In this article, we discuss billionaire James Dinan’s top 5 stock picks. For Dinan’s investment philosophy and his comments on certain stocks please see Billionaire James Dinan’s Top 10 Stock Picks.
5. JOYY Inc. (NASDAQ: YY)
Billionaire Dinan’s hedge fund first initiated a position in JOYY Inc. (NASDAQ: YY) during the second quarter and raised its stake by 107% in the December quarter. The stock-picking strategy of Dinan worked in the case of JOYY. This is because Joyy’s share price soared 18% year to date, and is up 75% in the last twelve months.
JOYY was in 20 hedge funds’ portfolios at the end of the fourth quarter of 2020 compared to 31 positions in the previous quarter. This means the bullish number of hedge fund positions in this stock fell sharply from its all-time high.
York Capital lowered its stake in China Biologic Products Holdings, Inc. (NASDAQ: CBPO) by 79% in the fourth quarter to 3.53% of the overall portfolio. Despite that, CBPO is ranked fourth in the list of billionaire James Dinan’s top 10 stock picks for 2021. Shares of China Biologic Products grew 8% in the last twelve months.
The number of bullish hedge fund bets on CBPO fell by 2 recently. China Biologic Products Holdings was in 16 hedge funds’ portfolios at the end of December. The all-time high for this statistic is 27.
3. Pinduoduo Inc. (NASDAQ: PDD)
Billionaire James Dinan initiated a brand new position in Pinduoduo Inc. (NASDAQ: PDD) during the fourth quarter. However, shares of Pinduoduo fell almost 25% since the beginning of this year. It is the third-largest stock holding of York Capital Management.
In the Q4 2020 Investor Letter, Tao Value highlighted a few stocks and Pinduoduo is one of them. Here is what Tao Value said:
“Pinduoduo (ticker: PDD) reported a very strong Q3 2020, beating key KPIs all-around (GMV, active buyers & Revenue). It even surprisingly recorded the first non-GAAP profit (RMB466 million). Yet, the more important development is Duoduo Maicai, a new fresh grocery initiative. It is a natural extension of Pinduoduo’s deep root in agriculture e-commerce, and I think the logistic expertise it accumulated over years should help them compete. It is also a very nascent market, which attracts other tech giants (including Meituan & Alibaba). I will watch very closely on the developments.”
2. Willis Towers Watson Public Limited Company (NASDAQ: WLTW)
The share price of Willis Towers Watson Public Limited Company (NASDAQ: WLTW) soared 11% year to date, extending the twelve-month gains to 40%. The firm sold 6% of its position in Willis Towers during the fourth quarter. Despite that, it represented 7.63% of the overall portfolio, according to 13F filings.
Willis Towers Watson was in 58 hedge funds’ portfolios at the end of December. The all-time high for this statistic is 51. This means the bullish number of hedge fund positions in this stock currently sits at its all-time high. WLTW has seen an increase in enthusiasm from smart money recently. There were 51 hedge funds in our database with WLTW positions at the end of the third quarter.
1. NextDecade Corporation (NASDAQ: NEXT)
The share price of NextDecade Corporation (NASDAQ: NEXT) grew 34% since the beginning of this year, accelerating twelve-month gains to 63%. York Capital increased its position in NEXT by 7% during the fourth quarter to 10.73% of the overall portfolio. NextDecade Corporation engages in the development activities related to the liquefaction and sale of LNG.
NEXT was in 6 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all-time high for this statistics is 9.
You can also take a peek at Tiger Cub Billionaire Stephen Mandel’s Top 10 Stock Picks and David Einhorn’s Top 10 Stock Picks.