In this article, we will discuss the 10 stocks that Izzy Englander has sold in Q3. You can skip our detailed analysis of his hedge fund and recent developments, and go directly to read Billionaire Izzy Englander is Selling These 5 Stocks.
Israel Englander is one of the most prominent hedge fund managers of all time. In 1989, he started Millennium Management with $35 million in seed money. Over the years, the firm has grown into one of the top hedge funds, currently managing over $57 billion in assets. Englander’s real-time net worth stands at $10.5 billion.
Izzy Englander’s Millennium Management emerged as a winner in 2020, as the hedge fund brought in a total of $10.2 billion for its investors. Englander’s personal earnings amounted to $3.8 billion, which made him the top earner amongst the 25 highest-paid hedge fund managers. The simple strategy of quantitative analysis allowed him to deliver solid returns to shareholders since the inception of his hedge fund. The firm’s annual average return stands at 13.7%. In 2020, it delivered its best performance in 20 years, gaining 26%.
As of Q3 2021, Millennium Management’s 13F portfolio carries a value of $166.7 billion, up from $163 billion from the previous quarter. Some of the notable stocks in Israel Englander’s portfolio are JPMorgan Chase & Co. (NYSE:JPM), Oracle Corporation (NYSE:ORCL), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA). However, in this article, we will focus on the stocks in which Izzy Englander sold during Q3.
Israel Englander of Millennium Management
Our Methodology:
In this article, we will discuss the 10 stocks in which Izzy Englander has sold its entire stake during Q3. For this list, we collected data from Millennium Management’s 13F portfolio as of Q3.
Billionaire Izzy Englander is Selling These 10 Stocks
10. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 22
In Q3 2021, Millennium Management sold off its entire stake worth $1.8 million in Realty Income Corporation (NYSE:O). The company’s revenue for the quarter stood at $464.2 million, up 12% from the prior-year quarter. Recently, Mizuho lifted its price target on Realty Income Corporation (NYSE:O) to $83, with a Buy rating on the shares.
At the end of Q3 2021, 22 hedge funds tracked by Insider Monkey reported owning stakes in Realty Income Corporation (NYSE:O), down from 23 in the previous quarter. These stakes hold a value of over $275 million. With shares worth $59.5 million, Adage Capital Management was one of the company’s leading shareholders in Q3.
Unlike JPMorgan Chase & Co. (NYSE:JPM), Oracle Corporation (NYSE:ORCL), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA), Realty Income Corporation (NYSE:O) is a stock Englander is selling.
9. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 30
NIO Inc. (NYSE:NIO) is a Chinese automobile manufacturer which mainly specializes in electric vehicles. Recently, Deutsche Bank called the stock an attractive buying opportunity for 2022 as the company is all set to launch 3 new models over the next year.
During Q3 2021, Millennium Management sold its entire stake in NIO Inc. (NYSE:NIO). In November, the company reported a 105.6% year-over-year growth in its vehicle deliveries, taking the total to 10,878. NIO Inc. (NYSE:NIO)’s new product, ET7, has grabbed investors’ attention, which the company will start selling in March 2022. Considering the surge in the company’s sales, recently, Morgan Stanley lifted its price target on NIO Inc. (NYSE:NIO) to $66, while maintaining an Overweight rating on the shares.
With stakes worth $1.13 billion, 30 hedge funds tracked by Insider Monkey held positions in NIO Inc. (NYSE:NIO) in Q3, down from 34 in the previous quarter. D E Shaw was one of the company’s leading shareholders in Q3, owning roughly 7 million shares.
8. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 32
General Mills, Inc. (NYSE:GIS) is an American manufacturer of branded consumer food sold through retailers globally.
At the end of Q3 2021, 32 hedge funds in Insider Monkey’s database reported owning stakes in General Mills, Inc. (NYSE:GIS), down from 37 in the previous quarter. These stakes hold a consolidated value of $731.6 million. Among these hedge funds, Renaissance Technologies was the company’s largest shareholder in Q3, holding shares worth $255.4 million.
Izzy Englander’s Millennium Management held stakes worth $20 million in General Mills, Inc. (NYSE:GIS) in Q2, which the hedge fund sold entirely in Q3. Acknowledging a 6.5% year-over-year growth in sales in its fiscal Q2, Wall Street analysts remained positive on General Mills, Inc. (NYSE:GIS). Recently, both RBC Capital and Citigroup lifted their price targets on the stock to $66 and $73, respectively.
Oakmark Funds mentioned General Mills, Inc. (NYSE:GIS) in its Q3 2021 investor letter. Here is what the firm has to say:
“In the 1970s, blackout rules prevented televising NFL home games that weren’t sold out. It was always uncertain whether or not the Minnesota Vikings’ games would be televised. I remember how excited I’d be each week hearing that General Mills, Inc. (NYSE:GIS) had purchased the remaining tickets, allowing the game to be on TV. Some said General Mills did this for its stakeholders—its employees and community—as opposed to maximizing profits for its shareholders. I believe stakeholders and shareholders both benefitted.
Consider the long-term benefits of General Mills, Inc. (NYSE:GIS) being the hero that let us watch those games. It made employees proud of their employer and maybe helped with talent acquisition. The thousands of disadvantaged kids who got to attend NFL games were perhaps more likely to become General Mills customers or employees. And across the state, maybe we were all more likely to buy Betty Crocker cake mix instead of Duncan Hines. While the tickets were purchased in the name of being a good corporate citizen, I believe it was the most effective marketing ever done by General Mills and clearly benefitted the company’s shareholders.
Would Friedman argue against this spending because it reduced profits? Absolutely not. His writing from more than 40 years ago sounds eerily timely: “In the present climate of opinion, with its widespread aversion to ‘capitalism,’ ‘profits,’ the ‘soulless corporation’ and so on, this is one way for a corporation to generate goodwill as a by-product of expenditures that are entirely justified in its own self-interest.”
General Mills accepted lower short-term profits in its pursuit of higher long-term value. And the stakeholders also benefitted. In The Heart of Capitalism, Joly states that “shareholder or stakeholder” tradeoffs are artificial because an “and” solution often exists. “We maximize performance not by choosing between stakeholders, but by embracing all of them. We choose employees and customers and shareholders and the community.” Joly cites examples from his time at Best Buy, including reducing its carbon footprint by installing LED lights throughout the stores. “This helps the environment and helped us save money on our energy consumption. Again, not a zero-sum game.”
7. Unity Software Inc. (NYSE:U)
Number of Hedge Fund Holders: 36
Unity Software Inc. (NYSE:U) is an American software company that develops video game software. Izzy Englander sold off his remaining shares worth $1.03 million in the company during Q3 2021.
In Q3, Unity Software Inc. (NYSE:U) posted an EPS of -$0.06, beating estimates by $0.01. According to analysts, the company is well-positioned to benefit from the growing mobile advertisement segment. Considering that consumer spending on mobile phones has increased five times in the past years, recently, Morgan Stanley lifted its price target on Unity Software Inc. (NYSE:U) to $185, while upgrading the stock to Overweight.
With total stakes worth roughly $8 billion, 36 hedge funds tracked by Insider Monkey held positions in Unity Software Inc. (NYSE:U) in Q3. In the previous quarter, 29 hedge funds held stakes in the company, presenting a positive hedge fund sentiment. Silver Lake Partners was the company’s leading shareholder in Q3, owning shares worth $5.1 billion.
6. Jefferies Financial Group Inc. (NYSE:JEF)
Number of Hedge Fund Holders: 37
Jefferies Financial Group Inc. (NYSE:JEF) is an American investment bank and financial services company. In Q3, the company reported revenue of $1.94 billion, up 19.8% from the prior-year quarter.
Millennium Management sold its entire stake in Jefferies Financial Group Inc. (NYSE:JEF) during the third quarter. Recently, Morgan Stanley initiated its coverage on the stock with an Equal Weight rating and a $40 price target.
Like famous stocks, such as JPMorgan Chase & Co. (NYSE:JPM), Oracle Corporation (NYSE:ORCL), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and NVIDIA Corporation (NASDAQ:NVDA), Jefferies Financial Group Inc. (NYSE:JEF) is gaining investors’ attention in 2022.
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Disclosure. None. Billionaire Izzy Englander is Selling These 10 Stocks is originally published on Insider Monkey.
