Top 5 Stock Picks of Thomas Steyer’s Farallon Capital

In this article, we discuss the top 5 stock picks of Thomas Steyer’s Farallon Capital. If you want our detailed analysis of these stocks, go directly to Top 10 Stock Picks of Thomas Steyer’s Farallon Capital. 

5. Thermo Fisher Scientific Inc. (NYSE:TMO)

Farallon Capital’s Stake Value: $559,709,000

Percentage of Farallon Capital’s 13F Portfolio: 2.83%

Number of Hedge Fund Holders: 94

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American company working in the laboratory equipment, biotechnology, pharmaceutical, and healthcare industries, providing scientific instrumentation, reagents, consumables, and software services.

In the third quarter of 2021, Farallon Capital held 979,659 Thermo Fisher Scientific Inc. (NYSE:TMO) shares, worth $559.70 million, representing 2.83% of the hedge fund’s 13F securities for the period. 

On February 2, Thermo Fisher Scientific Inc. (NYSE:TMO) reported earnings for the fourth quarter, posting an EPS of $6.54, beating estimates by $1.27. Revenue over the period totaled $10.70 billion, surpassing estimates by $1.45 billion. 

Believing that post-pandemic expectations are too high, Wells Fargo analyst Dan Leonard lowered the price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $605 from $700 and kept an Equal Weight rating on the shares on February 3, after the Q4 results were published.

A total of 94 hedge funds were long Thermo Fisher Scientific Inc. (NYSE:TMO) in Q3 2021, up from 87 funds in the quarter earlier. Generation Investment Management is a prominent stakeholder of the company as of the close of the third quarter of 2021, holding 1.68 million shares worth $962.4 million. 

Here is what L1 Capital has to say about Thermo Fisher Scientific Inc. (NYSE:TMO) in its Q3 2021 investor letter:

“Included in these adjustments, in early July 2021, we divested our remaining small investment in Thermo Fisher Scientific (Thermo Fisher), the world leader in the provision of equipment, consumables, and services to the Life Sciences industry. Thermo Fisher has benefited from elevated demand for its products and services associated with COVID-19 and we sold our residual investment at a gain of more than 70% compared to our average investment cost. Thermo Fisher subsequently held an Investor Day and positively surprised many people, including us, with very strong medium-term growth targets, notwithstanding a headwind from normalization of COVID-19-related business. Thermo Fisher is a high-quality business and remains on our ‘Bench’ for potential reinvestment.”