In this article, we discuss 10 stock picks of Rishi Bajaj’s Altai Capital. If you want to skip our detailed analysis of Bajaj’s history, investment philosophy, and hedge fund performance, go directly to 5 Stock Picks of Rishi Bajaj’s Altai Capital.
Rishi Bajaj earned a B.S. in Economics with an emphasis in Finance and Statistics from the University of Pennsylvania’s Wharton School in 2001. Before founding Altai Capital, he worked at Silver Point Capital and Gleacher Partners. Rishi Bajaj, Toby Symonds, and Steve Tesoriere created Altai Capital in 2009. It is a New York-based mid-sized hedge fund that focuses primarily on the technology sector. Rishi Bajaj’s Altai Capital holds stocks from the information technology (63.19%), finance (27.04%), and consumer discretionary (9.11%) sectors as of Q4 2021. Rishi Bajaj is the hedge fund’s president and chief investment officer, in charge of the firm’s investment management activities.
Altai Capital is a private investment business focused on credit and equity possibilities that is autonomous and value-oriented. Rishi Bajaj formed the hedge fund to build a vehicle to compound capital through numerous market cycles. Altai Capital is not an activist fund, even though it occasionally files a 13D. Rishi Bajaj’s Altai Capital equity portfolio has only 11 stocks, with a combined market value of approximately $227.71 million.
His most notable holdings include Coupang, Inc. (NYSE:CPNG) and Upwork Inc. (NASDAQ:UPWK), among others discussed in detail below.
Rishi Bajaj’s Altai Capital held 200,267 shares of Coupang, Inc. (NYSE:CPNG), which amounts to $5.88 million. Coupang, Inc. (NYSE:CPNG) was raised to Conviction Buy from Buy by Goldman Sachs analyst Eric Cha on April 7, with a price objective of $37, down from $52. According to Cha, the market underestimated Coupang, Inc. (NYSE:CPNG)’s operating leverage potential, which COVID-induced expenditures had masked.
Upwork Inc. (NASDAQ:UPWK) is also part of Rishi Bajaj’s portfolio. MKM Partners analyst Rohit Kulkarni cut his price objective on Upwork Inc. (NASDAQ:UPWK) from $36 to $31 on April 25 and maintained a Buy recommendation on the stock. The analyst highlighted the company’s Ukraine/Russia exposure, adding that the disputed region accounted for 10% of sales in 2021.
Our Methodology
Let’s begin our list of 10 stock picks of Rishi Bajaj’s Altai Capital. For this research, we analyzed Bajaj’s 13F portfolio for Q4 2021.
Stock Picks of Rishi Bajaj’s Altai Capital
10. P10, Inc. (NYSE:PX)
Altai Capital’s Stake Value: $41,462,000
Percentage of Altai Capital’s 13F Portfolio: 18.2%
Number of Hedge Fund Holders: 18
P10, Inc. (NYSE:PX) and its subsidiaries work in the alternative asset management business in the United States as a multi-asset class private market solutions provider. Rishi Bajaj’s Altai Capital built a new stake in P10, Inc. (NYSE:PX) during Q4 by purchasing 2.97 million shares in the fourth quarter of 2021.
On April 13, Oppenheimer analyst Chris Kotowski decreased his price target on P10, Inc. (NYSE:PX) from $14 to $13 and maintained an Outperform rating. He concluded that rising interest rates would have an impact on the stock market. At the same time, he believed that fundraising and performance might be profitable in the future.
Overall, 18 hedge funds in Insider Monkey’s database were bullish on P10, Inc. (NYSE:PX) in Q4. These stakes are valued at over $109.40 million.
P10, Inc. (NYSE:PX) joins Coupang, Inc. (NYSE:CPNG) and Upwork Inc. (NASDAQ:UPWK) as a top Rishi Bajaj’s stock pick.
9. E2open Parent Holdings, Inc. (NYSE:ETWO)
Altai Capital’s Stake Value: $40,382,000
Percentage of Altai Capital’s 13F Portfolio: 17.73%
Number of Hedge Fund Holders: 39
E2open Parent Holdings, Inc. (NYSE:ETWO) is a software company that specializes in supply chain management. The firm serves technology, consumer, industrial, transportation, and other industries. Even after selling 6,701 shares of E2open Parent Holdings, Inc. (NYSE:ETWO) in the fourth quarter, Rishi Bajaj’s Altai Capital still holds more than 3.59 million shares of E2open Parent Holdings, Inc. (NYSE:ETWO), worth about $40.38 million.
As of the end of the fourth quarter, 39 hedge funds in Insider Monkey’s database held stakes in E2open Parent Holdings, Inc. (NYSE:ETWO), an increase compared to 33 funds in the preceding quarter. Windacre Partnership, with 24.97 million shares, is the biggest stakeholder of E2open Parent Holdings, Inc. (NYSE:ETWO).
E2open Parent Holdings, Inc. (NYSE:ETWO) was upgraded to Buy from Neutral by BofA analyst Andrew Obin on April 21. The analyst predicted that if software as a service, or SaaS, revenue continued to expand, E2open Parent Holdings, Inc. (NYSE:ETWO) would be re-rated higher, with 11% growth expected in FY23, up from 9.5% in FY22.
8. Digimarc Corporation (NASDAQ:DMRC)
Altai Capital’s Stake Value: $39,057,000
Percentage of Altai Capital’s 13F Portfolio: 17.15%
Number of Hedge Fund Holders: 12
Digimarc Corporation (NASDAQ:DMRC) is a company that specializes in media identification and management. Digimarc Discover and Digimarc Barcode are two of Digimarc Corporation (NASDAQ:DMRC)’s products. Digimarc Corporation (NASDAQ:DMRC) offered 2.25 million ordinary shares to specific investors in a registered direct offering on April 6 for $25.90 per share. The net profits will be utilized for the company’s general activities.
For the fourth quarter of 2021, Altai Capital’s stake in Digimarc Corporation (NASDAQ:DMRC) was worth $39.06 million. It came via Digimarc Corporation (NASDAQ:DMRC), owning 989,291 shares and constituted 17.15% of its investment portfolio. The hedge fund has boosted its stake in Digimarc Corporation (NASDAQ:DMRC) by 8% in the fourth quarter of 2021.
Insider Monkey examined the holdings of 924 hedge funds during the fourth quarter of 2021 and discovered that 12 of them had also purchased Digimarc Corporation (NASDAQ:DMRC)’s stock. Of the 12 hedge funds that were bullish on Digimarc Corporation (NASDAQ:DMRC), Altai Capital is the leading stakeholder of the company.
7. OneSpan Inc. (NASDAQ:OSPN)
Altai Capital’s Stake Value: $23,472,000
Percentage of Altai Capital’s 13F Portfolio: 10.3%
Number of Hedge Fund Holders: 13
OneSpan Inc. (NASDAQ:OSPN) specializes in the design, development, and marketing of identification, security, and business productivity solutions that safeguard and simplify transactions conducted online, via mobile devices, and in person. With a $47.88 million stake in OneSpan Inc. (NASDAQ:OSPN), Ted White and Christopher Kiper’s Legion Partners Asset Management owned 2.83 million shares of the company at the end of the fourth quarter of 2021.
After OneSpan Inc. (NASDAQ:OSPN)’s wider-than-expected Q4 loss, DA Davidson analyst Rudy Kessinger decreased his price target to $23 from $32 on February 23 but maintained a Buy rating on the stock. Insider Monkey’s database shows that 13 hedge funds held stakes in OneSpan Inc. (NASDAQ:OSPN) at the end of the fourth quarter versus 15 funds in the third quarter.
In the fourth quarter, Rishi Bajaj increased his stake in OneSpan Inc. (NASDAQ:OSPN) by 239%, and his 10.3% stake in the company is now worth about $23.47 million. Altai Capital started building its position in OneSpan Inc. (NASDAQ:OSPN) in the third quarter of 2021.
6. Yatra Online, Inc. (NASDAQ:YTRA)
Altai Capital’s Stake Value: $8,437,000
Percentage of Altai Capital’s 13F Portfolio: 3.7%
Number of Hedge Fund Holders: 7
Yatra Online, Inc. (NASDAQ:YTRA) is a global online travel company specializing in India and other countries. It operates in two segments: airline tickets and hotels and vacation packages. Michael Kaufman’s MAK Capital One is the biggest stakeholder of Yatra Online, Inc. (NASDAQ:YTRA), with 11.43 million shares worth $19.78 million.
In its earnings report published on April 1 by Yatra Online, Inc. (NASDAQ:YTRA), the revenue totaled $8.4 million, beating estimates by $0.19 million. The hedge fund chaired by Rishi Bajaj held close to 4.88 million shares of Yatra Online, Inc. (NASDAQ:YTRA), worth over $8.44 million.
Overall, hedge funds are piling into Yatra Online, Inc. (NASDAQ:YTRA), with 7 of the 924 funds monitored by Insider Monkey owning shares, up from 5 funds a quarter ago.
Yatra Online, Inc. (NASDAQ:YTRA) is a top stock pick of Rishi Bajaj’s Altai Capital, just like Coupang, Inc. (NYSE:CPNG) and Upwork Inc. (NASDAQ:UPWK).
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Disclosure: None. 10 Stock Picks of Rishi Bajaj’s Altai Capital is originally published on Insider Monkey.
