Top 10 Stock Picks of Osman Ozsan’s Deuterium Capital Management

·7 min read

In this article, we will take a look at the top 10 stock picks of Osman Ozsan's Deuterium Capital Management. If you want to skip our discussion of Deuterium Capital Management's history, investment philosophy, and hedge fund preference, go directly to Top 5 Stock Picks of Osman Ozsan's Deuterium Capital Management.

Deuterium Capital Management, LLC (DCM) is located in Florida. Osman Ozsan, fund manager and Chief Investment Officer at Deuterium Capital Management, established Deuterium Capital Management in 2018. Osman has had a long and successful career in investment banking, working at Barclays and UBS trading debt instruments, interest rate and currency derivatives, and other financial products. Before transferring to the Stern School of Business in New York to pursue graduate studies in finance, Osman first studied law at the University of Bristol. In December 2020, Deuterium Capital Management acquired Jupiter Asset Management’s Global Dynamic Allocation team for an undisclosed sum. Osman is currently serving as the investment manager of the Deuterium Global Dynamic Allocation Fund. In addition to his work on the GDA team, he oversees a private investment portfolio and a private equity pool for Deuterium Capital Management clients.

The investment strategy used by Deuterium Capital Management combines rigorous empirical analysis to influence investment choices that are founded on solid risk management and capital growth based on convex, asymmetrical protection against returns. The organization regularly innovates its methods and tactics and uses data science techniques extensively on large data sets. The fund's filing for Q2 2022 showed managed 13F securities valued at $29.52 million with a top 10 holdings concentration of 67.46%. NVIDIA Corp. (NASDAQ:NVDA) is the largest holding of Deuterium Capital Management, with 34,200 shares held, comprising 17,56% of its 13F securities portfolio.

Deuterium Capital Management owns stocks in several well-known companies as of the end of the second quarter of 2022, such as Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), and UnitedHealth Group Incorporated (NYSE:UNH). The hedge fund also holds significant shares of Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and Pfizer Inc. (NYSE:PFE).

Photo by Nick Chong on Unsplash

Our Methodology

These are the top 10 stock picks of Deuterium Capital, as of the end of the second quarter.

Stocks to Buy Today According to Osman Ozsan's Deuterium Capital Management

10. Eli Lilly and Company (NYSE:LLY)

Deuterium Capital Management’s Stake Value: $0.603 million

Percentage of Deuterium Capital Management’s 13F Portfolio: 2.04%

Number of Hedge Fund Holders as of Q1 2022: 53

Eli Lilly and Company (NYSE:LLY) was founded in 1876 and is headquartered in Indianapolis, Indiana. It discovers, develops, and markets human pharmaceuticals worldwide.

On August 5, Morgan Stanley analyst Terence Flynn stated that Eli Lilly and Company (NYSE:LLY) reported "mixed" second-quarter results, noting that 2022 EPS guidance had been lowered. However, he also noted that Mounjaro, a "key new product cycle and growth driver," is "off to a strong start" and that the company's revenue outlook had been maintained.

Deuterium Capital Management's stake in Eli Lilly and Company (NYSE:LLY) during the second quarter remained the same as in the first quarter of 2022.

09. Johnson & Johnson (NYSE:JNJ)

Deuterium Capital Management’s Stake Value: $0.714 million

Percentage of Deuterium Capital Management’s 13F Portfolio: 2.41%

Number of Hedge Fund Holders as of Q1 2022: 83

During the second quarter of 2022, Johnson & Johnson (NYSE:JNJ) had EPS valued at $2.59, beating estimates by $0.04, and reported a revenue figure of $24.02 billion, beating estimates by $195.47 million. The company has a gross profit margin of 67.95% based on the trailing twelve months' data and has gained 0.74% in the past six months and lost 0.51% year to date.

On July 21, Johnson & Johnson (NYSE:JNJ) price target was decreased from $185 to $180 by UBS analyst Kevin Caliendo, who maintains a Neutral rating on the stock. The analyst informs investors in a research note that Johnson & Johnson (NYSE:JNJ) Q2 results reinforced the macro undercurrents, which include the significant swing in currency, the ongoing burden of inflation, and lagging elective procedure recovery. China will probably hurt MedTech, but Caliendo says that at 5% of J&J sales, the danger is "mostly manageable."

Deuterium Capital Management's stake in Johnson & Johnson (NYSE:JNJ) during the second quarter remained the same as in the first quarter of 2022.

08. UnitedHealth Group Incorporated (NYSE:UNH)

Deuterium Capital Management’s Stake Value: $0.897 million

Percentage of Deuterium Capital Management’s 13F Portfolio: 3.03%

Number of Hedge Fund Holders as of Q1 2022: 103

During the second quarter of 2022, UnitedHealth Group Incorporated (NYSE:UNH) had EPS valued at $5.57, beating estimates by $0.36. The actual revenue figure of $80.33 billion also beat the estimates by $652.1 million. On August 10, following the "impressive" Q2 results, Mizuho analyst Ann Hynes increased his price target for UnitedHealth Group Incorporated (NYSE:UNH) to $600 from $550 and maintained a Buy rating on the shares. The analyst raised his expectations based on UnitedHealth Group Incorporated (NYSE:UNH) improved business outlook. Based on the trailing twelve months' data, the stock has a gross profit margin of 24.01% and has gained 10.48% in the past six months and 7.06% year to date.

On August 10, Bloomberg reported that the U.S. Department of Justice argued in an antitrust trial that UnitedHealth's (UNH) proposed acquisition of Change Healthcare (CHNG) should be stopped based on an internal audit of the company's 2021 data practices. In the words of DOJ prosecutors, the audit of UnitedHealth's data policy "showed that the business had no effective means of enforcement if or when data misuse is identified or reported."

Deuterium Capital Management's stake in UnitedHealth Group Incorporated (NYSE:UNH) during the second quarter remained the same as in the first quarter of 2022.

07. Palantir Technologies Inc. (NYSE:PLTR)

Deuterium Capital Management’s Stake Value: $0.980 million

Percentage of Deuterium Capital Management’s 13F Portfolio: 3.31%

Number of Hedge Fund Holders as of Q1 2022: 36

Palantir Technologies Inc. (NYSE:PLTR) was incorporated in 2003 and is based in Denver, Colorado. It builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.

Deuterium Capital Management stake in Palantir Technologies Inc. (NYSE:PLTR) during the second quarter remained the same as in the first quarter of 2022.

On August 9, with an $8 price target, down from $11, Deutsche Bank analyst Brad Zelnick downgraded Palantir Technologies Inc. (NYSE:PLTR) from Hold to Sell. According to Zelnick, there is "nothing to hang our hat on" in the company's Q2 report for investors. The analyst claims that given the company's continued slowdown from better comps and decreased future visibility, the results provide little evidence to back up his earlier favourable thesis on the company's government business. Palantir is "aggressively" spending in addition to having reduced revenue forecasts, which is raising its risk profile, according to Zelnick.

06. SPDR S&P 500 ETF Trust (NYSE:SPY)

Deuterium Capital Management’s Stake Value: $1.275 million

Percentage of Deuterium Capital Management’s 13F Portfolio: 4.31%

Number of Hedge Fund Holders as of Q1 2022: 77

According to data produced by ETFGI, an independent research organization, exchange traded fund investors may have observed that the global ETF industry saw net inflows of more than $150 billion during the second quarter of 2022, which is less than half of what was taken in during the first quarter. Nearly $157 billion in ETFS/ETP inflows were made in the second quarter of 2022, which was far less than the $305.7 billion received in the first quarter. The space has generated $463.48 billion in new revenue so far this year. According to the same report by ETFGI, the three second quarter outflow leaders lost $18.98 billion together. The world's largest exchange traded fund, the SPDR S&P 500 ETF Trust (NYSE:SPY), was on the third number in the list of outflow leaders as it lost $4.12 billion in the second quarter.

SPDR S&P 500 ETF Trust (NYSE:SPY) has lost 6.53% in the past six months and 12.08% year to date. It is a new addition to Deuterium Capital Management's portfolio with a total stake value of $1.275 million (4.31% of the portfolio).

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Disclosure: None. Top 10 Stock Picks of Osman Ozsan's Deuterium Capital Management is originally published on Insider Monkey.