In this article, we will look at the top 10 stocks to invest in according to Victor Ho’s Yarra Square Partners. If you want to skip our detailed analysis of Victor Ho’s Yarra Square Partners, then head on over to 5 Stocks to Invest in According to Victor Ho’s Yarra Square Partners.
Yarra Square Partners is an American investment firm that focuses on investing in stocks after conducting in-depth, bottom-up research. The firm was founded by its portfolio manager Mr. Victor Ho in 2016, and it was formerly known as Sutton Square. Therefore, when compared to some of the large hedge funds out there, Yarra Square is a younger firm.
Its founder Mr. Ho is a graduate of the Harvard Business School, where he received his Master’s in Business Administration (MBA) in 2002. Since then, he has spent his time in the financial industry and worked at several different companies. He started his post-MBA career in Castle Haran as an associate, a role in which he worked for 3 years. Then, in 2005, he joined Och-Ziff Capital Management as an analyst, and departed in 2007, joining Conatus Capital as a managing director. Mr. Ho then spent nine years at the firm before going on to set up Yarra Square.
When we look at Yarra Square’s portfolio size, it appears modest as compared to some of the large hedge funds who often have holdings in billions of dollars. As opposed to this, Yarra Square manages a portfolio worth $117 million and while its investments are concentrated primarily in the technology industry, it also targets other sectors such as hospitality.
Some of Yarra Square’s largest holdings are in Amazon.com, Inc. (NASDAQ:AMZN), Liberty Broadband Corporation (NASDAQ:LBRDA) and Marriott Vacations Worldwide Corporation (NYSE:VAC).
Our Methodology
In order to determine which stocks are on Victor Ho and Yarra Square’s radar, we took a look at the investment firm’s 13-F filings with the Securities and Exchange Commission (SEC) for the second quarter. This enabled us to sift out which stocks are his favorite.
Why pay attention to hedge fund holdings? 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 more than 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 Invest in According to Victor Ho’s Yarra Square Partners
10. Freeport-McMoRan Inc. (NYSE:FCX)
Mr. Ho’s Stake Value: $4.8 million
Percentage of Mr. Ho’s 13F Portfolio: 4.13%
Number of Hedge Fund Holders: 76
Freeport-McMoRan Inc. (NYSE:FCX) is an American company that focuses on mining minerals, meta, and petroleum products. Its operations are based in North and South America and in Indonesia. Some of the products that it mines include metals such as copper, gold, and silver, with oil and gas also making the cut.
Mr. Ho’s Yarra Square held 131,292 shares of Freeport-McMoRan Inc. (NYSE:FCX) by the close of the second quarter of this year. These were worth $4.8 million and represented 4.13% of the overall portfolio. During the same time period, 76 of the 873 hedge funds polled by Insider Monkey had held a stake in the company.
Freeport-McMoRan Inc. (NYSE:FCX)’s largest shareholder is Ken Fisher’s Fisher Asset Management who owned 46 million shares worth $1.5 billion by the end of the third quarter of 2021.
Freeport-McMoRan Inc. (NYSE:FCX) joins Mr. Ho’s top stock picks, with the others being Amazon.com, Inc. (NASDAQ:AMZN), Liberty Broadband Corporation (NASDAQ:LBRDA) and Marriott Vacations Worldwide Corporation (NYSE:VAC).
9. McAfee Corp. (NASDAQ:MCFE)
Mr. Ho’s Stake Value: $6.5 million
Percentage of Mr. Ho’s 13F Portfolio: 5.53%
Number of Hedge Fund Holders: 18
McAfee Corp. (NASDAQ:MCFE) is an American software services provider that is well known for its computer protection software.
Mr. Ho’s Yarra Square held 232,600 McAfee Corp. (NASDAQ:MCFE) shares by the end of the second quarter, which was a new position for the firm. This stake was worth $6.5 million and represented 5.53% of Yarra Square’s portfolio. During the same time period, 18 of the 873 hedge funds polled by Insider Monkey held a stake in McAfee Corp. (NASDAQ:MCFE).
McAfee Corp. (NASDAQ:MCFE)’s largest shareholder is Peter S. Park’s Park West Asset Management who holds 1.3 million shares worth $36 million.
8. XPO Logistics, Inc. (NYSE:XPO)
Mr. Ho’s Stake Value: $6.6 million
Percentage of Mr. Ho’s 13F Portfolio: 5.6%
Number of Hedge Fund Holders: 18
XPO Logistics, Inc. (NYSE:XPO) is a transportation and logistics provider that is headquartered in Greenwich, Connecticut. It offers services to freight carriers and also enables its customers to find the right companies for their shipping needs. Additionally, the company also offers warehousing and other services.
Mr. Ho’s Yarra Square held 47,162 shares of XPO Logistics, Inc. (NYSE:XPO) during the second quarter of this year, in a stake that equaled $6.5 million and represented 18% of the overall portfolio. During the same time, 18 of the 873 hedge funds polled by Insider Monkey had holdings in the logistics company.
XPO Logistics, Inc. (NYSE:XPO)’s largest shareholder is William B. Gray’s Orbis Investment Management who owns $1.5 billion of equity through 11 million shares.
7. Vroom, Inc. (NASDAQ:VRM)
Mr. Ho’s Stake Value: $6.8 million
Percentage of Mr. Ho’s 13F Portfolio: 5.77%
Number of Hedge Fund Holders: 21
Vroom, Inc. (NASDAQ:VRM) is an American company that provides its customers with a platform for selling used cars. It is headquartered in New York, New York and in addition to its platform, it also provides financing services.
Vroom, Inc. (NASDAQ:VRM) is a part Mr. Ho’s elite stock picks, with others being Marriott Vacations Worldwide Corporation (NYSE:VAC), Amazon.com, Inc. (NASDAQ:AMZN) and Liberty Broadband Corporation (NASDAQ:LBRDA).
Mr. Ho and his investment firm held 162,546 Vroom, Inc. (NASDAQ:VRM) shares during the second quarter, in a stake worth $6.8 million and representing 5.77% of Yarra Square’s portfolio. During the same time, 21 of the 873 hedge funds polled by Insider Monkey had invested in the company.
Vroom, Inc. (NASDAQ:VRM)’s largest shareholder is Bill Miller’s Miller Value Partners, which owns 2.5 million shares worth $106 million.
6. ServiceNow, Inc. (NYSE:NOW)
Mr. Ho’s Stake Value: $6.81 million
Percentage of Mr. Ho’s 13F Portfolio: 5.9%
Number of Hedge Fund Holders: 91
ServiceNow, Inc. (NYSE:NOW) is an enterprise cloud software services provider that is headquartered in Santa Clara, California and was founded in 2004. Its platform automates services for customers and allows them to utilize artificial intelligence and machine learning for their requirements.
Mr. Ho’s Yarra Square held 12,468 ServiceNow, Inc. (NYSE:NOW) shares in the second quarter of this year, which were worth $6.8 million and represented 5.8% of the investment company’s portfolio. Similarly, in the second quarter, out of 873 hedge funds polled by Insider Monkey, 91 had held a stake in the company.
Oppenheimer raised the company’s price target to $775 in an October 2021 investor note, outlining that strong spending estimates and a good customer base will serve the company well.
Alexander Becker’s Codex Capital is ServiceNow, Inc. (NYSE:NOW)’s biggest investor, with a stake of $5.4 billion through 9,850 shares
In its first-quarter 2021 investor letter, Palm Capital mentioned ServiceNow, Inc. (NYSE:NOW) and stated that:
“ServiceNow is run by a highly rated management team. Its founder is still Chairman. And while its CEO and CFO have recently changed, the new CEO, Bill McDermott left enterprise software titan, SAP, to join the company. Furthermore, the company has substantial management depth.
The company has a net cash position of $1.5b on its balance sheet and generated $1b of free cashflow in 2020 that we expect to grow above 20% per annum over the next five years. Based on the price we paid for the business, we expect to earn more than 8% per annum in US$ from our investment and it is the type of business we would like to own for a long time.”
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Disclosure. None. 10 Stocks to Invest in According to Victor Ho’s Yarra Square Partners is originally published on Insider Monkey.
