Top 5 Stock Picks of Thomas Steyer’s Farallon Capital

4. T-Mobile US, Inc. (NASDAQ:TMUS)

Farallon Capital’s Stake Value: $587,570,000

Percentage of Farallon Capital’s 13F Portfolio: 2.97%

Number of Hedge Fund Holders: 89

Farallon Capital elevated its T-Mobile US, Inc. (NASDAQ:TMUS) stake in Q3 2021 by 34%, holding 4.5 million shares of the company, worth $587.5 million. T-Mobile US, Inc. (NASDAQ:TMUS) is a mobile communications company and a wireless network operator that is majority owned by the German telecommunications company, Deutsche Telekom. 

Publishing its Q4 results on February 2, T-Mobile US, Inc. (NASDAQ:TMUS) posted earnings per share of $1.10, exceeding estimates by $1.01. Revenue for the fourth quarter totaled $20.79 billion, missing estimates by roughly $270 million. 

On February 3, RBC Capital analyst Kutgun Maral lowered the price target on T-Mobile US, Inc. (NASDAQ:TMUS) to $152 from $180 and kept an Outperform rating on the shares. The company’s Q4 total revenue missed consensus on lower than expected equipment sales, but sentiment should be “near positive inflection soon”, the analyst told investors in a research note. 

Among the hedge funds tracked by Insider Monkey, 89 funds were bullish on T-Mobile US, Inc. (NASDAQ:TMUS) in the third quarter of 2021, down from 100 funds in the quarter earlier. Billionaire Andreas Halvorsen’s Viking Global is the largest T-Mobile US, Inc. (NASDAQ:TMUS) stakeholder, with 10.2 billion shares worth $1.30 billion. 

Here is what ClearBridge Investments had to say about T-Mobile US, Inc. (NYSE:TMUS) in its Q1 2021 investor letter:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”