Top 9 Stocks to Buy According to Patrick Degorce’s Theleme Partners

Published October 21, 2021 at 6:32 am EDT Updated August 19, 2026 at 12:03 pm EDT

In this article, we discuss the top 9 stocks to buy according to Patrick Degorce’s Theleme Partners based on Q2 holdings of the fund.

Theleme Partners is a hedge fund based in London. The hedge fund focuses on large-cap firms and invests in global equities. It often places a few large, concentrated bets on beaten-down equities that it believes will pay off over time.

As of the second quarter of 2021, some notable stock picks of Patrick Degorce’s Theleme Partners portfolio include Facebook, Inc. (NASDAQ:FB), Wells Fargo & Company (NYSE:WFC), and T-Mobile US, Inc. (NASDAQ:TMUS).

In the second quarter of 2021, Theleme Partners bought 390,000 shares in Facebook, Inc., worth $135.61 million. The company represents 3.95% of the fund’s 13F portfolio. On October 6, BofA initiated coverage of Facebook, Inc., rating the stock as “Buy” and gave a price objective of $425.

Patrick Degorce is also bullish on Wells Fargo & Company (NYSE:WFC). The hedge fund increased its holding in Wells Fargo & Company by 3% in the second quarter of 2021, ending the period with over 20.13 million shares of the company.

Patrick Degorce’s Theleme Partners also owns 2.18 million shares in T-Mobile US, Inc.. On September 20, Loop Capital analyst Stephan Bisson initiated coverage of T-Mobile US, Inc. rating the stock as “Buy” and gave a price target of $160.

Source:Pixabay

Why should we pay attention to hedge funds’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this background in mind, let’s start our list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. We used Degorce’s 13F portfolio for Q2 2021 for this analysis.

9. Infosys Limited (NYSE:INFY)

Degorce’s Stake Value: $3,679,000

Percentage of Patrick Degorce’s 13F Portfolio: 0.1%

Number of Hedge Fund Holders: 22

Infosys Limited (NYSE:INFY) is ranked ninth on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. It is an Indian multinational IT firm. Patrick Degorce’s Theleme Partners increased its hold in Infosys Limited by 109% in the second quarter, ending the period with 173,600 shares.

On September 21, Infosys Limited and ServiceNow (NYSE:NOW) teamed together to utilize Infosys’ industry cloud blueprints and ServiceNow Operations Technology Management to aid manufacturers to digitalize their factories. In July, Susquehanna analyst David Grossman raised his price target on Infosys Limited to $22 from $21 and kept a “Neutral” rating.

Out of the hedge funds being tracked by Insider Monkey, Oldfield Partners is a leading shareholder in Infosys Limited, with 2.42 million shares worth more than $53.95 million.

8. Anthem, Inc. (NYSE:ANTM)

Degorce’s Stake Value: $126,067,000

Percentage of Patrick Degorce’s 13F Portfolio: 3.68%

Number of Hedge Fund Holders: 67

Anthem, Inc. (NYSE:ANTM) is placed eighth on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners.

On September 27, SVB Leerink analyst Whit Mayo initiated coverage of Anthem, Inc. with a “Market Perform” rating and gave a price target of $403.

With shares worth $33.92 billion, Mubadala Investment’s MIC Capital Partners is Anthem, Inc.’s leading shareholder. The company is also getting the attention of the smart money, as 67 hedge funds tracked by Insider Monkey reported owning stakes in Anthem, Inc. at the end of the second quarter, up from 58 funds a quarter earlier.

Just like Facebook, Inc., Wells Fargo & Company, and T-Mobile US, Inc., Anthem, Inc. is one of the stocks to buy according to Patrick Degorce’s Theleme Partners.

Nomadic Value Partners released its fourth-quarter 2020 investor letter and mentioned Anthem, Inc. in it. Here is what the firm has to say:

“In mid-December we sold our position in Anthem. At the end of Q3 the Blue Cross Blue Shield Association (BCBSA), the umbrella organization for “blues” across the country, made a preliminary proposal to settle a multi-year anti-trust case for $2.67 billion. This payment is to be made proportionate by each BCBSA health plan. The BCBSA covers about 100 million members nationwide and ANTM represents about 40% of total BCBSA membership. ANTM’s proportionate payment could be a $1 billion charge, nearly 25% of its expected 2020 earnings. Interestingly, the share price rallied on the news because included in the settlement proposal was BCBSA agreeing to lift restrictions on local BCBS plan geographic boundaries. BCBS plans can begin to horizontally integrate and compete in markets historically excluded from reach.”

The more I’ve thought about ANTM’s position in this hypothetical marketplace the more I’ve become less optimistic on them. While consolidation certainly brings better economics to the surviving health plan, I think it is only realistically available to much smaller companies. Looking back at anti-trust cases within healthcare over the last decade, the large health insurance companies are generally blocked from major horizontal acquisitions. Why would this change? This leaves ANTM competing in an increasingly crowded marketplace and the only strategy left to grow is to super charge their vertical integration. ANTM is behind in integration, and I don’t like situations where a company is being forced to play catch up.”

7. Facebook, Inc. (NASDAQ:FB)

Degorce’s Stake Value: $135,607,000

Percentage of Patrick Degorce’s 13F Portfolio: 3.95%

Number of Hedge Fund Holders: 266

Facebook, Inc. ranks seventh on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners.

On September 21, Facebook, Inc. CEO Mark Zuckerberg revealed two new variants of the company’s Portal video communication devices. According to him, the new Portal Go device will cost $199 and include a 10-inch screen, while the Portal+ model would cost $349 and feature a 14-inch high-definition tilting screen.

Hedge funds are loading up on Facebook, Inc., as Insider Monkey’s data shows that 266 elite hedge funds held a stake in the company as of the end of the second quarter of 2021, compared to 257 funds in the previous quarter.

Like Wells Fargo & Company, and T-Mobile US, Inc., Facebook, Inc. is one of the stocks to buy according to Patrick Degorce’s Theleme Partners.

Polen Capital released its second-quarter 2021 investor letter and mentioned Facebook, Inc. in it. Here is what the firm has to say:

“Facebook was the top contributor to our return for the second consecutive quarter. The company has over $1 trillion market capitalizations. Yet, based on first quarter 2021 results, FB is currently still growing revenue at over 30% organically! In fact, last quarter Facebook grew revenue 48% year over year. Facebook has generated earnings and intrinsic value growth for many years, driven largely by the mostly free services the company provide to people who can easily choose to stop using them and spend their time elsewhere.

That said, we are regularly asked about the perceived high regulatory risk around Facebook. We examine risks to businesses and, in particular, regulatory risks through a lens of risk exposure versus actual risk. For instance, the antitrust complaints globally against Facebook based on their size, influence, and strong competitive positioning, definitionally exposes these companies to more regulatory risk than much smaller businesses. However, we do not believe risk exposure is the same as actual risk…” (Click here to see the full text)

6. Centene Corporation (NYSE:CNC)

Degorce’s Stake Value: $136,582,000

Percentage of Patrick Degorce’s 13F Portfolio: 3.98%

Number of Hedge Fund Holders: 49

Centene Corporation (NYSE:CNC) stands sixth on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. It is a healthcare company that offers programs and services to the underinsured or uninsured in the United States.

On September 9, Cowen analyst Gary Taylor kept an “Outperform” rating on Centene Corporation and gave a price target of $87.

Of the 873 hedge funds tracked by Insider Monkey, 49 hedge funds have positions in Centene Corporation in the second quarter of 2021, worth $3.24 billion, compared to 53 hedge funds worth $2.70 billion in the previous quarter.

5. Micron Technology, Inc. (NASDAQ:MU)

Degorce’s Stake Value: $171,830,000
Percentage of Patrick Degorce’s 13F Portfolio: 5.01%
Number of Hedge Fund Holders: 87

Micron Technology, Inc. (NASDAQ:MU) is ranked fifth on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. It supplies memory and storage technologies such as DRAM, NOR, NAND, and 3D XPoint memory under the Micron and Crucial brands and private labels.

On September 29, Wedbush analyst Matt Bryson lowered his price target on Micron Technology, Inc. to $85 from $105 and kept a “Neutral” rating on the shares after quarterly results. The analyst observes that while the statistics were somewhat better than expected, the guidance was much below consensus.

Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the most significant stakeholder of Micron Technology, Inc., with 14.86 million shares worth $1.26 billion.

In its fourth-quarter 2020 investor letter, Bonsai Partners mentioned Micron Technology, Inc.. Here is what the fund said:

“Micron is a manufacturer of memory semiconductor chips. Micron’s stock appreciated 60.1% during the quarter.

Micron’s shares significantly appreciated this quarter for a couple of reasons. First, and most importantly, the DRAM market appears to have begun its cyclical rebound. As a result, we will likely see higher pricing and profitability through at least the calendar year 2021, hopefully meaningfully longer.

Another (and less meaningful) driver wasthat semiconductor stocks have become ‘en vogue’ once again. I may not be old, but I’ve been around the sector long enough to know that when generalists start getting excited about a ‘new paradigm’ around semiconductors, it’s time to be wary.

I wouldn’t call Micron overvalued, but I’d certainly say it’s more fairly priced today compared to when we first purchased it a few months ago.”

4. Analog Devices, Inc. (NASDAQ:ADI)

Degorce’s Stake Value: $197,640,000
Percentage of Patrick Degorce’s 13F Portfolio: 5.77%
Number of Hedge Fund Holders: 62

Analog Devices, Inc. (NASDAQ:ADI) is placed fourth on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. The firm provides data converters that transform analogue signals into digital data and digital data into analogue signals. In the second quarter of 2021, Patrick Degorce’s Theleme Partners held 1.15 million shares of Analog Devices, Inc., amounting to $197.64 million in worth representing 5.77% of the fund’s portfolio.

On September 20, JPMorgan analyst Harlan Sur upgraded Analog Devices, Inc. to “Overweight” from “Neutral,” raising his price target to $215 from $119. In August, China’s State Administration for Market Regulation gave antitrust clearance to the previously announced acquisition of Maxim Integrated Products Inc. (NASDAQ:MXIM) by Analog Devices, Inc..

Analog Devices, Inc. is getting the attention of the smart money, as 62 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the second quarter, up from 50 funds a quarter earlier.

In its fourth-quarter 2020 investor letter, Weitz Investment Management mentioned Analog Devices, Inc.. Here is what the fund said:

”Analog Devices benefited from several global, long-wave trends such as automation, electric vehicles and the 5G network build-out. The company’s quarterly sales into the auto, industrial and communications sectors exceeded expectations, giving the stock a lift.”

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

Degorce’s Stake Value: $315,186,000
Percentage of Patrick Degorce’s 13F Portfolio: 9.2%
Number of Hedge Fund Holders: 100

T-Mobile US, Inc. stands third on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners. The company and its subsidiaries provide 102.1 million consumers with the phone, message, and internet services in the postpaid, prepaid, and wholesale markets. In the second quarter of 2021, Theleme Partners owned 2.18 million shares in T-Mobile US, Inc., worth $315.19 million. This represented 9.2% of the investment portfolio of Theleme Partners.

On September 13, T-Mobile US, Inc. dramatically increased its retail footprint thanks to a deal with Walmart Inc. (NYSE:WMT), which will see the carrier appear in 2,300 locations and on Walmart.com. In addition, T-Mobile and Metro by T-Mobile have reached an agreement that will more than quadruple the carrier’s presence at big national stores. In the second quarter of 2021, T-Mobile US, Inc. posted EPS of $0.94, beating the estimates by $0.44. The company reported revenue of $19.95 billion, up 12.90% year-over-year. Postpaid phone net additions were 627 thousand, up 2.5 times from the previous year.

At the end of the second quarter of 2021, 100 hedge funds in the database of Insider Monkey held stakes worth $8.02 billion in T-Mobile US, Inc., up from 98 the preceding quarter worth $9.06 billion.

ClearBridge Investments, an investment management firm, recently released its first-quarter 2021 investor letter and mentioned T-Mobile US, Inc. in it. Here is what the firm has to say:

“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.”

2. Wells Fargo & Company (NYSE:WFC)

Degorce’s Stake Value: $911,590,000
Percentage of Patrick Degorce’s 13F Portfolio: 26.61%
Number of Hedge Fund Holders: 94

13F filings reveal that Theleme Partners owned 20.13 million shares in the company at the end of the second quarter of 2021, worth $911.59 million, representing 26.61% of the portfolio.

On September 28, Morgan Stanley analyst Betsy Graseck downgraded Wells Fargo & Company to “Equal Weight” from “Overweight” and reduced her price target to $46 from $49.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in Wells Fargo & Company with 34.91 million shares worth more than $1.58 billion.

L1 Capital mentioned Wells Fargo & Company in its second-quarter 2021 investor letter. Here is what the firm has to say:

“Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”

1. Moderna, Inc. (NASDAQ:MRNA)

Degorce’s Stake Value: $1,426,811,000
Percentage of Patrick Degorce’s 13F Portfolio: 41.65%
Number of Hedge Fund Holders: 37

Moderna, Inc. (NASDAQ:MRNA) is placed first on the list of top 9 stocks to buy according to Patrick Degorce’s Theleme Partners.

On October 7, Moderna announced its plans to build a cutting-edge mRNA plant in Africa to manufacture up to 500 million vaccine doses at a 50g dosage level per year. The company intends to invest up to $500 million in this new plant. In August, Oppenheimer analyst Hartaj Singh downgraded Moderna, Inc. to “Perform” from “Outperform.” According to Singh, Moderna’s non-Covid pipeline is still 2-3 years away from commercialization, and Covid vaccines will face financial pressure as soon as 2023.

In its second-quarter 2021 investor letter, Carillon Tower Advisers, an investment management firm, mentioned Moderna, Inc.. Here is what the fund said:

“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock outperformed in the quarter, as the firm’s COVID-19 vaccine has shown effectiveness against the emerging variants of the disease, specifically the now prevalent Delta variant. The potential need for additional booster shots of the vaccine to maintain longer-term immunity as well as protection against possible future variants is also contributing to the stock’s move higher.”

You can also take a peek at 10 Best Healthcare Stocks to Buy According to Matthew Halbower’s Pentwater Capital Management and 10 Large-Cap Stocks to Buy According to Anand Parekh’s Alyeska Investment Group