This article discusses the top 5 stock picks of Ari Zweiman’s 683 Capital Partners at the end of June 2022. If you want to read about the fund’s recent performance and the changes it made to its portfolio during Q2, please go to 10 Best Stocks to Buy According to Ari Zweiman’s 683 Capital Partners.
5. General Motors Company (NYSE:GM)
683 Capital Partners’ Stake Value: $38,284,000
Percentage of 683 Capital Partners’ 13F Portfolio: 2.7%
Number of Hedge Fund Holders: 75
General Motors Company (NYSE:GM) was the only stock amongst 683 Capital Partners’ top 10 13F holdings in which the fund initiated its stake during the second quarter itself. However, unlike 683 Capital Partners, several other hedge funds tracked by Insider Monkey unloaded their entire stake in the legacy car company during that period. Billionaire Ken Fisher’s Fisher Asset Management and Joshua Pearl’s Hickory Lane Capital Management were among such funds.
In the recently concluded Goldman Sachs’ Communacopia + Technology Conference, the CEO of General Motors Company’s (NYSE:GM) Cruise unit, Kyle Vogt, revealed that Cruise would be launching a revenue-generating rideshare service on its autonomous vehicles in 90 days in two cities – Austin and Phoenix. Mr. Vogt also guided that by 2025 the Cruise unit expects to bring in $1 billion in revenue. On the same day before Mr. Vogt spoke, Marry Barra, CEO of General Motors Company (NYSE:GM), divulged that the car and SUV giant expects to invest $2 billion annually in Cruise.
4. Carvana Co. (NYSE:CVNA)
683 Capital Partners’ Stake Value: $40,645,000
Percentage of 683 Capital Partners’ 13F Portfolio: 2.87%
Number of Hedge Fund Holders: 47
If you had any reservations about following the consensus stock picks of hedge funds and the benefits of doing so, look no further than what has been happening with Carvana Co. (NYSE:CVNA). The stock might have crashed this year – losing almost 90% of its value year-to-date – but smart money started fleeing from it all the way back in early 2021. Among the hedge funds tracked by Insider Monkey, the number of funds with ownership in Carvana Co. (NYSE:CVNA) had declined consecutively every quarter since the first quarter of 2021, when 64 funds disclosed a stake in the company and stood at 47 at the end of June.
The collapse of Carvana Co.’s (NYSE:CVNA) stock price may have made it “grossly undervalued”, according to analysts at Piper Sandler. In a recently released note, they upgraded the stock to ‘Overweight’ from ‘Neutral’ while reducing their price target on it to $73 from $98, which still represents a potential upside of 100%. In their note, the analysts mentioned:
“Before we get to the punchline, please note that yes, we are aware that used vehicle prices are falling. We know that rising interest rates are a risk, and we know that bankruptcy is a real possibility. But CVNA is now 1/10th as valuable as it was 12 months ago, and after running a detailed sensitivity analysis, we think many realistic scenarios suggest that CVNA is grossly undervalued.”
3. Opendoor Technologies Inc. (NASDAQ:OPEN)
683 Capital Partners’ Stake Value: $44,415,000
Percentage of 683 Capital Partners’ 13F Portfolio: 3.13%
Number of Hedge Fund Holders: 39
Opendoor Technologies Inc. (NASDAQ:OPEN) must be finding itself in a problematic predicament as it operates a tech platform that deals in real estate, and stocks from both those industries have been crushed this year. Seen in that context, it is not difficult to explain why Opendoor Technologies Inc.’s (NASDAQ:OPEN) stock is trading down by 70% year-to-date. Opendoor became a publicly traded company in late 2020 through a merger with a SPAC.
After making its debut, the stock more than tripled to over $30 from $10 in a short span but lost most of those gains amid the crash in the broader market at the onset of the COVID-19 pandemic. It again made a recovery and was trading close to the $20 level during the third quarter of 2020 when 683 Capital Partners initiated its stake in the company. Since then, it has only gone downhill as it currently trades below the $5 mark.
Despite its recent performance, most analysts who cover the stock on Wall Street remain bullish on its future trajectory. 9 of the 15 Wall Street analysts covering the stock currently have a ‘Buy’ rating on it with a consensus price target of $13.14, representing a potential upside of a whooping 188% from the stock’s last closing price.
2. IAC/InterActiveCorp (NASDAQ:IAC)
683 Capital Partners’ Stake Value: $46,585,000
Percentage of 683 Capital Partners’ 13F Portfolio: 3.29%
Number of Hedge Fund Holders: 39
While 683 Capital Partners upped their stakes in IAC/InterActiveCorp (NASDAQ:IAC) only slightly by 3% during the second quarter, and the stock of the media company lost 25% of its value during that time, IAC/InterActiveCorp (NASDAQ:IAC) still managed to climb up three spots and became 683 Capital Partners second most loved stock at the end of June.
For its fiscal 2022 second quarter, IAC/InterActiveCorp (NASDAQ:IAC) reported a GAAP per share loss of $10.02 on revenue of $1.36 billion on August 9. Analysts had expected the company to report a per share loss of only $1.64 on revenue of $1.383 billion for that period. Following the earnings release, several analysts on Wall Street reduced their price target on IAC/InterActiveCorp’s (NASDAQ:IAC) stock on August 11. Analysts at both Credit Suisse Group and Cowen reiterated their ‘Outperform’ rating, but the former reduced its price target to $121 from $127, and the latter to $124 from $130.
1. Enova International Inc (NYSE:ENVA)
683 Capital Partners’ Stake Value: $86,460,000
Percentage of 683 Capital Partners’ 13F Portfolio: 6.1%
Number of Hedge Fund Holders: 16
Enova International Inc (NYSE:ENVA) continued to be 683 Capital Partners’ most loved stock at the end of June despite the fund trimming its holdings in the company marginally by 2% during the second quarter. Enova International Inc (NYSE:ENVA) is also the oldest holding among 683 Capital Partners’ top 10 stock picks, with the fund disclosing a stake in the company for the first time during the third quarter of 2015.
Following 683 Capital Partners, the funds tracked by Insider Monkey that reported the largest stake in Enova International Inc (NYSE:ENVA) at the end of June were Michael A. Price And Amos Meron’s Empyrean Capital Partners and billionaire Jim Simons’ Renaissance Technologies. 683 Capital Partners, Empyrean Capital Partners, and Renaissance Technologies held 3 million, 1.12 million and 999,675 shares of the company, respectively.
Enova International Inc (NYSE:ENVA) is a Chicago-based financial technology (Fintech) company founded in 2011. It is one of the largest licensed lenders in the U.S. and is a member of both the Innovative Lending Platform Association (ILPA) and Online Lenders Alliance (OLA). Since its inception, the company has catered to more than 7 million customers providing them with over $40 billion in funding. All of the three analysts on Wall Street who cover the stock currently have a ‘Buy’ rating on it with a consensus price target of $48.67%, representing a potential upside of close to 50% from the stock’s last closing price.
You can also look at 12 Best IPO Stocks To Buy Now and 16 Best Penny Stocks To Buy.
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