In this article, we will discuss 10 stocks to buy now according to Steve Pei’s Gratia Capital. If you want to skip our detailed analysis of Pei’s history, investment philosophy performance, you can go directly to 5 Stocks to Buy Now According to Steve Pei’s Gratia Capital.
Steven Pei is the founder and Chief Investment Officer of Gratia Capital. He completed his high school education at Monte Vista High School in California. After that, Pei received his bachelor’s degree in International Studies and Business from the University of Pennsylvania in the year 2000.
Steven Pei started his career as an analyst at McKinsey & Company in 2000, where he worked for more than two years before becoming a Senior Associate at DFI Holdings in Hong Kong. In 2004, he became an Associate at Bain Capital, a private equity group, and later became Vice President of Canyon Capital Advisors in 2006. Pei worked for Canyon Capital for more than 5 years before launching his fund, Gratia Capital, with a seed deal of $25 million from Q Investments in 2012.
ATI Physical Therapy, Inc. (NYSE:ATIP), Party City Holdco Inc. (NYSE:PRTY), and Inspired Entertainment, Inc. (NASDAQ:INSE) are the most significant names in Gratia Capital’s portfolio.
Source:Pixabay
Our Methodology
With this context in mind, here is our list of 10 stocks to buy now according to Steve Pei’s Gratia Capital. These were picked from Gratia Capital’s investment portfolio for the third quarter of 2021.
10 Stocks to Buy Now According to Steve Pei’s Gratia Capital
10. Medallion Financial Corp. (NASDAQ:MFIN)
Gratia Capital’s Stake Value: $3.02 million
Percentage of Gratia Capital’s 13F Portfolio: 2.51
Number of Hedge Fund Holders: 7
Medallion Financial Corp. (NASDAQ:MFIN) is a New York-based firm that offers financial services like offering loans, debt, mezzanine financing, and equity investment to consumers and companies in different industries. The company has its subsidiaries namely Medallion Funding LLC, Medallion Capital, Inc., and Freshstart Venture Capital Corp.
As per Insider Monkey’s database of 867 hedge funds, 7 funds held stakes in Medallion Financial Corp. (NASDAQ:MFIN) worth $7.05 million in the third quarter of 2021, up from 6 funds holding stakes in the company worth $7.75 million in the previous quarter.
According to the third quarter filings, Gratia Capital owned 385,238 shares in Medallion Financial Corp. (NASDAQ:MFIN) worth $3.02 million in the third quarter.
Medallion Financial Corp. (NASDAQ:MFIN), along with ATI Physical Therapy, Inc. (NYSE:ATIP), Party City Holdco Inc. (NYSE:PRTY), and Inspired Entertainment, Inc. (NASDAQ:INSE), are some notable names in the portfolio of Gratia Capital.
9. Party City Holdco Inc. (NYSE:PRTY)
Gratia Capital’s Stake Value: $3.3 million
Percentage of Gratia Capital’s 13F Portfolio: 2.72%
Number of Hedge Fund Holders: 17
Party City Holdco Inc. (NYSE:PRTY) is a manufacturer, designer, and seller of different party supplies throughout the U.S., Canada, and Puerto Rico. The company has two divisions, retail and wholesale.
Among the hedge funds being tracked by Insider Monkey, New York-based firm, CAS Investment Partners is a leading shareholder in Party City Holdco Inc. (NYSE:PRTY) with 15.986 million shares worth $113.5 million.
According to the third quarter filings, Party City Holdco Inc. (NYSE:PRTY) is a new addition to Gratia Capital’s portfolio. The fund owned 460,195 shares of the company worth $3.3 million at the end of the third quarter of 2021.
8. Danaos Corporation (NYSE:DAC)
Gratia Capital’s Stake Value: $3.37 million
Percentage of Gratia Capital’s 13F Portfolio: 2.8%
Number of Hedge Fund Holders: 16
Danaos Corporation (NYSE:DAC) is a transportation company that offers container ships across Australia, Europe, the United States, and Asia. The company has a fleet of more than 50 container ships and is based in Greece.
On November 10, Citi analyst Christian Wetherbee maintained a Neutral rating on Danaos Corporation (NYSE:DAC) stock and raised the price target from $80 to $90.
According to the database of Insider Monkey that tracks 867 hedge funds, 16 funds had stakes in Danaos Corporation (NYSE:DAC) worth $159.04 million in the third quarter, down from 18 funds having stakes in the firm worth $163.3 million in the preceding quarter. Gratia Capital also decreased its activity in the company by 81% in the third quarter.
7. Mistras Group, Inc. (NYSE:MG)
Gratia Capital’s Stake Value: $4.08 million
Percentage of Gratia Capital’s 13F Portfolio: 3.4%
Number of Hedge Fund Holders: 13
Mistras Group, Inc. (NYSE:MG) is a New Jersey-based firm that provides asset protection solutions based on cutting-edge technology all over the globe. Its customers are from industries like oil and gas, aerospace, engineering institutions, public infrastructure, transportation, etc. The company offers further offers services like data management, field inspections, maintenance, consultations, products, and more.
Among the hedge funds tracked by Insider Monkey, Thomas E. Lynch’s Mill Road Capital Management has the most significant stake in Mistras Group, Inc. (NYSE:MG) with 1.17 million shares worth $11.9 million, representing 3.92% of the fund’s portfolio.
As per the third quarter filings of the year, Gratia Capital owned 401,594 shares in Mistras Group, Inc. (NYSE:MG) worth $4.08 million, representing 3.4% of the portfolio.
6. Inspired Entertainment, Inc. (NASDAQ:INSE)
Gratia Capital’s Stake Value: $4.28 million
Percentage of Gratia Capital’s 13F Portfolio: 3.57
Number of Hedge Fund Holders: 17
Inspired Entertainment, Inc. (NASDAQ:INSE) is a New York-based game provider company that offers mobile games, sports, and server-based gaming systems. The customers of the firm are regulated lottery, betting, and gaming operators.
On November 16, Inspired Entertainment, Inc. (NASDAQ:INSE) announced signing a multi-market contract with Novibet to introduce its superior interactive Virtual Sports content.
Among the hedge funds being tracked by Insider Monkey, the New York-based firm, HG Vora Capital Management is the biggest stake holder in Inspired Entertainment, Inc. (NASDAQ:INSE) with 2.7 million shares worth $31.5 million, representing 1.19% of the portfolio.
At the end of the third quarter, 17 hedge funds held stakes in Inspired Entertainment, Inc. (NASDAQ:INSE) worth $123.66 million, down from 23 funds having stakes in the firm worth $121.13 million in the previous quarter.
Inspired Entertainment, Inc. (NASDAQ:INSE) is one of the top picks of Gratia Capital along with ATI Physical Therapy, Inc. (NYSE:ATIP) and Party City Holdco Inc. (NYSE:PRTY).
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Disclosure: None. 10 Stocks to Buy Now According to Steve Pei’s Gratia Capital is originally published on Insider Monkey.
