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10 Best Stocks to Invest in Today According to Billionaire Michael Hintze

In this article, we discuss the 10 best stocks to invest in today according to billionaire Michael Hintze. In order to skip our detailed analysis of Hintze’s history and hedge fund performance, go directly to 5 Best Stocks to Invest in Today According to Billionaire Michael Hintze.

Sir Michael Hintze is a British-Australian billionaire who is the founder and executive chairman of CQS Cayman LP. Before founding his own hedge fund in 1999, Hintze worked as a fixed income trader at Salomon Brothers, subsequently moving to Credit Suisse First Boston and then eventually joining Goldman Sachs in London. The billionaire was born in China to Russian immigrant parents who eventually made their way to Australia. Hintze has degrees in physics, engineering, acoustics and an MBA from Harvard Business School. Having served on the boards of multiple Australian and British government advisory bodies, Hintze is also a renowned philanthropist through the Hintze Family Charitable Foundation. Hintze and his wife Dorothy have made sizeable donations to art galleries, museums, universities and political parties, including a £5 million donation to the Natural History Museum in London in 2014. For his dedication to philanthropic causes and prominent status as one of the most successful hedge fund managers in the world, Michael Hintze was knighted by The Prince of Wales in 2013.

CQS Cayman LP is a London-based hedge fund with offices in Sydney, Hong Kong and New York City. Led by Sir Michael Hintze, the fund boasts assets under management (AUM) of $1.59 billion as of the fourth quarter of 2021. The firm invests primarily in credit including corporate credit and structured credit. It also deals with asset backed securities, loans and convertibles. The main investors in CQS include private banks, sovereign wealth funds, pension funds and insurance companies. Its portfolio is spread across the Services, Technology, and Other sectors, with further holdings in Basic Materials, Consumer Goods, Financial and Healthcare. As of the fourth quarter, CQS’ top 10 holdings comprise 34.69% of its overall portfolio.

In the following list, we discuss the top 10 stock picks of billionaire Michael Hintze. Some of the top stocks on the radar of investors right now include Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), along with the ones mentioned below.

Michael Hintze of CQS Cayman LP

Our Methodology

We looked at fourth quarter 13F filings of Michael Hintze’s CQS Cayman LP, and picked the 10 largest holdings of the fund’s portfolio. Hedge fund sentiment around each stock has been provided to give readers additional context for their investment choices, and is derived from Insider Monkey’s database of 900+ elite hedge funds.

10 Best Stocks to Invest in Today According to Billionaire Michael Hintze

 

10. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

 

Number of Hedge Fund Holders: 42

 

Percentage of CQS Cayman LP’s 13F holdings: 0.98%

 

CQS Cayman LP’s Stake Value: $15.68 million

Starting off our list of the best stocks to buy according to Michael Hintze is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a media giant offering content in 50 languages around the world. It was formed after AT&T Inc. (NYSE:T) spun off its Warner Bros segment and merged it into Discovery. Hintze owned roughly 685,000 shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the fourth quarter, at a value of $15.68 million which represents 0.98% of the billionaire’s total holdings.

On April 13, analyst Jessica Reif Ehrlich of research firm Bank of America assumed coverage of Warner Bros. Discovery, Inc. (NASDAQ:WBD) with a ‘Buy’ rating and $45 price target. She feels that the recent merger has created a ‘global media powerhouse’ which offers attractive growth and deleveraging profile. The BofA analyst projects that the stock can grow at more than 14% EBITDA compound annual growth rate for 2022-2025.

Out of the 900+ elite hedge funds tracked by Insider Monkey, 42 were long Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the fourth quarter of 2021, the same as the quarter before. Southeastern Asset Management, the top shareholder of the firm during the fourth quarter, increased its stake by 20% in Warner Bros. Discovery, Inc. (NASDAQ:WBD) to consist of 12.5 million shares valued at $285.9 million.

In addition to Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Warner Bros. Discovery, Inc. (NASDAQ:WBD) is an exciting stock on the radar of institutional investors.

9. Palo Alto Networks, Inc. (NYSE:PANW)

 

Number of Hedge Fund Holders: 73

 

Percentage of CQS Cayman LP’s 13F holdings: 1%

 

CQS Cayman LP’s Stake Value: $15.98 million

Palo Alto Networks, Inc. (NYSE:PANW) is a California-based firm offering cybersecurity solutions, and features next on the list of top stocks to buy according to Michael Hintze. According to regulatory filings for the fourth quarter, Hintze owned 28,700 shares of Palo Alto Networks, Inc. (NYSE:PANW) valued at $15.98 million, representing 1% of his total holdings.

Popular hedge funds hold major stakes in Palo Alto Networks, Inc. (NYSE:PANW), with former US Vice President Al Gore’s Generation Investment Management holding a $544 million stake consisting of 977,000 shares in the firm as of the fourth quarter. In total, 73 hedge funds were bullish on the company shares in Q4 2021, with combined positions worth $6.47 billion.

Goldman Sachs analyst Brian Essex on April 12 gave Palo Alto Networks, Inc. (NYSE:PANW) a ‘Buy’ rating and an increased price target of $700 from $650. He remains bullish on cybersecurity and notes that growth is stronger than expected which will lead to improved fundamentals across his coverage list. As of April 21, Palo Alto Networks, Inc. (NYSE:PANW) has seen a jump of 67.80% in the last 12 months, and 17.43% in the last 6 months.

In the fourth quarter, Palo Alto Networks, Inc. (NYSE:PANW) posted an EPS of $1.74, which outperformed estimates by $0.09. Quarterly revenue of $1.32 billion was above estimates by $35.21 million and showed an increase of 29.5% year-on-year.

Investment firm ClearBridge Investments talked about Palo Alto Networks, Inc. (NYSE:PANW) in its Q1 2022 investor letter. The fund said:

“The portfolio also saw solid performance from cybersecurity names Palo Alto Networks (NYSE:PANW) which is gaining prominence as the risk of global cyberattacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included positions in Palo Alto Networks.”

8. Lions Gate Entertainment Corporation (NYSE:LGF-B)

 

Number of Hedge Fund Holders: 23

 

Percentage of CQS Cayman LP’s 13F holdings: 1.02%

 

CQS Cayman LP’s Stake Value: $16.39 million

Lions Gate Entertainment Corporation (NYSE:LGF-B) is an entertainment giant offering film, television, and subscription-based content in United States and around the world. CQS Cayman LP reported owning more than 1 million shares of the firm worth $16.39 million in Q4 2021, taking up 1.02% of the fund’s overall portfolio.

Macquarie analyst Tim Nollen on April 14 downgraded Lions Gate Entertainment Corporation (NYSE:LGF-B) to ‘Neutral’ from ‘Outperform’, and lowered the price target to $17 from $20. He advises investors to be more cautious on network media as competition between streaming companies takes over the market.

23 hedge funds reported bullish bets on Lions Gate Entertainment Corporation (NYSE:LGF-B) in the fourth quarter, with aggregate positions worth $487.9 million. In comparison, 24 hedge funds held $416 million worth of stakes in the firm a quarter ago. The leading Q4 shareholder of Lions Gate Entertainment Corporation (NYSE:LGF-B) was MHR Fund Management, which held 19.3 million shares worth $320.4 million.

Lions Gate Entertainment Corporation (NYSE:LGF-B) posted an EPS $0.02 for the fourth quarter, falling below estimates by $0.18. Quarterly revenue of $885.40 million was an increase of 5.86% year-on-year, but also fell below analysts’ forecasts by roughly $114 million.

Here is what Sterling Partners Equity Advisors, an investment firm, had to say about Lions Gate Entertainment Corp. (NYSE:LGF-B) in its Q4 2021 investor letter:

Lionsgate is a global content platform whose films, television series, digital products and linear and over-the-top platforms reach audiences around the world. Our thesis is that part of the growth of leisure, entertainment, and the content that drives it, will continue to gain share of the economy.

Management indicated positive momentum in all business segments during the quarter. Starz added 1.3 million global streaming subscribers with strong premieres of three new series. The Television Group launched six new series and renewed six current shows. The Motion Picture Grouped added nine new film production starts to a robust pipeline. Lionsgate completed an acquisition of a 200-title library from Sypglass Media Group.”

7. Liberty Broadband Corporation (NASDAQ:LBRDA)

 

Number of Hedge Fund Holders: 22

 

Percentage of CQS Cayman LP’s 13F holdings: 1.22%

 

CQS Cayman LP’s Stake Value: $19.56 million

Liberty Broadband Corporation (NASDAQ:LBRDA) is next up on the list of stocks to buy according to billionaire Michael Hintze. It is a Colorado-based communications firm which provides internet, voice, video and TV services to customers in the United States through its segments; GCI Holdings, and Charter Communications -two companies in which Liberty Broadband Corporation (NASDAQ:LBRDA) owns significant stakes. Michael Hintze held 121,000 shares of Liberty Broadband Corporation (NASDAQ:LBRDA) in the fourth quarter, worth $19.56 million and representing a 1.22% slice of his overall portfolio.

In March, Benchmark analyst Matthew Harrigan maintained a ‘Buy’ rating on Liberty Broadband Corporation (NASDAQ:LBRDA) shares, and lowered the price target to $222 from $242.

EPS for the fourth quarter was recorded at $2.15 for Liberty Broadband Corporation (NASDAQ:LBRDA), which came in above analysts’ forecasts by $0.62. Quarterly revenue was posted at $248.96 million, which fell below estimates by $11.6 million.

As of the fourth quarter, 22 out of 924 elite hedge funds tracked by Insider Monkey held positions in Liberty Broadband Corporation (NASDAQ:LBRDA) with a combined worth of $754.8 million. This shows a downward trend from the preceding quarter where 24 hedge funds held $885.7 million worth of stakes in the firm. New York-based Eagle Capital Management was the top shareholder of Liberty Broadband Corporation (NASDAQ:LBRDA) during the fourth quarter, with a position consisting of 8.56 million shares valued at $1.37 billion.

6. Ambac Financial Group, Inc. (NASDAQ:AMBC)

 

Number of Hedge Fund Holders: 16

 

Percentage of CQS Cayman LP’s 13F holdings: 1.9%

 

CQS Cayman LP’s Stake Value: $30.33 million

Then there’s Ambac Financial Group, Inc. (NASDAQ:AMBC), a New York-based financial holding company which offers financial guarantee insurance policies, as well as asset management, credit, insurance and other financial services. Investors were seen buying up on Ambac Financial Group, Inc. (NASDAQ:AMBC) stock in the fourth quarter, where 16 hedge funds held $71 million worth of positions in the company. This is in contrast to 15 hedge funds with $62.5 million worth of stakes in the firm a quarter ago.

According to regulatory data for the fourth quarter of 2021, CQS Cayman LP of billionaire Michael Hintze owned 1.89 million shares of Ambac Financial Group, Inc. (NASDAQ:AMBC) at a value of $30.33 million which amounts to 1.9% of the fund’s total holdings.

On March 23, MKM Partners analyst Harry Fong maintained a ‘Neutral’ rating on Ambac Financial Group, Inc. (NASDAQ:AMBC), and reduced the price target to $9 from $15. Fong notes that although the firm believes it will recover a significant amount from Bank of America and several other banks, he is less confident on recoveries and feels this may impact the firm’s capital position.

Reporting its fourth quarter earnings on February 24, Ambac Financial Group, Inc. (NASDAQ:AMBC) posted an EPS of -$0.16, beating estimates by $0.46. $53 million in quarterly revenue was also above analysts’ forecasts by $14.10 million.

Along with Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Ambac Financial Group, Inc. (NASDAQ:AMBC) is grabbing the attention of investors on Wall Street.

 

Click to continue reading and see 5 Best Stocks to Invest in Today According to Billionaire Michael Hintze.

 

 



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