Top 10 Stock Picks of Paul Marshall and Ian Wace’s Marshall Wace LLP

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In this article, we discuss the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP. If you want to skip our detailed analysis of Marshall and Wace’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stock Picks of Paul Marshall and Ian Wace’s Marshall Wace LLP.

Marshall Wace is a London-based hedge fund co-founded by Paul Marshall and Ian Wace in 1997. Ian Wace worked at SG Warburg & Co Ltd for 11 years, where he became the youngest director at the age of 25. He went on to be appointed as the Head of Proprietary Trading in 1993 and a year later became the Head of International Trading. In 1995, Ian was appointed as the Global Head of Equity and Derivative Trading at Deutsche Morgan Grenfell. Ian Wace is currently serving as the Chief Executive Officer at Marshall Wace LLP.

Paul Marshall is the Chief Investment Officer and Chairman at Marshall Wace LLP. Prior to co-founding Marshall Wace, Paul worked at Mercury Asset Management as the Head of European Equities. Paul completed his MBA from INSEAD Business School.

The hedge fund manages long-short equity funds. Fundamental analysis, which aims to discover firms that are significantly mispriced on an absolute or relative basis, is at the heart of the investment process. Marshall Wace LLP has over 400 employees spread across five locations globally. The hedge fund has a portfolio of $55 billion in assets and uses fundamental, systematic, and quantitative strategies in taking long/short positions. According to reports, Marshall Wace’s turnover increased to £958 million this year, up by £388 million from the previous year, owing to resilient investment performance.

As of the third quarter of 2021, some popular stock picks of Paul Marshall and Ian Wace’s portfolio include Airbnb, Inc. (NASDAQ:ABNB), Microsoft Corporation (NASDAQ:MSFT), and Uber Technologies, Inc. (NYSE:UBER).

Paul Marshall Marshall Wace

Paul Marshall of Marshall Wace

Our Methodology

In this article, we will be analyzing the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP. These stocks have been picked from the Q3 portfolio of Paul Marshall and Ian Wace’s Marshall Wace LLP.

Top 10 Stock Picks of Paul Marshall and Ian Wace’s Marshall Wace LLP

10. Seagen Inc. (NASDAQ:SGEN)

Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $162,432,000

Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.67%

Number of Hedge Funds: 40

Seagen Inc. (NASDAQ:SGEN) is a biotech company working towards developing and commercializing cancer treatments. Three out of four approved therapeutics developed by Seagen Inc. (NASDAQ:SGEN) are based on antibody-drug conjugate (ADC) technology. The Bothell, Washington-based entity considers itself as an industry leader in technology. The stock has been a part of Paul Marshall and Ian Wace’s Marshall Wace LLP’s portfolio since Q4 2020, and the current holding as of Q3 2021 is the highest in terms of the number of stocks owned since a position in Seagen Inc. (NASDAQ:SGEN) stock was initiated.

Seagen Inc. (NASDAQ:SGEN) became publicly listed in 2001 and received the approval for its first therapeutic Adcetris in 2011, which is still the largest revenue generator for the company with a presence in over 65 countries. On December 17, Seagen Inc.’s (NASDAQ:SGEN) treatment of multiple myeloma obtained FDA orphan drug designation. The status provides the sponsors with incentives like exemption from user fees, tax credits for clinical trials, and market exclusivity for a period of up to seven years.

The company’s treatment for locally advanced or metastatic urothelial cancer Padcev received positive feedback from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). CHMP thinks that the therapeutic should receive approval.

In addition to Seagen Inc. (NASDAQ:SGEN), popular companies like Airbnb, Inc. (NASDAQ:ABNB), Microsoft Corporation (NASDAQ:MSFT), and Uber Technologies, Inc. (NYSE:UBER) are also a part of Marshall Wace LLP’s third-quarter portfolio.

9. Apple Inc. (NASDAQ:AAPL)

Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $171,924,000

Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.71%

Number of Hedge Funds: 120

Apple Inc. (NASDAQ:AAPL) is the biggest publicly listed company in the world and one of the Big Five tech giants in the portfolio of Paul Marshall and Ian Wace’s Marshall Wace LLP.

In a note issued to investors on December 22, Jim Suva at Citi increased the target price on Apple Inc. (NASDAQ:AAPL) from $170 to $200 and maintained a Buy rating.

Distillate Capital shared its stance on Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter. Here’s what the investment management firm said:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”

8. Accenture plc (NYSE:ACN)

Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $175,149,000

Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.72%

Number of Hedge Funds: 56

Accenture plc (NYSE:ACN) is a provider of technology and operations, strategy, and consulting services. The Dublin, Ireland-based corporation has 624,000 employees and a portfolio of over 6,000 clients spread across 120 countries. Moreover, Accenture plc (NYSE:ACN) has over 8,200 patents that are either approved or pending.

Accenture plc (NYSE:ACN) announced its Q1 FY22 revenue and GAAP EPS of $14.97 billion and $2.78, respectively, as compared to the analysts’ forecast of $14.22 billion and $2.63. The company also reported that new bookings stood at $16.8 billion, reflecting an increase of over 30% from the same period last year. For Q2 FY22, Accenture plc (NYSE:ACN) expects revenue of $14.30 billion to $14.75 billion.

Following the Q1 FY22 beat and strong guidance for Q2, James Faucette of Morgan Stanley maintained an Overweight rating on Accenture plc (NYSE:ACN) but increased the price target from $400 to $475. The analyst termed the results as well ahead of expectations.

Investment management firm Polen Capital shared its stance on Accenture plc (NYSE:ACN) in its Q3 2021 investor letter. Here’s what the firm said:

“Accenture continue to perform well as the business has grown through the pandemic. Accenture has benefited as businesses around the world have sought a trusted partner to enable their digital transformation. Those leading in the new world are accelerating investment, while those lagging are investing to close the gap. These are two great examples of the pandemic accelerating trends that were already in motion, making leaders more resilient.”

7. Amazon.com, Inc. (NASDAQ:AMZN)

Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $221,695,000

Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.92%

Number of Hedge Funds: 242

Amazon.com, Inc. (NASDAQ:AMZN) is the second company amongst the Big Five tech giants in Marshall Wace’s portfolio. The Bellevue, Washington-based corporation has evolved into an e-commerce giant and has expanded its presence across artificial intelligence, cloud computing, and digital streaming.

Colin Sebastian at Baird and Mark Mahaney at Evercore ISI have termed Amazon.com, Inc. (NASDAQ:AMZN) as their top internet pick for 2022. Sebastian thinks the digital transformation and a shift towards recurring revenues will play in Amazon’s favor. Meanwhile, Mahaney thinks that Amazon.com, Inc. (NASDAQ:AMZN) is the best fundamental asset in the internet stock universe, and the significant investment in infrastructure in the last two years will start to give out returns from this year.

Davis Funds shared its stance on Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here’s what is said:

“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”

6. Thermo Fisher Scientific Inc. (NYSE:TMO)

Paul Marshall and Ian Wace’s Marshall Wace LLP’s Stake Value: $230,676,000

Percentage of Paul Marshall and Ian Wace’s Marshall Wace LLP’s 13F Portfolio: 0.95%

Number of Hedge Funds: 94

Thermo Fisher Scientific Inc. (NYSE:TMO) is a provider of analytical instruments, laboratory products and services, life sciences solutions, and specialty diagnostics across the world. The company has been at the forefront of the pandemic since it launched its COVID-19 detection kit using polymerase chain reaction (PCR) technology. Thermo Fisher Scientific Inc. (NYSE:TMO) also confirmed that the detection kit could produce accurate results for all variants of the Covid-19 virus, including Omicron.

On December 8, the Waltham, Massachusetts-based corporation announced the acquisition of PPD, Inc. (NASDAQ:PPD) for $17.4 billion. The deal is expected to generate synergies of $125 million by its third year and contribute $1.50 to the adjusted EPS of Thermo Fisher Scientific Inc. (NYSE:TMO) in 2022.

On December 14, Dan Leonard at Wells Fargo increased the target price on Thermo Fisher Scientific Inc. (NYSE:TMO) from $625 to $700 with an Equal Weight rating.

Apart from Thermo Fisher Scientific Inc. (NYSE:TMO), Airbnb, Inc. (NASDAQ:ABNB), and Microsoft Corporation (NASDAQ:MSFT), Uber Technologies, Inc. (NYSE:UBER) is also amongst the top 10 stock picks of Paul Marshall and Ian Wace’s Marshall Wace LLP.

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