In this article, we discuss the top 10 stock picks from Gavin Abrams’ Abrams Bison investments. If you want to skip reading about Gavin Abram’s investment strategy and hedge fund performance, you can go straight to Top 5 Picks for Gavin Abrams’ Abrams Bison Investments Stock.
Based out of Bethesda, Abrams Bison Investment is a hedge fund managed by Gavin Abrams with a portfolio value of approximately $884 million at the end of the second quarter. Hedge fund founded by Gavin Abrams in 1999, and commenced operations in early 2000. Abrams has made a name for himself in the industry by employing a long-term value-focused investment strategy. This includes a careful selection of companies that are currently trading at much less than their actual value.
Gavin Abrams completed his BA in Economics from Harvard University in 1994. He then went on to work as an analyst at ESL Investments before starting Abrams Bison Investments in the early 2000s. Abrams Bison Investments’ portfolio is diversified across 6 sectors. In 2022, hedge fund Abrams Bison Investments focused more on information, technology, finance, healthcare, and energy stocks.
The majority of the companies in the fund’s portfolio are big stocks including some big names like HCA Healthcare, Inc. (NYSE: HCA) and the Pioneer Natural Resources Company (NYSE: PXD).
Photo by Adam Novakowski on Unsplash
our methodology
The companies listed below have been selected from Abrams Bison Investments’ investment portfolio as of the end of the second quarter of 2022. These are my top 10 hedge fund picks.
Selections from Gavin Abrams’ Abrams Bison Investments Stock
10. SelectQuote, Inc. (NYSE: SLQT)
Amount of stake in Abrams Bison Investments’ 13F portfolio: $32.01 million
Abrams Bison Investment Portfolio Ratio: 3.62%
Number of hedge funds: 9
SelectQuote, Inc. is headquartered in (NYSE: SLQT) in Kansas, and sells a range of insurance products and healthcare services in the USA. The company operates through three segments: large, life, and automotive and home.
The latest data shows that Abrams Bison Investments owned 12.91 million shares in SelectQuote, Inc. (NYSE:SLQT) at the end of the second quarter of 2022 with a value of more than $32.01 million, representing 3.62% of the portfolio, up 0.57% from the previous quarter.
With a newly revised credit agreement in August 2022 and increased profits from other business segments, SelectQuote, Inc. (NYSE: SLQT) on a growth path. Ben Hendricks, an analyst at RBC Capital, has maintained the sector performance rating for SelectQuote, Inc. (NYSE: SLQT) in August 2022 and lowered the company’s price target from $3 to $2.
At the end of the second quarter of 2022, 9 hedge funds in the Insider Monkey database owned $87 million stakes in SelectQuote, Inc. (NYSE: SLQT). Among the hedge funds being tracked by Insider Monkey, Kynam Capital Management is a major shareholder in SelectQuote, Inc. (NYSE: SLQT), with 17.67 million shares worth more than $43.8 million.
Like HCA Healthcare, Inc. (NYSE: HCA), Pioneer Natural Resources Company (NYSE: PXD), and TD SYNNEX Corporation (NYSE: SNX), SelectQuote, Inc. (NYSE: SLQT) One of the best stocks to buy according to Gavin Abrams’ Abrams Bison Investments
9. RenaissanceRe Holdings Ltd. (NYSE: RNR)
Share value in Abrams Bison Investments’ 13F portfolio: $42.68 million
Abrams Bison Investment Portfolio Ratio: 4.82%
Number of hedge funds: 21
Founded in 1993, Renaissance Re Holdings Limited (NYSE: RNR) operates in the insurance industry and provides reinsurance and insurance products in the United States.
In line with the company’s expansion strategy, management is investing money in expanding the Incidents and Specialties division and investing capital in highly profitable third party management services. Renaissance Re Holdings Limited (NYSE: RNR) has a market capitalization of $6.04 billion. In July 2022, the company announced its second-quarter results that reported revenue of $1.86 billion, beating market estimates by $133.72 million. Earnings per share for common stock were $5.51, beating market estimates by $0.44.
In July 2022, Wells Fargo analyst Elise Greenspan maintained the stock’s Overweight rating while lowering the company’s target price from $185 to $169.
At the end of the second quarter of 2022, 21 hedge funds in the Insider Monkey database had stakes in RenaissanceRe Holdings Ltd. (NYSE: RNR). The value of these consolidated shares is approximately 475.39 million. Among these hedge funds, Polar Capital was the company’s largest shareholder, with more than $131.74 million in stock.
The Longleaf Partners Fund mentioned RenaissanceRe Holdings Ltd. (NYSE: RNR) in its fourth-quarter 2021 investor letter. Here’s what the company had to say:
RenaissanceRe (11%, 0.54%, 22%, 0.99%) was the Bermuda-based reinsurer and new position in 2021, the major shareholder in the fourth quarter. We know the reinsurance industry well, having invested in this sector for several decades, and were pleased with the opportunity to invest in the business at a discounted rate. RenRe has a reputation as a leader in catastrophe risk reinsurance – although the business mix has diversified over time to include third party capital management, accident risk and other property. RenRe traded at less than 10 times earnings strength and about 1x tangible book value in the third quarter as disaster headlines punished the entire industry, giving us the opportunity to invest. Management also took advantage of the temporary price discount by repurchasing 10% of the outstanding shares, while the CEO, CFO, and several other senior executives invested more than $4 million to purchase the shares personally. The stock price soared in the fourth quarter as the company announced a $1 billion reserve capital increase, even after the third-quarter disaster struck, and stock buybacks are likely to continue. RenRe is a leader in insurance risk modeling and portfolio creation, best-in-class in data collection and analytics in the company’s DNA. In the face of significant fluctuations and disruptions facing the industry in the form of technology innovation, innovation access to capital and climate change risks, RenRe’s competitive advantages in pricing risk and in compiling a healthy global portfolio of risk should be well positioned to add excess return.
8. Concentrix Corporation (NASDAQ: CNXC)
Amount of stake in Abrams Bison Investments’ portfolio 13F: $50.30 million
Abrams Bison Investment Portfolio Ratio: 5.68%
Number of hedge funds: 21
Operating out of California, Concentrix Corporation (NASDAQ: CNXC), provides integrated customer experience (CX) solutions globally.
The company released its third-quarter results in September, missing estimates due largely to higher interest rates. In its third-quarter results, the company reported earnings of $1.58 billion and ordinary earnings per share of $2.95.
In October, Barrington analyst Vincent Colicchio cut the company’s price target on Concentrix to $174 from $183 and maintained an outperformance rating on the stock.
In general, the company remained a popular stock among hedge funds. At the end of the second quarter of 2022, 21 hedge funds in the Insider Monkey database held $141.36 million stakes in Concentrix Corporation (NASDAQ:CNXC). As of September 16, Abrams Bison Investments owns 370.90 million shares of Concentrix Corporation (NASDAQ:CNXC). The hedge fund’s stake in the company totaled $50.30 million, accounting for 5.68% of its 13F portfolio.
7. ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)
Share value in Abrams Bison Investments’ portfolio 13F: $53.14 million
Abrams Bison Investment Portfolio Ratio: 6.0%
Number of hedge funds: 19
It is headquartered in Haifa, Israel ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is a shipping company that provides container shipping and related services.
In the second quarter of 2022, Abrams Bison Investments acquired stakes worth over $53.14 million in ZIM Integrated Shipping Services Ltd. (NYSE: ZIM). The company accounts for 6% of the 13F hedge fund’s portfolio.
In August 2022, ZIM Integrated Shipping Services Ltd (NYSE: ZIM) signed a 10-year agreement valued at more than $10 billion with Shell to deploy 10 LNG-powered vessels on its containers in Asia.
Due to the rapid increases in freight rates, analysts are optimistic about the stock. Patrick Creuse, an analyst at Goldman Sachs, maintained a neutral rating on the company’s stock and lowered its target price from $60 to $30.
Looking at institutional investors followed by Insider Monkey at the end of the second quarter, Arrowstreet Capital holds the largest position in Concentrix Corporation (NASDAQ:CNXC) with stakes worth $177.98 million. At the end of the second quarter of 2022, 19 hedge funds in the Insider Monkey database held $478.77 million stakes in Concentrix Corporation (NASDAQ:CNXC).
6. American Financial Group, Inc. (NYSE: AFG)
Amount of stake in Abrams Bison Investments’ portfolio 13F: $72.87 million
Abrams Bison Investment Portfolio Ratio: 8.23%
Number of hedge funds: 24
American Financial Group, Inc. (NYSE: AFG) is a USA based insurance company that offers specialty property and casualty insurance products. The company has a strong dividend history spanning more than 16 years. In October 2022, the company declared a dividend of $0.63 with a dividend yield of 1.93%.
At the end of the second quarter of 2022, 24 hedge funds in the Insider Monkey database had stakes in American Financial Group, Inc. (NYSE: AFG). Abrams Bison Investments was the company’s largest shareholder.
Like HCA Healthcare, Inc. (NYSE: HCA), Pioneer Natural Resources Company (NYSE: PXD), and TD SYNNEX Corporation (NYSE: SNX), American Financial Group, Inc. (NYSE: AFG) One of the best buy stocks for a company according to Gavin Abrams’ Abrams Bison Investments.
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disclosure. no one. Top 10 Picks for Gavin Abrams’ Abrams Bison Investments Stock Originally posted on Insider Monkey.
Originally published at San Jose News Bulletin
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