In this article, we will be discussing the 10 best stocks to buy according to Josh Resnick’s Jericho Capital Asset Management. If you want to skip our detailed analysis of Resnick’s history, investment philosophy, and hedge fund performance, go directly to the 5 Best Stocks To Buy According To Josh Resnick’s Jericho Capital Asset Management.
Serving as its managing partner, Josh Resnick is the founder of the New York-based asset management firm, Jericho Capital Asset Management. After graduating summa cum laude with a B.A in Economics from Emory University, Josh Resnick began his long career in the investment and finance industry. Prior to establishing Jericho Capital Asset Management in 2009, Resnick served as a member of the business development group at Fox Entertainment Group. He subsequently joined KPE Ventures as a managing director, leaving the firm later to join TCS Capital as a key principal in 2001.
With a focus on investing in the global technology, media and telecommunications sectors, Jericho Capital Asset Management manages more than $3.6 billion in its investment portfolio. According to the 13F filings for the second quarter of 2021, the technology sector makes up about 36.9% of the fund’s portfolio value.
Some of the most notable stocks in Jericho Capital Asset Management’s portfolio for the second quarter include DoorDash, Inc. (NYSE:DASH), Uber Technologies, Inc. (NYSE:UBER) and Zoom Video Communications, Inc. (NASDAQ:ZM), among other discussed in detail below.
Technology share chart
Our Methodology
With this background in mind, let us now look towards the 10 best stocks to buy according to Josh Resnick’s Jericho Capital Asset Management. We analyzed Jericho Capital Asset Management’s 13F portfolio for the second quarter for this analysis.
Best Stocks To Buy According To Josh Resnick’s Jericho Capital Asset Management
10. Bilibili Inc. (NASDAQ:BILI)
Jericho Capital Asset Management’s Stake Value: $152.3 million
Percentage of Jericho Capital Asset Management’s 13F Portfolio: 3.6%
Number of Hedge Fund Holders: 47
Bilibili Inc. (NASDAQ:BILI) is a Chinese online entertainment platform featuring videos, live broadcasting, mobile games, and on-demand video streaming, including famous documentaries, shows, and a number of original productions.
According to the 13F filings for the second quarter of 2021, Jericho Capital Asset Management holds over 1.25 million shares of Bilibili Inc. (NASDAQ:BILI), amounting to more than $152.3 million in worth and representing 3.6% of the fund’s portfolio value. Of the 873 elite funds tracked by Insider Monkey, 47 reported holding stakes in Bilibili Inc. (NASDAQ:BILI), with stakes worth approximately $2 billion.
Out of the hedge funds being tracked by Insider Monkey’s database, UK-based investment firm Aubrey Capital Management is a leading shareholder in Bilibili Inc. (NASDAQ:BILI) with 219,670 shares worth more than $26.76 billion.
On October 18, Morgan Stanley analyst Alex Poon kept an Overweight rating and $100 price target on Bilibili Inc. (NASDAQ:BILI) shares. The analyst cited strength in the user growth and non-game segments of the company in his Q3 forecast.
In the Q2 2021 investor letter of Baillie Gifford, the fund mentioned Bilibili Inc. (NASDAQ: BILI). Here is what the fund said:
“One of the most important cognitive elements, is our recognition that consumer patterns and attitudes are evolving increasingly rapidly and with ever greater amplitude. While the human needs for self-actualisation, esteem and belonging are innate and immutable, they are being expressed in new ways. Tastes are being shaped by social groups who are culturally similar but geographically distant. The lines between the physical and digital-self continue to blur.
To those in the throes of middle age, this can be discombobulating. I profess to unease when my daughter recently earned five pounds stacking logs – only to ‘blow’ this pocket money on a pair of virtual Gucci sneakers for her online Roblox character. But we need to be imaginative about the possible size of the market for virtual luxury in the long term and it’s encouraging to observe that Kering is already on the front foot. It is also amply clear that the experienced Long Term Global Growth investors who predate Generations Y & Z, need the help of colleagues in understanding the mood and aspirations of a new cohort of conscious consumers. In this sense, the multigenerational and multicultural dynamic within the LTGG team (and indeed across the broader Baillie Gifford investment floor), has never seemed more important…” (Click here to see the full text)
9. Intuit Inc. (NASDAQ:INTU)
Jericho Capital Asset Management’s Stake Value: $153.6 million
Percentage of Jericho Capital Asset Management’s 13F Portfolio: 3.63%
Number of Hedge Fund Holders: 66
Intuit Inc. (NASDAQ:INTU) is a California-based company that specializes in software services related to financial management and compliance products. Some of its flagship products include tax preparation software TurboTax and business accounting app QuickBooks.
Josh Resnick’s Jericho Capital Asset Management currently owns 313,481 shares of Intuit Inc. (NASDAQ:INTU), worth over $153.6 million and representing 3.63% of the fund’s portfolio.
Terry Smith of Fundsmith LLP is one of the biggest stakeholders of Intuit Inc. (NASDAQ:INTU) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 66 funds were bullish on Intuit Inc. (NASDAQ:INTU) by the end of the June quarter, compared to 68 in the previous quarter.
On November 1, Deutsche Bank analyst Brad Zelnick initiated coverage of Intuit Inc. (NASDAQ:INTU) with a Buy rating and $700 price target on its shares.
Similar to DoorDash, Inc. (NYSE:DASH), Uber Technologies, Inc. (NYSE:UBER) and Zoom Video Communications, Inc. (NASDAQ:ZM), Intuit Inc. (NASDAQ:INTU) is a notable stock to invest in.
Cooper Investors, in its Q3 2021 investor letter, mentioned Intuit Inc. (NASDAQ:INTU). Here is what the fund said:
“The other meaningful deal during the quarter was Intuit’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.
Management have executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”
8. Airbnb, Inc. (NASDAQ:ABNB)
Jericho Capital Asset Management’s Stake Value: $156.3 million
Percentage of Jericho Capital Asset Management’s 13F Portfolio: 3.7%
Number of Hedge Fund Holders: 58
Airbnb, Inc. (NASDAQ:ABNB) is a California-based company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities.
As of Q2 2021, Jericho Capital Asset Management holds over 1.02 million shares of Airbnb, Inc. (NASDAQ:ABNB), amounting to over $156.3 million in worth and accounting for 3.7% of the fund’s investment portfolio. At the end of the second quarter of 2021, 58 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Airbnb, Inc. (NASDAQ:ABNB), up from 52 hedge funds in the preceding quarter worth $2.4 billion.
California-based investment firm, Silver Lake Partners, is the largest shareholder of Airbnb, Inc. (NASDAQ:ABNB), with shares worth $391.9 million.
On November 9, Truist analyst Naved Khan raised his price target on Airbnb, Inc. (NASDAQ:ABNB) to $180 from $160, and kept a Hold rating on the shares following the company’s Q3 earnings beat.
Polen Capital, in its Q3 2021 investor letter, mentioned Airbnb, Inc. (NASDAQ:ABNB) and discussed its stance on the firm. Here is what the fund said:
“We believe Airbnb has substantial competitive advantages in a large, fast-growing, and global market. Airbnb acts as a “System of Trust” in the private rental accommodations market, removing a considerable amount of friction so hosts can trust unknown guests and guests can trust unknown hosts/properties.
We believe Airbnb has an attractive growth runway given its unique inventory, powerful platform, and system enhancements that further reduce user friction.
We see Airbnb as well-positioned to benefit from secular growth in travel, the increasingly mainstream nature of private rentals, and as hybrid work/travel can lead to more frequent and longer stays. Unlike traditional online travel agencies like Booking.com and Expedia, Airbnb’s user traffic comes almost entirely directly, which speaks to the brand’s strength. This also means that Airbnb does not need to pay Google or other meta-search engines nearly as much money for generating booking leads, which is a favorable structural business model advantage in our view. We expect the company’s bookings and revenue to compound at a high-teens rate or better over the next five years and margins to expand by thousands of basis points as it scales its fixed costs base, leading to 40%+ earnings per share growth over that period.”
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Jericho Capital Asset Management’s Stake Value: $196.4 million
Percentage of Jericho Capital Asset Management’s 13F Portfolio: 4.65%
Number of Hedge Fund Holders: 63
Headquartered in California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is multinational company involved in the manufacture of semiconductors and other components for consumer electronics. Shares of the company rose by 10% on November 8 after it announced a partnership with Meta Platform, Inc. (NASDAQ:FB)
This November 8, Wells Fargo analyst Aaron Rakers raised the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $180 from $145, and kept an Overweight rating on its shares after the company hosted a “positive” Accelerated Data Center event.
By the end of the second quarter of 2021, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) worth roughly $4.6 billion. This is compared to 62 hedge funds in the previous quarter with a total stake value of approximately $3.7 billion.
Based on the the securities filings for the second quarter of 2021, Josh Resnick’s hedge fund holds over 2.09 million shares of Advanced Micro Devices, Inc. (NASDAQ:AMD). These shares are valued at $196.4 million and represent 4.65% of his fund’s total portfolio value.
Just like DoorDash, Inc. (NYSE:DASH), Uber Technologies, Inc. (NYSE:UBER) and Zoom Video Communications, Inc. (NASDAQ:ZM), Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the top stocks in Josh Resnick’s portfolio.
6. Zoom Video Communications, Inc. (NASDAQ:ZM)
Jericho Capital Asset Management’s Stake Value: $202.3 million
Percentage of Jericho Capital Asset Management’s 13F Portfolio: 4.79%
Number of Hedge Fund Holders: 59
Leading video conferencing and telephony company Zoom Video Communications, Inc. (NASDAQ:ZM) closed at $259.90 in the November 8 trading session, marking a -1.81% move from the previous day. This slump is attributed to the resumption of normal day-to-day activity due to vaccinations.
On October 22, JPMorgan analyst Sterling Auty upgraded Zoom Video Communications, Inc. (NASDAQ:ZM) to Overweight from Neutral with an unchanged price target of $385.
Jericho Capital Asset Management currently holds 522,859 shares of Zoom Video Communications, Inc. (NASDAQ:ZM). These shares amount to approximately $202.3 million and account for 4.79% of the investment firm’s total portfolio value.
Of the 873 elite funds tracked by Insider Monkey, 59 were long Zoom Video Communications, Inc. (NASDAQ:ZM) at the end of June, up from 54 in the first quarter of 2021. Among the hedge funds being tracked by Insider Monkey, New York-based firm Tiger Global Management LLC is a leading shareholder in Zoom Video Communications, Inc. (NASDAQ:ZM) with 4.2 million shares worth more than $1.6 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them. Here is what the fund said:
“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
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Disclosure: None. 10 Best Stocks To Buy According To Josh Resnick’s Jericho Capital Asset Management is originally published on Insider Monkey.
