $327.65 million, is the most significant stakeholder of Alcon Inc..
Bridger Management first invested in Alcon Inc. in the second quarter of 2019. The hedge fund cut its stake in Alcon Inc. by 40,100 shares in the second quarter, reducing its total stake size by 12%. However, Roberto Mignone’s Bridger Management still holds 313,115 shares of Alcon Inc., worth more than $21.88 million.
6. Clarivate Plc (NYSE:CLVT)
Bridger Management’s Stake Value: $22,749,000
Percentage of Bridger Management’s 13F Portfolio: 5.12%
Number of Hedge Fund Holders: 31
Clarivate Plc (NYSE:CLVT) provides trustworthy analytics and insights to quicken the pace of innovation. The company’s products include Life Science, Web of Science, Cortellis, Derwent, CompuMark, MarkMonitor, and Techstreet. With about 116.67 million shares valued at $1.62 billion, Leonard Green & Partners is the biggest shareholder of Clarivate Plc.
According to its 13F filing for the second quarter of 2022, Bridger Management held over 1.64 million shares of Clarivate Plc, amounting to $22.75 million and representing 5.12% of the fund’s 13F portfolio. However, the hedge fund cut its stake in the firm by 11% during Q2.
On July 12, Wells Fargo analyst Seth Weber initiated coverage of Clarivate Plc, assigning the stock an ‘Overweight’ rating and a $20 price target. In addition, 31 hedge funds reported having bullish bets on Clarivate Plc as of the end of the second quarter, with combined stakes valued at $3.38 billion.
Clarivate Plc is a significant stock in Bridger Management’s portfolio, along with Charter Communications, Inc., Morgan Stanley, and Centene Corporation.
Baron Funds, mentioned Clarivate in its Q1 2022 investor letter. Here’s is what the fund said:
“We reduced our stake in Clarivate Plc, an information services company focused on the scientific and academic markets, after the company reported particularly disappointing fourth quarter earnings results.”
5. AstraZeneca PLC (NASDAQ:AZN)
Bridger Management’s Stake Value: $24,882,000
Percentage of Bridger Management’s 13F Portfolio: 5.6%
Number of Hedge Fund Holders: 47
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical firm specializing in prescription drug research, production, and marketing. In addition to BioMarin Pharmaceutical Inc., Bridger Management also opened a new position in AstraZeneca PLC. The fund bought $24.88 million worth of AZN shares in the second quarter.
AstraZeneca PLC was upgraded on August 29 by Argus analyst Jasper Hellweg from ‘Hold’ to ‘Buy’ with a $75 price target, noting a flurry of recent authorizations, acquisitions, and growth in its current portfolio. In addition, the Japanese Ministry of Health, Labour, and Welfare committee on August 30 authorized AstraZeneca PLC’s COVID treatment, Evusheld.
According to Insider Monkey’s second quarter database, 47 hedge funds placed long bets on AstraZeneca PLC, compared to 45 funds in the earlier quarter. The total stakes owned in the second quarter amounted to $4.90 billion, up from $4.58 billion in the first quarter of 2022. Ken Fisher’s Fisher Asset Management is the leading shareholder of AstraZeneca PLC, with 21.39 million shares worth approximately $1.41 billion.
In its Q1 2022 investor letter, Carillon Tower Advisers mentioned AstraZeneca PLC. Here is what the firm had to say:
“AstraZeneca performed strongly and reported encouraging fourth-quarter earnings and initial 2022 guidance. AstraZeneca also announced positive clinical data for two drugs within its oncology business that should serve as important long-term growth drivers.”
4. Morgan Stanley (NYSE:MS)
Bridger Management’s Stake Value: $26,029,000
Percentage of Bridger Management’s 13F Portfolio: 5.86%
Number of Hedge Fund Holders: 58
Bridger Management made its first investment in Morgan Stanley, an American provider of worldwide financial services and investment management, during the fourth quarter of 2010, purchasing shares worth about $82.11 million. In Q2 2022, the hedge fund sold 32,378 Morgan Stanley shares, reducing its position in the company by 9%. As a result, the fund’s MS stake amounted to over $26.03 million in Q2, representing 5.86% of Bridger Management’s portfolio.
As per Insider Monkey’s Q2 data, the number of hedge funds holding stakes in Morgan Stanley decreased to 58 by the end of Q2, down from 61 at the end of Q1. The total stake value of those 58 funds was roughly $2.99 billion. With shares worth nearly $1.06 billion, Eagle Capital Management is the biggest Morgan Stanley investor among those funds.
On July 15, Barclays analyst Jason Goldberg maintained an ‘Overweight’ rating on Morgan Stanley and decreased his price objective from $123 to $108 following the Q2 results.
In its Q2 2022 investor letter, Sound Shore Management mentioned Morgan Stanley. Here is what the firm had to say:
“Morgan Stanley is a long term holding, retreated despite having business models that are more resilient, over-capitalized and underappreciated by the market. In June, the Federal Reserve’s stress tests again blessed the health of the overall banking system. Morgan Stanley stood out with an 11% increase in its annual dividend, yielding 4.1% at quarter’s end.”
3. Centene Corporation (NYSE:CNC)
Bridger Management’s Stake Value: $26,931,000
Percentage of Bridger Management’s 13F Portfolio: 6.07%
Number of Hedge Fund Holders: 58
Centene Corporation is a diversified healthcare corporation that focuses mainly on offering services to government-sponsored healthcare programs. Stephen Baxter, a Wells Fargo analyst, downgraded Centene Corporation from ‘Overweight’ to ‘Equal Weight’ on August 28 and lowered the price objective from $103 to $99. In a research note to investors, Baxter stated that contract awards made by the California Department of Health Care Services for the state’s Medicaid Managed Care program indicated a “near worst scenario” for Centene Corporation.
Insider Monkey hedge fund database reveals that in the first quarter of 2022, 60 hedge funds were bullish on Centene Corporation. However, in the second quarter of 2022, the number declined to 58 hedge funds. The most prominent stake was held by Viking Global, with 8.29 million shares worth $701.74 million.
According to the 13F filings for the second quarter of 2022, Bridger Management held 318,300 shares of Centene Corporation, amounting to $26.93 million. Centene Corporation was the eighth-largest holding of the hedge fund and represented 6.07% of its 13F portfolio in the second quarter of 2022.
2. GoDaddy Inc. (NYSE:GDDY)
Bridger Management’s Stake Value: $31,020,000
Percentage of Bridger Management’s 13F Portfolio: 6.99%
Number of Hedge Fund Holders: 40
GoDaddy Inc. (NYSE:GDDY) offers web hosting and domain name registration services. It provides tools for hosting, creating, and securing websites. 40 hedge funds tracked by Insider Monkey reported owning stakes in the Tempe-based company as of the end of the second quarter, down from 43 in the previous quarter. The total value of the stakes was over $1.50 billion.
GoDaddy Inc. announced “in-lineish” Q2 earnings and dropped its FY22 revenue target. Thus Evercore ISI analyst Mark Mahaney on August 4 removed GoDaddy Inc. from the firm’s ‘Tactical Outperform’ list. He maintained an ‘In Line’ rating and a $91 price objective on the stock.
Bridger Management started building its position in GoDaddy Inc. during the fourth quarter of 2016. In Q2 2022, the hedge fund slashed its position in the company by 30%, maintaining a stake worth $31.02 million. GoDaddy Inc. accounted for 6.99% of Roberto Mignone’s portfolio.
1. Charter Communications, Inc. (NASDAQ:CHTR)
Bridger Management’s Stake Value: $31,935,000
Percentage of Bridger Management’s 13F Portfolio: 7.19%
Number of Hedge Fund Holders: 68
Broadband communications provider Charter Communications, Inc. offers voice, internet, and video services. As of December 31, 2021, the corporation has 32.1 million household and enterprise clients.
On August 24, KeyBanc analyst Brandon Nispel increased his price objective on Charter Communications, Inc. from $555 to $592 while maintaining an ‘Overweight’ rating on the stock. He did this because he was confident that growth would continue despite the company’s subpar KPIs.
Bridger Management reported owning shares worth $31.94 million of Charter Communications, Inc. at the end of Q2 2022, increasing the position by 30% from last quarter. By the end of Q2 2022, 68 hedge funds tracked by Insider Monkey held stakes in Charter Communications, Inc., down from 73 in the previous quarter. The aggregate value of these stakes was over $5.69 billion.
Harris Associates is one of the company’s most prominent stakeholders in Q2, holding shares worth roughly $1.95 billion. Next on the list is legendary investor and billionaire Warren Buffett’s Berkshire Hathaway. The Oracle of Omaha owns 3.83 million shares of Charter Communications, Inc. worth $1.79 billion.
In its Q1 2022 investor letter, ClearBridge Investments highlighted a few stocks, and Charter Communications, Inc. was one of them. Here is what the fund said:
“We also added to Charter Communications, Inc., a historically strong performer that has faced headwinds recently due to a deceleration in broadband subscriber growth following a period of robust results during the pandemic.”
You can also take a peek at Top 10 Stock Picks of Glenn Greenberg’s Brave Warrior Capital and Top 10 Stock Picks of Cinctive Capital Management.
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This article is originally published at Insider Monkey.
