5 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management

2. Alphabet Inc. (NASDAQ:GOOG)

PEAK6 Capital Management’s Stake Value: $68,182,000
Percentage of PEAK6 Capital Management’s Portfolio: 0.14%
Number of Hedge Fund Holders: 160

Alphabet Inc. (NASDAQ:GOOG) is a technology company located in California. In the United States, the Middle East, Africa, Europe, Asia-Pacific, Canada, and Latin America, it offers a variety of products and platforms. Another stock that PEAK6 Capital Management added to its portfolio in the first quarter was Alphabet Inc. (NASDAQ:GOOG), where the hedge fund owner purchased 24,514 shares. On June 6, Gevo, Inc. (NASDAQ:GEVO) announced a partnership with Alphabet Inc. (NASDAQ:GOOG) Cloud to evaluate and verify the performance of next-generation biofuels across the supply chain using full lifecycle sustainability data tracking.

On June 2, Piper Sandler analyst Thomas Champion cut his price target on Alphabet Inc. (NASDAQ:GOOG) from $2,900 to $2,775 while maintaining his Overweight rating. Group multiples, according to the analyst, will not re-rate until ad spend growth has reached a bottom. In the online industry, Champion slashed estimates across the board.

Chris Hohn’s TCI Fund Management owned a $6.62 billion stake in Alphabet Inc. (NASDAQ:GOOG), becoming its largest shareholder in Q1 2022. In addition, 160 hedge funds tracked by Insider Monkey were bullish on Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter of 2022, up from 158 funds in the earlier quarter. Hedge funds’ investments in these companies have a total value of approximately $29.68 billion as of Q1 2022, down from $36.63 billion in Q4 2021.

In its Q4 2021 investor letter, Vulcan Value Partners highlighted a few stocks, and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet Inc. (NASDAQ:GOOG), performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet Inc. (NASDAQ:GOOG) (Google) again with a margin of safety.”