In this article, we discuss 5 stocks to invest in according to Joshua Kushner’s Thrive Capital. If you want to read our detailed analysis of Kushner’s history, investment philosophy, and hedge fund performance, go directly to 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital.
5. Compass, Inc. (NYSE:COMP)
Thrive Capital Stake Value: $66,261,000
Percentage of Thrive Capital’s 13F Portfolio: 6.22%
Number of Hedge Fund Holders: 28
Compass, Inc. (NYSE:COMP) is a registered real estate broker in the United States that uses real estate technology to sell its properties on the internet. Thrive Capital began building its position in Compass, Inc. (NYSE:COMP) in the second quarter of 2021. In the fourth quarter of 2021, the hedge fund held over 7.29 million shares of the company, valued at $66.26 million.
On February 17, Needham analyst Mayank Tandon cut his price objective on Compass, Inc. (NYSE:COMP) to $13 from $18, highlighting weaker real-estate tech stock multiples, but maintained a Buy rating on the stock.
At the end of the fourth quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $499.52 million in Compass, Inc. (NYSE:COMP), up from 25 in the preceding quarter valued at $708.38 million.
In its third quarter 2021 investor letter, Artisan Partners mentioned Compass, Inc. (NYSE:COMP). Here is what the fund said:
“We added several new GardenSM positions in Q3 including Compass. Compass is a real estate brokerage firm which provides its agents with a proprietary, end-to-end cloud-based platform. The company helps address the needs of buying and selling homes from client prospecting to closing, which includes customer relationship management, AI-driven prospecting, marketing (digital, social, email, video, print, signage, lead generation), market analysis and collaboration tools. The platform also uses machine learning, artificial intelligence and other advanced data analytics strategies to draw insights across the platform, allowing agents to be more efficient and informed in their selling efforts. We believe this technology advantage is key to the company continuing to disrupt and capture real estate commission market share. We have been impressed with the company’s ability to capture 4% market share since it was founded in 2012 (vs. Redfin, founded in 2002, holding a 1% market share). The company’s profit cycle can also be boosted by adding on additional services such as title insurance referral and escrow services, real estate marketing, home renovation referrals, home insurance and home warranty referrals—all of which we believe have a significantly larger addressable market than commissions (~7X).”
4. Vimeo, Inc. (NASDAQ:VMEO)
Thrive Capital Stake Value: $105,117,000
Percentage of Thrive Capital’s 13F Portfolio: 9.88%
Number of Hedge Fund Holders: 34
Vimeo, Inc. (NASDAQ:VMEO), based in New York City, is an American video hosting, sharing, and services platform provider. Joshua Kushner’s Thrive Capital is the most significant stakeholder of Vimeo, Inc. (NASDAQ:VMEO), with 5.85 million shares worth $105.12 million.
After Vimeo, Inc. (NASDAQ:VMEO)’s Q4 earnings miss, Truist analyst Youssef Squali trimmed his price objective to $22 from $36 and maintained a Buy rating on February 14. Vimeo, Inc. (NASDAQ:VMEO) announced a $7.6 million adjusted EBITDA loss for the fourth quarter of 2021 on February 9, compared to $0.7 million in the fourth quarter of 2020. Revenue over the period came in at $106.1 million, up 26.6% YoY.
At the end of the fourth quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $271.63 million in Vimeo, Inc. (NASDAQ:VMEO), down from 36 in the preceding quarter worth $465.30 million.
Alphyn Capital Management, an investment management firm, in its second quarter 2021 investor letter, discussed its stance on Vimeo, Inc. (NASDAQ:VMEO). Here is what the fund said:
“Clients will notice a new ticker, VMEO, on your brokerage statements following its spin-out from IAC. I profiled IAC’s companies, including Vimeo, in some detail last year. The pandemic accelerated the use of video by both enterprises and small businesses, and I believe this will continue given the high engagement that video generates. The most recent numbers bear this out: May revenues rose 42% from a year earlier while subscriber base and average revenue per user increased 18%. With its comprehensive set of tools to make video creation more accessible, Vimeo has a great opportunity to capture a share of this growth. It further benefits from an attractive customer acquisition funnel – 65% of Fortune 500 enterprises have at least one self-serve Vimeo subscription (with ARPU6 of $250). The company is building out its sales team to help upsell these into enterprise accounts (with ARPU of $12,000). Finally, by buying IAC shares ahead of the spin, we received a long-term, high-growth SAAS “call option” at a much more palatable valuation than the current 20x price-to-sales. Historically, it has been very rewarding to hold onto IAC spins…”
3. Nu Holdings Ltd. (NYSE:NU.A)
Thrive Capital Stake Value: $209,483,000
Percentage of Thrive Capital’s 13F Portfolio: 19.69%
Number of Hedge Fund Holders: 28
Nu Holdings Ltd. (NYSE:NU.A) is a holding corporation. It owns stakes in several operational entities that provide digital banking services. On February 16, Bradesco BBI analyst Gustavo Schroden initiated coverage of Nu Holdings Ltd. (NYSE:NU.A), rating the stock as Underperform and setting a price target of $5. According to the analyst, due to Brazil’s dismal economic conditions, Nu Holdings Ltd. (NYSE:NU.A) would have both short and long-term hurdles in monetizing its extensive client base.
Nu Holdings Ltd. (NYSE:NU.A) is a new arrival in Joshua Kushner’s portfolio, as his hedge fund bought about 22.33 million shares of the company in Q4, worth $209.48 million. By the end of the fourth quarter of 2021, Insider Monkey identified 28 hedge funds that had stakes in Nu Holdings Ltd. (NYSE:NU.A). The total value of these stakes was over $4.61 billion.
Nu Holdings Ltd. (NYSE:NU.A), on February 22, posted earnings for the fourth quarter. The reported loss per share was $0.10, missing estimates by $0.06. Revenue over the period came in at $1.7 million, below the market predictions by $1.4 billion.
2. Oscar Health, Inc. (NYSE:OSCR)
Thrive Capital Stake Value: $295,272,000
Percentage of Thrive Capital’s 13F Portfolio: 27.76%
Number of Hedge Fund Holders: 19
Oscar Health, Inc. (NYSE:OSCR) is a holding company that offers medical insurance. Oscar Health, Inc. (NYSE:OSCR) was raised to Neutral from Sell by Goldman Sachs analyst Nathan Rich on February 14, with a price objective of $9, up from $6.50.
According to the 13F filings for the fourth quarter of 2021, Thrive Capital is the most significant shareholder of Oscar Health, Inc. (NYSE:OSCR). The hedge fund holds over 37.61 million shares of Oscar Health, Inc. (NYSE:OSCR), amounting to more than $295.27 million and representing 27.76% of the fund’s portfolio value.
At the end of the fourth quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $440.97 million in Oscar Health, Inc. (NYSE:OSCR), down from 17 the preceding quarter worth $947.59 million.
1. Robinhood Markets, Inc. (NASDAQ:HOOD)
Thrive Capital Stake Value: $362,499,000
Percentage of Thrive Capital’s 13F Portfolio: 34.08%
Number of Hedge Fund Holders: 24
Robinhood Markets, Inc. (NASDAQ:HOOD) is a company that provides financial services. The company pioneered commission-free stock trading and fractional share trading with no account minimums. Overall, hedge funds are loading up on Robinhood Markets, Inc. (NASDAQy:HOOD), as 24 out of the 924 funds tracked by Insider Monkey held stakes in the company, up from 20 funds a quarter earlier.
Out of the hedge funds being tracked by Insider Monkey, ARK Investment Management is a leading shareholder of Robinhood Markets, Inc. (NASDAQ:HOOD), with 23.85 million shares worth more than $423.54 million. Another major stakeholder of Robinhood Markets, Inc. (NASDAQ:HOOD) is Joshua Kushner’s Thrive Capital, which has a $362.50 million stake in the company.
In its fourth quarter 2021 investor letter, Claret Asset Management mentioned Robinhood Markets, Inc. (NASDAQ:HOOD). Here is what the fund said:
“Robinhood went public at $38 a share at the end of July of this year. After a one-day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
You can also take a peek at Top 10 Stock Picks of Kenneth A. Moffet’s Hourglass Capital and 10 Stocks to Buy Now According to Hari Hariharan’s NWI Management
