In this article, we will be taking a look at some of the top stocks in the portfolio of Jeffrey Diehl. To skip our analysis of Jeffrey Diehl’s profile, investment strategy, and 13F holdings, you can go directly to see the 5 Best Stocks to Buy Now According to Jeffrey Diehl’s Adams Street Partners.
Jeffrey Diehl is the managing partner and current head of investments of Adams Street Partners. Adams Street Partners is a Chicago-based private equity markets investment firm. Before joining Adams Street, Jeffrey Diehl worked as a Principal at the Parthenon Group, a strategy consulting and principal investing company with roots in Bain Consulting. Being a partner since 2000, he is in charge of managing the company in addition to supervising the general procedure and plans that the investment team creates.
Adams Street Partners’ last reported 13F filing for Q2 2022 included $384.119 million in managed 13F securities. The hedge fund has undertaken portfolio rebalance during Q2 by purchasing 3 new stocks and increasing its share in 1 stock. The fund also sold 5 stocks and reduced its holding in 1 stock. Some of the notable stocks that the fund sold during Q2 include UiPath Inc. (NYSE:PATH), Squarespace, Inc. (NYSE:SQSP), and Roblox Corporation (NYSE:RBLX).
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Our Methodology
10. Aptinyx Inc. (NASDAQ:APTX)
Adams Street Partners Stake Value: $3.010 million
Percentage of Adams Street Partners 13F Portfolio: 0.78%
Number of Hedge Fund Holders as of Q2 2022: 5
Aptinyx Inc. (NASDAQ:APTX) was founded in 2015 and is based in Evanston, Illinois. It is a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of novel, proprietary, and synthetic small molecules for the treatment of brain and nervous system disorders.
On August 26, Raghuram Selvaraju, an analyst at H.C. Wainwright, cut his price target on Aptinyx Inc. (NASDAQ:APTX) to $1 from $2 and kept a Buy rating on the shares. On August 12 last month, Aptinyx Inc. (NASDAQ:APTX) stock fell 34% after the news broke about the mid-stage study failure of its musculoskeletal pain drug NYX-2925. The stock has lost 85% value year to date.
Jeffrey Diehl’s Adams Street Partners is the largest shareholder of Aptinyx Inc. (NASDAQ:APTX) as of Q2, holding 5.39 million of its shares worth $3.010 million. The number of hedge funds holding Aptinyx Inc. (NASDAQ:APTX) shares has reduced to half during Q2 as a total of 5 hedge funds are holding a stake as compared to 10 in the previous quarter.
09. Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS)
Adams Street Partners Stake Value: $3.243 million
Percentage of Adams Street Partners 13F Portfolio: 0.84%
Number of Hedge Fund Holders as of Q2 2022: 7
Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of immuno-oncology therapies. The company was incorporated in 2014 and is based in Burlingame, California. On September 26, Angel Pharma, a Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) partner, received approval to begin a phase 1/1b cancer therapy trial in China.
On August 9, analyst Li Watsek with Cantor Fitzgerald cut his price target for Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) to $4 from $8 and maintained an Overweight rating on the stock. Watsek believes that the short-term CPI-818 data, which will be presented in December at the annual American Society of Hematology meeting, could improve the current negative sentiment surrounding the company.
Samuel Isaly OrbiMed Advisors is the largest shareholder of Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS), holding 6.94 million of its shares worth $6.8 million. Hedge fund sentiment around Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) has decreased in the second quarter of 2022, with 7 hedge funds long the stock, compared to 13 in Q1 2022.
08. HashiCorp, Inc. (NASDAQ:HCP)
Adams Street Partners Stake Value: $5.107 million
Percentage of Adams Street Partners 13F Portfolio: 1.32%
Number of Hedge Fund Holders as of Q2 2022: 15
HashiCorp, Inc. (NASDAQ:HCP) provides multi-cloud infrastructure automation solutions worldwide. The company was incorporated in 2012 and is based in San Francisco, California. HashiCorp, Inc. (NASDAQ:HCP) is a new addition to Jeffrey Diehl’s 13F portfolio as the fund acquired 173,478 of its shares during Q2.
On September 2, Stifel analyst Brad Reback cut his price target on HashiCorp, Inc. (NASDAQ:HCP) to $45 from $51 and kept a Buy rating on the shares after the company reported a “strong” fiscal Q2 and raised guidance for the full year despite factoring in a $4 million-$6 million headwind to revenue.
Coatue Management was the leading hedge fund investor in HashiCorp, Inc. (NASDAQ:HCP) during Q2 2022. At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $103.3 million in HashiCorp, Inc. (NASDAQ:HCP), compared to 14 in the preceding quarter worth $114.38 million.
Unlike UiPath Inc. (NYSE:PATH), Squarespace, Inc. (NYSE:SQSP), and Roblox Corporation (NYSE:RBLX), which it sold in Q2, Jeffrey Diehl’s Adams Street Partners is bullish on HashiCorp, Inc. (NASDAQ:HCP).
07. Fusion Pharmaceuticals Inc. (NASDAQ:FUSN)
Adams Street Partners Stake Value: $7.340 million
Percentage of Adams Street Partners 13F Portfolio: 1.91%
Number of Hedge Fund Holders as of Q2 2022: 7
Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) was incorporated in 2014 and is situated in Hamilton, Canada. Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) is a clinical-stage oncology company that focuses on developing radiopharmaceuticals as precision medicines.
On September 15, Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) was given coverage by Truist analyst Nicole Germino with a Buy rating and a $10 price target. Although Jeffrey Diehl’s Adams Street Partners sold some notable stocks such as UiPath Inc. (NYSE:PATH), Squarespace, Inc. (NYSE:SQSP), and Roblox Corporation (NYSE:RBLX) during Q2, it is bullish on Fusion Pharmaceuticals Inc. (NASDAQ:FUSN). Adams Street Partners initiated a position in Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) by acquiring 3.5 million of its shares worth $55.06 million during Q2, 2020. The fund has been holding a constant stake of 2.947 million shares worth roughly $7.34 million in the stock since Q3, 2021.
06. Couchbase, Inc. (NASDAQ:BASE)
Adams Street Partners Stake Value: $18.417 million
Percentage of Adams Street Partners 13F Portfolio: 4.79%
Number of Hedge Fund Holders as of Q2 2022: 7
The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. (NASDAQ:BASE) was incorporated in 2008 and is based in Santa Clara, California. It provides a database for enterprise applications worldwide. On September 8, Rob Oliver, a Baird analyst, maintained an Outperform rating on the shares while lowering his price target for Couchbase from $25 to $22. According to the analyst, the company recorded a strong Q2 with gains in revenue growth, profitability, and ARR growth. In addition, Q2 being a record quarter for pipeline generation, the analyst claimed that neither demand for their products nor customer purchasing habits had changed significantly.
GPI Capital is the largest shareholder of Couchbase, Inc. (NASDAQ:BASE), holding 4.36 million of its shares worth $71.748 million. Adams Street Partners lowered its stake in the stock during Q2 by 38% holding 1.12 million Couchbase, Inc. (NASDAQ:BASE) shares worth $18.417 million. At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $107.753 million in Couchbase, Inc. (NASDAQ:BASE), compared to 8 in the preceding quarter worth $128.876 million.
Baron Discovery Fund, in its Q3 2021 investor letter, mentioned Couchbase, Inc. (NASDAQ: BASE) and discussed its stance on the firm. Here is what the fund said:
“Couchbase, Inc., a new position in the Fund after a successful IPO, provides a modern database that collects and stores data and powers enterprise applications, for which there is no tolerance for disruption, inaccuracy, or downtime. The Couchbase database is based on a platform called NoSQL, which means that rather than having a pre-determined rigid structure to store data (like legacy relational database software), it stores data in documents, making it easy to have a flexible set of items that can move into and out of each record. Its solution is fast as it utilizes caching, or retrieval from memory, versus hard drives; scales to large numbers of records, which is expensive for old-style relational databases and not even possible with some of the other NoSQL solutions; and works in all settings (on-premise, in the cloud, or in mixed hybrid environments). Couchbase is addressing a large total market of $62 billion, which is slowly migrating to the cloud and using less rigid database structures. We believe Couchbase can win its fair share of these workloads over time given its unified platform, ability to scale run anywhere, and its familiar query language that makes it easier for developers to quickly create solutions. The company’s growth rate is currently being impacted by COVID (about 15% of Couchbase’s customers are in the travel and hospitality industries), but we believe a return to normal pre-COVID spending levels later this year and into early 2022 should help to accelerate growth. Longer term, we believe that management will improve its go-tomarket efficiency, which will further accelerate growth. Given that revenues are only about $150 million now, it has a huge opportunity in this $62 billion marketplace, and we expect that Couchbase will be a profitable investment for many years to come.”
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Disclosure. None. 10 Best Stocks to Buy Now According to Jeffrey Diehl’s Adams Street Partners is originally published on Insider Monkey.