5 Best Investments of Billionaire Peter Thiel

3. Palantir Technologies Inc. (NYSE: PLTR)

Number of Hedge Fund Holders: 32 

Palantir Technologies Inc. (NYSE: PLTR) is a software company that focuses on big data analytics. Thiel was one of the founding members of the company and helped it to a public listing in September 2020. The firm was valued at close to $20 billion on the first day of trading. However, it has since climbed to more than $45 billion in market capitalization. Regulatory filings reveal that Founders Fund owned a 17.7% stake in the firm before the IPO. News platform Forbes estimated that Thiel directly owned an 8% stake in the firm worth close to $2 billion.

Palantir Technologies Inc. (NYSE: PLTR) is placed third on our list of 10 best investments of billionaire Peter Thiel. The company’s shares have returned more than 22% to investors over the past month. 

At the end of the fourth quarter of 2020, 32 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Palantir Technologies Inc. (NYSE: PLTR), down from 38 in the preceding quarter worth $1.9 billion. 

In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE: PLTR) was one of them. Here is what the fund said:

“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”