In this article, we discuss the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management. If you want to skip our detailed analysis of Pausic’s history, investment philosophy, and hedge fund performance, go directly to the 5 Stocks to Buy Now According to Michael Pausic’s Foxhaven Asset Management.
Serving as its portfolio manager and financial analyst, Michael Pausic is the founder of Foxhaven Asset Management. After earning his B.S in Engineering from the University of Virginia and an M.B.A from Duke University, Michael Pausic had a long history in media and telecommunications, beginning his career in the industry as a communications banker. Prior to establishing Foxhaven Asset Management in 2013, Pausic served as vice president in business development at 20th Century Fox and later at Viacom. He subsequently joined Maverick Capital, a private equity fund, working as the head of the media and telecommunications team until 2013.
Foxhaven Asset Management, as an investment fund, manages more than $3.66 billion in its portfolio. According to the most recent 13F filings, Foxhaven Asset Management portfolio is diversified into 5 key sectors, with the technology sector dominating, making up 44.9% of the fund’s total portfolio value. A majority of the companies in the fund’s portfolio are large-cap companies based in the United States, with stocks scaling up to more than $10 billion in market capitalization making up 68% of the total value.
Some of the top stocks present in the investment portfolio of Foxhaven Asset Management at the end of the second quarter of 2021 include Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V) and Shopify Inc. (NYSE:SHOP) among others.
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Our Methodology
With this background in mind, let us now look towards the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management. We made use of Foxhaven Asset Management’s 13F portfolio for the second quarter for this analysis.
Why should we pay attention to Michael Pausic’s stocks? 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 86 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 86 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.
Stocks to Buy Now According to Michael Pausic’s Foxhaven Asset Management
10. Liberty Broadband Corporation (NASDAQ:LBRDA)
Pausic’s Stake Value: $164.82 million
Percentage of Michael Pausic’s 13F Portfolio: 4.49%
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ:LBRDA) invests in communication companies providing a wide range of cable, data, wireless, video, voice, and managed services. Established in 2014, the Colorado-based company ranks 10th on the list of the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management with a market capitalization of $31.91 billion.
On August 6, Liberty Broadband Corporation (NASDAQ:LBRDA) posted their quarterly earnings report for the second quarter of 2021. The company reported earnings per share of $0.30, missing the estimates by $1.33.
Michael Pausic’s Foxhaven Asset Management currently owns 949,147 shares of Liberty Broadband Corporation (NASDAQ:LBRDA), amounting to over $164.82 million in worth and accounting for 4.49% of the fund’s portfolio. There were 28 hedge funds in Insider Monkey’s database that held stakes in Liberty Broadband Corporation (NASDAQ:LBRDA) in the second quarter of 2021, compared to 23 funds in the first quarter.
Alphyn Capital Management, in their Q1 2021 investor letter, mentioned Liberty Broadband Corporation (NASDAQ:LBRDA). Here is what the fund said:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
9. Smartsheet Inc. (NYSE:SMAR)
Pausic’s Stake Value: $165.79 million
Percentage of Michael Pausic’s 13F Portfolio: 4.52%
Number of Hedge Fund Holders: 49
Smartsheet Inc. (NYSE:SMAR) is a Washington-based firm that markets a cloud work execution platform. Ranked 9th on the list of the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management, Smartsheet Inc. (NYSE:SMAR) has a market capitalization of $9.35 billion.
Michael Pausic’s Foxhaven Asset Management currently owns 2.29 million shares of Smartsheet Inc. (NYSE:SMAR), amounting to over $165.79 million in worth and representing 4.52% of the fund’s portfolio. In the second quarter of 2021, the company’s earnings per share were reportedly at -$0.06, beating estimates by $0.10 alongside reported revenues at $91.22 million, surpassing estimates by $4.69 million.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.48 billion in Smartsheet Inc. (NYSE:SMAR), up from 39 in the preceding quarter worth $1.49 billion.
Just like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V) and Shopify Inc. (NYSE:SHOP), Smartsheet Inc. (NYSE:SMAR) is a notable stock in Michael Pausic’s portfolio.
8. Visa Inc. (NYSE:V)
Pausic’s Stake Value: $175.4 million
Percentage of Michael Pausic’s 13F Portfolio: 4.78%
Number of Hedge Fund Holders: 162
Visa Inc. (NYSE:V) is a California-based multinational financial services corporation that facilitates electronic funds transfers throughout the world. Ranked 8th on our list of the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management, Visa Inc. (NYSE:V) has a market capitalization of $471.62 billion.
Michael Pausic’s Foxhaven Asset Management currently owns 750,181 shares of Visa Inc. (NYSE:V), worth over $175.4 million. The company issued its quarterly earnings report for the second quarter of 2021 in March, with earnings per share at $1.38, beating forecast estimates by $0.11. The company also reported a revenue of $5.73 billion, surpassing estimated revenues by $175.03 million.
At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27.6 billion in Visa Inc. (NYSE:V), down from 164 in the preceding quarter worth $26.5 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
7. MercadoLibre, Inc. (NASDAQ:MELI)
Pausic’s Stake Value: $260.82 million
Percentage of Michael Pausic’s 13F Portfolio: 7.11%
Number of Hedge Fund Holders: 74
MercadoLibre, Inc. (NASDAQ:MELI), based in Buenos Aires, Argentina, is a company that operates online marketplaces dedicated to e-commerce, as well as online auctions. Ranked 7th on the list of the 10 stocks to buy now according to Michael Pausic’s Foxhaven Asset Management, MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $93.37 billion.
Michael Pausic’s Foxhaven Asset Management currently owns 167,433 shares of MercadoLibre, Inc.(NASDAQ:MELI), amounting to more than $260.82 million in worth and accounting for 7.11% of the fund’s portfolio. MercadoLibre, Inc. (NASDAQ:MELI) issued its earning reports on August 4, 2021, with reported earnings per share of $1.37, topping estimates of $0.09. The company also reported a revenue of $1.70 billion, compared to the consensus estimate of $1.48 billion.
At the end of the first half of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $4.02 billion in MercadoLibre, Inc. (NASDAQ:MELI), down from 69 in the previous quarter worth $5.2 billion.
Just like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V) and Shopify Inc. (NYSE:SHOP), MercadoLibre, Inc. (NASDAQ:MELI) is a notable stock in Michael Pausic’s portfolio.
In the Q2 2021 investor letter of Polen Capital, the fund mentioned MercadoLibre, Inc. (NASDAQ:MELI). Here is what the fund had to say:
“Argentina-based MercadoLibre operates Latin America’s leading ecommerce website and digital wallet. Both e-commerce and consumer finance are underpenetrated among the nearly 400 million citizens living in the company’s three largest markets: Brazil, Argentina, and Mexico.
MercadoLibre’s digitally native solution gives more than 70 million users an easy access point for both online shopping and a digital wallet.
From humble beginnings as a third-party marketplace, MercadoLibre’s management built the business over the last twenty years by steadily expanding the platform’s reach with new services to suit both merchants and consumers. Today’s offerings include financing capabilities for buyers and sellers, logistics, loyalty programs, classifieds listings, and grocery items. We think MercadoLibre can compound earnings at a 25% rate for the next five years.”
6. Intuit Inc. (NASDAQ:INTU)
Pausic’s Stake Value: $265.42 million
Percentage of Michael Pausic’s 13F Portfolio: 7.24%
Number of Hedge Fund Holders: 66
Intuit Inc. (NASDAQ:INTU) is a California-based company that specializes in financial software, serving both individual customers and enterprises. Some of its flagship products include tax preparation software TurboTax and business accounting app QuickBooks. Ranked 6th on our list of the 10 stocks to buy according to Michael Pausic’s Foxhaven Asset Management, Intuit Inc. (NASDAQ:INTU) has a market capitalization of $153.44 billion.
Michael Pausic’s Foxhaven Asset Management currently owns 541,490 shares of Intuit Inc. (NASDAQ:INTU), worth over $265.42 million and representing 7.24% of the fund’s portfolio. Intuit Inc. (NASDAQ:INTU) last released its quarterly earnings report on August 24, with reported earnings per share at $1.97, beating estimates by $0.38, and reported revenues at $2.56 billion, surpassing estimates by $244.98 million.
Just like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V) and Shopify Inc. (NYSE:SHOP), Intuit Inc. (NASDAQ:INTU) is a notable stock in Michael Pausic’s portfolio.
In the Q2 2021 investor letter of Baron Funds, the fund mentioned Intuit Inc. (NASDAQ:INTU). Here is what the fund had to say:
“Intuit Inc. is the leading provider of accounting software for small businesses and tax preparation software for individuals and tax professionals. Shares increased on strong quarterly results and raised fullyear guidance. The QuickBooks business is rebounding after last year’s slowdown, the TurboTax business is showing continued share gains and revenue growth, and the recently acquired Credit Karma business generated its highest ever quarterly revenue. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities.”
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Disclosure. None. 10 Stocks to Buy Now According to Michael Pausic’s Foxhaven Asset Management is originally published on Insider Monkey.
