In this article, we discuss 10 stocks to buy according to John Hurley’s Cavalry Asset Management. If you want to skip our detailed analysis of Hurley’s investment philosophy and portfolio construction, go directly to 5 Stocks to Buy According to John Hurley’s Cavalry Asset Management.
Cavalry Asset Management is a San Francisco-based hedge fund established by John Hurley in 2003. In 1986, Hurley earned his degree from Princeton University, where he served as chairman of The Daily Princetonian. After completing his degree and being commissioned as a second lieutenant, he spent five years in the U.S. Army. Before starting Cavalry Asset Management, he worked as an analyst and portfolio manager at Fidelity Investments and as the managing partner of Bowman Capital Management after getting his MBA from the Stanford GSB in 1993.
Cavalry Asset Management invests primarily in publicly traded technology companies on behalf of prominent financial institutions, academic organizations, and family offices. It uses a variety of investment strategies, and its holdings include long/short or derivative positions in common stocks, stock warrants and rights, private or restricted securities, preferred stocks, options, swaps, other derivative instruments, debt instruments, commodities, and exchange-traded funds (ETFs).
Cavalry Asset Management’s 13F portfolio contained $1.31 billion in assets spread across 30 equities at the end of the first quarter of 2022. As of the end of the first quarter, some notable stock picks of the hedge fund include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), QUALCOMM Incorporated (NASDAQ:QCOM), and Microsoft Corporation (NASDAQ:MSFT).
Our Methodology
With this context in mind, here is our list of 10 stocks to buy according to John Hurley’s Cavalry Asset Management. We picked these stocks from the Q1 13F portfolio of Hurley’s hedge fund. All hedge fund data is based on Insider Monkey’s exclusive list of 900+ funds that submitted 13Fs for the first quarter of 2022.
Stocks to Buy According to John Hurley’s Cavalry Asset Management
10. Juniper Networks, Inc. (NYSE:JNPR)
Cavalry Asset Management’s Stake Value: $55,314,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 4.22%
Number of Hedge Fund Holders: 35
In addition to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), QUALCOMM Incorporated (NASDAQ:QCOM), and Microsoft Corporation (NASDAQ:MSFT), John Hurley’s Cavalry Asset Management recommends .Juniper Networks, Inc. (NYSE:JNPR), the U.S.-based producer of networking solutions. Juniper Networks, Inc. (NYSE:JNPR) is a new arrival in Cavalry Asset Management’s portfolio, as the hedge fund bought about 1.49 million shares worth $55.3 million in Q1.
One of Australia’s top diversified real estate groups and an Australian division of the global Frasers Property Limited, Frasers Property Australia and Frasers Property Industrial announced on August 1 that they chose Juniper Networks, Inc. (NYSE:JNPR) to upgrade their network infrastructure in order to increase their business agility and IT efficiency throughout Australia.
After Juniper Networks, Inc. (NYSE:JNPR) reported positive sales growth in the June quarter but “disappointing” EPS, Evercore ISI analyst Amit Daryanani eliminated the stock from the firm’s “Tactical Outperform” list on August 1, while maintaining an ‘In Line’ rating and $33 price target.
As of the end of the first quarter of 2022, 35 hedge funds had ownership positions in Juniper Networks, Inc. (NYSE:JNPR), up from 25 hedge funds a quarter earlier. Whale Rock Capital Management, with a nearly $222 million stake, is a significant shareholder of Juniper Networks, Inc. (NYSE:JNPR).
9. Tesla, Inc. (NASDAQ:TSLA)
Cavalry Asset Management’s Stake Value: $56,025,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 4.27%
Number of Hedge Fund Holders: 80
Tesla, Inc. (NASDAQ:TSLA) develops, produces, and markets electric automobiles and the batteries that drive them. On August 2, Itay Michaeli, a Citi analyst, increased his price target on Tesla, Inc. (NASDAQ:TSLA) from $375 to $424 while maintaining a ‘Sell’ rating for the stock. Before turning optimistic, he wants further evidence of L4/RoboTaxi progress, and he thinks Tesla, Inc.’s (NASDAQ:TSLA) value “remains challenged.”
In the latest attempt by automakers to secure supply despite the escalating competition, Tesla, Inc. (NASDAQ:TSLA) inked new long-term contracts on August 1 with two of its current Chinese battery-materials suppliers, Zhejiang Huayou Cobalt Co. and CNGR Advanced Material Co.
ARK Investment Management is a prominent stakeholder of Tesla, Inc. (NASDAQ:TSLA), with 1.44 million shares of the company, worth over $1.09 billion. Insider Monkey found 80 hedge funds bullish on Tesla, Inc. (NASDAQ:TSLA) at the close of the first quarter of 2022. Those funds held collective stakes in the company valued at $11.3 billion, down from $12.9 billion in the fourth quarter of 2021, when 91 hedge funds were long TSLA shares.
Here is what Grantham Mayo Van Otterloo & Co. LLC had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:
“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”
8. Booking Holdings Inc. (NASDAQ:BKNG)
Cavalry Asset Management’s Stake Value: $60,207,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 4.59%
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) provides online travel and related services to clients and local partners through its six primary brands: Booking.com, KAYAK, Agoda, Priceline, Rentalcars.com, and OpenTable. Booking Holdings Inc. (NASDAQ:BKNG) has more than 2.3 million listings across 220 countries.
On July 26, OpenTable, a division of Booking Holdings Inc. (NASDAQ:BKNG), inked a contract to work with Marriott International, Inc. (NASDAQ:MAR) as their preferred provider of restaurant technology. More than 1,400 restaurants operated by Marriott hotels are currently available for bookings through OpenTable, with locations across 56 countries.
On August 1, analyst Lee Horowitz at Deutsche Bank maintained a ‘Buy’ recommendation on Booking Holdings Inc. (NASDAQ:BKNG), while lowering his price objective from $2,880 to $2,300. Despite obstacles brought on by growing input costs and labor scarcity, the analyst has watched the travel sector gradually return capacity to pre-COVID levels during the past few months.
Booking Holdings Inc. (NASDAQ:BKNG) has experienced an increase in hedge fund interest recently. The company was in 99 hedge funds’ portfolios at the end of the first quarter of 2022. There were 92 funds in our database with Booking Holdings Inc. (NASDAQ:BKNG) at the end of the fourth quarter of 2021.
In its Q2 2022 investor letter, LRT Capital Management, an investment management firm, mentioned Booking Holdings Inc. (NASDAQ:BKNG). Here is what the fund said:
“Booking Holdings was formerly Priceline.com but has changed its name to reflect that source of most of its revenue: Booking.com. Booking.com is the largest online travel agency (OTA) in the world, connecting travelers and hotels. The company has over 2.3 million properties in 220 countries on its site, along with photos, reviews and details about the amenities offered by each property. The accommodations offered range from hotels, motels, homes & apartments, hostels, and bed & breakfasts. The company occupies a dominant position in the travel booking funnel and collects revenue from hotel reservations booked through its site. Booking.com is particularly strong in Europe, where chain hotels are less dominant and smaller independent hotel rely on it to fill their rooms. …. (Click here to read the full text)”.
7. Marvell Technology, Inc. (NASDAQ:MRVL)
Cavalry Asset Management’s Stake Value: $63,462,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 4.84%
Number of Hedge Fund Holders: 63
Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor products for data infrastructure. Jericho Capital Asset Management is the largest stakeholder of Marvell Technology, Inc. (NASDAQ:MRVL), holding 2.32 million shares worth about $166 million.
On July 25, Blayne Curtis of Barclays maintained an ‘Overweight’ rating on Marvell Technology, Inc. (NASDAQ:MRVL) and reduced his price objective to $60 from $80. In a research note, Curtis advised investors that the recent semiconductor rebound should fade because it is too early to purchase the drop.
In the first quarter of 2022, 63 hedge funds were long Marvell Technology, Inc. (NASDAQ:MRVL), with a total stake value of $2.40 billion. Cavalry Asset Management increased its stake in Marvell Technology, Inc. (NASDAQ:MRVL) by 92% in the first quarter, ending the period with $63.5 million worth of the company’s stock.
ClearBridge Investments, in its Q4 2021 investor letter, mentioned Marvell Technology, Inc. (NASDAQ:MRVL). Here is what the fund said:
“The ClearBridge Mid Cap Growth Strategy continued to deliver strong absolute and relative returns as our focus on de-risking investments prior to purchase and managing position sizes has made a difference through recent market turbulence. Marvell Technology, a leader in semiconductor manufacturing, is in the second-largest position in the Strategy but just one of three stocks with a weighting of over 3% in a diversified growth portfolio of over 70 names. With a wide range of exposure to fast-growing IT subsectors, including 5G telecommunications, data centers, cloud computing, and electric vehicles, Marvell’s ability to secure a crucial supplier position at the nexus of these technologies leaves it well-positioned to participate in their long-term growth. Strength in companies like Marvell offset weakness in higher multiple growth names that were dragged down by negative sentiment or short-term execution issues.”
6. Expedia Group, Inc. (NASDAQ:EXPE)
Cavalry Asset Management’s Stake Value: $64,269,000
Percentage of Cavalry Asset Management’s 13F Portfolio: 4.9%
Number of Hedge Fund Holders: 88
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel agency that provides leisure and business travelers with goods and services through its retail, business-to-business, and trivago business sectors. Expedia Group, Inc. (NASDAQ:EXPE) has lessened the epidemic’s consequences, but it is still unclear how quickly the company will bounce back. Russia’s invasion of Ukraine has had an impact on tourism throughout Europe. Rising inflation has also caused consumer spending to decline.
On August 1, Deutsche Bank analyst Lee Horowitz reiterated a ‘Buy’ rating on Expedia Group, Inc. (NASDAQ:EXPE) shares but dropped the price objective to $130 from $235. Investors are unsure if the substantial increase in demand will last into 2023 for the online travel sector after Q2, as the summer vacation season gets started, according to a research note by Horowitz.
Cavalry Asset Management held 328,457 shares of Expedia Group, Inc. (NASDAQ:EXPE) on March 31, amounting to a $64.3 million stake and representing 4.9% of the fund’s portfolio value. 88 hedge funds from the first quarter database of Insider Monkey reported long bets on Expedia Group, Inc. (NASDAQ:EXPE), with combined positions worth $6.34 billion. One of the firm’s notable shareholders is Thomas Bailard’s Bailard Inc, which recently reduced its stake by 12% to come in at roughly $4.02 million.
In its Q2 2022 investor letter, Artisan Global Value Fund mentioned Expedia Group Inc. (NASDAQ:EXPE). Here is what the fund said:
“Expedia declined 52% during the quarter due to concerns a consumer recession will reduce spending on discretionary items like travel, as well as concerns that the company is losing market share to other online travel agencies. While the fears of a potential recession are real, the current environment is actually pretty good. This summer will be one of the busiest travel seasons. As recently as June, Expedia’s management signaled it had yet to see any signs of a slowdown. It could certainly happen, but it has not yet…. (Click here to read the full text)”.
Just like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), QUALCOMM Incorporated (NASDAQ:QCOM), and Microsoft Corporation (NASDAQ:MSFT), Expedia Group, Inc. (NASDAQ:EXPE) is one of the stocks in the first quarter portfolio of John Hurley’s Cavalry Asset Management.
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Disclosure: None. 10 Stocks to Buy According to John Hurley’s Cavalry Asset Management is originally published on Insider Monkey.
