In this article, we discuss the top 5 stocks in Mason Hawkin’s portfolio. If you wish to see our detailed analysis of Hawkins’ history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stocks in Mason Hawkins’ Portfolio: MGM, Baidu, and More.
5. Hyatt Hotels Corporation (NYSE:H)
Hawkins’ Stake Value: $269.3 million
Percentage of Mason Hawkins’ 13F Portfolio: 5.41%
Number of Hedge Fund Holders: 23
Hyatt Hotels Corporation (NYSE:H) is a multinational hospitality company based in Chicago. The company operates luxury hotels and resorts, among other vacation properties. The company is ranked fifth on the list of the top 10 stocks in Mason Hawkins’ portfolio.
On August 3, Hyatt Hotels Corporation (NYSE:H) posted its earnings report for the second quarter of 2021. The company declared earnings per share of -$1.15, missing the estimates by $0.30. Additionally, the company reported revenues of $663 million, falling short of the estimates by $29.68 million.
Southeastern Asset Management owns more than 3.46 million shares in Hyatt Hotels Corporation (NYSE:H) worth over $269.3 million, representing 5.41%% of the fund’s portfolio. By the end of the second quarter of 2021, 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in Hyatt Hotels Corporation (NYSE:H) worth roughly $661.4 million. The number of hedge funds that held stakes in the company remained unchanged in both, the first and second quarter of 2021.
On September 27, BofA analyst Shaun Kelley downgraded Hyatt Hotels Corporation (NYSE:H) to Underperform from Neutral with an unchanged price target of $85.
In the Q2 2021 investor letter of Baron Funds, the fund mentioned Hyatt Hotels Corporation (NYSE:H). Here is what the fund said:
“Shares of Hyatt Hotels Corp., a global hotelier, declined in the quarter due to investor concerns around a new, more contagious variant of COVID-19 and a reopening of Asia and Europe that was slower than market forecasts. While the slowed reopening is a disappointment, Hyatt’s domestic business and group bookings are starting to return, and we think conditions will normalize by 2022, at least domestically. The company remains on track with its asset sale program as the hotel transaction market returns to pre-pandemic valuations, which should make Hyatt a more valuable, fee-based business.”
4. General Electric Company (NYSE:GE)
Hawkins’ Stake Value: $291.6 million
Percentage of Mason Hawkins’ 13F Portfolio: 5.86%
Number of Hedge Fund Holders: 67
General Electric Company (NYSE:GE) is a multinational conglomerate that operates through its multiple segments, which include Power, Healthcare, Aviation and Renewable Energy, among others. Ranked fourth on the list of the top 10 stocks in Mason Hawkins’ portfolio, General Electric Company (NYSE:GE) has a market capitalization of $116.66 billion.
The company released its quarterly earnings report for the second quarter of 2021 on July 27, with reported earnings per share at $0.40, beating estimates by $0.14. The company also reported revenues at $18.28 billion, surpassing estimated revenues by $304.35 million.
Southeastern Asset Management owns 21.6 million shares in the company at the end of the second quarter of 2021 worth $291.6 million, representing 5.86% of the portfolio. At the end of the second quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $6.08 billion in General Electric Company (NYSE: GE), down from 68 in the previous quarter worth $6.16 billion.
On August 11, investment advisory Citi maintained a Buy rating on General Electric Company (NYSE:GE) stock, with an adjusted price target of $136 accounting for a reverse stock split.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE:GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
3. Mattel Inc. (NASDAQ:MAT)
Hawkins’ Stake Value: $381.7 million
Percentage of Mason Hawkins’ 13F Portfolio: 7.67%
Number of Hedge Fund Holders: 25
Mattel Inc. (NASDAQ:MAT) is a multinational toy manufacturing company based in California. The company specializes in the design and production of quality toys and other consumer products. The toy company comes in at third on the list of the top 10 stocks in Mason Hawkins’ portfolio.
Mason Hawkins’ Southeastern Asset Management currently holds 18.99 million shares of Mattel Inc. (NASDAQ:MAT), amounting to $381.7 million in worth and accounting for 7.67% of the fund’s portfolio. By the end of the second quarter of 2021, 25 hedge funds out of the 873 tracked by Insider Monkey held stakes in Mattel Inc. (NASDAQ:MAT) worth roughly $928.9 million. The number of hedge funds with stakes in the company remained the same for both the first and second quarters of 2021.
In Q2 2021, Mattel, Inc. (NASDAQ:MAT) posted an EPS of $0.03, beating the estimates by $0.09. The company’s revenue for the quarter came in at $1.03 billion, an increase of 40.20% on a year-over-year basis, beating estimates by $146.66 million.
On July 28, JPMorgan analyst Tami Zakaria raised the the price target on Mattel Inc. (NASDAQ:MAT) to $28 from $27 and kept an Overweight rating on the shares, due to what the analyst calls “solid” Q2 results.
Longleaf Partners Fund mentioned Mattel, Inc. (NASDAQ:MAT) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“Mattel (14%, 0.87%), the global toy company, also contributed to the Fund’s positive returns. Fourth quarter sales grew 10%, with Barbie once again leading with an impressive 18% growth, American Girl up 9% due to direct-to-consumer strength, Hot Wheels up 12% and Infant/Toddler growing 7%. Margins also improved to increase EBITDA 53% year-over-year (YoY) during the company’s all-important seasonal peak. CEO Ynon Kreiz’s outlook for 2021-23 includes achievable targets of mid-single-digit revenue growth and continuously improving margins. Mattel’s strategically important IP monetization has also developed well with no fewer than 25 media projects in the works. We expect significant contributions from these high-margin IP revenues over the next several years and do not think the market yet gives the company credit for the scale of this opportunity.”
2. CNX Resources Corporation (NYSE:CNX)
Hawkins’ Stake Value: $384.7 million
Percentage of Mason Hawkins’ 13F Portfolio: 7.73%
Number of Hedge Fund Holders: 30
CNX Resources Corporation (NYSE:CNX) is a natural gas exploration and production company based in Pennsylvania. Ranked second on the list of the top 10 stocks in Mason Hawkins’ portfolio, CNX Resources Corporation (NYSE:CNX) has a market capitalization of $2.76 billion.
On July 29, CNX Resources Corporation (NYSE:CNX) issued its quarterly earnings report for the second quarter of 2021, with a reported EPS of $0.18, missing estimates by $0.08. The company also reported revenues of $-127.21 million, falling short of the estimated revenues by $522.06 million.
Mason Hawkins’ hedge fund holds more than 28 million shares of CNX Resources Corporation (NYSE:CNX), worth $384.7 million and representing 7.73% of the fund’s total portfolio value. At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $539.9 million in CNX Resources Corporation (NYSE:CNX), up from 23 in the preceding quarter worth $607 million.
On August 27, BMO Capital analyst Phillip Jungwirth downgraded CNX Resources Corporation (NYSE:CNX) to Market Perform from Outperform, with a price target of $13, down from $15.
In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and CNX Resources Corporation (NYSE:CNX) was one of them. Here is what the fund said:
“CNX Resources (36%, 1.86%), the Appalachian natural gas company, was another top contributor. The company earned $85 million FCF in the fourth quarter and used the profits to pay down debt and repurchase shares at a 7% annualized pace. 2021 and 2022 production is hedged at solid prices, and the company has guided to a growing $1.90 per share FCF coupon in the near term. The stock trades under 8x FCF before adjusting for farther off undeveloped acreage and the company’s pipeline infrastructure. CNX is the lowest-cost producer in the region and its PDP decline rate continues to improve, meaning it can maintain or grow future production without spending heavily. Encouragingly, CNX announced meaningful progress in its ESG initiatives in the quarter, including its commitment to transparent reporting through its adoption of Climate-Related Financial Disclosure (TCFD) and the Sustainability Accounting Standards Board (SASB) disclosure standards. We have engaged with CNX leadership on this topic over the last several years and have encouraged them to commit to these leading industry standard disclosure frameworks. Additionally, the company formed a dedicated working group focused on future emissions reduction and approved a performance measure program that ties executive compensation to meeting targeted methane emissions reduction thresholds over a three-year period.”
1. Lumen Technologies, Inc. (NYSE:LUMN)
Hawkins’ Stake Value: $837.9 million
Percentage of Mason Hawkins’ 13F Portfolio: 16.84%
Number of Hedge Fund Holders: 33
Lumen Technologies, Inc. (NYSE:LUMN) is a Louisiana-based technology and communications firm that provides communications, security and cloud solutions, among other services. The company has a market capitalization of $13.69 billion, and ranks first on the list of the top 10 stocks in Mason Hawkins’ portfolio.
On August 3, Lumen Technologies, Inc. (NYSE:LUMN) posted its earnings report for the second quarter of 2021. The company declared earnings per share of $0.48, missing the estimates by $0.07. On the other hand, the company reported revenues of $4.92 billion, which fell short of the estimates by $65.79 million.
According to the recent 13F Filings, Mason Hawkins’ hedge fund owns 61.65 million shares of Lumen Technologies, Inc. (NYSE:LUMN), amounting to over $837.9 million in worth, representing 16.84% of the fund’s total portfolio value. At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $1.05 billion in Lumen Technologies, Inc. (NYSE:LUMN). This is compared to 32 hedge funds in the preceding quarter that held stakes worth approximately $1 billion.
On July 13, Wells Fargo analyst Eric Luebchow kept an Overweight rating on Lumen Technologies, Inc. (NYSE:LUMN) with a $15 price target.
In its Q1 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE:LUMN) was one of them. Here is what the fund said:
“Lumen (40%, 3.33%), the global fiber company, was the top contributor. While COVID fallout still weighed on fourth quarter results, the company benefitted from positive business mix improvements. Early in the quarter, Lumen appreciated 38% in a few short days amidst the “Game Stop / Reddit” short cover phenomenon. After this shortterm bounce, Lumen’s stock price appreciated more steadily over the last six weeks of the quarter with improved results. Many of last year’s worst-case fears have not materialized and the outlook is improving for the core business. We continue to believe that the company has multiple ways within its control to both grow and realize value per share, and we have a 13D filed to allow us to discuss these options with the company. Lumen’s board, which includes Southeastern-nominated Chairman Mike Glenn from FedEx and Director Hal Jones from Graham Holdings, is doing good work to realize Lumen’s hidden value and return the business to FCF/share growth. Despite its appreciation, the stock trades at less than half of our appraisal.”
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