In this article, we discuss 5 stocks to buy now according to Joshua Pearl’s Hickory Lane Capital Management. If you want to read our detailed analysis of Pearl’s history, investment philosophy, and hedge fund performance, go directly to 10 Stocks to Buy Now According to Joshua Pearl’s Hickory Lane Capital Management.
5. S&P Global Inc. (NYSE:SPGI)
Hickory Lane Capital Management’s Stake Value: $6,843,000
Percentage of Hickory Lane Capital Management’s 13F Portfolio: 3.64%
Number of Hedge Fund Holders: 79
S&P Global Inc. (NYSE:SPGI) provides the capital and commodities markets worldwide with transparent and unbiased ratings, benchmarks, analytics, and data. TCI Fund Management is the most prominent shareholder of S&P Global Inc. (NYSE:SPGI) and had stakes worth more than $1.77 billion as of the fourth quarter of 2021.
Joshua Pearl, via Hickory Lane Capital Management, owned 14,500 S&P Global Inc. (NYSE:SPGI) shares in the December quarter, worth $6.84 million, representing 3.64% of the hedge fund’s total 13F portfolio. S&P Global Inc. (NYSE:SPGI) has featured on Joshua Pearl’s portfolio since Q3 2021, and he elevated his stake by 10% in the fourth quarter of 2021.
Prior to the first-quarter results, Raymond James analyst Patrick O’Shaughnessy lowered his price objective on S&P Global Inc. (NYSE:SPGI) from $497 to $475 and maintained an Outperform rating on the company. In a research note to investors, O’Shaughnessy stated that S&P Global Inc. (NYSE:SPGI)’s shares would be supported by an ambitious repurchase program in 2022.
In its first quarter 2022 investor letter, Cooper Investors mentioned S&P Global Inc. (NYSE:SPGI) and explained its insights for the company. Here is what the fund said:
“This quarter, S&P Global announced the successful completion of its acquisition of IHS Markit. The deal makes S&P a global leader across the information services industry. The Fund has been long term shareholders of S&P, building a position back in 2015 when the organization was still named McGraw-Hill Financial. We saw the initial opportunity as it refocused the business from a publishing and financial conglomerate towards its core data and financial assets. S&P’s credit ratings, benchmarks and analytics businesses in global capital and commodity markets carry leading positions, defensible offerings, consistent growth and high margins – as true today as it was seven years ago. With the increased focus management have applied over a lengthy period we see improved revenue growth, margins and cash flows…” (Click here to see the full text)
4. NVIDIA Corporation (NASDAQ:NVDA)
Hickory Lane Capital Management’s Stake Value: $6,912,000
Percentage of Hickory Lane Capital Management’s 13F Portfolio: 3.67%
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) is a technology firm that develops and manufactures visual computing hardware, such as graphics processors for personal computers and device driver software. It was founded in 1993. Ken Fisher of Fisher Asset Management was the lead stakeholder of NVIDIA Corporation (NASDAQ:NVDA). The fund owned 5.12 million shares of stock, which are worth $1.50 billion.
NVIDIA Corporation (NASDAQ:NVDA) is the latest addition to Joshua Pearl’s Hickory Lane Capital Management portfolio, as the hedge fund bought 23,500 shares of the company, worth $6.91 million. By the end of the fourth quarter of 2021, Insider Monkey identified 110 hedge funds that had stakes in NVIDIA Corporation (NASDAQ:NVDA). These holdings were worth a total of $10.49 billion.
On April 20, Deutsche Bank analyst Ross Seymore cut his price objective on NVIDIA Corporation (NASDAQ:NVDA) from $285 to $255 and reiterated a Hold rating on the shares. According to Seymore, as supply loosens and demand decreases, investor worries of a seasonal slowdown/correction are likely to persist.
Here is what RiverPark Funds has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion…” (Click here to see the full text)
3. Microsoft Corporation (NASDAQ:MSFT)
Hickory Lane Capital Management’s Stake Value: $7,231,000
Percentage of Hickory Lane Capital Management’s 13F Portfolio: 3.84%
Number of Hedge Fund Holders: 262
By the end of the fourth quarter of 2021, 262 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT) worth $75.67 billion.
Wedbush analyst Daniel Ives decreased his price objective on Microsoft Corporation (NASDAQ:MSFT) from $375 to $340 on April 27, reflecting a lower multiple, but maintained an Outperform rating on the stock.
Hickory Lane Capital Management initiated a new stake in Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter of 2021 by purchasing 21,500 shares of the tech behemoth, worth $7.23 million. Ken Fisher’s Fisher Asset Management is the biggest shareholder of Microsoft Corporation (NASDAQ:MSFT), with 26.84 million shares worth $9.03 billion.
In its fourth-quarter 2021 investor letter, Motiwala Capital mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the firm had to say:
“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”
2. Salesforce, Inc. (NYSE:CRM)
Hickory Lane Capital Management’s Stake Value: $7,878,000
Percentage of Hickory Lane Capital Management’s 13F Portfolio: 4.19%
Number of Hedge Fund Holders: 110
Salesforce, Inc. (NYSE:CRM) sells customer relationship management (CRM) software to organizations. Based on lower peer multiples, KeyBanc analyst Michael Turits reduced his price objective on Salesforce, Inc. (NYSE:CRM) from $281 to $223 on April 25 but maintained an Overweight rating.
Top hedge funds are paying attention to Salesforce.com, Inc. (NYSE:CRM). Our data shows 110 hedge funds were long Salesforce.com, Inc. (NYSE:CRM) by the end of the fourth quarter of 2021. The consolidated stakes of these funds amounted to $11.46 billion. Of these, the majority stakes were of Akre Capital Management, making it the most prominent shareholder of Salesforce.com, Inc. (NYSE:CRM). The fund’s stakes in Salesforce.com, Inc. (NYSE:CRM) were valued at $711.56 million in the fourth quarter of 2021.
In the fourth quarter, Hickory Lane Capital Management elevated its position in Salesforce.com, Inc. (NYSE:CRM) by 2% to 31,000 shares, accounting for 4.19% of the overall portfolio.
In its first quarter 2022 investor letter Oakmark Funds, an investment management firm mentioned Salesforce.com, Inc. (NYSE:CRM). Here is what the fund said:
“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.
1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Hickory Lane Capital Management’s Stake Value: $8,811,000
Percentage of Hickory Lane Capital Management’s 13F Portfolio: 4.68%
Number of Hedge Fund Holders: 61
WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is a company that specializes in flexible and portable storage. Furniture rental, shipping and logistics, storage and facilities services, and commercial real estate services are all available through the company. At the end of Q4 2021, 61 hedge funds monitored by Insider Monkey were long on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), up from 56 firms the previous quarter.
On April 27, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) published earnings for the first quarter of 2022, announcing earnings per share of $0.22, missing estimates by $0.02. The $508.89 million revenue for the period was up 107.4% year-over-year, exceeding estimates by $30.96 million.
On March 29, Deutsche Bank analyst Faiza Alwy assigned a Buy rating and a $49 price target to WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) as part of a broader research report on Business Services companies. Hickory Lane Capital Management owned 215,750 shares of WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) as of Q4 2021, worth $8.81 million, representing 4.68% of the total 13F holdings. The hedge fund increased its WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) stake by 20% in the December quarter.
ClearBridge Investments, in its fourth quarter 2021 investor letter, mentioned WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC). Here is what the fund said:
“We added six new positions in the fourth quarter, the largest being WillScot Mobile Mini in the industrials sector. WillScot is the leading manufacturer in the modular office and storage end markets. The company has a multitude of idiosyncratic growth drivers that should support a doubling of free cash flow per share over the next four to five years.”
You can also take a peek at 10 Stocks to Buy Now According to James Katz’s Humankind Investments and 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital
