In this article, we discuss the 5 best stocks to buy now according to Jeffrey Diehl’s Adams Street Partners. If you want to read our detailed analysis of Adams Street Partners’ investment philosophy and its performance, go directly to read 10 Best Stocks to Buy Now According to Jeffrey Diehl’s Adams Street Partners.
05. Icosavax, Inc. (NASDAQ:ICVX)
Adams Street Partners Stake Value: $19.438 million
Percentage of Adams Street Partners 13F Portfolio: 5.06%
Number of Hedge Fund Holders as of Q2 2022: 9
Icosavax, Inc. (NASDAQ:ICVX) was incorporated in 2017 and is based in Seattle, Washington. Icosavax, Inc. (NASDAQ:ICVX) is a biopharmaceutical company that develops vaccines against infectious diseases.
Adams Street Partners initiated its position in Icosavax, Inc. (NASDAQ:ICVX) during Q3, 2021, holding 3.39 million shares worth roughly $19.438 million. The fund has kept a constant share in the stock since then. Hedge fund sentiment around Icosavax, Inc. (NASDAQ:ICVX) has decreased in the second quarter of 2022, with 9 hedge funds long the stock, compared to 12 in Q1 2022.
04. Q2 Holdings, Inc. (NYSE:QTWO)
Adams Street Partners Stake Value: $29.991 million
Percentage of Adams Street Partners 13F Portfolio: 7.8%
Number of Hedge Fund Holders as of Q2 2022: 19
Brett Barakett’s Tremblant Capital held the largest stake of 1.68 million shares in Q2 Holdings, Inc. (NYSE:QTWO) during Q2, worth $64.845 million. On September 12, after the Q2 results, Citi analyst Andrew Schmidt cut his price target for Q2 Holdings, Inc. (NYSE:QTWO) to $63 from $78 and maintained a Buy rating on the shares.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $131.957 million in Q2 Holdings, Inc. (NYSE:QTWO), compared to the same 9 in the preceding quarter but having a worth of $195.910 million.
Artisan Small Cap Fund, in its Q3 2021 investor letter, mentioned Q2 Holdings, Inc. (NYSE: QTWO) and discussed its stance on the firm. Here is what the fund said:
“Among our bottom contributors was Q2 Holdings. Q2 Holdings is a leading provider of secure, cloud-based virtual banking solutions for smaller regional and community banks. Shares have been pressured alongside slowing in the company’s bookings backlog as it faces difficult year-over-year growth comparisons and recovers from an air pocket of bookings caused by delays in bank decision-making during the harshest of pandemic lockdowns. We expect these headwinds to abate over the near-to-intermediate term. We believe several areas of Q2’s business appear lowly penetrated— RCFI regional and community financial institutions—and given recent client wins, a reasonable valuation and an improving selling environment, we are remaining patient.”
03. Vacasa Inc. (NASDAQ:VCSA)
Adams Street Partners Stake Value: $47.600 million
Percentage of Adams Street Partners 13F Portfolio: 12.39%
Number of Hedge Fund Holders as of Q2 2022: 13
Located in Portland, Oregon, Vacasa Inc. (NASDAQ:VCSA) was established in 2009. Vacasa Inc. (NASDAQ:VCSA) manages holiday rentals across Belize, Costa Rica, and North America. Customers can use Vacasa.com and the Vacasa Guest App to browse, find, and reserve the company’s properties.
Silver Lake Partners is bullish on Vacasa Inc. (NASDAQ:VCSA) as of Q2, holding the largest number of its shares among the 895 funds tracked by Insider Monkey. It holds 62.473 million shares of the company worth $179.92 million. Adams Street Partners initiated its position in Vacasa Inc. (NASDAQ:VCSA) during Q4, 2021, by acquiring 16.527 million of its shares worth $47.6 million. The fund’s stake in the stock has remained unchanged since then. Hedge fund sentiment around Vacasa Inc. (NASDAQ:VCSA), however, has decreased in the second quarter of 2022, with 13 hedge funds long the stock, compared to 20 in Q1 2022.
02. Paylocity Holding Corporation (NASDAQ:PCTY)
Adams Street Partners Stake Value: $103.466 million
Percentage of Adams Street Partners 13F Portfolio: 26.93%
Number of Hedge Fund Holders as of Q2 2022: 23
Adams Street Partners is the largest shareholder of Paylocity Holding Corporation (NASDAQ:PCTY) during Q2, holding 593,200 of its shares worth $103.466 million. Adams Street Partners initiated its position in Paylocity Holding Corporation (NASDAQ:PCTY) during Q4, 2015. The fund has gradually decreased its stake in the stock since then, from holding 6.1 million shares in Q4, 2015 to a mere 593,2o0 shares in Q2, 2022.
According to Insider Monkey’s Q2 data, Paylocity Holding Corporation (NASDAQ:PCTY) was found in the public stock portfolios of 23 hedge funds, with collective stakes in the company worth $458.687 million. Paylocity Holding Corporation (NASDAQ:PCTY) was first covered by Citi analyst Steven Enders on September 1, who gave the company a Neutral rating and a $294 price target. The analyst sees a more balanced risk/reward for shares at current prices and some higher risk relative to Paylocity Holding Corporation (NASDAQ:PCTY) end market.
Polen U.S. Small Company Growth Fund, in its Q4 2021 investor letter, mentioned Paylocity Holding Corporation (NASDAQ:PCTY) and discussed its stance on the stock. Here is what the fund said:
“All our Portfolio companies, detractors included, are delivering on our long-term expectations and continue to have compelling growth prospects… We also reduced our position in Paylocity. This was purely a risk management decision, as we are still very positive on each company and its prospects.”
01. Rimini Street, Inc. (NASDAQ:RMNI)
Adams Street Partners Stake Value: $141.628 million
Percentage of Adams Street Partners 13F Portfolio: 36.87%
Number of Hedge Fund Holders as of Q2 2022: 16
Adams Street Partners was holding the largest stake in Rimini Street, Inc. (NASDAQ:RMNI) during Q2 out of the 895 hedge funds tracked by Insider Monkey. It holds 23.56 million shares worth $141.628 million. At the end of the second quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $29.54 million in Rimini Street, Inc. (NASDAQ:RMNI), compared to 15 in the preceding quarter worth $163.46 million.
On September 19, analyst Brian Kinstlinger with Alliance Global Partners cut his price target on Rimini Street, Inc. (NASDAQ:RMNI) from $8.50 to $7 while maintaining a Buy recommendation for the shares. The analyst revised his 2023 revenue and adjusted EBITDA projections because he now anticipates more postponed enterprise decisions over third-party software maintenance. Given the current state of the economy, Kinstlinger informs investors in a research note that the executive management teams’ priority lists are changing.
In its Q1 2022 investor letter, Diamond Hill Small Cap Fund mentioned Rimini Street, Inc. (NASDAQ:RMNI) and explained its insights for the company. Here is what the fund said:
“IT services provider Rimini Street — a new holding in Q1 — reported solid fundamentals and is making progress on rectifying recent challenges with its US sales organization. The company remains profitable and is generating solid cash levels contributing to net cash on its balance sheet. What’s more, the elimination of preferred stock in 2021 demonstrates a management team that’s aligned with common shareholders.”
You can also take a look at 10 Dividend Aristocrats Under $60 You Can Buy in September and 10 Dividend Stocks to Buy According to Bruce Kovner’s Caxton Associates LP.
