In this piece, we will take a look at the ten stocks to sell now according to Javier Velazquez’s Albar Capital. If you want to skip our introduction of the hedge fund and jump ahead to the top five stocks in this list, then take a look at 5 Stocks to Sell Now According to Javier Velazquez’s Albar Capital.
Albar Capital Limited is a British hedge fund that is headquartered in London, United Kingdom. It is headed by Javier Velazquez, and the firm was set up in 2017 – making it one of the youngest hedge funds in the world.
Due to its relatively small size and young age, little is known about the hedge fund or its head. Prior to starting Albar Capital, Mr. Velazquez worked at the renowned hedge fund Millennium Management, known for its founder Israel Englander. Millennium Management is one of the largest hedge funds in the world, and by the end of the second quarter of this year, the fund’s portfolio was worth a staggering $161 billion – larger than the balance sheets of central banks of many countries in the world.
Albar Capital was set up in 2017, and at the time the fund was said to follow a long/short investment approach.
However, recently, the fund appears to have shifted gears to focus on an absolute return strategy. This approach sets a fixed value for a return that the firm then targets for the short term.
Given the recent stock market bloodbaths, in the wake of the Federal Reserve’s all out approach to tackle inflation, today we will take a look at some stocks that were sold by Albar Capital during this year’s second quarter. The fund’s Q2 2022 portfolio was worth $287 million, and some renowned names on our list are Apple Inc. (NASDAQ:AAPL), Ingersoll Rand Inc. (NYSE:IR), and Honeywell International Inc. (NASDAQ:HON).
Pixabay/Public Domain
Our Methodology
We took a look at Albar Capital’s regulatory filings for this year’s first and second quarters to determine which stocks were present in its portfolio in the former and made their way out in the latter. Following this, the firms were analyzed through factors such as their recent financial performance, market trends, and hedge fund sentiment courtesy of Insider Monkey’s Q2 2022 survey of 895 hedge funds.
10 Stocks to Sell Now According to Javier Velazquez’s Albar Capital
10. Applied Materials, Inc. (NASDAQ:AMAT)
Albar Capital’s Stake Value in Q1 2022: $1.4 million
Percentage of Albar Capital’s 13F Portfolio In Q1 2022: 0.61%
Number of Hedge Fund Holders: 67
Applied Materials, Inc. (NASDAQ:AMAT) is an American company that is involved in manufacturing and selling equipment that is used for semiconductor fabrication. The company’s equipment allows chipmakers to carry out several complex processes in chip manufacturing, such as physical and vapor deposition. Additionally, its products also allow chipmakers to upgrade their old machines to adapt to newer technologies.
Albar Capital owned a $1.4 million stake in Applied Materials, Inc. (NASDAQ:AMAT) as part of its Q1 2022 portfolio, which came in the form of 11,197 shares and represented 0.61% of its investment portfolio. This stake was sold in the following quarter, by the end of which 67 out of the 895 hedge funds polled by Insider Monkey had also held a stake in the chip company.
Applied Materials, Inc. (NASDAQ:AMAT) has its eyes on the future, as the firm is diversifying its operating model to now include subscriptions. Through this, the firm hopes to earn $20 billion in revenue by 2024. BofA increased the company’s share price target to $125 from $108 in August 2022, sharing that its strong quarterly performance beat expectations of a slowdown.
Applied Materials, Inc. (NASDAQ:AMAT)’s largest investor in our database is David Blood and Al Gore’s Generation Investment Management which owns 6.1 million shares that are worth $555 million.
Ingersoll Rand Inc. (NYSE:IR), Apple Inc. (NASDAQ:AAPL), and Honeywell International Inc. (NASDAQ:HON) are met by Applied Materials, Inc. (NASDAQ:AMAT) in the list of stocks sold by Albar Capital.
9. General Electric Company (NYSE:GE)
Albar Capital’s Stake Value in Q1 2022: $2.1 million
Percentage of Albar Capital’s 13F Portfolio In Q1 2022: 0.89%
Number of Hedge Fund Holders: 49
General Electric Company (NYSE:GE) is an American industrial company that has its paws in a host of markets. These include aviation, healthcare, renewable energy, and power generation. The company is headquartered in Boston, Massachusetts, and it is one of the oldest in the world after being set up in 1892.
General Electric Company (NYSE:GE) is one of the most technologically advanced companies in the world, and it is pioneering the use of additive manufacturing (also known as 3D printing) in both the aviation and aerospace industries. The latter is the part of a future low Earth orbit (LEO) economy that is estimated to stand at $1 trillion according to estimates by the National Aeronautics and Space Administration (NASA).
Mr. Velazquez’s hedge fund owned 23,392 General Electric Company (NYSE:GE) shares as part of its second quarter of 2022 holdings. These let it own a $2.1 million stake in the firm, which was sold off in its entirety in the subsequent quarter. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 49 investors in the company.
General Electric Company (NYSE:GE)’s largest investor is Boykin Curry’s Eagle Capital Management which owns 13 million shares that are worth $834 million.
Vulcan Value Partners mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“We purchased General Electric Company (NYSE:GE) during the quarter. In 2018 Larry Culp became CEO and initiated a multi-year restructuring program. After many years of divesting and restructuring the business, the company’s attractive assets are showing through. GE operates in four segments: aviation, health care, power, and renewables. The aviation segment makes and services jet engines and generates around 55% of its profits. The health care segment produces a broad suite of diagnostic products and generates around 40% of profits.
The other two segments, power and renewables, are making improvements, and will be combined and spun off in early 2024. GE continues to unlock shareholder value and strengthen its balance sheet. The company also generates solid free cash flow. Recent stock price volatility provided an opportunity for us to purchase the stock, once again, with a margin of safety.”
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Albar Capital’s Stake Value in Q1 2022: $3.4 million
Percentage of Albar Capital’s 13F Portfolio In Q1 2022: 1.42%
Number of Hedge Fund Holders: 71
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the largest chip companies in the world, and its products primarily serve the computing and connectivity needs of smartphones. These processors and graphics processing units power the bulk of Android smartphones, and the company is headquartered in San Diego, California, the United States.
As the first quarter of this year drew down, Albar Capital had held a $3.4 million stake in QUALCOMM Incorporated (NASDAQ:QCOM) which represented 1.42% of the firm’s investment portfolio. By Q2 2022 end, 71 of the 895 hedge funds tracked by Insider Monkey had owned QUALCOMM Incorporated (NASDAQ:QCOM)’s shares, and Albar Capital had sold its stake.
QUALCOMM Incorporated (NASDAQ:QCOM)’s revenues grew by 36% in its fiscal third quarter and beat analyst estimates. This growth was driven by a massive 45% growth in the firm’s semiconductor division. DZ Bank kept a $150 share price target for the company in July 2022 but downgraded its shares to Hold from Buy.
Panayotis Takis Sparaggis’s Alkeon Capital Management is QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor in our database through a $541 million stake that comes via 4.2 million shares.
7. NVIDIA Corporation (NASDAQ:NVDA)
Albar Capital’s Stake Value in Q1 2022: $3.7 million
Percentage of Albar Capital’s 13F Portfolio In Q1 2022: 1.55%
Number of Hedge Fund Holders: 84
NVIDIA Corporation (NASDAQ:NVDA) is another large semiconductor designer that is widely credited with having pioneered graphics processing units. In the early days, these chips were used mostly to play video games and run computer applications; now they have spurred entire industries on their back. NVIDIA Corporation (NASDAQ:NVDA) is headquartered in Santa Clara, California, the United States.
NVIDIA Corporation (NASDAQ:NVDA) has suffered massively in the wake of the cryptocurrency crash this year, as investors fled due to a strengthening U.S. dollar. However, the firm expects sequential revenue growth in its current quarter, and with a compounded annual growth rate of 37%, its automotive division alone is slated to bring in $2 billion in revenue by 2027.
Albar Capital owned 13,628 NVIDIA Corporation (NASDAQ:NVDA) shares by the end of Q1 2022, allowing it to hold a $3.7 million stake which was sold in the second quarter. Insider Monkey’s 895 hedge fund survey for this year’s June quarter revealed that 84 had invested in the company.
Out of these, Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor. It owns 7.5 million shares that are worth $1.1 billion.
Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.
NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)
6. Synaptics Incorporated (NASDAQ:SYNA)
Albar Capital’s Stake Value in Q1 2022: $4.8 million
Percentage of Albar Capital’s 13F Portfolio In Q1 2022: 2.03%
Number of Hedge Fund Holders: 23
Synaptics Incorporated (NASDAQ:SYNA) is an American semiconductor firm that offers a wide variety of products such as fingerprint sensors, trackpads, force touch technologies, and wireless communications systems products. The company is headquartered in San Jose, California, the United States.
Synaptics Incorporated (NASDAQ:SYNA) has been performing well in terms of bottom line profits over the past several years, with its EPS beating analyst estimates by an average of 1.14% over the past six years. Needham reduced the company’s share price target to $185 from $220 in September 2022, as it stated that the firm’s internet of things (IoT) segment will face a slowdown over the course of the next few years.
For its Q1 2022 investments, Albar Capital held a $4.8 million stake in Synaptics Incorporated (NASDAQ:SYNA), and the firm sold this off in the following quarter. Insider Monkey profiled 895 hedge funds for their June 2022 portfolio, which revealed that 23 had held a stake in the company.
Synaptics Incorporated (NASDAQ:SYNA)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 1 million shares that are worth $124 million.
Synaptics Incorporated (NASDAQ:SYNA), Ingersoll Rand Inc. (NYSE:IR), Apple Inc. (NASDAQ:AAPL), and Honeywell International Inc. (NASDAQ:HON) are some stocks that Javier Velazquez’s hedge fund sold during the second quarter of this year.
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Disclosure: None. 10 Stocks to Sell Now According to Javier Velazquez’s Albar Capital is originally published on Insider Monkey.