In 2001, David Siegel and John Overdeck established the New York-based hedge fund Two Sigma Advisors. The hedge fund invests while minimising risks using data sciences and technological advancements on international financial markets. With the founders' affinity for data and technology, particularly machine learning and distributed computing, comes the application of a scientific method in capital management.
Both Overdeck and Siegel held positions at some of the most renowned hedge funds, including D E Shaw and Tudor Investments, prior to starting Two Sigma. This improved their plan for applying rational norms to the financial markets. The hedge fund currently employs more than 1600 people in research and development positions. At the 17th yearly Hedge Fund Industry Awards presented by Institutional Investors in 2019, Overdeck and Siegel were given a lifetime achievement award. The technology-based investing strategies used by the data-driven hedge fund across the years allowed it to produce profitable returns. After showing a loss of 12.21% in 2020, the hedge fund's Compass Fund recovered in 2021, rising 8.75% till November.
The portfolio worth of Two Sigma Advisors is currently over $38.5 billion as of Q3 2021, up from $37.9 billion the quarter before. The hedge fund actively invests in a variety of industries, including technology, healthcare, and services. In the third quarter, the hedge fund made significant investments in Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB). Therefore, the dividend equities in the 13F holdings of Two Sigma Advisors as of Q3 will be the main emphasis of this article.
1. Mondelez International, Inc. (NASDAQ:MDLZ)
Chicago-based American confectionery and food holding corporation Mondelez International, Inc. (NASDAQ:MDLZ). Morgan Stanley raised its price objective on the stock to $73 in January after recognising the company's significant pricing power and giving the shares an Overweight rating.
Compared to 53 hedge funds at the end of the preceding quarter, 46 hedge funds monitored by Insider Monkey disclosed having stakes in Mondelez International, Inc. (NASDAQ:MDLZ). These holdings collectively are worth about $2 billion.
Mondelez International, Inc. (NASDAQ:MDLZ) raised its quarterly dividend in Q2 2021 with 11% to $0.35 each share, representing a 2.08% dividend yield. The company has grown its dividend every year for the past eight years and during the last five years, it has risen at a CAGR of 13.4%. Mondelez International, Inc. (NASDAQ:MDLZ) was the subject of a 40% rise in Two Sigma Advisors' holdings in Q3 2021, accounting for 0.99% of its 13F portfolio.
One of the most well-known equities in Two Sigma Advisors' holdings is Mondelez International, Inc. (NASDAQ:MDLZ), along with Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and Altria Group, Inc. (NYSE:MO).
2. Medtronic plc (NYSE:MDT)
An American-Irish manufacturer of medical devices, Medtronic plc (NYSE:MDT) is well recognised for its ground-breaking cardiac devices. Throughout the third quarter of 2016, Two Sigma Advisors began making investments in the business. In Q3 2021, the hedge fund held a holding in Medtronic plc (NYSE:MDT) valued roughly $373.4 million, making up 0.96% of its 13F portfolio.
On December 10, Medtronic plc (NYSE:MDT) announced a quarterly dividend of $0.63 per share, with a dividend yield of 2.34%. The business has kept up a 44-year trend of steadily increasing dividends. The dividend growth rate, which was previously observed at 16%, has, though, decreased to 8% over the last three years. Recently, Morgan Stanley issued an Equal Weight rating and a $120 price objective for Medtronic plc (NYSE:MDT).
62 hedge funds monitored by Insider Monkey were optimistic on Medtronic plc (NYSE:MDT) in Q3 2021, off from 68 the quarter before. These stakes are worth over $2.27 billion in total. In Q3, Diamond Hill Capital owned the most shares of the company, totaling about $575.6 million.
3. The Coca-Cola Company (NYSE:KO)
The Coca-Cola Company (NYSE:KO), a multinational American beverage company, has a 59-year history of steadily increasing dividends.
In the 4th quarter of 2010, Two Sigma Advisors began making investments in The Coca-Cola Company (NYSE:KO). The hedge fund raised its holdings in The Coca-Cola Company (NYSE:KO) in Q3 2021 by 58%, accounting for 0.88% of its 13F portfolio. Although vaccination rates were low, The Coca-Cola Company (NYSE:KO) likely to excel in its on-premise revenues. In January, Guggenheim updated the stock's shares to Buy and increased its price target to $66.
In Q3, 61 hedge funds monitored by Insider Monkey previously served in The Coca-Cola Company (NYSE:KO), down from 62 the quarter prior, with stakes totaling $25.1 billion.
4. AT&T Inc. (NYSE:T)
The American holding corporation AT&T Inc. (NYSE:T) provides its customers with media, technology, and telecommunications services. The company declared a $0.52 each share dividend payment on December 16 with a dividend yield of 7.60%. Despite AT&T Inc.'s (NYSE:T) 36-year streak of dividend increases, analysts anticipate dividend reductions in 2022 and 2023.
According to Insider Monkey's Q3 statistics, 66 hedge funds it follows owned shares of AT&T Inc. (NYSE:T), lower from 68 the quarter before. These stakes now have a combined worth of approximately $3.2 billion, rising from $2.8 billion in Q2.
Citigroup previously included AT&T Inc. (NYSE:T) on its "positive event watchlist" because the company anticipates higher postpaid phone sales revenue. The company maintained a Buy recommendation on the shares while increasing its price target for the stock to $29 per share. Two Sigma Advisors upped its holding in AT&T Inc. (NYSE:T) in Q3 2021 by 99%, making it now account for 0.87% of its 13F portfolio.
5. Altria Group, Inc. (NYSE:MO)
The American manufacturing corporation Altria Group, Inc. (NYSE:MO) primarily produces tobacco, cigarettes, and associated goods. Two Sigma Advisors dramatically boosted its holdings in the business by 481% in Q3 2021; it currently owns over 2.6 million shares, valued at about $118 million. In the third quarter, John Overdeck and David Siegel's portfolio included 0.3% of Altria Group, Inc. (NYSE:MO).
Altria Group, Inc. (NYSE:MO) announced a $0.90 quarterly profit with a dividend yield of 7.10% on December 9. The corporation increased its dividend for the 56th time in the previous 52 years in 2021. Furthermore, the protracted payout ratio objective of 80% set by Altria Group, Inc. (NYSE:MO) suggests that the business will keep returning a sizeable portion of its cash flow to shareholders. Altria Group, Inc. (NYSE:MO) recently received an Equal Weight rating from Morgan Stanley with a $52 price objective.
Altria Group, Inc. (NYSE:MO) was owned by 45 hedge funds monitored by Insider Monkey at the end of Q3 2021 compared to 47 the quarter before. The total value of these stakes is over $830 million. Harris Associates was the company's top stakeholder in Q3 with more than 5.1 million shares.
As Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and Meta Platforms, Inc. (NASDAQ:FB), Altria Group, Inc. (NYSE:MO) is among the most famous stocks in Two Sigma Advisors’ Q3 portfolio.
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