In this article, we discuss 10 new stock stock picks of billionaire Rob Citrone. If you want to skip our detailed analysis of these stocks, go directly to 5 New Stock Picks of Billionaire Rob Citrone.
Rob Citrone is an American hedge fund manager who in 1999 co-founded Discovery Capital Management, a hedge fund that focuses its investments on emerging markets and has a Q3 13F portfolio worth $1.3 billion, with a top ten holdings concentration of 65.61%. The fund also has discretionary assets under management of $3.6 billion.
In the third quarter of 2021, Discovery Capital Management purchased 31 new stocks, made additional purchases in 17 equities, sold out of 22 securities, and reduced holdings in 16 companies. The top buys of the hedge fund were Five9, Inc. (NASDAQ:FIVN), Zynga Inc. (NASDAQ:ZNGA), and Charter Communications, Inc. (NASDAQ:CHTR). Whereas, Rob Citrone’s Discovery Capital Management reduced holdings in Micron Technology, Inc. (NASDAQ:MU), Meta Platforms, Inc. (NASDAQ:FB), and Novonix Limited (NASDAQ:NVX).
With investments focused in the healthcare, utilities and telecommunications, information technology, finance, energy, and communications sectors, the most notable stocks in the Q3 portfolio of billionaire Rob Citrone included Pfizer Inc. (NYSE:PFE), Alphabet Inc. (NASDAQ:GOOG), and Uber Technologies, Inc. (NYSE:UBER).
Our Methodology
We used the Q3 2021 portfolio of billionaire Rob Citrone’s Discovery Capital Management for this analysis, selecting the hedge fund’s newest stock picks for the period. The securities are ranked according to Discovery Capital Management’s stake value in each holding.
New Stock Picks of Billionaire Rob Citrone
10. Atea Pharmaceuticals, Inc. (NASDAQ:AVIR)
Discovery Capital Management’s Stake Value: $5,708,000
Percentage of Discovery Capital Management’s 13F Portfolio: 0.42%
Number of Hedge Fund Holders: 25
Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) is a Boston-based biopharmaceutical company that is focused on creating therapies for life-threatening viral diseases. Rob Citrone acquired a position in Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) in Q3 2021, buying 162,800 shares worth $5.70 million, representing 0.42% of the billionaire’s 13F securities for the period.
On January 6, Morgan Stanley analyst Matthew Harrison downgraded Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) to Underweight from Equal Weight with a price target of $7, down from $14. He believes that the company’s most advanced product, oral COVID antiviral AT-527, has missed the critical window to achieve a major boost of COVID sales.
In Q3 2021, 25 hedge funds were bullish on Atea Pharmaceuticals, Inc. (NASDAQ:AVIR), with stakes totaling $568 million, as compared to the same number of funds holding stakes in Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) worth $352.3 million in the quarter earlier. RA Capital Management held the leading stake in Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) in the third quarter of 2021, with 5.4 million shares valued at $190.2 million.
9. CS Disco, Inc. (NYSE:LAW)
Discovery Capital Management’s Stake Value: $5,993,000
Percentage of Discovery Capital Management’s 13F Portfolio: 0.44%
Number of Hedge Fund Holders: 22
CS Disco, Inc. (NYSE:LAW) is a technology company that enables legal firms to improve their outcomes with SaaS solutions. Rob Citrone purchased 125,000 CS Disco, Inc. (NYSE:LAW) shares in the third quarter of 2021, worth roughly $6 million, representing 0.44% of his total 13F portfolio.
Piper Sandler analyst Arvind Ramnani lowered the price target on CS Disco, Inc. (NYSE:LAW) on January 13 to $48 from $61 and kept an Overweight rating on the shares. The analyst reduced price targets on 20 vertical software and fintech stocks after a “multiple reset and estimate revisions”.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 22 funds reported owning stakes in CS Disco, Inc. (NYSE:LAW), with stakes equaling $100.7 million. Alex Sacerdote’s Whale Rock Capital Management held the biggest stake in CS Disco, Inc. (NYSE:LAW), holding 356,353 shares worth over $17 million.
In addition to Pfizer Inc. (NYSE:PFE), Alphabet Inc. (NASDAQ:GOOG), and Uber Technologies, Inc. (NYSE:UBER), CS Disco, Inc. (NYSE:LAW) is a notable addition to Rob Citrone’s third quarter portfolio.
8. Itaú Unibanco Holding S.A. (NYSE:ITUB)
Discovery Capital Management’s Stake Value: $6,382,000
Percentage of Discovery Capital Management’s 13F Portfolio: 0.47%
Number of Hedge Fund Holders: 16
Headquartered in São Paulo, Itaú Unibanco Holding S.A. (NYSE:ITUB) is a leading Brazilian financial services company that serves customers globally, providing investment banking and retail banking services.
Rob Citrone’s Discovery Capital Management headed into the third quarter of 2021 with a newly acquired position in Itaú Unibanco Holding S.A. (NYSE:ITUB), buying 1.2 million shares of the company, worth $6.3 million. The stock accounts for 0.47% of the fund’s Q3 13F securities.
On January 31, Itaú Unibanco Holding S.A. (NYSE:ITUB) declared a $0.0031 per share monthly dividend, in line with previous. The dividend was paid on February 11, to shareholders of record on February 2.
In a press release on February 11, Itaú Unibanco Holding S.A. (NYSE:ITUB) announced a Q4 GAAP EPS of R$0.64, and a revenue of R$33.44 billion, up 14.6% year-on-year.
Barclays analyst Gilberto Garcia on January 24 initiated coverage of Itaú Unibanco Holding S.A. (NYSE:ITUB) with an Equal Weight rating and a $4.50 price target. While the company’s scale is positive, it could also limit the bank’s options for inorganic growth, according to the analyst.
Among the hedge funds tracked by Insider Monkey, 16 funds were long Itaú Unibanco Holding S.A. (NYSE:ITUB) in Q3 2021, with stakes equaling $379.5 million, as compared to the same number of funds in the quarter earlier, holdings stakes in Itaú Unibanco Holding S.A. (NYSE:ITUB) worth $431.6 million. Fisher Asset Management owns a $114 million stake in the company as of the third quarter of 2021, and is the largest stakeholder of the company.
7. Grupo Financiero Galicia S.A. (NASDAQ:GGAL)
Discovery Capital Management’s Stake Value: $6,698,000
Percentage of Discovery Capital Management’s 13F Portfolio: 0.50%
Number of Hedge Fund Holders: 7
Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a prominent financial services company based in Buenos Aires, Argentina. The company specializes in retail banking, offshore banking, insurance, mortgages, consumer finance, and warehousing. Rob Citrone purchased 665,185 shares of Grupo Financiero Galicia S.A. (NASDAQ:GGAL) in Q3 2021, worth $6.6 million, representing 0.50% of the billionaire’s 13F investments.
JPMorgan analyst Domingos Falavina downgraded Grupo Financiero Galicia S.A. (NASDAQ:GGAL) on January 31 to Underweight from Neutral with a price target of $8, down from $9. The analyst sees deteriorating macroeconomic expectations, particularly inflation, as a “meaningful headwind” for Argentine banks, as well as “virtually zero visibility” on results.
Marshall Wace LLP held the biggest position in Grupo Financiero Galicia S.A. (NASDAQ:GGAL) in Q3 2021, with 868,693 shares worth $8.74 million. Overall, 7 hedge funds were bullish on the stock in the third quarter of 2021, with stakes totalling $24.78 million.
6. MongoDB, Inc. (NASDAQ:MDB)
Discovery Capital Management’s Stake Value: $7,153,000
Percentage of Discovery Capital Management’s 13F Portfolio: 0.53%
Number of Hedge Fund Holders: 47
MongoDB, Inc. (NASDAQ:MDB) is a New York-based software company that is known for its source-available NoSQL database, MongoDB. MongoDB is used by customers worldwide. In Q3 2021, Rob Citrone, via Discovery Capital Management, purchased 15,171 shares of MongoDB, Inc. (NASDAQ:MDB), worth $7.15 million, accounting for 0.53% of the fund’s total 13F securities.
Barclays analyst Raimo Lenschow lowered the price target on MongoDB, Inc. (NASDAQ:MDB) on January 12 to $556 from $590 and kept an Overweight rating on the shares. The analyst said that the main issue for software investors in 2022 is not around end demand but the correct valuation level for the space.
According to the third quarter database of Insider Monkey, 47 hedge funds were bullish on MongoDB, Inc. (NASDAQ:MDB), with stakes equalling $2.1 billion, as compared to 44 funds in the preceding quarter, holding stakes in MongoDB, Inc. (NASDAQ:MDB) worth $1.6 billion. Tybourne Capital Management was a prominent stakeholder of the company in Q3 2021, with 584,539 shares valued at $275.6 million.
Hedge funds are piling into MongoDB, Inc. (NASDAQ:MDB), just like Pfizer Inc. (NYSE:PFE), Alphabet Inc. (NASDAQ:GOOG), and Uber Technologies, Inc. (NYSE:UBER).
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Disclosure: None. 10 New Stock Picks of Billionaire Rob Citrone is originally published on Insider Monkey.
