An Update on Jorge Lemann’s Q4 Investments: Time Warner Cable (TWC), Suncor Energy Inc. (USA) (SU), Exxon Mobile Corporation (XOM)

By Shira Gonen

In the last three years, Jorge Lemann’s hedge fund, 3G Capital, delivered an annualized return of 18.92%. A great return with a portfolio of 58 stocks that stands on $1.66B; the fund’s portfolio relies primarily upon the Basic Materials and Services sectors. 3G Capital’s above average performance led us to review some of the fund’s stocks’ individual performance.

Jorge Lemann's portfolio overview

Time Warner Cable

TWC has been on a constant rise since 2009, when its share price was a bit under $30. Almost seven years later and the stock price is peaking at $217. More recently, Charter Communications’ $79B deal was approved by the Federal Communications Commission, a merger that creates America’s second largest cable provider. Both Charter and Warner shares increased by 40 and 30 basis points, respectively.

According to TipRanks, in the past three months, three analysts gave the stock a Buy rating and three remained on the sidelines. All 12-month price targets average at $224, marking a 3.94% increase from where shares last closed.

TWC Consensus

Suncor Energy Inc.

Alberta’s wildfire which started in the beginning of the month became a danger to Suncor’s oil sand facilities. The company evacuated hundreds of its employees in an effort to avoid unnecessary casualties and damage. Since then, the company was able to protect its assets and employees return as the threat was reduced. The company’s stock fell at the beginning of the month but is now slowly climbing upwards.

According to TipRanks, in the past three months, two analysts gave the stock a Buy rating and two remained on the sidelines. All 12-month price targets average at $40.50, marking a 53.64% increase from where shares last closed.

SU Consensus

Exxon Mobil Corporation

Exxon has been on the rise since January and its financials indicate a healthy balance of assets and debts by many measures. The company, however, continues to tackle with oil prices, strong dollar currency and a major pipeline in the company’s Nigerian operations has been severely damaged. These events haven’t inflicted too much damage upon the stock and recent IPO of Saudi Aramco presents opportunity for Exxon to start drilling in Saudi Arabia.

According to TipRanks, in the past three months, one analyst gave XOM a Buy rating, two gave the stock a Sell rating and six remained on the sidelines. All 12-month price targets average at $82.43, marking a (7.03%) decrease from where shares last closed.

XOM Consensus