Below is the list of 4 top stock picks of billionaire Nicholas J. Pritzker’s Tao Capital. For a comprehensive list and Nicholas J. Pritzker’s investment philosophy and professional background please see Top Stock Picks of Billionaire Nicholas J. Pritzker’s Tao Capital.
4. Tesla, Inc. (NASDAQ:TSLA)
Tao Capital‘s Stake Value: $39 million
Percentage of Tao Capital’s 13F Portfolio: 8.97%
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) has been a member of Nicholas J. Pritzker’s stock portfolio since the final quarter of 2019. Tesla stock price saw staggering gains last year on the back of several factors including deliveries growth, broader move towards electric vehicles along the S&P 500 inclusion. However, its stock price underperformed so far this year amid investors’ shift towards value stocks.
In the third quarter investor letter, Worm Capital LLC, an investment management firm, expressed confidence in Tesla’s performance. Here is what Worm Capital LLC stated:
“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?
The way we see it, Tesla is perhaps the generational example of the marginal gain aggregation theory. It’s also been our largest position for several years now. There are many ways to characterize and value this business (see previous letters for long-form write-ups), but perhaps the best way to think about the company is that it is a highly vertically integrated software and hardware firm that’s devoted entirely to aggregating marginal gains across its organization. The goal? Lower costs, improve thruputs, and dramatically enhance the value proposition—at scale—for consumers…” (Click here to see the full text)
3. Uber Technologies, Inc. (NYSE:UBER)
Tao Capital’s Stake Value: $64million
Percentage of Tao Capital’s 13F Portfolio: 14.78%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) is the third-largest stock holding of billionaire Nicholas J. Pritzker’s portfolio. Lockdowns and social distancing policies negatively impacted its performance last year. Nevertheless, the company bounced back this year, thanks to its diversified revenue base along with vaccine rollout.
Uber Technologies, Inc. (NYSE:UBER) investors should be aware of an increase in enthusiasm from the smart money recently. Uber Technologies, Inc. (NYSE:UBER) was in 135 hedge funds’ portfolios at the end of the second quarter of 2021. There were 130 hedge funds in our database with UBER holdings at the end of March. Our calculations also showed that UBER ranked 11th among the 30 most popular stocks among hedge funds (click for Q2 rankings).
2. Twist Bioscience Corporation (NASDAQ:TWST)
Tao Capital’s Stake Value: $110 million
Percentage of Tao Capital’s 13F Portfolio: 25.34%
Number of Hedge Fund Holders: 23
The dip in Twist Bioscience Corporation’s (NASDAQ:TWST) stock price is presenting a buying opportunity amid expectations for robust revenue performance in quarters ahead. The company expects 2021 revenue in the range of $129M-$132M compared to the consensus estimate of $127.59M. On the negative side, the company is struggling to generate positive net income.
Baron Funds, an asset management firm, highlighted confidence in Twist Bioscience Corporation (NASDAQ:TWST) in the second quarter investor letter. Here is what Baron Funds stated:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
1. Ouster, Inc. (NYSE:OUST)
Tao Capital’s Stake Value: $140 million
Percentage of Tao Capital’s 13F Portfolio: 32%
Number of Hedge Fund Holders: 14
Technology company, Ouster, Inc. (NYSE:OUST) is the largest stock holding of billionaire Nicholas J. Pritzker’s 13F stock portfolio, according to the second-quarter filings. Lidar company Ouster serves industrial, robotics, smart infrastructure, and automotive industries. The company generated 71% year-over-year revenue growth in the latest quarter and expects to extend the momentum in the quarters ahead.
The number of bullish hedge fund bets declined by 5 recently. Ouster, Inc. (NYSE:OUST) was in 14 hedge funds’ portfolios at the end of June compared to 19 positions in the previous quarter.
You can also take a look at Bill Gates’ 10 Dividend Stocks and 10 Best 3D Printing Stocks To Buy.
