In this article, we discuss 5 stocks to buy according to Teresa Barger’s Cartica Management. If you want to read our detailed analysis of Barger’s investment philosophy and performance, go directly to 10 Stocks to Buy According to Teresa Barger’s Cartica Management.
5. Huazhu Group Limited (NASDAQ:HTHT)
Cartica Management’s Stake Value: $21,202,000
Percentage of Cartica Management’s 13F Portfolio: 8.22%
Number of Hedge Fund Holders: 30
H World Group Limited (NASDAQ:HTHT), originally Huazhu Group Limited (NASDAQ:HTHT), is an investment holding firm in China. The company primarily operates in the German market and the local Chinese market. The company runs multi-brand hotels, serving all market sectors with a portfolio of more than 20 unique hotel brands.
Huazhu Group Limited (NASDAQ:HTHT) was downgraded to ‘Outperform’ from ‘Buy’ on August 30 by Daiwa analyst Carlton Lai, who raised the price objective to HK$34 from HK$32. Even though adjusted EBITDA came in over his Q2 prediction, Lai downgraded the stock due to reduced potential, given the firm’s high valuation and the unpredictability of China’s hotel demand.
Huazhu Group Limited (NASDAQ:HTHT) recently saw increased hedge fund sentiment. Huazhu Group Limited (NASDAQ:HTHT) was found in 30 hedge fund portfolios at the end of the second quarter of 2022. There were 27 hedge funds in our database with Huazhu holdings at the end of the previous quarter. Huazhu Group Limited (NASDAQ:HTHT) accounted for about 8.22% of Cartica Management’s portfolio, as the hedge fund owned a $21.20 million stake in the company.
4. Globant S.A. (NYSE:GLOB)
Cartica Management’s Stake Value: $22,492,000
Percentage of Cartica Management’s 13F Portfolio: 8.72%
Number of Hedge Fund Holders: 18
Globant S.A. (NYSE:GLOB) is a company that provides information technology services. Ken Fisher’s Fisher Asset Management is Globant S.A. (NYSE:GLOB)’s most significant stakeholder as of Q2 2022, with 931,600 shares worth $162.10 million.
Thomas Blakey, an analyst at KeyBanc, initiated coverage of Globant S.A. (NYSE:GLOB) on September 12, assigning an ‘Overweight’ rating to the stock with a $291 price target. There were 18 hedge funds in our database that held stakes in Globant S.A. (NYSE:GLOB) at the end of the second quarter of 2022, compared to 31 funds in the first quarter of 2022.
Cartica Management started building its position in Globant S.A. (NYSE:GLOB) in the first quarter of 2021. In the second quarter of 2022, it owned 129,262 shares of the company, valued at $22.49 million. The company represented 8.72% of the hedge fund’s 13F portfolio.
Polen Capital mentioned Globant S.A. (NYSE:GLOB) in its Q2 2022 investor letter. Here is what the firm said:
“Globant S.A. (NYSE:GLOB) is a leading IT consulting company based in Argentina. In particular, Globant’s expertise comes in helping companies digitally transform utilizing artificial intelligence, AR/VR, and blockchain. It has leveraged this expertise, and success with notable clients like Google and Disney, into faster than market growth. In the current environment, where businesses everywhere need help digitally transforming, Globant is seeing very strong demand for its services. The stock price reaction this quarter was related to broad market weakness on concerns around a slowdown in IT spend amidst global recession. In our view, while there’s always the possibility of a moderation in demand in the short term, the secular tailwinds from digital transformation make it likely that strong demand should persist for years to come, supporting strong earnings growth over the long term.”
3. XP Inc. (NASDAQ:XP)
Cartica Management’s Stake Value: $24,438,000
Percentage of Cartica Management’s 13F Portfolio: 9.48%
Number of Hedge Fund Holders: 21
XP Inc. (NASDAQ:XP) is a Brazilian investment management firm. XP Inc. declared its intention to alter the Latin American market for local investors on October 10 by enhancing access and transparency to cutting-edge investment vehicles with a global scope. In the second quarter of 2022, Cartica Management owned 1.36 million shares of XP Inc. (NASDAQ:XP), worth $24.44 million. This represented 9.48% of the investment portfolio of the hedge fund.
On August 11, Domingos Falavina, a JPMorgan analyst, downgraded XP Inc. (NASDAQ:XP) from ‘Overweight’ to ‘Neutral’ with a $23 price target, citing the company’s limited room for high growth given its market share has already reached about 12%, significant margin compression, and lack of any short- or long-term plans to return capital to shareholders.
Among the hedge funds tracked by Insider Monkey, 21 funds were long XP Inc. (NASDAQ:XP) in the second quarter of 2022, down from 31 funds in the previous quarter. Fabiana Gelband Leite’s Atmos Capital is the biggest shareholder of XP Inc. (NASDAQ:XP), with 6.64 million shares worth $119.29 million.
Harding Loevner mentioned XP Inc. (NASDAQ:XP) in its Q4 2021 investor letter. Here is what the firm said:
“Shares of another new Brazilian holding, XP, the country’s premier online investment platform, also sold off as tough economic conditions outweighed management’s optimism about prospective growth from new business lines in pensions, credit cards, and loans. Performance was helped by stock selection and our underweight in China.”
2. MercadoLibre, Inc. (NASDAQ:MELI)
Cartica Management’s Stake Value: $27,756,000
Percentage of Cartica Management’s 13F Portfolio: 10.77%
Number of Hedge Fund Holders: 68
MercadoLibre, Inc. (NASDAQ:MELI) is a Latin American e-commerce and financial company. The firm operates MercadoPago – a financial platform, Mercado Envios – a service that allows sellers to send their purchases throughout Latin America, and Mercado Shops – which enables merchants to create online stores. Generation Investment Management, managed by David Blood and Al Gore, is MercadoLibre, Inc. (NASDAQ:MELI)’s largest shareholder, with shares worth $328.40 million.
On October 6, Jefferies analyst John Colantuoni maintained a ‘Hold’ rating on MercadoLibre, Inc. (NASDAQ:MELI) while lowering his price objective from $990 to $970. The analyst decreased US internet predictions and price goals in expectation of a subdued macro environment.
Cartica Management began building its stake in the company in the fourth quarter of 2020. In the second quarter of 2022, it held 43,582 shares of MercadoLibre, Inc. (NASDAQ:MELI). These were worth $27.76 million and accounted for 10.77% of its portfolio. MercadoLibre, Inc. (NASDAQ:MELI) is the second-largest holding of Teresa Barger’s Cartica Management.
According to Insider Monkey’s Q2 data, 68 hedge funds were bullish on MercadoLibre, Inc. (NASDAQ:MELI), with combined stakes of $2.01 billion, compared to 63 funds in the earlier quarter, holding stakes in the company valued at $3.17 billion.
In its Q2 2022 investor letter Polen Capital, an investment management firm, mentioned MercadoLibre, Inc. (NASDAQ:MELI). Here is what the fund said:
“As written in our Q4 2021 commentary, some significant differences exist between the underlying profitability of ecommerce companies in emerging markets. However, MercadoLibre was punished during the quarter in part because of the sector it happens to operate in. Given its robust cash flow generation, we believe MercadoLibre is well-poised to continue delivering solid cash flows that will enable it to support its operations fully. Going forward, we expect the business to continue growing and providing value-added services to its customers across the continent. In turn, we capitalized on the weakness during the quarter to opportunistically increase our position in MercadoLibre.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Cartica Management’s Stake Value: $28,295,000
Percentage of Cartica Management’s 13F Portfolio: 10.98%
Number of Hedge Fund Holders: 106
A worldwide technology firm headquartered in Hangzhou, China, Alibaba Group Holding Limited (NYSE:BABA) is the largest stock holding of Cartica Management, accounting for 10.98% of the overall portfolio. On October 3, Jiong Shao, an analyst at Barclays, decreased his price objective on Alibaba Group Holding Limited (NYSE:BABA) from $161 to $135 while maintaining an ‘Overweight’ rating on the stock. The analyst justified the goal reduction by pointing to recent currency depreciation in China.
Ken Fisher’s Fisher Asset Management held a substantial stake in Alibaba Group Holding Limited (NYSE:BABA) at the end of the second quarter of 2022, amounting to $1.65 billion. In addition, Insider Monkey spotted 106 hedge funds that were long Alibaba Group Holding Limited (NYSE:BABA) at the end of Q2 2022. The collective stakes of these hedge funds totaled $7.43 billion, compared to $5.70 billion a quarter ago with 100 positions.
Distillate Capital Partners LLC mentioned Alibaba Group Holding Limited (NYSE:BABA) in its Q2 2022 investor letter. Here is what the fund said:
“Changes & Regional Weights: The largest new position is Alibaba Group Holding Limited (NYSE:BABA), which underperformed considerably and has seen its enterprise value fall by almost two thirds from its peak despite a net cash position on its balance sheet.”
You can also take a peek at 10 Stocks to Buy According to Richard Scott Greeder’s Broad Bay Capital and 10 Stocks to Buy According to Bulldog Investors.
