3 stocks where super investors are showing their strongest conviction

Dataroma’s ‘Top Big Bets’ tracker flags the stocks where fund managers have staked an outsized share of their portfolio. The top ten names, with maximum percenage of portfolio ranging between 30% and 80%, are Carvana (78.85%), Group 1 Automotive (46.41%), Molina Healthcare (43.49%), Warrior Met Coal (43.32%), Berkshire Hathaway CL A (42.42%), Apple (41.05%), GE Aerospace (35.61%), Berkshire Hathaway CL B (33.89%), Interactive Brokers Group (33.42%), and Lululemon Athletica (32.35%).

Illustratively, super investor Clifford Sosin of CAS Investment Partners holds 78.85% of his portfolio in Carvana.

But all the above stocks are held by two or more super investors. This is where the picture gets more interesting. Carvana, for instance, is held by 7 super investors.

Set the bar higher, at 10 or more super investors, and the list shrinks fast. Only three names clear it: Apple, GE Aerospace, and Berkshire Hathaway (counting both Class A and Class B shares).

Apple attracts the biggest crowd of super investors

Apple has the widest ownership, with 22 super investors holding the stock. The largest position belongs to Duan Yongping of H&H International Investment, who has 41.05% of his portfolio in Apple. Warren Buffett is close behind at 22.04% through Berkshire Hathaway, followed by David Rolfe of Wedgewood Partners at 7.81%.

There is a long list of others, but their exposure to Apple ranges between 0.01% and 7.81%.

Can GE Aerospace’s top two investors stay this close?

GE Aerospace clears the bar with exactly 10 super investors. The top two positions are almost similar. Nelson Peltz of Trian Fund Management holds 35.61% of his portfolio in the stock, just ahead of Chris Hohn of TCI Fund Management at 33.59%, a gap of barely two percentage points between the two largest bets on the name.

Eight other super investors hold GE Aerospace, but their exposure is less than 10% of their portfolio.

Berkshire Hathaway has two share classes, and both draw a crowd

Berkshire Hathaway shows up under both share classes. BRK.A has 17 super investors, led by Norbert Lou of Punch Card Management at 42.42%, the highest single-position exposure among the three qualifying stocks.

BRK.B has the broadest base of all, with 26 super investors, though the top position has two almost similar exposures. Guy Spier of Aquamarine Capital holds 33.89%, followed by Steven Check of Check Capital Management at 32.27%.

Super investors’ high-conviction stocks

Source: Dataroma

All the data relates to positions held as of June 30, as per Form 13F filings, and sourced from Dataroma.

What the data says about super investor conviction

Super investors typically prefer concentrated investments over widely dispersed ones. On Dataroma’s list, only Apple, GE Aerospace, and Berkshire Hathaway attract both significant investor participation and substantial individual bets. These are high-conviction bets for the super investors. So, what are the high-conviction bets sitting in your portfolio?

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