In this article, we will take a look at 10 stocks William Harnisch’s Peconic Partners is buying.
William Harnisch founded Peconic Partners in 2000. He worked at Chase Manhattan Bank from 1968-1970 as an analyst before doing an MBA from New York University. He then joined Forstmann-Leff Associates as a Portfolio Manager and Research Analyst in 1978 after getting his Chartered Financial Analyst (CFA) certification. When William Harnisch left Forstmann-Leff Associates, he had already served as the president as well as chief executive officer at the firm. It was then he founded his own hedge fund and named it after a wealthy Native American tribe in east Long Island.
William Harnisch is known as one of the most pragmatic hedge fund managers in the world. When it comes to investment strategy, he is not a fan of diversification, and rather adopts a ‘concentration’ approach. He always picks the best stocks to invest in rather than injecting his investment in a wide array of sectors and industries, calling this thinking “Balderdash!”.
According to his investment philosophy, sector or industry does not matter as long as you are putting your money in the right stocks.
Some of the notable stocks in Peconic’s Q2 portfolio were Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), and Shopify Inc. (NYSE:SHOP).
William Harnisch of Peconic Partners LLC
Let’s have a look at the top 10 stocks that William Harnisch’s Peconic Partners is buying. We chose the top 10 stock picks of William Harnisch’s Peconic Partners from the second quarter SEC 13F filings of the fund.
William Harnisch’s Peconic Partners is Buying These 10 Stocks
10. Darden Restaurants, Inc. (NYSE:DRI)
Peconic Partners’ Stake Value: $6,365,000
Percentage of Peconic Partners’ 13F Portfolio: 0.63%
Number of Hedge Fund Holders: 44
Founded as General Mills Restaurants after its owner General Mills in 1970, Darden Restaurants, Inc. (NYSE:DRI) now owns multiple fine dining and casual dining restaurants chains. 44 funds tracked by Insider Monkey owned stakes in Darden Restaurants, Inc. as of Q2, compared to 49 in the first quarter.
Stephens Analyst James Rutherford kept an Overweight rating on Darden’s shares, raising the price target from $170 to $180 on September 24.
9. Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Peconic Partners’ Stake Value: $11,357,000
Percentage of Peconic Partners’ 13F Portfolio: 1.13%
Number of Hedge Fund Holders: 28
Peconic Partners held stakes worth $11.35 million with over 76,500 shares in Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL), representing 1.13% of the fund’s overall portfolio, as of Q2 SEC 13F filings.
In terms of hedge fund sentiment, managers are bullish on Cracker Barrel Old Country Store, Inc. as the number of funds that held stakes in the company increased from 16 in Q1 to 28 in Q2.
On October 5, Loop Capital initiated coverage of Cracker Barrel Old Country Store, Inc. with a price target of $140 and a Hold rating.
8. Silicon Laboratories Inc. (NASDAQ:SLAB)
Peconic Partners’ Stake Value: $16,873,000
Percentage of Peconic Partners’ 13F Portfolio: 1.68%
Number of Hedge Fund Holders: 15
Headquartered in Austin, Texas, Silicon Laboratories Inc. (NASDAQ:SLAB) produces hardware and software tools in addition to developing Internet of Things (IoT) infrastructure.
The company reported a Q2 Non-GAAP EPS of $0.16, missing estimates by $0.77, and GAAP EPS of -$0.41, missing targets by a huge margin of $0.74.
The hedge fund sentiment around the stock was slightly neutral with the number of hedge funds opting to invest in Silicon Labs reduced from 18 in Q1 to 15 in Q2 as per Insider Monkey’s data.
7. SBA Communications Corporation (NASDAQ:SBAC)
Peconic Partners’ Stake Value: $23,512,000
Percentage of Peconic Partners’ 13F Portfolio: 2.35%
Number of Hedge Fund Holders: 43
Headquartered in Boca Raton, Florida, SBA Communications Corporation (NASDAQ:SBAC) is a leading real estate investment trust company independently operating wireless infrastructure in 14 markets including America and South Africa. SBA Communications has two major income streams including communications site development and site leasing.
The number of hedge funds that held stakes in SBA Communications Corporation stood at 43 out of 873 tracked by Insider Monkey as of Q2.
While Peconic Partners owns stakes in Apple Inc., The Walt Disney Company, and Shopify Inc., SBA Communications Corporation is one of the top stocks William Harnisch is buying.
6. Exxon Mobil Corporation (NYSE:XOM)
Peconic Partners’ Stake Value: $25,232,000
Percentage of Peconic Partners’ 13F Portfolio: 2.52%
Number of Hedge Fund Holders: 68
The hedge fund sentiment around the American oil and gas giant Exxon Mobil Corporation (NYSE:XOM) has been positive as the number of funds that owned stakes in Q2 stood at 68 out of the 873 tracked by Insider Monkey. This is up from 66 out of 866 in Q1 of 2021.
Exxon Mobil Corporation has increased its focus on sustainability as part of its efforts to reduce carbon emissions. ExxonMobil recently announced to build its first large-scale plastic waste advanced recycling facility which will begin operations next year.
5. MasTec, Inc. (NYSE:MTZ)
Peconic Partners’ Stake Value: $29,339,000
Percentage of Peconic Partners’ 13F Portfolio: 2.93%
Number of Hedge Fund Holders: 39
William Harnisch’s Peconic Partners is one of the biggest stakeholders in MasTec, Inc. (NYSE:MTZ), an engineering and construction company headquartered in Coral Gables, Florida. The fund owned 276,521 shares worth $29.3 million in the company as of Q2 filings, reflecting 2.93% of the fund’s total portfolio.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Peconic Partners’ Stake Value: $71,877,000
Percentage of Peconic Partners’ 13F Portfolio: 7.19%
Number of Hedge Fund Holders: 44
Cleveland-Cliffs Inc. (NYSE:CLF) is one of the biggest steel enterprises that was founded way back in 1847 by Samuel Mather and his associates. The company started as Cleveland Iron Manufacturing Company and it is now being run by C. Lourenco Goncalves as its chairman, CEO, and president. Cleveland-Cliffs recently entered the scraping business following the acquisition of Ferrous Processing and Trading Company for a total of $775 million. Keeping up with the global efforts to promote sustainability, the company has pledged to reduce its greenhouse gas emissions by 25% by 2030.
3. Dycom Industries, Inc. (NYSE:DY)
Peconic Partners’ Stake Value: $72,546,000
Percentage of Peconic Partners’ 13F Portfolio: 7.25%
Number of Hedge Fund Holders: 18
Dycom Industries, Inc. (NYSE:DY) is an American contracting services provider with a focus on the telecommunications industry. Its specialty services include construction, engineering, underground facility locating, fulfillment, and program management. Headquartered in Palm Beach Gardens, Florida, Dycom was founded in 1969. It is currently run by Steven E. Nielsen as its CEO since 1999. Dycom has a number of subsidiaries including CableCom, NeoCom Solutions, Prince Telecom, TCS Communications, Pauley Construction, and Utiliquest among others.
2. WESCO International, Inc. (NYSE:WCC)
Peconic Partners’ Stake Value: $192,241,000
Percentage of Peconic Partners’ 13F Portfolio: 19.23%
Number of Hedge Fund Holders: 23
WESCO International, Inc. (NYSE:WCC) is an American supply chain and distribution solutions provider with operations in 17 countries. It is a Fortune 500 company offering distribution and supply chain solutions to businesses in the electrical, communications, and industrial sectors with clients including utilities, telecommunication companies, contractors, and government agencies all across the globe.
Raymond James kept a Strong Buy rating on the WESCO International, Inc. shares on the back of improved business conditions in the near term. Analyst Sam Darkatsh revised the firm’s price target from $140 to $145 on September 29.
Investment management firm Diamond Hill Capital, in its Q2 investment letter titled “Diamond Hill Small Cap Fund”, talked about WESCO International, Inc.. Here is what the fund said:
“WESCO, a leading distributor of electrical, industrial and communications materials, was a top contributor as it continues making progress on its integration of Anixter—an acquisition that closed in early 2020—and is strategically paying down merger-related debt. With increased scale and added synergy from its acquisition, we believe WESCO is well positioned as it generates strong free cash flow.”
1. Quanta Services, Inc. (NYSE:PWR)
Peconic Partners’ Stake Value: $513,410,000
Percentage of Peconic Partners’ 13F Portfolio: 51.37%
Number of Hedge Fund Holders: 40
As of Q2 2021 filings, William Harnisch’s Peconic Partners owned over 5.6 million shares of PWR worth $513.4 million which is 51.37% of the fund’s total portfolio. The fund is the biggest stakeholder in Quanta Services, Inc. ( NYSE:PWR).
ClearBridge Investments talked about Quanta Services, Inc. in its second-quarter investment letter. Here is what the fund said:
“To highlight this diversification and our active approach, we will discuss a stock that we added this quarter that are wellpositioned for some of the changes we think are underway: Quanta Services.
Quanta Services is a specialty engineering and construction company that will be a major beneficiary of the multidecade power infrastructure investment we expect to be made to support the energy transition. Based on our estimates, electric transmission capacity needs to triple or quadruple over the next 30 years to meet the demand for a net-zero economy. It is very rare to find investment runways of this length and magnitude, and we think the duration and sustainability of this growth are not reflected in Quanta’s current price. Specifically, we think Quanta’s revenues can triple over the next 20 years, which is well above what the stock currently embeds. This growth could be especially powerful if Quanta is able to expand profit margins as management currently expects, but any combination should allow our investment to compound at an attractive rate in one of the biggest transitions in history.”
The hedge fund sentiment around Quanta Services, Inc. is positive as 40 out of the 873 hedge funds owned stakes in the company as of Q2. According to Insider Monkey’s database, the same number stood at 33 out of the tracked 866 funds in the preceding quarter.
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This article is originally published at Insider Monkey.
