In this article, we present the list of 5 mid-cap stocks hedge funds are talking about. If you want to read hedge funds’ comprehensive analysis of five other compelling mid-cap companies, go directly to 10 Mid-Cap Stocks Hedge Funds Are Talking About.
5. Five9, Inc. (NASDAQ:FIVN)
Market Cap as of March 11, 2022: $6.0 billion
Number of Hedge Fund Holders: 56
ClearBridge Investments, an investment management firm, published its “Mid Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. During the first quarter, the ClearBridge Mid Cap Growth Strategy outperformed the benchmark Russell Midcap Growth Index. You can view the fund’s top 5 holdings to have a peek at their top bets for 2022.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned Five9, Inc. (NASDAQ:FIVN), and shared its insights on the company. Five9, Inc. (NASDAQ:FIVN) is a San Ramon, California-based software company that currently has a $6.0 billion market capitalization. Since the beginning of the year, Five9, Inc. (NASDAQ:FIVN) shares have lost 36.37%, while its 12-month losses are 48.12%. As of March 11, 2022, the stock closed at $87.38 per share.
Here is what ClearBridge Investments had to say about Five9, Inc. in its Q1 2021 investor letter:
“Five9, Inc. (NASDAQ:FIVN) is a cloud-based contact center as a service software provider that is replacing aging on-premise legacy solutions that dominate the installed base. Companies are being forced to modernize and cloud penetration is still low; Five9, Inc. (NASDAQ:FIVN) is positioned to benefit and should see further growth driven by its cross-selling add-on modules and an AI product that generates high revenue.”
4. Coupa Software Incorporated (NASDAQ:COUP)
Market Cap as of March 11, 2022: $7.4 billion
Number of Hedge Fund Holders: 59
ClearBridge Investments also published its “Mid Cap Growth Strategy” second quarter 2021 investor letter – a copy of which can be downloaded here. While the ClearBridge Mid Cap Growth Strategy trailed its benchmark in the second quarter, it had a strong performance (+14.9%) and relative success (+445 bps over benchmark) during the first half of 2021. You can take a look at the fund’s top 5 holdings to have an idea about their top bets for 2022.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Coupa Software Incorporated (NASDAQ:COUP) and discussed its stance on the firm. Coupa Software Incorporated is a San Mateo, California-based global technology platform with a $7.4 billion market capitalization. Coupa Software Incorporated (NASDAQ:COUP) shares have crashed by 64.20% over the past 12 months, closing at $99.36 per share on March 11, 2022.
Here is what ClearBridge Investments had to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software Incorporated (NASDAQ:COUP), a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
3. Peloton Interactive, Inc. (NASDAQ:PTON)
Market Cap as of March 11, 2022: $7.4 billion
Number of Hedge Fund Holders: 60
Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A slim loss of 0.72% was recorded by its Investor Class: ARTMX, while a 0.68% dip was recorded by its Advisor Class: APDMX, and a 0.66% drop by its Institutional Class: APHMX, during the fourth quarter of 2021, all underperforming the Russell Midcap® Growth Index, which delivered a 2.85% return, and the Russell Midcap® Index, which was up by 6.44% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Artisan Mid Cap Fund, in its Q4 2021 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ:PTON) and discussed its stance on the firm. Peloton Interactive, Inc. (NASDAQ:PTON) is a New York, New York-based exercise equipment company with a $7.0 billion market capitalization. Peloton Interactive, Inc. (NASDAQ:PTON) shares are 40.88% in the red since the beginning of the year, while its 12-month losses are an unsightly 81.05%. The stock closed at $21.14 per share on March 11, 2022.
Here is what Artisan Mid Cap Fund had to say about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2021 investor letter:
“We ended our campaigns in Peloton Interactive, Inc. (NASDAQ:PTON). Peloton Interactive, Inc. (NASDAQ:PTON) is a connected fitness franchise known for its stationary exercise bikes that provide live and on-demand cycling classes. When we trimmed our position in 1Q21, we believed the stock’s valuation was reflecting relatively aggressive assumptions about post-pandemic membership growth. However, we underestimated just how much growth would slow by midyear. A seemingly slow launch of the new Peloton Interactive, Inc. (NASDAQ:PTON) treadmill combined with meaningful price cuts on the bike are erasing the company’s margin progress of 2020, resulting in meaningful short-term losses. While we remain optimistic about the company’s long-term potential, we harvested our position given the negative profit cycle dynamics.”
2. Elastic N.V. (NYSE:ESTC)
Market Cap as of March 11, 2022: $6.7 billion
Number of Hedge Fund Holders: 60
Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Mid Cap Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Mid-cap stocks overall posted solid gains in the final quarter of 2021. As was the case for the majority of the year, the Russell Midcap® Growth Index (up 2.85%) lagged behind its Russell Midcap® Value Index (up 8.54%) counterpart. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Carillon Eagle Mid Cap Growth Fund, in its Q4 2021 investor letter, mentioned Elastic N.V. (NYSE:ESTC) and discussed its stance on the firm. Elastic N.V. (NYSE:ESTC) is a Mountain View, California-based information technology and data analysis services provider with a $6.7 billion market capitalization. Elastic N.V. (NYSE:ESTC) shares have lost 41.49% return since the beginning of the year, and 38.06% over the past 12 months. The stock closed at $72.02 per share on March 11, 2022.
Here is what Carillon Eagle Mid Cap Growth Fund had to say about Elastic N.V. (NYSE:ESTC) in its Q4 2021 investor letter:
“Elastic N.V. (NYSE:ESTC), a provider of data search technology, with applications including website search and security software management, delivered solid earnings results, with accelerating billings growth and strong new customer additions. While guidance came in above expectations, an overall pullback in enterprise software stocks during the quarter did not leave Elastic unscathed. We believe the company is well positioned to capitalize on cloud adoption, and will increasingly cross-sell software to observe, manage, and secure IT networks.”
1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Market Cap as of March 11, 2022: $8.0 billion
Number of Hedge Fund Holders: 61
Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The fund’s portfolio rose 4.2% (gross), slightly underperforming the Russell 2000 Value’s advance of 4.3%, and somewhat less than the Russell 2500 Value’s gain of 6.3%. Industrials, the sector with the largest allocation at 35.2% of the portfolio, was the largest positive contributor to returns, followed by capital goods holdings. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Bernzott Capital Advisors US Small Cap Value, in its Q4 2021 investor letter, mentioned WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) and discussed its stance on the firm. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is a Phoenix, Arizona-based holding company with an $8.0 billion market capitalization. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) shares are down by 12.19% since the beginning of the year, while their 12-month returns are a positive 29.27%. The stock closed at $35.86 per share on March 11, 2022.
Here is what Bernzott Capital Advisors US Small Cap Value had to say about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in its Q4 2021 investor letter:
“WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC): This modular and portable storage space company posted strong earnings with strong growth in rental rates as it increases penetration of value-added products and services such as units equipped with HVAC, ethernet ports, and plumbing. The company is executing well on the Mobile Mini merger. Cash flow generation continues to be a notable positive.”
You can also take a look at Warren Buffett’s Performance in 2021: 10 Best Stock Picks and 10 ESG Dividend Stocks to Buy.
