Top 10 Stock Picks of NewGen Asset Management

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In this article, we are going to discuss the top 10 stock picks of David Dattels’ NewGen Asset Management. If you want to skip our detailed analysis of Dattels’ history, investment philosophy, and hedge fund performance, you can go directly to Top 5 Stock Picks of NewGen Asset Management.

David Dattels is the founder and president of NewGen Asset Management. Dattles completed his bachelor’s in Economics from the University of Western Ontario in 2001 and started working as a Research Associate at Octagon Capital. He left Octagon Capital in 2004 and joined Canaccord Genuity Inc. as a Metals and Mining Associate.

A year later, David Dattles was promoted to Metals and Mining analyst, a position he held till August 2006. Later in the same year, Dattles joined RAB Capital as a senior analyst for RAB Special Situations Fund and was promoted to Co-portfolio Manager of the same fund in 2008. In 2009, David Dettels founded his Asset Management firm by the name of NewGen Asset Management.

NewGen Asset Management is a privately owned Canadian investment fund manager. The firm specializes in short selling, futures, arbitrage, leverage, and unconventional assets. NewGen Asset Management has been known to be consistent even during periods of high market volatility.

Enbridge Inc. (NYSE:ENB), Suncor Energy Inc. (NYSE:SU), and Shaw Communications Inc. (NYSE:SJR) are some of the notable names in NewGen Asset Management’s portfolio. Shaw Communications Inc. (NYSE:SJR) is NewGen Asset Management’s largest holding and represents 12.09% of the fund’s portfolio.

Top 10 Stock Picks of NewGen Asset Management

Photo by Nick Chong on Unsplash

Our Methodology

Here is our list of top 10 stock picks of NewGen Asset Management. These were picked from the NewGen Asset Management’s investment portfolio at the end of the third quarter of 2021.

The list is compiled according to the value of each holding in the NewGen Asset Management portfolio. The list exclusively contains the companies that operate commercially.

The hedge fund sentiment around each stock was taken from the data of 867 hedge funds tracked by Insider Monkey.

Top 10 Stock Picks of NewGen Asset Management

10. Precision Drilling Corporation (NYSE:PDS)

NewGen Asset Management’s Stake Value: $4.648 million

Percentage of NewGen Asset Management’s 13F Portfolio: 2.6%

Number of Hedge Fund Holders: 6

Precision Drilling Corporation (NYSE:PDS) is an oil well services company and is currently Canada’s largest drilling rig contractor. It was founded in 1951 and presently owns land drilling rigs in the United States, Canada, Saudi Arabia, Georgia, and Southern Kurdistan.

According to Insider Monkey’s database of 867 hedge funds, 6 funds had stakes worth $49.3 million in Precision Drilling Corporation (NYSE:PDS) at the end of the third quarter of 2021, down from 9 hedge funds having stakes worth $50.1 million in the previous quarter. NewGen Asset Management also decreased its activity in the company by 26% in the third quarter.

On October 22, National Bank analyst Dan Payne raised the price target of Precision Drilling Corporation (NYSE:PDS) from $55 to $65 and kept an Outperform rating on the company’s shares.

Precision Drilling Corporation (NYSE:PDS) is one of NewGen Asset Management’s top picks alongside Enbridge Inc. (NYSE:ENB), Suncor Energy Inc. (NYSE:SU), and Shaw Communications Inc. (NYSE:SJR).

9. Algonquin Power & Utilities Corp. (NYSE:AQN)

NewGen Asset Management’s Stake Value: $5.37 million

Percentage of NewGen Asset Management’s 13F Portfolio: 3.01%

Number of Hedge Fund Holders: 15

Algonquin Power & Utilities Corp. (NYSE:AQN) is a renewable energy company headquartered in Canada. It has invested in solar, wind, hydroelectric facilities, and other utilities such as water and electricity.

According to the third-quarter 2021 filings, NewGen Asset Management owned 366,200 shares of Algonquin Power & Utilities Corp. (NYSE:AQN) worth $5.37 million, representing 3.01% of the fund’s portfolio.

On October 26, American Electric Power Company, Inc. (NASDAQ:AEP) announced to sell its Kentucky business for $2.846 billion to Liberty Power, a subsidiary of Algonquin Power & Utilities Corp (NYSE:AQN). The deal is expected to close around the second quarter of 2022 as the companies are awaiting regulatory approvals.

8. Manulife Financial Corporation (NYSE:MFC)

NewGen Asset Management’s Stake Value: $5.77 million

Percentage of NewGen Asset Management’s 13F Portfolio: 3.24%

Number of Hedge Fund Holders: 18

Manulife Financial Corporation (NYSE:MFC) is a multinational insurance company that operates in Canada, the United States, and Asia. It is the largest insurance company in Canada and ranks as one of the largest fund managers around the globe.

For the third quarter of 2021, Manulife Financial Corporation (NYSE:MFC) posted an EPS of $0.61, missing the estimates by $0.03, which was $0.64. The company generated revenue of $31.06 billion in the same quarter, beating the estimates by $2.43, around 8.50% more than the forecast.

On November 17, the price target of Manulife Financial Corporation (NYSE:MFC) was raised from $27 to $28 by National Bank analyst Gabriel Dechaine.

7. TransAlta Corporation (NYSE:TAC)

NewGen Asset Management’s Stake Value: $6.85 million

Percentage of NewGen Asset Management’s 13F Portfolio: 3.84%

Number of Hedge Fund Holders: 12

TransAlta Corporation (NYSE:TAC) is a Canada-based electricity operating and development company. It handles solar, wind, and coal power generation facilities across the United States, Canada, and Australia.

As of the third quarter of 2021, David Rosen’s Rubric Capital Management holds the largest stake in TransAlta Corporation (NYSE:TAC), with close to 5.19 million shares worth $54.8 million, making up 1.53% of the fund’s total portfolio.

6. Enbridge Inc. (NYSE:ENB)

NewGen Asset Management’s Stake Value: $7.36 million

Percentage of NewGen Asset Management’s 13F Portfolio: 4.13%

Number of Hedge Fund Holders: 24

Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline transportation company founded in 1949. The company owns more than 17,000 miles of a crude oil pipeline across the United States and Canada. Enbridge Inc.’s (NYSE:ENB) natural gas pipeline is around 24,000 miles and connects Canada to the United States and the Gulf of Mexico.

According to its third-quarter 2021 filings, NewGen Asset Management owned 185,000 shares of Enbridge Inc. (NYSE:ENB) worth $7.36 million, comprising 4.13% of the fund’s portfolio. The recent quarter has also seen a 19% increase in Enbridge Inc.’s (NYSE:ENB) stake by the fund.

Suncor Energy Inc. (NYSE:SU) and Shaw Communications Inc. (NYSE:SJR) are also some of the significant stocks of NewGen Asset Management along with Enbridge Inc. (NYSE:ENB).

The investment management firm ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in their second-quarter 2021 investor letter. Here is what the firm said:

“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which Canadian energy infrastructure company Enbridge was one of the lead performers. Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. Moreover, the company owns regulated gas distribution utilities in Ontario, Canada. Enbridge’s Line 3 Replacement Project received a favorable court ruling regarding the adequacy of its Environmental Impact Statement. This significantly lowers the execution risk for the project and enables the company to place the project into service later in the year.”

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Disclosure: None. Top 10 Stock Picks of NewGen Asset Management is originally published on Insider Monkey.