In this article, we will discuss 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital based on Q2 holdings of the fund. If you want to skip our detailed analysis of Lemann’s history, investment philosophy, and hedge fund performance, go directly to the 5 Stocks to Buy According to Brazilian Billionaire Jorge Paulo Lemann’s 3G Capital.
Jorge Paulo Lemann is a Brazilian businessman and billionaire. In 1961, he received his bachelor’s degree in economics from Harvard University. Lemann has a net worth of over $10 billion. He continues to dazzle investors with his market-beating portfolio management ideas.
Jorge Paulo Lemann, Marcel Herrmann Telles, Carlos Alberto Sicupira, Alex Behring, and Roberto Thompson Motta created 3G Capital, a multibillion-dollar hedge fund, in 2004. 3G Capital focuses on long-term value and maximizing the potential of brands and enterprises.
As of the second quarter, 3G Capital holds significant stakes in companies including Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Bilibili Inc. (NASDAQ: BILI).
In Microsoft Corporation (NASDAQ: MSFT), Jorge Paulo Lemann owns 30,000 shares. The investment covers 2.09% of the fund’s portfolio. On August 20, UBS analyst Karl Keirstead raised the price target on Microsoft Corporation (NASDAQ: MSFT) to $350 from $325 and kept a “Buy” rating on the shares.
3G Capital also has a significant holding in Amazon.com, Inc. (NASDAQ: AMZN). The hedge fund owns 3,200 shares in Amazon.com, Inc. (NASDAQ: AMZN), worth $11.01 million. On August 19, Amazon (NASDAQ: AMZN) announced plans to establish multiple big retail stores in the United States, each measuring 30K square feet and offering consumer products from top brands such as apparel and home items. It will resemble department shops in appearance.
Jorge Paulo Lemann is also bullish on Bilibili Inc. (NASDAQ: BILI), according to his hedge fund’s disclosed holdings data as of the second quarter of 2021. The fund increased its holding in Bilibili Inc. (NASDAQ: BILI) by 4% in the second quarter, ending the period with 140,000 shares of the company. On August 20, CLSA analyst Elinor Leung lowered the price target on Bilibili Inc. (NASDAQ: BILI) to $76.50 from $114 and kept an “Outperform” rating on the shares post the company’s second-quarter results.
Why should we pay attention to billionaire Lemann’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Keeping all these points in mind, let’s start our list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital in 2021. We used Lemann’s 13F portfolio for the second quarter for this analysis.
Stocks to Buy According to Brazilian Billionaire Jorge Paulo Lemann’s 3G Capital
10. Amazon.com, Inc. (NASDAQ: AMZN)
Lemann’s Stake Value: $11,009,000
Percentage of Jorge Paulo Lemann’s 13F Portfolio: 2.84%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ: AMZN) sells consumer goods and online subscriptions. It was established in 1994 and is ranked tenth on the list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. Amazon.com, Inc. (NASDAQ: AMZN) currently has a $1.65 trillion market capitalization.
Jorge Paulo Lemann’s hedge fund owns 3,200 shares of Amazon.com, Inc. (NASDAQ: AMZN), worth over $11.01 million. There were 271 hedge funds in our database that held stakes in Amazon.com, Inc. (NASDAQ: AMZN) in the second quarter of 2021, compared to 243 funds in the first quarter.
In its second-quarter 2021 investor letter Nelson Capital Management mentioned Amazon.com, Inc. (NASDAQ: AMZN). Here is what the fund said:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We reduced our position in Amazon (NASDAQ: AMZN) following its stellar performance through the pandemic. Though we believe online shopping is here to stay, we think some portion of consumer wallet share will transition to services and experiences.”
9. Docebo Inc. (NASDAQ: DCBO)
Lemann’s Stake Value: $16,272,000
Percentage of Jorge Paulo Lemann’s 13F Portfolio: 4.2%
Number of Hedge Fund Holders: 6
Docebo Inc. (NASDAQ: DCBO) offers a cloud-based learning management system that may be used to train internal and external employees, partners, and customers. It was founded in 2005, and it stands ninth on the list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. Shares of Docebo Inc. (NASDAQ: DCBO) surged 106.95% in the past 12 months.
On August 13, TD Securities analyst Daniel Chan raised the price target on Docebo Inc. (NASDAQ: DCBO) to C$100 from C$90 and kept a “Buy” rating on the shares. On August 12, Docebo Inc. (NASDAQ: DCBO) posted earnings for the second quarter of 2021. It reported revenue of $25.63 million, up 76.4% YoY.
3G Capital holds 275,000 shares in Docebo Inc. (NASDAQ: DCBO), worth $16.27 million. This represents 4.2% of their portfolio. Docebo Inc. (NASDAQ: DCBO) is the latest addition to Jorge Paulo Lemann’s portfolio. The company saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 6 in the second quarter of 2021, compared to 10 positions in the previous quarter.
Just like Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Bilibili Inc. (NASDAQ: BILI), Docebo Inc. (NASDAQ: DCBO) is one of the best stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital.
8. Bilibili Inc. (NASDAQ: BILI)
Lemann’s Stake Value: $17,058,000
Percentage of Jorge Paulo Lemann’s 13F Portfolio: 4.4%
Number of Hedge Fund Holders: 47
Bilibili Inc. (NASDAQ: BILI) provides online entertainment services for the younger generations. It was incorporated in 2009 and is ranked eighth on the list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. Bilibili Inc. (NASDAQ: BILI) shares have offered investors more than 60.94% in returns over the course of the past 12 months.
On August 19, Bilibili Inc. (NASDAQ: BILI) declared earnings for the second quarter of 2021. It posted earnings per share of -$0.35, beating the expectations by $0.10. In addition, the revenue over the period was $696.2 million, up 72.0% YoY, surpassing the predictions by $32.92 million.
3G Capital holds 140,000 shares in Bilibili Inc. (NASDAQ: BILI) worth over $17.06 million, representing 4.4% of their portfolio. The hedge fund has increased stake in the firm by 4% in the second quarter of 2021. Jonathan Guo’s Yiheng Capital is a leading shareholder in Bilibili Inc. (NASDAQ: BILI), with 4.86 million shares worth $591.71 million.
Just like Microsoft Corporation (NASDAQ: MSFT) and Amazon.com, Inc. (NASDAQ: AMZN), Bilibili Inc. (NASDAQ: BILI) is one of the best stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital.
In its second-quarter 2021 investor letter, Baillie Gifford 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.…” (Click here to see the full text)
7. DoorDash, Inc. (NYSE: DASH)
Lemann’s Stake Value: $20,508,000
Percentage of Jorge Paulo Lemann’s 13F Portfolio: 5.29%
Number of Hedge Fund Holders: 45
DoorDash, Inc. (NYSE: DASH) functions as a logistics platform connecting merchants, consumers, and dashers internationally. It was founded in 2013 and is placed seventh on the list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. Shares of DoorDash, Inc. (NYSE: DASH) surged 31.31% in the past 12 months.
On August 17, Susquehanna analyst Shyam Patil raised the price target on DoorDash, Inc. (NYSE: DASH) to $220 from $175 and reiterated a “Positive” rating on the shares. On August 12, DoorDash, Inc. (NYSE: DASH) posted earnings for the second quarter of 2021. It reported earnings per share of -$0.30, missing the analysts’ expectations by $0.11. However, the revenue over the period was $1.24 billion, beating the market predictions by $140 million.
Jorge Paulo Lemann’s 3G Capital increased its holding in DoorDash, Inc. (NYSE: DASH) by 284% in the second quarter of 2021, ending the period with 115,000 shares of the company, worth $20.51 million. The company is getting the attention of the smart money, as 45 hedge funds tracked by Insider Monkey reported owning stakes in DoorDash, Inc. (NYSE: DASH) in the second quarter of 2021, up from 38 funds a quarter earlier.
Just like Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Bilibili Inc. (NASDAQ: BILI), DoorDash, Inc. (NYSE: DASH) is one of the best stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital.
6. Square, Inc. (NYSE: SQ)
Lemann’s Stake Value: $20,723,000
Percentage of Jorge Paulo Lemann’s 13F Portfolio: 5.35%
Number of Hedge Fund Holders: 94
Square, Inc. (NYSE: SQ), along with its subsidiaries, develops solutions that allow merchants to take credit card payments, as well as reporting and analytics, and next-day settlement. It was incorporated in 2009 and is ranked sixth on the list of 10 stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital. Square, Inc. (NYSE: SQ) shares have offered investors more than 75.73% in returns over the past 12 months.
On August 17, JPMorgan analyst Tien-Tsin Huang raised the price target on Square, Inc. (NYSE: SQ) to $320 from $300 and kept an “Overweight” rating on the shares. On August 5, Square, Inc. (NYSE: SQ) posted earnings for the second quarter of 2021. It reported earnings per share of $0.66, beating the market predictions by $0.35. The revenue over the period was $4.68 billion, missing the estimates by $398.54 million.
The hedge fund managed by Jorge Paulo Lemann owns 85,000 shares in Square, Inc. (NYSE: SQ) worth over $20.72 million, representing 5.35% of their portfolio. As of the second quarter of 2021, 94 hedge funds held stakes in Square, Inc. (NYSE: SQ) compared to 55 funds in the first quarter.
Just like Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), and Bilibili Inc. (NASDAQ: BILI), Square, Inc. (NYSE: SQ) is one of the best stocks to buy according to Brazilian billionaire Jorge Paulo Lemann’s 3G Capital.
RiverPark Funds, in its first-quarter 2021 investor letter, mentioned Square, Inc. (NYSE: SQ). Here is what the fund said:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers) .…” (Click here to see the full text)
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Disclosure: None. 10 Stocks to Buy According to Brazilian Billionaire Jorge Paulo Lemann’s 3G Capital is originally published on Insider Monkey.
