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Billionaire Louis Bacon’s 10 Tech Stock Picks

Billionaire Louis Bacon’s 10 Tech Stock Picks

Posted On October 11, 2021 1:28 pm
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In this article, we discuss the billionaire Louis Bacon’s 10 tech stock picks. You can skip our detailed analysis of the billionaire’s hedge fund and go directly to the Billionaire Louis Bacon’s 5 Tech Stock Picks.

Louis Moore Bacon is an American investor, philanthropist, and hedge fund manager of Moore Capital Management. The investment management firm was founded in 1989 and is focused on the global financial markets and private equity markets. In 2019, Bacon announced that he is closing Moore Capital because of the difficult trading environment, returning money to the investors. As of 2021, Moore Capital manages internal money as the billionaire announced to concentrate on his personal investments by consolidating all three funds into a single fund.

Investment Philosophy of Louis Bacon

Louis Bacon focuses on macro trading while betting on commodities and bonds through hired traders. His investment philosophy involves meticulous analysis of global political and economic events. Through this strategy, his investment management firm was able to generate profitable returns for a long time.

In 1990, when the Japanese stock market crashed, Bacon had $200 million under management, while his investment firm gained 86% during that year. From 1995 to 1999, the annual returns of Moore Capital ranged from 23% to 32%. Through 2019, the fund’s annual returns averaged 17.6%. However, in recent years, the performance of the fund remained somewhat sluggish as the assets fell to $9 billion in 2018 from $14 billion. The fund delivered a 1.9% return in 2019.

With the onset of Covid-19 in 2020, Bacon continued with his strategy of betting on bonds, which resulted in his fund generating 70% returns during that time.

As of Q2 2021, Louis Bacon’s Moore Global Investments invests heavily in the technology sector. The tech stocks exhibited tremendous growth in 2020, presented by tech-heavy NASDAQ which gained 28.5% in the past year.

Some of the famous tech stocks in Louis Bacon’s 13F portfolio as of the second quarter of 2021 are Amazon.com, Inc. (NASDAQ:AMZN), Magna International Inc. (NYSE:MGA), Affirm Holdings, Inc. (NASDAQ:AFRM), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT).

Our Methodology:

Let’s analyze our list of the billionaire Louis Bacon’s 10 tech stock picks. For this article, we took into account Moore Global Investments’ 13F portfolio as of the second quarter.

Louis Bacon of Moore Global Investments

Why pay attention to hedge fund sentiment while choosing stocks?

Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Billionaire Louis Bacon’s 10 Tech Stock Picks

10. Johnson Controls International plc (NYSE:JCI)

Moore Global Investments’ Stake Value: $33,911,000

Percent of Moore Global Investments 13F portfolio: 0.48%

Number of Hedge Fund Holders: 39

Johnson Controls International plc (NYSE:JCI) stands tenth on our list of the billionaire Louis Bacon’s 10 tech stock picks. It is a global diversified technology company that produces electronics and HVAC equipment. The company also offers services in control systems, energy management, and integrated facility management.

Louis Bacon’s Moore Global Investments holds 494,111 shares in Johnson Controls International plc (NYSE:JCI) as of Q2 2021, valued at $33.9 million. The company accounts for 0.48% of the hedge fund’s 13F portfolio. Recently, Johnson Controls International plc (NYSE:JCI) announced its partnership with an American biotech company Phylagen to develop innovative technology for the future of healthy buildings through microbiomes.

In September, Oppenheimer lifted its price target on Johnson Controls International plc (NYSE:JCI) to $86 and kept an ‘Outperform’ rating on the shares. The firm’s analyst Noah Kaye appreciated the company’s investments in product/digital platforms.

Of the 873 hedge funds tracked by Insider Monkey, 39 hedge funds have positions in Johnson Controls International plc (NYSE:JCI), compared with 41 in the previous quarter. These stakes are valued at over $1.27 billion. Harris Associates is the company’s leading shareholder, with shares worth $337.3 million.

Like Amazon.com, Inc. (NASDAQ:AMZN), Magna International Inc. (NYSE:MGA), Alphabet Inc. (NASDAQ:GOOG), Affirm Holdings, Inc. (NASDAQ:AFRM), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), Johnson Controls International plc (NYSE:JCI) is favored by investors in 2021.

9. Xilinx, Inc. (NASDAQ:XLNX)

Moore Global Investments’ Stake Value: $41,222,000

Percent of Moore Global Investments 13F portfolio: 0.58%

Number of Hedge Fund Holders: 59

Xilinx, Inc. (NASDAQ:XLNX) is an American technology company that supplies programmable logic devices and related software design tools. The company also provides related services using software-based intelligence with hardware optimization. Xilinx, Inc. (NASDAQ:XLNX) ranks ninth on our list of the billionaire Louis Bacon’s 10 tech stock picks.

As of Q2 2021, Moore Global Investments owns 285,000 shares of Xilinx, Inc. (NASDAQ:XLNX), valued at $41.2 million. The hedge fund increased its activity in the company by 45% in the second quarter. The company now represents 0.58% of the hedge fund’s 13F portfolio. In Q2 2021, Xilinx, Inc. (NASDAQ:XLNX) posted an EPS of $0.95, beating the estimates by $0.12. The company’s revenue of $879 million beat the estimates by $23.77 million and presented a 20.9% year-over-year growth. This August, Barclays lifted its price target on Xilinx, Inc. (NASDAQ:XLNX) to $165, while keeping an ‘Equal Weight’ rating on the shares.

As of Q2 2021, 59 hedge funds tracked by Insider Monkey have positions in Xilinx, Inc. (NASDAQ:XLNX), up from 57 in the previous quarter. These stakes are valued at over $4.1 billion. Israel Englander’s Millennium Management is the company’s largest shareholder, with shares worth more than $327.6 million.

Like Amazon.com, Inc. (NASDAQ:AMZN), Magna International Inc. (NYSE:MGA), Alphabet Inc. (NASDAQ:GOOG), Affirm Holdings, Inc. (NASDAQ:AFRM), Facebook, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), investors and analysts are also paying attention to Xilinx, Inc. (NASDAQ:XLNX) in 2021.

8. Bill.com Holdings, Inc. (NYSE:BILL)

Moore Global Investments’ Stake Value: $60,500,000

Percent of Moore Global Investments 13F portfolio: 0.85%

Number of Hedge Fund Holders: 53

Bill.com Holdings, Inc. (NYSE:BILL) stands eighth on our list of the billionaire Louise Bacon’s 10 tech stock picks. It is a technology company that provides cloud-based software for back-office financial operations mainly for small businesses.

Bill.com Holdings, Inc. (NYSE:BILL) is one of the newest acquisitions of Louis Bacon’s Moore Global Investments, as the hedge fund started building its position in the company with 330,276 shares in Q2 2021, valued at $60.5 million. The company represents 0.85% of the hedge fund’s 13F portfolio. In fiscal Q4 2021, Bill.com Holdings, Inc. (NYSE:BILL) reported revenue of $78.3 million, beating the estimates by $13.3 million and representing 85.9% growth from the prior-year quarter. In September BTIG lifted its price target on Bill.com Holdings, Inc. (NYSE:BILL) to…

 

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