Top 10 Stock Picks of Boykin Curry’s Eagle Capital Management

view original post

In this article, we discuss the top 10 stock picks of Boykin Curry’s Eagle Capital Management. If you want to skip our detailed analysis of these stocks, go directly to Top 5 Stock Picks Boykin Curry’s Eagle Capital Management.

Eagle Capital Management, founded in 1988 by Beth and Ravenel Boykin Curry III, is now managed by their son, Boykin Curry IV. Curry graduated from Yale University in 1998 and went on to earn an MBA degree from Harvard Business School in 1994. He managed a portfolio at Kingdon Capital before joining Eagle Capital Management. Curry has established quite a reputation for himself over the years as both an investor and a philanthropist. He is a co-founder of Public Prep, a New York City charter school network. He’s also a co-founder of Democrats for Education Reform, which works to improve schools.

Curry has emerged as a dominant name in the finance industry through an investment strategy that carefully bets on value stocks. He utilizes a bottom-up research-intensive approach and concentrates on finding undervalued companies with long-term growth prospects. Value stocks are gaining traction post-COVID-19 as the economy jumps towards recovery. According to Brandywine’s Patrick Kaser, value investors stand to benefit most from the turbulent post-COVID economy. Since Eagle Capital focuses on large-cap stocks, the hedge fund’s portfolio has been outperforming in the second quarter of 2021 and has a portfolio value of $35 billion.

Eagle Capital Management made new purchases in 2 stocks in the second quarter, bought additional stakes in 28, and reduced holdings in 16 stocks. Some of the top stock picks in Boykin Curry’s Eagle Capital portfolio at the end of the second quarter of 2021 included Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), among others discussed in detail below.

Boykin Curry EAGLE CAPITAL MANAGEMENT

Boykin Curry of Eagle Capital

Our Methodology

Here is our list of the top 10 stock picks of Boykin Curry’s Eagle Capital. These stocks were picked from the investment portfolio of Eagle Capital Management at the end of the second quarter of 2021. The ranking is generated by looking at the value of each holding in the portfolio.

The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.

Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

10. Citigroup Inc. (NYSE:C)

Value of Eagle Capital Management’s Stake: $1.45 billion

Percentage of Eagle Capital Management’s 13F Portfolio: 4.14%

No. of Hedge Fund Holders: 87

Citigroup Inc. (NYSE:C) is a financial services company. The company, which is placed tenth on our list of top 10 stock picks of Boykin Curry’s Eagle Capital Management, provides investment banking, retail brokerage, corporate banking, and cash management services.

According to the latest 13F filings, Eagle Capital Management owns more than 20 million shares worth $1.45 billion in Citigroup Inc. (NYSE:C). The hedge fund decreased its activity in the firm by 2% in the second quarter of 2021. At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in Citigroup Inc. (NYSE:C), down from 90 the preceding quarter worth $6.9 billion.

In the third fiscal quarter, Citigroup Inc. (NYSE:C) reported an EPS of $2.15, beating estimates by $0.39. BMO Capital analyst James Fotheringham, on October 16, gave an Outperform rating to the stock and increased his price target to $86 from $84. Fotheringham said that he likes the company’s valuation.

9. Netflix, Inc. (NASDAQ:NFLX)

Value of Eagle Capital Management’s Stake: $1.5 billion

Percentage of Eagle Capital Management’s 13F Portfolio: 4.25%

No. of Hedge Fund Holders: 113

Netflix, Inc. (NASDAQ:NFLX) is a subscription-based streaming entertainment service provider. Members of Netflix can watch a wide range of TV shows, documentaries, and feature films in several genres and languages.

Fisher Asset Management is the biggest stakeholder of Netflix, Inc. (NASDAQ:NFLX) as of the second quarter of 2021, with more than 3 million shares worth more than $2 billion. At the end of June 2021, 113 funds out of 873 tracked by Insider Monkey had stakes in Netflix, Inc. (NASDAQ:NFLX), up from 110 the preceding quarter.

Analysts are bullish on the firm’s long-term prospects, with investment advisories like Loop Capital, UBS, Morgan Stanley, and Piper Sandler raising their price targets on the stock.

Netflix, Inc. (NASDAQ:NFLX) is one of the famous companies in Curry’s portfolio, like Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT).

Ensemble Capital mentioned Netflix, Inc. (NASDAQ:NFLX) in their Q3 2021 investor letter. Here is what the fund said:

Netflix stock had a disappointing first half of 2021 performance, treading water while the S&P 500 rallied, after a very strong 67% return in 2020. It benefited from the global pandemic in 2020, signing on 36.6 million new subscribers vs the typical 25 million or so it typically does. Total subscribers exceeded 200 million, up 22% over the previous year. However, in the first half of 2021, new subscriber additions slowed substantially, totaling only 5.5 million due to slower new content additions impacted by production delays, a resumption of outdoor activity as people everywhere adjusted to living with COVID, and the impact of a “pull-forward effect” on subscriber growth in last year’s very strong results. The third quarter saw new content velocity start to pick up, which is usually what drives new subscribers to the service, with expectations of an even stronger content slate going into the final quarter of the year, causing the stock to increase 15% in the quarter.”

8. General Electric Company (NYSE:GE)

Value of Eagle Capital Management’s Stake: $1.5 billion

Percentage of Eagle Capital Management’s 13F Portfolio: 4.31%

No. of Hedge Fund Holders: 67

General Electric Company (NYSE:GE), based in Boston, Massachusetts, is an industrial company. The company operates through various segments, including renewable energy, digital industry, additive manufacturing, locomotives, venture capital and finance, aviation, and power. It is ranked eighth on our list of top 10 stock picks of Boykin Curry’s Eagle Capital Management.

As of the end of the second quarter of 2021, 67 hedge funds tracked by Insider Monkey reported owning stakes in General Electric Company (NYSE:GE). The total worth of these stakes is $6 billion. This is compared to 68 hedge funds in the previous quarter with stakes worth $6.2 billion in the firm.

7. Wells Fargo & Company (NYSE:WFC)

Value of Eagle Capital Management’s Stake: $1.6 billion

Percentage of Eagle Capital Management’s 13F Portfolio: 4.51%

No. of Hedge Fund Holders: 94

Wells Fargo & Company (NYSE: WFC) is a financial services company. It offers services such as banking, insurance, investments, mortgage, leasing, credit cards and consumer finance. It ranks seventh on our list of top 10 stock picks of Boykin Curry’s Eagle Capital Management. The firm surpassed market expectations on earnings per share and revenue in the third fiscal quarter results. Its revenue came in at $18.83 billion, generating an EPS of $1.17, beating estimates by $0.17. The company also received positive ratings from financial advisories like Piper Sandler and Jefferies in October.

Out of the hedge funds tracked by Insider Monkey, Eagle Capital Management is a leading shareholder in Wells Fargo & Company (NYSE:WFC) with over 34 million shares worth $1.6 billion.

L1 Capital mentioned Wells Fargo & Company (NYSE: WFC) in its Q2 2021 investor letter. Here is what the fund said:

Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”

6. Liberty Broadband Corporation (NASDAQ:LBRDA)

Value of Eagle Capital Management’s Stake: $1.6 billion

Percentage of Eagle Capital Management’s 13F Portfolio: 4.53%

No. of Hedge Fund Holders: 28

Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company that provides cable, data, wireless and video services.

At the end of the second quarter of 2021, Eagle Capital Management held over 9 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA) worth more than $1.5 billion, representing 4.53% of the hedge fund’s 13F portfolio. At the end of June 2021, 63 funds out of the 873 tracked by Inside Monkey held stakes in the company, down from 70 in the previous quarter.

Liberty Broadband Corporation (NASDAQ:LBRDA) is placed sixth on our list of top 10 stock picks of Boykin Curry’s Eagle Capital Management. In the second quarter of 2021, the company reported an EPS of $0.3, missing estimates by $1.33.

In October, Deutsche Bank kept a Buy rating on Liberty Broadband Corporation (NASDAQ:LBRDA) stock and increased its price target to $196 from $188.

Liberty Broadband Corporation (NASDAQ:LBRDA) is one of the prominent companies in Curry’s portfolio, like Amazon.com, Inc. (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT).

Click to continue reading and see the Top 5 Stock Picks Boykin Curry’s Eagle Capital Management.

Suggested articles:

Disclosure. None. Top 10 Stock Picks Boykin Curry’s Eagle Capital Management is originally published on Insider Monkey.