In this article, we will discuss 5 stocks to buy according to Robert W. Koehn’s Ivy Lane Capital. If you want to read our detailed analysis of Koehn’s history, investment philosophy, and hedge fund performance, go directly to 9 Stocks to Buy According to Robert W. Koehn’s Ivy Lane Capital.
5. The Charles Schwab Corporation (NYSE:SCHW)
Ivy Lane Capital Stake Value: $13,792,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 9.7%
Number of Hedge Fund Holders: 72
The Charles Schwab Corporation (NYSE:SCHW) is a worldwide financial services firm based in the United States. On February 18, Deutsche Bank analyst Brian Bedell initiated coverage of The Charles Schwab Corporation (NYSE:SCHW), rating it as Buy and giving a price target of $121.
The Charles Schwab Corporation (NYSE:SCHW) declared a quarterly dividend of $0.20 per share on January 26, an increase of 11.1% from the previous payout of $0.18. In the fourth quarter of 2021, Ivy Lane Capital held 164,000 shares of The Charles Schwab Corporation (NYSE:SCHW). These were worth $13.79 million and accounted for 9.7% of its portfolio.
John Armitage’s Egerton Capital Limited is the largest stakeholder of The Charles Schwab Corporation (NYSE:SCHW) in the fourth quarter of 2021, with 14.49 million shares worth $1.22 billion. According to Insider Monkey’s Q4 records, 72 elite funds were bullish on The Charles Schwab Corporation (NYSE:SCHW), up from 59 in the previous quarter.
In its fourth quarter 2021 investor letter, Weitz Investment Management mentioned The Charles Schwab Corporation (NYSE:SCHW). Here is what Weitz Investment Management said about The Charles Schwab Corporation:
“Financial services firm Charles Schwab took bronze medals for the fourth quarter and calendar year. Brokerage account balances are higher, and investors are anticipating better profit margins for the bank’s lending business in the quarters ahead.”
4. Avalara, Inc. (NYSE:AVLR)
Ivy Lane Capital Stake Value: $16,784,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 11.81%
Number of Hedge Fund Holders: 34
Avalara, Inc. (NYSE:AVLR) is a company that offers cloud-based solutions. Taxability, preparing and filing forms, remitting taxes, identifying appropriate tax rates, calculating and collecting taxes, preserving tax records, and managing compliance papers are all areas of concentration for the company. In the fourth quarter, Robert W. Koehn added 8% to his existing stake in Avalara, Inc. (NYSE:AVLR), holding a total of 130,000 shares worth $16.78 million. As a result, Avalara, Inc. (NYSE:AVLR) stock accounts for 11.81% of the hedge fund’s Q4 portfolio.
Canaccord analyst David Hynes decreased his price objective on Avalara, Inc. (NYSE:AVLR) to $140 from $205 on February 14 and maintained a Buy recommendation on the stock. The model and goal of the analyst have been adjusted to reflect a resetting of sector multiples and the assumption that the new normal for elevated enterprises in the industry would trade in the 10-15x future range.
Of the 924 elite funds tracked by Insider Monkey, 34 were bullish on Avalara, Inc. (NYSE:AVLR) in the fourth quarter of 2021. Panayotis Takis Sparaggis’s Alkeon Capital Management is the leading stakeholder of Avalara, Inc. (NYSE:AVLR), with a $369.88 million stake.
In its fourth quarter 2021 investor letter Baron Funds, an asset management firm, mentioned Avalara, Inc. (NYSE:AVLR). Here is what the fund said:
“Shares of Avalara, Inc., a leading cloud-based provider of transactional tax automation software, detracted from performance. The company reported solid quarterly earnings. Nevertheless, the stock sold off on a combination of a sequential deceleration in organic billings growth (explained mostly by a tough comparison) and the broader weakness in high-growth, high-multiple stocks during the quarter. We maintain conviction in the investment, as Avalara operates in a large market, has strong competitive advantages, and is poised to grow revenue at least 20% for many years, in our view.”
3. BlackRock, Inc. (NYSE:BLK)
Ivy Lane Capital Stake Value: $19,685,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 13.85%
Number of Hedge Fund Holders: 49
BlackRock, Inc. (NYSE:BLK) is a New York-based American international investment management company. BlackRock, Inc. (NYSE:BLK) has approximately 70 offices in more than 30 countries, serving clients in more than 100 countries. BlackRock, Inc. (NYSE:BLK) has featured on Ivy Lane Capital’s portfolio since the fourth quarter of 2020. Regulatory filings reveal that the hedge fund owned 21,500 shares of BlackRock, Inc. (NYSE:BLK) in the fourth quarter of 2021, worth $19.69 million, representing 13.85% of the total portfolio.
On February 23, FactSet Research Systems Inc. (NYSE:FDS) and BlackRock, Inc. (NYSE:BLK) announced a multi-year partnership to provide clients a consistent experience across multi-asset portfolio and risk management, as well as trade execution.
The number of hedge funds tracked by Insider Monkey having stakes in BlackRock, Inc. (NYSE:BLK) grew to 49 in Q4, from 44 in the preceding quarter. These stakes hold a consolidated value of $1.49 billion, up from $1.09 billion.
Baron Funds mentioned BlackRock, Inc. (NYSE:BLK) in its Q1 2021 investor letter. Here is what the fund said:
“During the quarter, we initiated a position in BlackRock Inc., the world’s largest investment manager with $9 trillion in assets under management. BlackRock offers an array of products across equities, fixed income, alternatives, and cash management to institutional and retail investors worldwide. About one-quarter of BlackRock’s assets under management is actively managed, and the rest is in passive index funds and iShares-branded ETFs. The company offers technology services including the investment and risk management platform, Aladdin, as well as other advisory services and solutions. Over the five years ending December 31, 2020, assets under management and earnings per share grew at compound annual growth rates of 13% and 12%, respectively.
We believe BlackRock is well positioned for continued growth given its diverse product offering, global distribution, brand recognition, and capable management team. With most of its assets in index funds and ETFs, BlackRock is a prime beneficiary of the ongoing shift to passive investing. The company also benefits from increasing demand for sustainable investment strategies and “barbell” strategies that use a combination of low-cost index funds, active and illiquid alternatives products. BlackRock fits squarely within our Tech-Enabled Financials theme given its longstanding commitment to innovation and proprietary technology platform, Aladdin, which serves as the investment and risk management system for both BlackRock and a growing number of institutional investors around the world. We expect BlackRock’s earnings per share will continue to grow at a double digit annual rate over a market cycle through a combination of mid-single-digit growth in assets under management from net inflows, market appreciation, low to mid-teens revenue growth in technology services, modest margin expansion, and share repurchases.”
2. Alphabet Inc. (NASDAQ:GOOG)
Ivy Lane Capital Stake Value: $28,068,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 19.75%
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG) is a multinational American business that acts as the holding company for Google and other Google subsidiaries as of 2015. In addition, the organization offers various services, including web-based research, software applications, and maps. Alphabet Inc. (NASDAQ:GOOG) accounts for about 19.75% of Ivy Lane Capital’s portfolio, as the hedge fund owns a $28.07 million stake in the company.
As of the end of the fourth quarter, 158 hedge funds in Insider Monkey’s database held stakes in Alphabet Inc. (NASDAQ:GOOG), compared to 156 funds in the third quarter. Among the hedge funds being tracked by Insider Monkey, TCI Fund Management is a leading shareholder of Alphabet Inc. (NASDAQ:GOOG) with $8.54 billion stake in the firm.
In its Q4 2021 investor letter, Polen Focus Growth mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“For the full year, the top performers included Alphabet. Alphabet’s business continues to compound at what we believe to be a healthy rate. The company reported a 40% increase in third-quarter revenues year over year and likely earned approximately $70 billion in incremental revenue in 2021.”
1. Microsoft Corporation (NASDAQ:MSFT)
Ivy Lane Capital Stake Value: $28,924,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 20.35%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a software company that creates, produces, licenses, sells, and supports software. According to the 13F filings for the fourth quarter of 2021, Ivy Lane Capital holds 86,000 shares of Microsoft Corporation (NASDAQ:MSFT), amounting to more than $28.92 million in worth and representing 20.35% of the fund’s portfolio value.
Overall, hedge funds are loading up on Microsoft Corporation (NASDAQ:MSFT), as 262 out of the 924 funds tracked by Insider Monkey held stakes in the tech behemoth in the fourth quarter of 2021, up from 250 funds a quarter earlier.
Polen Capital, an investment management firm, in its fourth quarter 2021 investor letter mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Microsoft remains a beneficiary of accelerated digital tailwinds in a post-pandemic era. The company reported a nearly 22% yearover-year increase in third-quarter revenues. It maintains its momentum as a leading provider of cloud-based productivity solutions across different parts of the technology stack and various applications.”
You can also take a peek at 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital and Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital
