Porter's Journal

Following The Smart Money 

Posted onAuthorPorter & Co.

The Latest Buys From Wall Street’s Top Money Managers

In today’s Saturday Stock Screen, we’re “Following The Smart Money” by looking closely at the latest buys from Wall Street’s top money managers.

Each week, we apply our brainpower to uncover the most compelling, highest-upside investment ideas. And with this complimentary issue of our Daily Journal, we draw the curtain back to show you how we do it.

An important tool in our analytical toolbox is our stock screens, in which apply a list of criteria – relating to different financial, accounting, and performance parameters – to sift through the more-than 3,000 publicly traded stocks on U.S. markets. That’s how we are able to identify the  tiny fraction of the universe of U.S.-listed stocks that offer the best opportunities for making money.

We often use the results from these screens as a starting point for more in-depth analysis for possible inclusion in the The Big Secret On Wall Street portfolio. 

This week, by tracking the moves of the world’s top money managers, we can see who is putting enormous resources into which securities – and though they’re often not correct (after all, few asset managers outperform consistently), ideas of the world’s best investors are a good starting point.  

Within 45 days after the end of each quarter, asset managers who operate in the U.S. and oversee more than $100 million in assets must report their latest portfolio holdings in what’s known as a Form 13F filing with the Securities and Exchange Commission. With the deadline for Q4’s 13F reports expiring last week, we can now look at the latest buy-and-sell decisions among these fund managers.

In the tables below, we’ll show the latest new stock buys and concentrated bets of some of our favorite fund managers. Plus, we’ll also show some notable investments made by companies themselves into other companies. 

Questions or feedback about our Saturday Stock Screen?… drop us an email at [email protected].

We begin with the new stock buys that raised our interest in the latest 13F filings from the money managers we follow. These are stocks that these fund managers just recently started buying in Q4 of last year. We also show what percentage of assets each stock makes up within each fund’s investment portfolio. 

In addition to tracking new purchases, we pay attention to any “big bets” these asset managers make, which typically means any stocks making up more than 5% of the portfolios they manage. And we also make note of any big investments made by companies into other companies.

The list below shows the notable “big bets” in Q4 among the top money managers and companies we track: 

Highs And Lows 

Each week, we also monitor any stocks in the market making a new 52-week high. We do this because any stock on its way to generating 2x, 3x, or 10x returns will spend a lot of time making 52-week highs along the way. Thus the new 52-week-high list provides an opportunity to flag these potential high performers before they really break out, with a particular emphasis on lower profile, less widely-followed stocks that might have otherwise gone unnoticed. 

Notable stocks making a new 52-week high this week: 

  • AerCap (AER)
  • Carvana (CVNA)
  • Deere & Co. (DE)
  • EQT (EQT)
  • Fiserv (FI)
  • Hims & Hers Health (HIMS)
  • Kellanova (K)
  • Live Nation Entertainment (LYV)
  • Pitney Bowes (PBI)
  • Sable Offshore (SOC)
  • XPeng (XPEV)

(Three of the stocks on the list above are also in the portfolio of The Big Secret On Wall Street… if you are not a subscriber, to learn more about joining The Big Secret – and find out which stock those are, and why we think they have a lot further to go – go here.)

We also monitor stocks on the new 52-week-low list. In many cases, the names on this list are there for good reason – the market is often correctly pricing in their weak fundamentals. However, once in a while, a great business with excellent long-term prospects finds itself on this list due to a temporary setback. This can create the rare opportunity to buy top-shelf merchandise at bargain-basement prices. 

Notable stocks making a new 52-week low last week: 

  • Abercrombie & Fitch (ANF)
  • Alpha Metallurgical Resources (AMR)
  • Ball (BALL)
  • Core Natural Resources (CNR) 
  • D.R. Horton (DHI) 
  • Lennar (LEN)
  • NVR (NVR) 
  • Warrior Met Coal (HCC)
  • Winnebago Industries (WGO)

FOR PARTNERS ONLY

An Under-the-Radar Play On The Rise Of Autonomous Transport

Today’s screen helped us flag one particular stock. One of the world’s largest auto manufacturers – not a fund manager per se – holds a large position in this company. It’s common for large corporations to buy stakes in smaller, disruptive new entrants into an industry, either as part of a partnership, or as a hedge against the disruption of their own business. 

This company is a compelling standalone investment opportunity, as well as its potential in partnering with this automotive giant in developing the future of autonomous transport. This company has largely flown under Wall Street’s radar to date, but that may change soon, with the shares up 60% in the last six months. 

(To become a Partner Pass member, contact Lance James, our Director of Customer Care, at 888-610-8895, internationally at +1 443-815-4447, or via email at [email protected].)