In this article, we discuss the 10 best tech stocks to buy according to Man GLG. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Tech Stocks to Buy According to Man GLG.
Man GLG, previously known as GLG Partners, was co-founded by Noam Gottesman, a British-American businessman and billionaire hedge fund manager, in 1995 as a unit of Lehman Brothers. GLG Partners was spun off by Lehman Brothers in 2000, and the hedge fund became publicly listed in 2007. To enter the UK retail market, GLG Partners acquired Société Générale Asset Management UK.
Man Group plc (LSE:EMG.L), an active investment management firm, acquired GLG Partners, rebranding the hedge fund as Man GLG. Noam Gottesman remained the co-CEO of Man GLG till 2012, and currently, Teun Johnston is the CEO of the hedge fund. Johnston joined Man GLG as the head of product strategy in 2012, and holds a Master’s in engineering, manufacturing, and management from the University of Manchester, in addition to being a member of the Institute of Chartered Accountants in England and Wales.
As per the 13F filings from September, Man GLG’s portfolio is valued at $28.5 billion, with a top 10 holdings concentration of 12.78%. The hedge fund purchased 298 new stocks in the third quarter, sold out of 355 securities, made additional purchases in 792 stocks, and reduced holdings in 744 equities. Man GLG’s top buys for Q3 included EOG Resources, Inc. (NYSE:EOG), Mastercard Incorporated (NYSE:MA), and Starbucks Corporation (NASDAQ:SBUX), and the fund reduced holdings in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Merck & Co., Inc. (NYSE:MRK).
Noam Gottesman of GLG Partners
Almost 30% of Man GLG’s 13F portfolio comprises of tech stocks, and the most notable technology stocks held by the hedge fund as of Q3 2021 include Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), among others discussed in detail below.
Our Methodology
We used the Q3 portfolio of Man GLG to select the top 10 tech stocks held by the hedge fund. To give more context about each company, we have mentioned the Q3 earnings performance, analyst ratings, and the hedge fund sentiment around each stock.
10 Best Tech Stocks to Buy According to Man GLG
10. Autodesk, Inc. (NASDAQ:ADSK)
Man GLG’s Stake Value: $149,264,000
Percentage of Man GLG’s 13F Portfolio: 0.52%
Number of Hedge Fund Holders: 54
Autodesk, Inc. (NASDAQ:ADSK) is a multinational software corporation from California, offering software and related services to multiple industries including architecture, engineering, media, education, and entertainment, among others. As of Q3 2021, Man GLG holds 523,421 Autodesk, Inc. (NASDAQ:ADSK) shares, worth $149.2 million, representing 0.52% of the hedge fund’s total investments.
At the end of the third quarter of 2021, 54 hedge funds in the database of Insider Monkey were long Autodesk, Inc. (NASDAQ:ADSK), down from 64 funds holding a position in the company in the preceding quarter. William Von Mueffling’s Cantillon Capital Management is the leading Autodesk, Inc. (NASDAQ:ADSK) stakeholder, with a $341.6 million stake in the company.
Deutsche Bank analyst Johannes Schaller on November 30 lowered the price target on Autodesk, Inc. (NASDAQ:ADSK) to $330 from $370 and kept a Buy rating on the shares, stating that Q3 results were mixed. Whereas the company displayed solid business momentum, labor constraints and supply chain headwinds might make demand fulfillment difficult.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), Autodesk, Inc. (NASDAQ:ADSK) is a notable tech stock from Man GLG’s Q3 portfolio.
Here is what Polen Capital has to say about Autodesk, Inc. (NASDAQ:ADSK) in its Q3 2021 investor letter:
“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”
9. Intuit Inc. (NASDAQ:INTU)
Man GLG’s Stake Value: $223,335,000
Percentage of Man GLG’s 13F Portfolio: 0.78%
Number of Hedge Fund Holders: 64
Intuit Inc. (NASDAQ:INTU) is a global technology platform offering specialized financial software products including TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp. Man GLG, as of September this year, owns 413,959 Intuit Inc. (NASDAQ:INTU) shares, worth $223.3 million, representing 0.78% of the firm’s total investments.
As of Q3 2021, 64 hedge funds in Insider Monkey’s database of elite funds were bullish on Intuit Inc. (NASDAQ:INTU), with total stakes amounting to $6.15 billion. The leading stakeholder in the company is Fundsmith LLP, with 4.58 million shares worth $2.4 billion.
Deutsche Bank analyst Brad Zelnick on November 19 raised the price target on Intuit Inc. (NASDAQ:INTU) to $780 from $700 and kept a Buy rating on the shares, following strong fundamentals and financials, and “very impressive” fiscal Q1 results.
Here is what Cooper Investors has to say about Intuit Inc. (NASDAQ:INTU) in its Q3 2021 investor letter:
“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 has 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. Intel Corporation (NASDAQ:INTC)
Man GLG’s Stake Value: $262,533,000
Percentage of Man GLG’s 13F Portfolio: 0.92%
Number of Hedge Fund Holders: 66
Intel Corporation (NASDAQ:INTC) is a multinational technology corporation that offers hardware and software for the tech industry, including semiconductor chips, microprocessors, integrated circuits, flash memory, graphics chips, and embedded processors, among other offerings. Man GLG holds a $262.5 million position in Intel Corporation (NASDAQ:INTC), which accounts for 0.92% of the firm’s total investments as of Q3.
Northland analyst Gus Richard upgraded Intel Corporation (NASDAQ:INTC) to Market Perform from Underperform with a $49 price target on November 1.
As of September 2021, 66 hedge funds in the database of Insider Monkey were long Intel Corporation (NASDAQ:INTC), down from 78 funds in the preceding quarter. Fisher Asset Management is the leading Q3 Intel Corporation (NASDAQ:INTC) stakeholder, with 32.48 million shares worth $1.73 billion.
Here is what Alger Spectra Fund has to say about Intel Corporation (NASDAQ:INTC) in their Q1 2021 investor letter:
“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”
7. Amazon.com, Inc. (NASDAQ:AMZN)
Man GLG’s Stake Value: $266,082,000
Percentage of Man GLG’s 13F Portfolio: 0.93%
Number of Hedge Fund Holders: 242
Guggenheim analyst Seth Sigman on November 22 assumed coverage of Amazon.com, Inc. (NASDAQ:AMZN), a tech and e-commerce corporation, with a Buy rating and a $4,300 price target. The analyst stated that he was positive about Amazon.com, Inc. (NASDAQ:AMZN)’s sales volume and margin trends entering 2022.
Man GLG owns 80,998 Amazon.com, Inc. (NASDAQ:AMZN) shares as of the third quarter, worth $266 million, representing 0.93% of the investment firm’s Q3 portfolio. Man GLG reduced its stake in Amazon.com, Inc. (NASDAQ:AMZN) by 38% as of September this year.
Boykin Curry’s Eagle Capital Management is one of the leading Amazon.com, Inc. (NASDAQ:AMZN) stakeholders, holding 701,852 shares valued at $2.3 billion. Overall, the Q3 database of Insider Monkey suggests that 242 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), with total stakes amounting to $42.5 billion.
Here is what Polen Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
6. Alibaba Group Holding Limited (NYSE:BABA)
Man GLG’s Stake Value: $273,130,000
Percentage of Man GLG’s 13F Portfolio: 0.95%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA), a Chinese multinational tech corporation recognized for its role in the global e-commerce industry, is one of the top stocks from Man GLG’s Q3 portfolio. The hedge fund holds 1.84 million Alibaba Group Holding Limited (NYSE:BABA) shares as of Q3 2021, worth $273.1 million, representing 0.95% of the total investments.
On November 28, Goldman Sachs analyst Piyush Mubayi removed Alibaba Group Holding Limited (NYSE:BABA) from his firm’s Conviction List but kept a Buy rating on the shares with a price target of $215, down from $252. He stated that with the intense competition in the online retail industry, he expects revenue growth to decelerate by 13% to 16% in the upcoming quarter.
At the end of the third quarter, 115 hedge funds were invested in Alibaba Group Holding Limited (NYSE:BABA), with stakes amounting to $10.2 billion, down from 146 funds holding stakes worth $16.79 billion in the preceding quarter.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:FB), and Microsoft Corporation (NASDAQ:MSFT), Alibaba Group Holding Limited (NYSE:BABA) is a notable tech stock from Man GLG’s Q3 portfolio.
Here is what Artisan Partners has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2021 investor letter:
“We also find Alibaba’s valuation compelling despite the prospect of increased regulation. The share price declined 35% during the quarter. Alibaba is China’s largest e-commerce business and is one of the highest return businesses in the world. The company’s core ecommerce operation dominates China’s retail industry. That business continues growing at a low-teens rate and operates with an incredible 62% profit margin. The company also operates several promising new businesses which have been a drag on the bottom line, though the company overall remains highly profitable and cash flow generative. The market cap today is about $440 billion. The company has large investments in cloud, financial services and other businesses worth an estimated $100 billion, leaving the core operations valued at $340 billion. Core operations over the last 12 months generated about $27 billion of after-tax profits, resulting in a trailing P/E of 12.5X. Alibaba certainly faces increased competition and a marginal increase in regulation. As a result, we expect modest growth in earnings over the next few years. However, a company with Alibaba’s operating and financial strength should trade at a premium, rather than a significantly discounted valuation.”
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Disclosure: None. 10 Best Tech Stocks to Buy According to Man GLG is originally published on Insider Monkey.
