In this article, we discuss the top 10 stock picks from the Ken Fisher portfolio. If you want to see more stocks in this selection, check out Ken Fisher Stock Portfolio: Top 5 Stock Picks.
Fisher Asset Management founder Ken Fisher believes the Federal Reserve’s actions will not help control inflation but also stressed that the U.S. economy is unlikely to plunge into recession, given that loan growth is “robust.” He told Fox Business on November 3:
“I don’t believe what the Fed is doing right now actually kills inflation. I don’t believe, as I have said before, that the Fed can kneecap the economy by raising rates the way it is because right now the banks’ loan base cost them almost nothing. When the Fed raises short rates it increases the incentive for banks to make short-term loans because the spread gets bigger.”
Ken Fisher recently pointed out some positive fundamentals that investors might be missing due to the uncertainty and short-term headwinds blanketing the stock market currently. In addition to strong bank loan growth, unemployment remains low in the United States, and travel is exceptionally robust and increasing. Historically, these factors are inconsistent with the beginnings of recessions, as per Fisher. Some of the top holdings in the Ken Fisher portfolio include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
Our Methodology
We selected the top 10 stocks from the Ken Fisher portfolio as of the end of the third quarter of 2022 for this analysis. The stocks are arranged according to the hedge fund’s stake value in each holding. Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022 was used to assess the hedge fund sentiment around the securities.
Ken Fisher Stock Portfolio: Top Stock Picks
10. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Fisher Asset Management’s Stake Value: $1,604,616,000
Securities filings for the third quarter of 2022 reveal that Fisher Asset Management held 11.8 million shares of Meta Platforms, Inc. (NASDAQ:META), worth $1.60 billion and representing 1.2% of the total 13F portfolio. Ken Fisher strengthened his hold on Meta Platforms, Inc. (NASDAQ:META) by 3% in the September quarter. The stock has been part of the Fisher portfolio since the first quarter of 2014.
On November 15, Meta Platforms, Inc. (NASDAQ:META) filed to exchange up to $2.75 billion of 3.500% senior notes due 2027. The filing also suggests an offering to exchange $3 billion of 3.850% senior notes due 2032, $2.75 billion of 4.450% senior notes due 2052, and $1.5 billion of 4.650% senior notes due 2062.
Canaccord analyst Maria Ripps on November 10 reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) but lowered the price target on the shares to $170 from $200. The analyst said she trimmed her price target to factor in the latest multiple compression and views the layoffs and hiring freeze announcements as incrementally optimistic, particularly due to the ongoing macro uncertainty and the industry-wide weakness in digital advertising.
According to Insider Monkey’s data, 184 hedge funds were long Meta Platforms, Inc. (NASDAQ:META) at the end of Q2 2022, compared to 200 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is a prominent position holder in the company, with 7.3 million shares worth $1.17 billion.
Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META) is also backed by Ken Fisher.
ClearBridge Investments made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2022 investor letter:
“Meta Platforms, Inc. (NASDAQ:META), one of two overweights among the mega cap stocks, underperformed in the third quarter (-15.9%) and is the Strategy’s largest detractor year to date. Meta has also trailed mega cap advertising peer Alphabet, which we don’t own, as revenue growth has slowed due to tough comparables to a strong e-commerce environment in early 2021, negative impacts from Apple’s privacy changes and rising expenses.
While we have trimmed our position close to 20%, we remain invested as we do not think the stocks’ valuation at about 13x consensus 2023 earnings appropriately reflects its long-term earnings and free cash flow generation potential. Despite current revenue headwinds, we believe Meta is well-positioned to navigate industry wide changes to advertising targeting and its transition to the Reels short-form video format will monetize in the coming years, helping to re-accelerate revenue growth.
We also welcome Meta’s implementation of cost-cutting measures, which should help uncover the company’s high underlying profitability. Lastly, we see Meta’s investments in augmented reality as a call option for long-duration investors.”
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Fisher Asset Management’s Stake Value: $1,722,650,000
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. Ken Fisher, as of Q3 2022, owns over 25 million shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) worth $1.7 billion, representing 1.29% of his total 13F portfolio.
On November 10, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares climbed approximately 5% as the company said its October sales rose 56% year-over-year. For the month ending October 2022, the company generated NT$210.3 billion in revenue, up from NT$134.5 billion in the same period a year ago.
Goldman Sachs analyst Bruce Lu downgraded Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on October 13 to Buy from Conviction Buy with a price target of $89, down from $126. The analyst noted that the company’s management has turned “more conservative”, given an impact from demand weakness, especially for its N7 nodes. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) management has also guided down 2022 capex to $36 billion from nearly $40 billion, partially due to uncertain demand, the analyst told investors.
According to Insider Monkey’s data, 72 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of Q2 2022, compared to 81 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 14.6 million shares worth $1.19 billion.
Baron Funds made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q3 2022 investor letter:
“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”
8. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Fisher Asset Management’s Stake Value: $1,830,503,000
Salesforce, Inc. (NYSE:CRM), a California-based customer relationship management technology company, is one of the top picks from the Ken Fisher stock portfolio. Fisher owns 12.7 million shares of Salesforce, Inc. (NYSE:CRM) worth $1.8 billion as of Q3 2022, representing 1.37% of the total 13F securities.
Mizuho analyst Gregg Moskowitz on November 15 maintained a Buy recommendation on Salesforce, Inc. (NYSE:CRM) but trimmed the price target on the shares to $225 from $235. Macro and geopolitical factors have continued to hammer the software sector, and many investors “understandably remain cautious about increasing their software exposure at this time,” the analyst told investors in a research note.
According to Insider Monkey’s Q2 data, 116 hedge funds were long Salesforce, Inc. (NYSE:CRM), compared to 114 funds in the prior quarter. Harris Associates held a prominent stake in the company, comprising more than 5 million shares worth $829 million.
ClearBridge Investments made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q3 2022 investor letter:
“Software has been a solid long-term performer for the Strategy and a key point of differentiation versus the benchmark. But even recurring revenue businesses enabling digital transformation are not immune from the vagaries of the COVID-19 recovery. Salesforce, Inc. (NYSE:CRM) (-12.8%) has detracted from results due to slowing revenue growth driven by a combination of factors, including pull-forward of enterprise digitization demand during COVID-19, some operational missteps, and lengthening sales cycles.
We believe the company still has ample room for revenue growth across its various platforms and should benefit from budget consolidation as customers seek control over tech spending in a weakening economy. We also see significant room for margin expansion. While we have trimmed our Salesforce (CRM) exposure, we maintain confidence that the stock will re-rate to a level that reflects its growth potential.”
7. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 47
Fisher Asset Management’s Stake Value: $1,949,619,000
ASML Holding N.V. (NASDAQ:ASML) is a Netherlands-based company that develops, produces, markets, and services advanced semiconductor equipment systems for memory and logic chipmakers. In Q3 2022, Ken Fisher owned 4.7 million shares of ASML Holding N.V. (NASDAQ:ASML) worth approximately $2 billion, representing 1.46% of the total 13F securities. Ken Fisher boosted his stake in the…