Menu Close

10 Stocks To Buy According To William Dollens’ Global Frontier Investments

view original post

In this article, we discuss 10 stocks to buy according to William Dollens’ Global Frontier Investments. If you want to skip our detailed analysis of William Dollens’ history, investment philosophy, and hedge fund performance, go directly to 5 Stocks To Buy According To William Dollens’ Global Frontier Investments.

William Dollens founded Global Frontier Investments in October 2010, and currently serves as the portfolio manager at the investment and asset management firm. He oversees $137 million in managed 13F securities and assets under management worth $232.4 million, as of the 13F filings for the third quarter.

Dollens was a student of biomedical engineering at Duke University, graduating with a Bachelor’s degree in 2001. He started his career as an analyst at Deutsche Bank Aktiengesellschaft (NYSE:DB) in 2001, switching to BA Venture Partners a year later as an associate. He took a career gap from 2006 to 2008 to complete his MBA from Kellogg School of Management at Northwestern University, where he specialized in accounting, analytical finance, management, and strategy.

After working at Ayer Capital Management as an analyst, Dollens left the company in 2010 to start his own investment firm, Global Frontier Investments. Dollens also serves as a non-executive director on the board of WANdisco plc (LSE:WAND.L), as a board member at ColdQuanta, Inc., and as a board member and non-executive director at Napster Group PLC (LSE:NAPS.L).

About 85% of Dollens’ Q3 portfolio is concentrated in the finance sector, with the largest holding being JPMorgan Chase & Co. (NYSE:JPM), which accounts for 29.26% of Dollens’ 13F portfolio. The remainder of the investment portfolio comprises stocks from the communications, information technology, and healthcare sectors.

Some of the top finance stocks in William Dollens’ Global Frontier Investments’ portfolio at the end of the third quarter were The Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Berkshire Hathaway Inc. (NYSE:BRK-A), and Wells Fargo & Company (NYSE:WFC), among others discussed in detail below. The top ten holdings comprise 80.64% of the investment portfolio.

10 Stocks To Buy According To William Dollens’ Global Frontier Investments

Our Methodology

With this context in mind, let’s take a look at our list of the 10 stocks to buy according to William Dollens’ Global Frontier Investments. The list is ranked according to Dollens’ stake value in each stock. To facilitate potential investors, we have also mentioned the hedge fund sentiment around each stock, Q3 earnings, and the latest analyst ratings.

William Dollens’ Global Frontier Investments’ Top Stocks

10. Accenture plc (NYSE:ACN)

Global Frontier Investments’ Stake Value: $4,799,000

Percentage of Global Frontier Investments’ 13F Portfolio: 3.50%

Number of Hedge Fund Holders: 56

Accenture plc (NYSE:ACN) is a multinational company from Ireland, specializing in IT services and consulting. Global Frontier Investments, at the end of September, owned 15,000 shares in Accenture plc (NYSE:ACN), worth $4.79 million, representing 3.50% of the firm’s 13F portfolio. The company is making big strides, expanding via numerous acquisitions as of October of this year, taking over e-commerce, tech, and artificial intelligence companies.

At the end of the third quarter of 2021, 56 hedge funds in Insider Monkey’s database of elite funds were bullish on Accenture plc (NYSE:ACN), up from 52 in the preceding quarter. Nicolai Tangen’s Ako Capital is the leading stakeholder in Accenture plc (NYSE:ACN), with 2.24 shares worth over $718 million.

Here is what Fiduciary Management has to say about Accenture plc (NYSE:ACN) in their Q1 2021 investor letter:

“Even great companies can get too expensive. In early January, we sold our long-standing position in Accenture PLC after the company’s valuation exceeded 30 times next 12 months (NTM) earnings per share (EPS). We originally invested in Accenture at the launch of the FMI International strategy at a valuation below 15 times NTM EPS and held the stock for over ten years. We added to the holding numerous times in the early years, growing the position size to as high as 5.5% in late 2014, before dialing it back in recent years as the valuation became less compelling. It is one of the world’s largest information technology services firms, specializing in helping complex, global businesses navigate disruption, and focusing on next-generation services like digital, cloud, and security. For years, the investment allowed FMI to capture the inherently higher growth of technology-related industries (GDP+) without investing directly in pure “invention-oriented” technology companies. Through Accenture we were able to avoid some of the shortfalls of tech investing: technology obsolescence, short product cycles, and subpar return on invested capital (ROIC). It grew steadily, was solidly profitable, capital-light, and generated high returns, all while maintaining a rock-solid balance sheet. It compounded its business value for many years, outperforming the MSCI EAFE indices by over 450% during our holding period. Unfortunately, the market increasingly recognized the company’s positive attributes, and the stock’s discount to intrinsic value slowly evaporated. Despite our admiration for the business, it exceeded our valuation threshold. We will continue to follow the company closely for future opportunities.”

9. Bank OZK (NASDAQ:OZK)

Global Frontier Investments’ Stake Value: $5,372,000

Percentage of Global Frontier Investments’ 13F Portfolio: 3.91%

Number of Hedge Fund Holders: 22

Bank OZK (NASDAQ:OZK) is a regional bank in Arkansas, operating across ten states, offering treasury services, retail banking, and commercial banking. Global Frontier Investments, at the end of September this year, held a $5.37 million stake in Bank OZK (NASDAQ:OZK), making up 3.91% of the firm’s 13F portfolio.

Bank OZK (NASDAQ:OZK), a top stock pick of William Dollens’ Global Frontier Investments, reported Q3 earnings on October 21, and the EPS for the quarter came in at $1.00, beating estimated EPS by $0.03. Revenue for Bank OZK (NASDAQ:OZK) was also more than analysts’ had expected. At $275.05 million, the revenue beat estimates by $8.12 million.

At the end of the third quarter of 2021, 22 hedge funds monitored by Insider Monkey were bullish on Bank OZK (NASDAQ:OZK), up from 19 in the previous quarter.

Bank OZK (NASDAQ:OZK) reported on October 1 that it had increased the quarterly dividend by 1.75% as compared to the preceding quarter.

Here is what Diamond Hill Capital has to say about Bank OZK (NASDAQ:OZK) in its Q1 2021 investor letter:

“Second-largest holding Bank OZK has grown to be a respected partner in commercial real estate development. Its real estate specialty group tackles highly complex real estate transactions and is a conservative underwriter, as shown by its minimal credit losses over many years of experience.”

8. Cadence Bank (NYSE:CADE)

Global Frontier Investments’ Stake Value: $5,490,000

Percentage of Global Frontier Investments’ 13F Portfolio: 4.00%

Number of Hedge Fund Holders: 24

Cadence Bank (NYSE:CADE) is an American private bank, with branches in Alabama, Florida, Texas, Mississippi, Georgia, and Tennessee. At the end of September, Global Frontier Investments held 250,000 shares in Cadence Bank (NYSE:CADE), valued at $5.49 million, representing 4% of the firm’s Q3 portfolio. It is one of William Dollens’ Global Frontier Investments’ top stocks.

Reports on October 29 confirmed that the merger between Cadence Bank (NYSE:CADE) and BancorpSouth Bank (NYSE:BXS) was finalized, which will make the combined bank holding company the sixth largest bank in the nine-state area that it operates in.

Truist analyst Jennifer Demba on November 1 assumed coverage of Cadence Bank (NYSE:CADE) with a Buy rating and a $35 price target. She believes that Cadence Bank (NYSE:CADE)’s shares are very attractive due to the merger with BancorpSouth Bank (NYSE:BXS), owing to the larger balance sheet and increased asset portfolio.

Diamond Hill Capital, a leading hedge fund managed by Ric Dillon, is the largest stakeholder in Cadence Bank (NYSE:CADE). Overall, 24 hedge funds reported owning stakes in Cadence Bank (NYSE:CADE) at the end of Q3.

In addition to The Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Berkshire Hathaway Inc. (NYSE:BRK-A), and Wells Fargo & Company (NYSE:WFC), Cadence Bank (NYSE:CADE) is one of the top stocks in William Dollens’ portfolio for the third quarter.

7. The Goldman Sachs Group, Inc. (NYSE:GS)

Global Frontier Investments’ Stake Value: $5,670,000

Percentage of Global Frontier Investments’ 13F Portfolio: 4.13%

Number of Hedge Fund Holders: 74

The Goldman Sachs Group, Inc. (NYSE:GS) is a prominent holding of Global Frontier Investments as of September 2021. Global Frontier Investments holds a $5.67 million stake in The Goldman Sachs Group, Inc. (NYSE:GS), which accounts for 4.13% of the firm’s Q3 portfolio.

The financial services mega company reported Q3 earnings on October 15, posting earnings per share of $14.93, exceeding estimates by $4.92. The Goldman Sachs Group, Inc. (NYSE:GS)’s revenue for the third quarter also surpassed expectations by $1.99 billion at $13.61 billion.

On October 18, an RBC Capital analyst raised the price target on The Goldman Sachs Group, Inc. (NYSE:GS) from $370 to $435, and kept a Sector Perform rating on the stock.

At the end of the third quarter, 74 hedge funds in the database of Insider Monkey reported owning stakes in The Goldman Sachs Group, Inc. (NYSE:GS), down from 61 funds in the preceding quarter. Fisher Asset Management holds a $1.06 billion stake in The Goldman Sachs Group, Inc. (NYSE:GS) at the end of September, making it one of the leading stakeholders of the firm.

Ariel Investments mentioned The Goldman Sachs Group, Inc. (NYSE:GS) in its Q2 2021 investor letter. Here is what they said:

“Goldman Sachs Group Inc. (GS) returned +16.45%. Goldman has posted a series of excellent quarterly results. Merger and equity offering activity has been robust with trading profits bolstered by strong capital market volumes. Goldman’s asset management business has also performed well. Regulators recently moved to allow most large investment banks to return capital to shareholders through dividends and share repurchases. Fundamentally, we think Goldman Sachs is attractively priced at approximately 11 times earnings and a very reasonable multiple of book value.”

6. Arch Capital Group Ltd. (NASDAQ:ACGL)

Global Frontier Investments’ Stake Value: $5,727,000

Percentage of Global Frontier Investments’ 13F Portfolio: 4.17%

Number of Hedge Fund Holders: 31

Arch Capital Group Ltd. (NASDAQ:ACGL) is insurance, reinsurance, and mortgage company from Bermuda, with over 4500 employees and continuously expanding operations. Global Frontier Investments owns 150,000 in Arch Capital Group Ltd. (NASDAQ:ACGL), as of the end of September this year. The investment firm’s $5.72 million stake in Arch Capital Group Ltd. (NASDAQ:ACGL) accounts for 4.17% of its Q3 portfolio.

Earnings for the third quarter were announced by Arch Capital Group Ltd. (NASDAQ:ACGL) on October 27. Earnings per share for the quarter came in at $0.74, beating estimates by $0.39. The revenue missed analysts’ estimates by $145.25 million at $2.08 billion.

Tracy Benguigui from Barclays on October 29 kept an Overweight rating on Arch Capital Group Ltd. (NASDAQ:ACGL) after the Q3 performance, raising the price target to $50 from $45.

At the end of the third quarter of 2021, 31 hedge funds in Insider Monkey’s database were long Arch Capital Group Ltd. (NASDAQ:ACGL), down from 22 in the preceding quarter.

Like The Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Berkshire Hathaway Inc. (NYSE:BRK-A), and Wells Fargo & Company (NYSE:WFC), Arch Capital Group Ltd. (NASDAQ:ACGL) is a notable stock held by William Dollens at the end of September.

Here is what Baron Partners Fund has to say about Arch Capital Group Ltd. (NASDAQ:ACGL) in its Q1 2021 investor letter:

“Arch Capital Group Ltd. is a specialty insurance company based in Bermuda. The stock increased on quarterly earnings that exceeded investor estimates and 15% growth in its book value per share. Pricing trends are favorable in the property & casualty insurance market, and the outlook for the mortgage insurance business has substantially improved as the economy recovers from last year’s pandemic-related uncertainty. We continue to own the stock because we expect earnings growth to resume and admire Arch’s strong management team and underwriting discipline.”

Click to continue reading and see 5 Stocks To Buy According To William Dollens’ Global Frontier Investments.

Suggested articles:

Disclosure: None. 10 Stocks To Buy According To William Dollens’ Global Frontier Investments is originally published on Insider Monkey.