In this article, we discuss the 10 stocks to invest in according to Malcolm Levine’s Dendur Capital based on Q3 holdings of the fund. If you want to skip our detailed analysis of Levine’s history, investment philosophy, and hedge fund performance, go directly to the 5 Stocks to Invest in According to Malcolm Levine’s Dendur Capital.
Mr. Malcolm A. Levine is a Partner at Dendur Capital and also the fund’s Chief Investment Officer. In 2004, Mr. Levine graduated from Stanford University with a BA in International Relations. From 2004 until 2006, he worked in the Financial Sponsors Group of Credit Suisse First Boston’s investment banking business. From 2006 until 2011, Mr. Levine worked at Apollo Management.
Dendur Capital tries to profit from short- and medium-term market inefficiencies by using a fundamental approach to investing in stocks and bonds worldwide, emphasizing North America and Europe. In the third quarter, Dendur Capital added seven new stocks to its portfolio and increased its positions in four existing holdings. Consequently, in the third quarter of 2021, the hedge fund’s 13F public stock portfolio was valued at $667.96 million, with an 85.79% concentration of top 10 holdings.
As of the third quarter of 2021, Dendur Capital has stakes in several big companies, including Analog Devices, Inc. (NASDAQ:ADI), Centene Corporation (NYSE:CNC), and Lennar Corporation (NYSE:LEN).
With this background in mind, let’s start our list of 10 stocks to invest in according to Malcolm Levine’s Dendur Capital. We used Levine’s 13F portfolio for Q3 2021 for this analysis.
Stocks to Invest in According to Malcolm Levine’s Dendur Capital
10. Playa Hotels & Resorts N.V. (NASDAQ:PLYA)
Dendur Capital Stake Value: $21,369,000
Percentage of Dendur Capital’s 13F Portfolio: 3.19%
Number of Hedge Fund Holders: 26
Playa Hotels & Resorts N.V. (NASDAQ:PLYA) is a company that constructs and manages resorts. The company provides services such as accommodation, entertainment, meetings, events, and other hospitality services. Rubric Capital Management owns 10.42 million shares of Playa Hotels & Resorts N.V. (NASDAQ:PLYA), worth over $86.38 million.
Playa Hotels & Resorts N.V. (NASDAQ:PLYA) posted earnings for the third quarter on November 3, reporting revenue of close to $151.28 million, up 426.4% compared to the revenue over the same period last year and beating expectations by $9.31 million.
In the third quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $395.38 million in Playa Hotels & Resorts N.V. (NASDAQ:PLYA), down from 31 the preceding quarter worth $324.66 million.
9. Caesars Entertainment, Inc. (NASDAQ:CZR)
Dendur Capital Stake Value: $22,686,000
Percentage of Dendur Capital’s 13F Portfolio: 3.39%
Number of Hedge Fund Holders: 64
Caesars Entertainment, Inc. (NASDAQ:CZR) is an American hotel and casino entertainment corporation. On November 29, Deutsche Bank analyst Carlo Santarelli trimmed his price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $130 from $132 and kept a “Buy” rating on the shares. In addition, the analyst lowered his Q4 gaming forecasts due to weaker-than-expected October revenue patterns.
Caesars Entertainment, Inc. (NASDAQ:CZR) released its quarterly earnings report for the third quarter of 2021 on November 2, with earnings per share of -$1.10, missing market estimates by $1.17.
In the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $1.88 billion in Caesars Entertainment, Inc. (NASDAQ:CZR), down from 73 in the preceding quarter worth $1.84 billion.
8. Uber Technologies, Inc. (NYSE:UBER)
Dendur Capital Stake Value: $22,965,000
Percentage of Dendur Capital’s 13F Portfolio: 3.43%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is a San Francisco-based mobility service company that operates in over 900 cities worldwide.
UBS analyst Lloyd Walmsley initiated coverage of Uber Technologies, Inc. (NYSE:UBER) on December 2, rating the stock as “Buy” with a price target of $80.00.
Overall, hedge funds are loading up on Uber Technologies, Inc. (NYSE:UBER), as 143 out of the 867 funds tracked by Insider Monkey held stakes in the company in Q3, compared to 135 funds a quarter earlier.
RiverPark Funds mentioned Uber Technologies, Inc. (NYSE:UBER) in its second-quarter 2021 investor letter. Here is what the fund said:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
7. eHealth, Inc. (NASDAQ:EHTH)
Dendur Capital Stake Value: $25,204,000
Percentage of Dendur Capital’s 13F Portfolio: 3.77%
Number of Hedge Fund Holders: 24
eHealth, Inc. (NASDAQ:EHTH) provides individuals, families, and small companies with internet-based health insurance agency services. Jeffrey Smith’s Starboard Value LP is eHealth, Inc.’s (NASDAQ:EHTH) most significant stakeholder, with 2.05 million shares worth $82.95 million.
On November 29, Deutsche Bank analyst George Hill trimmed his price target on eHealth, Inc. (NASDAQ:EHTH) to $19 from $86 and maintained a “Hold” rating on the shares. In a research note, Hill writes to investors that eHealth, Inc.’s (NASDAQ:EHTH) Q3 results were disappointing owing to a slowdown in Medicare Advantage conversion and enrollment.
In the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $296.38 million in eHealth, Inc. (NASDAQ:EHTH), the same as in the preceding quarter worth $378.80 million.
6. Criteo S.A. (NASDAQ:CRTO)
Dendur Capital Stake Value: $32,325,000
Percentage of Dendur Capital’s 13F Portfolio: 4.83%
Number of Hedge Fund Holders: 13
Criteo S.A. (NASDAQ:CRTO) is a digital performance marketing technology firm with a global presence.
Dendur Capital started building its position in Criteo S.A. (NASDAQ:CRTO) in the first quarter of 2021 and currently holds 881,988 shares in the company, valued at $32.33 million. Criteo S.A. (NASDAQ:CRTO) represents 4.83% of the hedge fund’s 13F portfolio.
There were 13 hedge funds in our database that held stakes in Criteo S.A. (NASDAQ:CRTO) in the third quarter of 2021, compared to 16 funds in the preceding quarter.
Along with Analog Devices, Inc. (NASDAQ:ADI), Centene Corporation (NYSE:CNC), and Lennar Corporation (NYSE:LEN), Criteo S.A. (NASDAQ:CRTO) is one of stocks to invest in according to Malcolm Levine’s Dendur Capital.
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Disclosure: None. 10 Stocks to Invest in According to Malcolm Levine’s Dendur Capital is originally published on Insider Monkey.
