Unknown Billionaire Phill Gross’ Top 5 Stock Picks

4. Facebook, Inc. (NASDAQ: FB)

The social media giant Facebook (NASDAQ: FB) has been on the portfolio of Adage Capital since 2013. The firm held 2.6 million shares of social media company at the end of the latest quarter, weighted around 1.57% of the 13F portfolio. The Facebook stock saw significant gains in 2020.

Kinsman Oak Capital Partners Inc., an independent Toronto-based boutique investment firm, highlighted a few stocks including Facebook in its Q4 investor letter. Here’s what Kinsman Oak Capital Partners stated:

“Our view on Facebook (FB) may be somewhat controversial. The bear case for FB boils down to antitrust risk and valuation. Facebook, although to a lesser degree, is a relative value bargain as well. We believe the company possesses an element of platform risk that Alphabet does not but, compared to the rest of the market, the stock still seems undervalued. We compared Facebook to the Russell 2000, an index full of cyclical businesses that are considered no-brainers at the beginning of a recovery and popular re-opening stocks that are poised to go higher after the vaccine is distributed (Appendix E). Facebook is significantly cheaper, growing faster, has a larger economic moat, superior margin profile, and requires less capex.”