In this piece, we will take a look at the top ten stocks to invest in according to Jamie Zimmerman’s Litespeed Capital. If you want to skip the details about Ms. Zimmrman and her hedge fund and want to take a look only at the top five stocks in this list, then head on over to 5 Stocks To Invest In According To Jamie Zimmerman’s Litespeed Capital.
Litespeed Management is an American hedge fund based out of New York, United States. It is one of the few hedge funds out there that has a female executive at its helm of affairs. The firm was founded by and is also run by Ms. Jamie Zimmerman.
Like several other hedge fund managers out there, Ms. Zimmerman also has an educational background in the humanities, as opposed to the financial sector. The executive received her Bachelor’s in Arts from Amherst College in 1981, following which she would go on to pursue a career in the legal world. After graduation, Ms. Zimmerman took up the role of a clerk for a judge in a Federal Bankruptcy Court in New York. After working in the role for a year, she would go on to become a second-year associate in the law firm LeBoeuf Lamb Leiby & MacRae. She also has a Juris Doctorate from the University of Michigan’s law school and a Master’s degree in English Literature from UoM’s Horace Rackham Graduate School.
Her stint in the financial world started in 1988 when she worked at the firm Dillion Reach & Co. as a risk arbitrator for two years. Following this, she joined the famed research firm Oppenheimer, to work in its distressed debt security department, which involves analyzing the borrowings of financially struggling firms. Ms. Zimmerman worked at Oppenheimer for seven years, from 1990 to 1997, after which she would go on to become the head of distressed debt research at the Toronto-Dominion bank, leaving the role in 2000 to create Litespeed Management in the latter half of the year.
Her investment firm is known for conducting fundamental research on firms that can be described as having bitten off more than they could chew. This builds upon Ms. Zimmerman’s experience in distressed debt. The firm’s research work involves taking a look at both the acquirer and the acquiree.
Some of the large and well-known holdings in Litespeed Management’s portfolio are investments in AMC Networks Inc. (NASDAQ:AMCX), Houghton Mifflin Harcourt Company (NASDAQ:HMHC), and Pitney Bowes Inc. (NYSE:PBI). When compared to other heavy-hitting hedge funds, Ms. Zimmerman’s investment firm has a relatively modest portfolio that was worth $90 million as of the third quarter of last year.
Our Methodology
In order to decipher the inner workings of Ms. Zimmerman’s mind, we took a look at Litespeed Management’s 13F filings with the Securities and Exchange Commission for Q3 2021. This enabled us to find out her top ten investments, and these selected companies were then analyzed through their quarterly earnings, investor letters, analyst coverage and overall hedge fund sentiment gleaned through an Insider Monkey survey of 867 funds for Q3 2021.
10 Stocks To Invest In According To Jamie Zimmerman’s Litespeed Capital
10. Macquarie Infrastructure Holdings, LLC (NYSE:MIC)
Litespeed Capital Management’s Stake Value: $2.38 million
Percentage of Litespeed Capital Management’s 13F Portfolio: 2.62%
Number of Hedge Fund Holders: 23
Macquarie Infrastructure Holdings, LLC (NYSE:MIC) is an infrastructure and related services investor that targets all kinds of customers, which include governments, corporations, and private entities. The company targets the aviation and energy sectors, by providing aircraft hangers, natural gas, and other products and services.
As Q3 2021 came to an end, Ms. Zimmerman’s investment firm had held a stake of $2.38 million in the infrastructure firm. This came through owning 58,779 shares and represented 2.62% of its portfolio. During the same time period, an Insider Monkey poll of 867 hedge funds revealed that 23 also held shares of Macquarie Infrastructure Holdings, LLC (NYSE:MIC).
Macquarie Infrastructure Holdings, LLC (NYSE:MIC)’s largest investor is Thomas Steyer’s Farallon Capital which owns 4.3 million shares worth $176 million.
Macquarie Infrastructure Holdings, LLC (NYSE:MIC) joins Houghton Mifflin Harcourt Company (NASDAQ:HMHC), AMC Networks Inc. (NASDAQ:AMCX) and Pitney Bowes Inc. (NYSE:PBI) in the list of Jamie Zimmerman’s favorite stocks.
9. Turtle Beach Corporation (NASDAQ:HEAR)
Litespeed Capital Management’s Stake Value: $5.32 million
Percentage of Litespeed Capital Management’s 13F Portfolio: 5.87%
Number of Hedge Fund Holders: 15
Turtle Beach Corporation (NASDAQ:HEAR) is an entertainment technology products provider which targets the audio segment by providing products such as gaming headsets for a wide variety of consumer electronics devices. The company is headquartered in White Plains, New York.
Litespeed Capital Management held 191,465 Turtle Beach Corporation (NASDAQ:HEAR) shares which were worth $5.32 million and represented 5.87% of its portfolio during the third quarter of last year. An Insider Monkey Q3 2021 survey of 867 hedge funds indicated that 15 had owned the company’s shares.
Lake Street lowered the company’s price target to $32 from $40 in January 2022, highlighting that the video gaming market had performed weaker than expected, and that future headwinds might impact the headset company’s revenue.
Turtle Beach Corporation (NASDAQ:HEAR)’s largest investor according to Insider Monkey’s data is Raymond J. Harbert’s investment firm Harbert Management. It has a stake of $16.2 million through owning 585,816 shares.
8. W&T Offshore, Inc. (NYSE:WTI)
Litespeed Capital Management’s Stake Value: $5.33 million
Percentage of Litespeed Capital Management’s 13F Portfolio: 5.87%
Number of Hedge Fund Holders: 17
W&T Offshore, Inc. (NYSE:WTI) is a Texas-based company that develops natural gas exploration fields. It also sells crude oil and natural gas alongside having access to millions of barrels of proven reserves.
During the third quarter of last year, Ms. Zimmerman’s Litespeed Capital owned 1.4 million W&T Offshore, Inc. (NYSE:WTI) shares. These were worth $5.33 million and made up 5.87% of its portfolio. Insider Monkey’s survey of 867 hedge funds for last year’s Q3 outlined that 17 owned stakes in the oil company.
Israel Englander’s Millennium Management is W&T Offshore, Inc. (NYSE:WTI)’s largest investor. It owns a $6 million stake through holding 1.6 million shares.
7. AMC Networks Inc. (NASDAQ:AMCX)
Litespeed Capital Management’s Stake Value: $7.16 million
Percentage of Litespeed Capital Management’s 13F Portfolio: 7.89%
Number of Hedge Fund Holders: 24
AMC Networks Inc. (NASDAQ:AMCX) is a television channel owner that has several platforms in the United States and globally. Some of the channels that it owns include AMC and BBC AMERICA.
Macquarie lowered the company’s price target to $42 from $57 in December 2021, citing worries about the impact of the competition in global video streaming.
For Q3 2021, Ms. Zimmerman’s investment firm owned 153,764 AMC Networks Inc. (NASDAQ:AMCX) shares which represented 7.89% of its portfolio through a $7.16 million stake. 24 of 867 hedge funds part of Insider Monkey’s research in the third quarter of 2021 also held the company’s shares.
AMC Networks Inc. (NASDAQ:AMCX)’s largest investor is Stephen Mildenhall’s Contrarius Investment Management which owns 1.97 million shares worth $92 million.
ClearBridge Investments mentioned AMC Networks Inc. (NASDAQ:AMCX) in its first quarter 2021 investor letter. The hedge fund outlined that:
“Media has been another bright spot for the Strategy, boosted by the return of live events and subsequent rebound in advertising as well as good initial traction for several of our companies new streaming services. AMC Networks has seen strong initial subscriber growth to their over-the-top services.”
6. NeoPhotonics Corporation (NYSE:NPTN)
Litespeed Capital Management’s Stake Value: $7.17 million
Percentage of Litespeed Capital Management’s 13F Portfolio: 7.9%
Number of Hedge Fund Holders: 17
NeoPhotonics Corporation (NYSE:NPTN) is an enterprise technology product provider which sells only to companies. Its products allow large-scale data centers and telecommunications network providers to operate their systems via high-speed data transmission over thousands of kilometers. Lumentum (NASDAQ: LITE), another optical and photonics equipment manufacturer, is set to acquire NeoPhotonics Corporation (NYSE:NPTN) in the second half of this year.
Litespeed Capital’s stake in NeoPhotonics Corporation (NYSE:NPTN) equaled $7.17 million for Q3 2021. During this period, Ms. Zimmerman’s investment firm had owned 823,000 shares of the company, and the investment constituted 7.9% of its portfolio. Insider Monkey’s Q3 2021 survey of 867 hedge funds revealed that 17 had also owned the company’s shares.
Northland downgraded the company to Market Perform in November 2021, sharing optimism about the Lumentum acquisition. The firm also kept a $16 price target for the company.
Jim Simons’ Renaissance Technologies is NeoPhotonics Corporation (NYSE:NPTN)’s largest investor, through a $17 million stake by owning 1.9 million shares.
Pitney Bowes Inc. (NYSE:PBI), Houghton Mifflin Harcourt Company (NASDAQ:HMHC), and AMC Networks Inc. (NASDAQ:AMCX) are met by NeoPhotonics Corporation (NYSE:NPTN) in the list of Ms. Zimmerman’s top stock picks.
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Disclosure: None. 10 Stocks To Invest In According To Jamie Zimmerman’s Litespeed Capital is originally published on Insider Monkey.
