Top 10 Stock Picks of Lawrence Kam’s Sonic Capital

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In this article, we will take a look at the top 10 stock picks of Lawrence Kam’s Sonic Capital. If you want to skip our comprehensive analysis of the history, investment philosophy, and hedge fund preference of Lawrence Kam’s Sonic Capital, you can go directly to Top 5 Stock Picks of Lawrence Kam’s Sonic Capital.

Lawrence Kam is the General Partner at Sonic Fund, L.P., an investment management fund. The portfolio currently manages more than $176 million and is diversified across 8 sectors as of the third quarter of 2021. Currently, the largest stake of the fund is in the healthcare industry.

In addition to the top 10 stock picks of Lawrence Kam’s Sonic Capital that have been identified in this article, the fund held the stocks of several famous corporations by the end of the third quarter of 2021, including US Foods Holding Corp. (NYSE:USFD), United States Steel Corporation (NYSE:X), and Citigroup Inc. (NYSE:C).

Headquartered in Illinois and founded in 2007, US Foods Holding Corp. (NYSE: USFD) produces and distributes food through its subsidiary company. The company deals with fresh, dry, and frozen food, as well as many non-food products. Sonic Capital held 200,000 shares of the company by the end of the third quarter of 2021 which were worth over $6.9 million. However, Leonard Green’s Leonard Green & Partners held the most shares of US Foods Holding Corp. (NYSE: USFD) as of Q3 2021.

Founded in 1901, the United States Steel Corporation (NYSE: X) has since become an integrated steel producer. Currently headquartered in Pittsburgh, Pennsylvania, the company specializes in flat-rolled and tubular steel products and has its production facilities in both the United States and Central Europe. The company provides specialized steel products to the electrical, energy, automotive, industrial equipment, and construction industries. As of the end of the third quarter of 2021, Sonic Capital held 300,000 shares of the United States Steel Corporation (NYSE: X) which were valued at over $6.5 million.

Commonly referred to as Citi, Citigroup Inc. (NYSE: C) is an American investment bank headquartered in New York City. The multinational financial services corporation came into existence by the merger of Travelers Group and Citicorp in 1998. The company provides its customers with financial products and services such as investment management, consumer banking and credit, securities and brokerage, corporate banking, and other financial transaction services. By the end of Q3 2021, Sonic Capital held 70,740 shares of Citigroup Inc. (NYSE: C) which were worth over $4.9 million and represented 2.8% of the fund’s portfolio. Moreover, Sonic Capital increased its stake in Citigroup Inc. (NYSE: C) by 18% during the third quarter of 2021.

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Our Methodology

We picked the top 10 stocks from the third quarter portfolio of Lawrence Kam’s Sonic Capital for this analysis.

Top 10 Stock Picks of Lawrence Kam’s Sonic Capital

10. Cedar Fair, L.P. (NYSE:FUN)

Sonic Capital’s Stake Value: $6.957 million

Percentage of Sonic Capital’s 13F Portfolio: 3.93%

Number of Hedge Fund Holders as of Q3 2021: 13

Cedar Fair, L.P. (NYSE: FUN), headquartered in Sandusky, Ohio, operates multiple amusement parks in the United States and Canada. The company also owns resorts, hotels, and other similar facilities. Currently, Cedar Fair, L.P. (NYSE: FUN) has its parks in 48 US states as well as in Canada.

On November 3, Cedar Fair, L.P. (NYSE: FUN) announced its earnings. Its revenue for the third quarter of 2021 was $753.4 million which demonstrates a year-over-year increase of 761.4% and beat estimates by $89.96 million. Similarly, the EPS for Q3 2021 was reported to be $2.60 which surpassed the estimated EPS by $0.34. Subsequently, on November 20, Chris Woronka, an analyst at Deutsche Bank, initiated the coverage of Cedar Fair, L.P. (NYSE: FUN) with a “Buy” rating and a price target of $66.

Like Cedar Fair, L.P. (NYSE: FUN) and Assured Guaranty Ltd. (NYSE: AGO), Sonic Capital also held significant shares of US Foods Holding Corp. (NYSE: USFD), United States Steel Corporation (NYSE: X), and Citigroup Inc. (NYSE: C) by the end of the third quarter of 2021.

9. Assured Guaranty Ltd. (NYSE:AGO)

Sonic Capital’s Stake Value: $7.022 million

Percentage of Sonic Capital’s 13F Portfolio: 3.96%

Number of Hedge Fund Holders as of Q3 2021: 11

Sonic Capital held 150,000 shares of the company as of Q3 2021, which have a combined worth of over $7 million. Irving Kahn’s Kahn Brothers held the most shares in the company by the end of Q3 2021 as compared to other institutional investors. The hedge fund had owned 1.4 million shares of the company which were worth over $67 million.

On November 4, Assured Guaranty Ltd. (NYSE: AGO) reported its earnings for Q3 2021. The company announced a revenue of $190 million, which missed estimates by $22.2 million.

8. Wells Fargo & Company (NYSE:WFC)

Sonic Capital’s Stake Value: $7.359 million

Percentage of Sonic Capital’s 13F Portfolio: 4.15%

Number of Hedge Fund Holders as of Q3 2021: 94

Wells Fargo & Company (NYSE: WFC) is a financial services company that has its corporate headquarters in San Francisco, California but has its operational headquarters in Manhattan, New York. Sonic Capital held 158,574 shares of the company by the end of the third quarter of 2021, which had a combined worth of over $7.3 million. However, during Q3 2021, Sonic Capital decreased its stake in the company by 24%.

On October 14, Wells Fargo & Company (NYSE: WFC) reported its Q3 revenue of $18.83 billion, down 2.4% year over year. The Q3 EPS of $1.17 also surpassed estimates by $0.17. As a result, on October 15, Scott Siefers, an analyst at Piper Sandler, increased the price target on Wells Fargo & Company (NYSE: WFC) to $48 from its previous value of $45 and kept a “Neutral” rating on its shares.

7. AMC Entertainment Holdings Inc (NYSE:AMC)

Sonic Capital’s Stake Value: $7.612 million

Percentage of Sonic Capital’s 13F Portfolio: 4.3%

Number of Hedge Fund Holders as of Q3 2021: 21

Founded in 1920, AMC Entertainment Holdings Inc (NYSE: AMC) is an American movie theater chain that has its headquarters in Leawood, Kansas. Sonic Capital held 200,000 shares of the company by the end of the third quarter of 2021, which had a combined worth of over $7.6 million, and made up 4.3% of the fund’s 13F portfolio.

On November 8, AMC Entertainment Holdings Inc (NYSE: AMC) announced its earnings for Q3 2021. The revenue of $763.2 million and EPS of -$0.44 both beat estimates by $29.85 million and $0.10 respectively. Moreover, the revenue demonstrated a year-over-year growth of 538.7%. Consequently, on November 17, Jason Bazinet, an analyst at Citigroup Inc., raised his price target on AMC Entertainment to $6 from $5 and maintained a “Sell” rating on the stock.

6. Spirit Airlines Incorporated (NASDAQ:SAVE)

Sonic Capital’s Stake Value: $7.782 million

Percentage of Sonic Capital’s 13F Portfolio: 4.39%

Number of Hedge Fund Holders as of Q3 2021: 29

Spirit Airlines Incorporated (NASDAQ: SAVE) is a low-cost American airline that is headquartered in Miramar, Florida, and is one of the top 10 stock picks of Sonic Capital. The company operates all through the United States, the Caribbean, and Latin America. Sonic Capital held 300,000 shares in the company by the end of Q3 2021, which are worth over $7.7 million.

On October 27, Spirit Airlines Incorporated (NASDAQ: SAVE) announced its earnings for Q3 2021. The company reported its revenue as $922.63 million with year-over-year growth of 129.6%. However, the revenue missed estimates by $2.5 million. The EPS for Q3 2021 was $0.14 and beat estimates by $1.12.

Like Spirit Airlines Incorporated (NASDAQ: SAVE), AMC Entertainment Holdings Inc (NYSE: AMC), and Assured Guaranty Ltd. (NYSE: AGO), Sonic Capital also held shares of noteworthy companies such as US Foods Holding Corp. (NYSE: USFD), United States Steel Corporation (NYSE: X), and Citigroup Inc. (NYSE: C) by the end of the third quarter of 2021.

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Disclosure: None. Top 10 Stock Picks of Lawrence Kam’s Sonic Capital is originally published on Insider Monkey.