Billionaire Michael Hintze Portfolio: Top 10 Stock Picks

·6 min read

In this article, we discuss the top 10 stock picks of billionaire Michael Hintze. If you want to skip our detailed analysis of Hintze’s history, investment philosophy, and hedge fund performance, go directly to Billionaire Michael Hintze Portfolio: Top 5 Stock Picks.

Sir Michael Hintze is a British-Australian philanthropist and businessman who lives in the United Kingdom. He worked at CSFB as Managing Director and European Head of Convertibles and at Goldman Sachs as Head of UK Equity Trading and European Emerging Markets Trading before founding CQS Cayman LP.

IHS Markit Ltd. (NYSE:INFO), ViacomCBS Inc. (NASDAQ:VIAC), and Darden Restaurants, Inc. (NYSE:DRI) are among the most notable stocks in Michael Hintze's CQS Cayman LP's broad portfolio, as of the third quarter of 2021.

Billionaire Michael Hintze Portfolio: Top 10 Stock Picks
Billionaire Michael Hintze Portfolio: Top 10 Stock Picks

Michael Hintze of CQS Cayman LP

Billionaire Michael Hintze Portfolio: Top Stock Picks

10. Liberty Broadband Corporation (NASDAQ:LBRDA)

CQS Cayman LP Stake Value: $20,976,000

Percentage of CQS Cayman LP’s 13F Portfolio: 1.19%

Number of Hedge Fund Holders: 24

Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company involved in the cable, broadband, and mobile location technology industries. In November, Credit Suisse analyst Grant Joslin initiated coverage of Liberty Broadband Corporation (NASDAQ:LBRDA), rating the stock as "Outperform," and gave a price target of $211.

In the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $885.75 million in Liberty Broadband Corporation (NASDAQ:LBRDA), down from 28 the preceding quarter worth $904.87 million.

9. Palo Alto Networks, Inc. (NASDAQ:PANW)

CQS Cayman LP Stake Value: $21,878,000

Percentage of CQS Cayman LP’s 13F Portfolio: 1.25%

Number of Hedge Fund Holders: 73

Palo Alto Networks, Inc. (NASDAQ:PANW) is a network security company that provides services to businesses, service providers, and government agencies. In November, Argus analyst Joseph Bonner raised his price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $620 from $530 and kept a “Buy” rating on the shares.

Palo Alto Networks, Inc. (NASDAQ:PANW) is also getting the attention of the smart money, as 73 hedge funds tracked by Insider Monkey reported owning stakes in the company in the third quarter of 2021, up from 69 funds a quarter earlier.

8. Ambac Financial Group, Inc. (NYSE:AMBC)

CQS Cayman LP Stake Value: $27,065,000

Percentage of CQS Cayman LP’s 13F Portfolio: 1.54%

Number of Hedge Fund Holders: 15

Ambac Financial Group, Inc. (NYSE:AMBC) is a holding corporation based in the United States. Its subsidiaries supply clients in public and private sectors worldwide with financial assurance solutions such as bond insurance.

Billionaire Michael Hintze's CQS Cayman LP is Ambac Financial Group, Inc.'s (NYSE:AMBC) largest stakeholder. The hedge fund owns 1.89 million shares of Ambac Financial Group, Inc. (NYSE:AMBC) as of the end of September.

In the third quarter of 2021, 15 hedge funds were bullish on Ambac Financial Group, Inc. (NYSE:AMBC), up from 13 funds in the preceding quarter.

In its fourth-quarter 2020 Investor Letter, Anabatic Fund mentioned a few stocks and Ambac Financial Group, Inc. (NYSE:AMBC) is one of them. Here is what the fund said:

“We sold our shares in Ambac (AMBC) during 2020. The decision was based on concerns about the creditworthiness of many of the state and local entities whose bonds Ambac has insured. The Covid-19 pandemic brought severe pain to many debt issuers, and the ramifications are going to be felt for years to come. There is little room for widespread credit deterioration given the inherent leverage in Ambac’s insured portfolio. And Ambac’s problems don’t end there.

A major reason for owning shares in AMBC for all these years was the pending litigation against Countrywide and Bank of America. The details can be found in prior letters, but the short version is that Ambac is pursuing litigation that was substantively identical to litigation that was filed and settled by a peer insurer in 2013. (2013 also happens to be the year we made our initial investment in Ambac shares, shortly after the company emerged from bankruptcy.…” (Click here to see the full text)

7. Willis Towers Watson Public Limited Company (NASDAQ:WLTW)

CQS Cayman LP Stake Value: $27,185,000

Percentage of CQS Cayman LP’s 13F Portfolio: 1.55%

Number of Hedge Fund Holders: 75

Willis Towers Watson Public Limited Company (NASDAQ:WLTW) is a risk management, insurance brokerage, and advising firm based in the United Kingdom and the United States. Willis Towers Watson Public Limited Company (NASDAQ:WLTW) issued a quarterly dividend of $0.80 per share on December 8, the same as the previous quarter.

In November, Jefferies analyst Yaron Kinar initiated coverage of Willis Towers Watson Public Limited Company (NASDAQ:WLTW), rating the stock as “Hold” and gave a price target of $258. In the third quarter of 2021, CQS Cayman LP increased its stake in Willis Towers Watson Public Limited Company (NASDAQ:WLTW) by 58%. The hedge fund first invested in Willis Towers Watson Public in the fourth quarter of 2020.

Vltava Fund, an investment management firm, in its third-quarter 2021 investor letter, mentioned Willis Towers Watson Public Limited Company (NASDAQ:WLTW). Here is what the fund said:

“The second position is much larger and was thrown into our hands by an unexpected turn of events. It is the stock of Willis Towers Watson. This is a British company with roots dating back to 1828. WLTW is the third-largest insurance broker in the world. This is a sector with which we are very familiar, as some time ago we held in our portfolio shares of its slightly larger competitor AON.

It was AON in fact that announced last spring it had agreed to merge with WLTW. In the merger, WLTW shareholders would have received AON shares. As is usually the case with such announcements, investors stepped in to conduct what is known as merger arbitrage. In this particular case, they bought WLTW shares and sold short AON shares in order to profit from the fact that the prices of the two stocks did not yet fully reflect the exchange ratio in the merger. Moreover, merger arbitrage commonly makes extensive use of leverage in order to increase profits…” (Click here to see the full text)

6. Starz Acquisition LLC (NASDAQ:STRZA)

CQS Cayman LP Stake Value: $27,295,000

Percentage of CQS Cayman LP’s 13F Portfolio: 1.55%

Number of Hedge Fund Holders: 15

Starz Acquisition LLC (NASDAQ:STRZA) is an American entertainment company. Lions Gate Entertainment Corp. (NYSE:LGF-A) purchased Starz Acquisition LLC (NASDAQ:STRZA) for $4.4 billion to improve its market domination in premium scripted television and expand its worldwide distribution reach.

CQS Cayman LP sold 25,518 shares of Starz Acquisition LLC (NASDAQ:STRZA) in the third quarter, reducing its remaining stake by about 5%. The hedge fund still holds 575,007 shares of Starz, worth about $27.30 million.

Out of the 867 hedge funds tracked by Insider Monkey in the third quarter of 2021, Warren Buffett's Berkshire Hathaway is the biggest significant stakeholder in Starz Acquisition LLC (NASDAQ:STRZA). The Oracle of Omaha owns 43.21 million shares of Starz Acquisition LLC (NASDAQ:STRZA), worth $2.05 billion.

Just like IHS Markit Ltd. (NYSE:INFO), ViacomCBS Inc. (NASDAQ:VIAC), and Darden Restaurants, Inc. (NYSE:DRI), Starz Acquisition LLC (NASDAQ:STRZA) is gaining the attention of billionaire Michael Hintze.

Click to continue reading and see Billionaire Michael Hintze Portfolio: Top 5 Stock Picks.

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Disclosure: None. Billionaire Michael Hintze Portfolio: Top 10 Stock Picks is originally published on Insider Monkey.