5 Stocks to Buy Now According to Wayne Yu’s BCK Capital

2. Nuance Communications, Inc. (NASDAQ:NUAN)

BCK Capital Stake Value: $10,011,000
Percentage of BCK Capital’s 13F Portfolio: 6.74%
Number of Hedge Fund Holders: 61

Nuance Communications, Inc. (NASDAQ:NUAN) provides conversational artificial intelligence and ambient clinical intelligence services. Nuance Communications, Inc. (NASDAQ:NUAN), on February 7, posted earnings for the fourth quarter of 2021, reporting a revenue of $321.4 million, down 7.1% YoY.

Matthew Halbower’s Pentwater Capital Management is one of the leading Nuance Communications, Inc. (NASDAQ:NUAN) stakeholders as of Q4 2021, with 17.34 million shares worth $959.25 million. BCK Capital holds 180,973 shares in Nuance Communications, Inc. (NASDAQ:NUAN), worth over $10 million, representing 6.74% of its investment portfolio. The hedge fund has increased its Nuance Communications, Inc. (NASDAQ:NUAN) stake by 23% in the fourth quarter.

Overall, at the end of Q3, 61 hedge funds tracked by Insider Monkey held stakes in Nuance Communications, Inc. (NASDAQ:NUAN) valued at $4.87 billion, down from 72 funds in Q2.

Rhizome Partners mentioned Nuance Communications Inc. (NASDAQ: NUAN) in its third-quarter 2021 investor letter. Here is what the firm said:

“We also exited our small position in Nuance upon Microsoft’s acquisition. Nuance is a leader in voice recognition software, with dominant market share, and its speech-to-text product is the gold standard in radiology. In addition, by eliminating the need for note taking and allowing doctors to focus on patient care, Nuance could transform the way doctors treat patients. We built a 1% position in Nuance after attending its comprehensive investor day. Our view is that if Nuance can successfully grow its voice-recognition software in doctor’s offices, it could be worth multiples of our cost basis. Microsoft’s acquisition eliminated the multi-bagger upside but also partially validates the belief that Nuance is a high-quality technology company. We exited Nuance with a 62% gain in less than a year. This example is representative of the slight adjustments we made to our portfolio construction. We will allocate to small bets on technology and high-growth companies that could increase our exposure to “right tail” upside. Rest assured that our focus is still roughly 50% real estate, 30% high-quality companies trading at cheap multiples of free cash flow, and the rest in investments with the potential for growth and higher upside.”