In this article, we will look at 5 stocks to invest in according to Victor Ho’s Yarra Square Partners. If you want a more in-depth look at Victor Ho’s history, investment philosophy, and hedge fund performance, head over to the 10 Stocks to Invest in According to Victor Ho’s Yarra Square Partners.
5. Vimeo, Inc. (NASDAQ:VMEO)
Mr. Ho’s Stake Value: $7.4 million
Percentage of Mr. Ho’s 13F Portfolio: 6.3%
Number of Hedge Fund Holders: 48
Vimeo, Inc. (NASDAQ:VMEO) is a platform that allows users all over the world to share their ideas and communicate by uploading videos. Due to its nature, this platform serves a large category of users, which range from personal, to non profits to corporate and governmental.
Vimeo, Inc. (NASDAQ:VMEO)’s largest shareholder is Joshua Kushner’s Thrive Capital who owns in $286 million equity through 5.8 million shares.
4. Facebook, Inc. (NASDAQ:FB)
Mr. Ho’s Stake Value: $8.4 million
Percentage of Mr. Ho’s 13F Portfolio: 7.17%
Number of Hedge Fund Holders: 266
Facebook, Inc. (NASDAQ:FB) is the largest social media company in the world. Headquartered in the American state of California, it started out as a simple platform that lets its users connect with each other and share their life updates. Now Facebook, Inc. (NASDAQ:FB) is working on a metaverse alongside having increased the scope of its product.
Mr. Ho’s Yarra Square owned 24,294 million Facebook, Inc. (NASDAQ:FB) shares that were worth $8.4 million and represented 7.17% of his total portfolio value by the end of the second quarter. During the same time period, 266 of the 873 hedge funds polled by Insider Monkey held stakes in the company.
Facebook, Inc. (NASDAQ:FB)’s largest shareholder is Alexander Becker’s Codex Capital who owns 27,950 shares worth $9.6 billion.
Truist, in an October 2021 note, lowered the company’s share price target to $400, but highlighted that recent advertisement challenges are only temporary.
In its third quarter 2021 investor letter, Wedgewood Partners had the following to say about Facebook, Inc. (NASDAQ:FB):
“Facebook detracted from performance despite posting a staggering +56% growth in advertising revenues. Much of the stock’s underperformance was driven by nonoperating concerns that we view as mostly political in nature. The Company’s digital properties command a massive audience of over 2.7 billion daily users, so any government or state actor would be able to wield tremendous power by controlling that audience and it should not be a surprise when those actors attempt to do that. However, Facebook has invested aggressively in its content curation capabilities that address many of the concerns raised by media and political critics. We continue to carry Facebook at our maximum weighting as the stock is trading in line with a market multiple despite unrivaled competitive positioning and rapid growth, representing one of the best risk-rewards available in the market.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Mr. Ho’s Stake Value: $8.5 million
Percentage of Mr. Ho’s 13F Portfolio: 7.25%
Number of Hedge Fund Holders: 271
Mr. Ho’s holdings in the company are through 2,482 shares that are worth $8.5 million and represent 7.25% of his firm’s portfolio. At the end of the second quarter of this year, 271 out of the 873 hedge funds polled by Insider Monkey held a stake in the company. Credit Suisse lowered Amazon.com, Inc. (NASDAQ:AMZN)’s price target to $4,200 in an October 2021 note, worrying that the retailer’s expenses would increase.
Amazon.com, Inc. (NASDAQ:AMZN)’s largest shareholder is Alexander Becker’s Codex Capital who owns 2,850 shares worth $9.8 billion.
In its third quarter 2021 investor letter, Madison Funds had the following to say about Amazon.com, Inc. (NASDAQ:AMZN):
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and above average growth.”
2. Liberty Broadband Corporation (NASDAQ:LBRDA)
Mr. Ho’s Stake Value: $8.6 million
Percentage of Mr. Ho’s 13F Portfolio: 7.34%
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ:LBRDA) is an internet and video streaming service provider in the United States.
Mr. Ho’s Yarra Square held 49,790 Liberty Broadband Corporation (NASDAQ:LBRDA) shares by the end of this year’s second quarter, which was worth $8.6 million and represented 7.34% of its portfolio. Out of the 873 hedge funds profiled by Insider Monkey by Q2 2021 end, 28 held stakes in the company.
Boykin Curry’s Eagle Capital Management is Liberty Broadband Corporation (NASDAQ:LBRDA)’s largest shareholder since it holds 9.1 million shares worth $1.5 billion.
Alphyn Capital Management, in its first quarter 2021 investor letter, mentioned Liberty Broadband Corporation (NASDAQ:LBRDA) and outlined that:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
1. Marriott Vacations Worldwide Corporation (NYSE:VAC)
Mr. Ho’s Stake Value: $8.7 million
Percentage of Mr. Ho’s 13F Portfolio: 7.41%
Number of Hedge Fund Holders: 35
Marriott Vacations Worldwide Corporation (NYSE:VAC) is headquartered in Florida and it provides vacation services to its customers through using its own properties. Some of the brands associated with the company include Sheraton Vacation Club, Hyatt Residence Club, and Grand Residences by Marriot.
Marriott Vacations Worldwide Corporation (NYSE:VAC) earned $58.7 million in revenue and $0.15 in EPS during its second quarter, beating analyst estimates for revenue. Jefferies lowered the company’s price target to $190 in a September 2021 investor note, basing his estimates on a recent recovery from the ongoing pandemic.
Richard Mashaal’s Rima Senvest Management is Marriott Vacations Worldwide Corporation (NYSE:VAC) largest shareholder, owning a stake of $154 million through 971,737 shares.
In its second quarter 2021 investor letter, Baron Funds mentioned Marriott Vacations Worldwide Corporation (NYSE:VAC) and stated that:
“Marriott Vacations Worldwide Corp.: Marriott Vacations is a leading owner, operator, and developer of real estate timeshare resorts. With the company’s 100% focus on leisure travelers, we believe Marriott Vacations is ideally positioned for a robust travel recovery as more and more people are vaccinated. We believe the long-term growth prospects for Marriott Vacations are compelling and the shares remain attractively valued.”
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