In this article, we discuss 4 best stocks to buy according to billionaire Nicholas J. Pritzker. If you want to read our detailed analysis of Nicholas J. Pritzker’s history and hedge fund performance, go directly to 8 Best Stocks to Buy According to Billionaire Nicholas J. Pritzker.
4. Tesla, Inc. (NASDAQ: TSLA)
Pritzker’s Stake Value: $38,406,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 11.09%
Number of Hedge Fund Holders: 62
Tesla, Inc. (NASDAQ: TSLA) develops, manufactures, rents, and sells electric automobiles, as well as energy generation and storage solutions. Tesla, Inc. was founded in 2003 and is placed fourth on the list of 10 best stocks to buy according to billionaire Nicholas J. Pritzker. The stock has offered investors more than 140.62% in returns over the course of the past twelve months.
On July 21, BHP Group (NYSE: BHP) inked an agreement to supply Tesla (NASDAQ: TSLA) with nickel from its Nickel West facilities in Western Australia. Nickel is a critical metal used to create electric vehicle batteries.
Tao Capital holds 57,500 shares in Tesla, Inc. (NASDAQ: TSLA), worth over $38 million. This represents 11.09% of their portfolio. The hedge fund’s stake in Tesla stock decreased by 56% in the past few months, the latest data reveals.
Baillie Gifford, in its second-quarter 2021 investor letter, mentioned Tesla, Inc. (NASDAQ: TSLA). Here is what the fund said:
“As many countries enjoy a relaxation of Covid restrictions, Mr Market is focussed on short-term beneficiaries of ‘the pleasure after the plague’. There are
interesting parallels with the Roaring 20s here, but to our minds, they extend beyond post-pandemic hedonism. Much of the new wealth created in the 1920s was patchily distributed and accompanied by a pervasive sense that the older generation had let down younger people. In 1920, John F. Carter, an irate 23-year-old wrote “the older generation had certainly pretty well ruined this world before passing it on to us. We have been forced to live in an atmosphere of ‘tomorrow we die,’ and so, naturally, we drank and were merry.”
In the field of energy meanwhile, Tesla has begun a pioneering shift away from using cobalt within its batteries. Its lithium iron phosphate (LFP) technology (already used in flagship energy storage products) could underpin not just the automotive ambitions but also the ramp up of Tesla’s grid-scale energy storage offering which will be key to accelerating the demise of dirty peaker plants.”
3. Uber Technologies, Inc. (NYSE: UBER)
Pritzker’s Stake Value: $68,785,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 19.86%
Number of Hedge Fund Holders: 130
Uber Technologies, Inc. (NYSE: UBER) develops and operates unique technological applications. The company was founded in 2009 and stands third on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. The shares of Uber surged 34.59% in the past 12 months.
On July 28, Uber (NYSE: UBER) and FTD announced an exclusive agreement to deliver on-demand flowers to Uber and Uber Eats customers across the United States. Uber’s collaboration with FTD is part of the company’s effort to expand its on-demand offerings beyond ride-sharing.
The hedge fund chaired by Nicholas J. Pritzker holds 1.26 million shares in Uber (NYSE: UBER) worth over $68 million. Tao Capital’s stake in Uber shares decreased by 40% in the past few months. Out of the hedge funds being tracked by Insider Monkey, Broad Peak Investment Holdings is a leading shareholder in Uber with 2.58 million shares worth more than $129 million. Based on our calculations, Uber (NYSE: UBER) ranks 11th in our list of the 30 Most Popular Stocks Among Hedge Funds.
RiverPark Advisors, LLC, in its quarter-four 2020 investor letter, mentioned Uber (NYSE: UBER). Here is what the fund has to say about Uber in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third-quarter results with Delivery Gross Bookings growing 135% year-over-year, which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride-sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of 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 on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
2. Ouster, Inc. (NYSE: OUST)
Pritzker’s Stake Value: $95,652,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 27.62%
Number of Hedge Fund Holders: 19
Ouster, Inc. (NYSE: OUST) creates digital lidar sensors for applications in industrial automation, smart infrastructure, robotics, and automobiles. The company was founded in 2015 and ranks second on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. Ouster currently has a $1.6 billion market capitalization.
On June 8, PARIFEX, a leading solution provider in project management for smart cities, struck a deal with Ouster to install Ouster’s OS1 sensors on speed enforcement and data gathering systems across France. With a projected supply need of 500 sensors through 2025, Ouster has agreed to be the exclusive lidar provider for PARIFEX’s ETU Project. On May 5, Barclays analyst Blayne Curtis initiated coverage on Ouster with an “Overweight” rating and price target of $14.
Ouster, Inc. (NYSE: OUST) is the latest addition in billionaire Nicholas J. Pritzker’s hedge fund portfolio, as Tao Capital bought 11.25 shares of the company, worth $95.65 million. Hedge funds are loading up on Ouster, as Insider Monkey’s data shows that 19 hedge funds held stakes in the company as of the end of the first quarter of 2021.
1. Twist Bioscience Corporation (NASDAQ: TWST)
Pritzker’s Stake Value: $102,658,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 29.64%
Number of Hedge Fund Holders: 24
Twist Bioscience Corporation (NASDAQ: TWST) is a synthetic biology company that creates and sells synthetic DNA products headquartered in South San Francisco, California. The company was founded in 2013 and is placed first on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker.
On June 29, William Blair analyst Matt Larew initiated a coverage on Twist Bioscience with an “Outperform” rating. On June 14, Twist Bioscience Corporation (NASDAQ: TWST) made public its partnership with Regeneron Genetics Center, a Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) company, to develop a unique next-generation sequencing population genetics genotyping test. The assay intends to help researchers learn more about disease causes, find new medication targets, and speed up drug development.
Tao Capital holds 828,815 shares in Twist Bioscience Corporation (NASDAQ: TWST), worth over $102 million, representing 29.64% of their portfolio. The hedge fund has trimmed stakes in the firm by 25% in the past few months. At the end of the first quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.115 billion in Twist Bioscience, up from 23 the preceding quarter worth $1.39 billion.
Perpetual Limited, in its second-quarter 2021 investor letter, mentioned Twist Bioscience Corporation (NASDAQ: TWST). Here is what the fund said:
“Twist Bioscience was the second biggest contributor during the quarter and the biggest contributor over the financial year. This was a position we actually exited in the March quarter at $192.50, a price we felt didn’t offer compelling value. We were lucky that Twist got caught up in the broader sell-off of high growth stocks earlier this year, giving us the opportunity to re-enter the position in May and June at an average price of $97.61. Often volatility works in your favour if you’re an active investor with the capability to act on the new opportunities being created by the market every day.
While Twist was the biggest contributor to fund performance over the year, it contributed just 12% of the fund’s return, with 88% of the fund’s return coming from other stocks. This is by design as what we’re aiming to do is build a portfolio containing a large number of high-returning but hopefully uncorrelated ideas. We think this is the best way to build a portfolio that’s both high-returning and resilient.”
You can also take a peek at 10 Best Stocks to Buy According to Billionaire Steve Cohen and 10 Best Dividend Stocks to Buy According to Billionaire Michael Price
