In this article, we discuss 5 stocks to invest in today according to Orkun Kilic’s Berry Street Capital. If you want to read our detailed analysis of Kilic’s history and hedge fund performance, go directly to 10 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital.
5. Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH)
Berry Street Capital Stake Value: $24,650,000
Percentage of Berry Street Capital’s 13F Portfolio: 2.54%
Number of Hedge Fund Holders: 55
Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) is a Bill Ackman-founded blank check firm that went public on July 22, 2020, with a market capitalization of $4 billion. Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH) is one of the latest acquisitions of Berry Street Capital. The hedge fund held shares worth over $24.65 million in Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH), representing 2.54% of its 13F portfolio.
At the end of the fourth quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $964.92 million in Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH), up from 49 positions in the previous quarter valued at $798.59 million.
In its fourth quarter 2021 investor letter, Pershing Square Capital Management, an investment management firm, mentioned Pershing Square Tontine Holdings, Ltd. (NYSE:PSTH). Here is what the fund said:
“While seeking a transaction for PSTH, we are simultaneously looking to improve its structure with the launch of SPARC.
SPARC seeks to improve upon PSTH’s structure:
✓ Investors opt-in to the initial business combination (“IBC”)
✓ Reduced opportunity cost with no investor funding until a target is identified
✓ Amount of capital raised can be precisely tailored to capital requirements of merger partner
✓ Up to 10 years to complete a transaction vs. 2 years for a typical SPAC
✓ No underwriting fees
✓ Pure common stock capital structure other than 20% out-of-the-money warrants on 5.21% of shares outstanding held by Pershing Square funds and SPARC directors
Timing of SPARC distribution assuming receipt of regulatory approval:
If PSTH executes an IBC before SPARC registration statement is declared effective, distribution of SPARs to PSTH shareholders and warrantholders would occur shortly prior to IBC closing.
If PSTH does not consummate an IBC, distribution would occur concurrently with return of PSTH capital in trust…” (Click here to see the full text)
4. Nuance Communications, Inc. (NASDAQ:NUAN)
Berry Street Capital Stake Value: $29,043,000
Percentage of Berry Street Capital’s 13F Portfolio: 2.99%
Number of Hedge Fund Holders: 55
Nuance Communications, Inc. (NASDAQ:NUAN) develops conversational and cognitive artificial intelligence (AI) solutions that help people make better decisions in their daily lives. Microsoft Corporation (NASDAQ:MSFT) announced the completion of its purchase of Nuance Communications, Inc. (NASDAQ:NUAN) on March 4.
The hedge fund of Orkun Kilic entered the fourth quarter of 2021 with 525,000 shares of Nuance Communications, Inc. (NASDAQ:NUAN) in its portfolio worth around $29.04 million. The company has featured in Kilic’s portfolio since the second quarter of 2021.
At the end of 2021, 55 hedge funds in Insider Monkey’s database owned holdings in Nuance Communications, Inc. (NASDAQ:NUAN) worth $4.67 billion, down from 61 in the previous quarter with positions totaling $4.87 billion.
Rhizome Partners, in its third quarter 2021 investor letter, mentioned Nuance Communications Inc. (NASDAQ: NUAN). 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.”
3. Coherent, Inc. (NASDAQ:COHR)
Berry Street Capital Stake Value: $62,470,000
Percentage of Berry Street Capital’s 13F Portfolio: 6.43%
Number of Hedge Fund Holders: 38
Coherent, Inc. (NASDAQ:COHR) is a laser and optics company that serves the microelectronics, life sciences, industrial, scientific and aerospace, and defense industries. Simon Leopold of Raymond James upgraded II-VI Incorporated (NASDAQ:IIVI), which is set to acquire Coherent in the first-half of 2022, from ‘Market Perform’ to ‘Outperform’, with a $77 price objective on January 3. Hyperscale builders investing in 400G, 200G, and 100G fiber wireless connectivity, according to Leopold, are expected to fuel significant growth.
Coherent, Inc. (NASDAQ:COHR) is also getting the attention of the smart money. As of the end of the fourth quarter, 38 hedge funds tracked by Insider Monkey disclosed having long positions in the firm, up from 37 funds a quarter earlier..
According to Berry Street Capital’s 13F filing for the fourth quarter of 2021, the fund owns 234,375 shares of Coherent, Inc. (NASDAQ:COHR) worth $62.47 million, representing 6.43% of the fund’s portfolio value. In addition, the fund increased its stake in Coherent, Inc. (NASDAQ:COHR) by 71% during the fourth quarter.
Appleseed Fund mentioned Coherent, Inc. (NASDAQ:COHR) in its first quarter 2021 investor letter. Here is what the fund said:
“Our most significant contributors to the Fund’s equity performance during the quarter (includes) Coherent (COHR). During the quarter, Coherent announced that it was being acquired, after which several other bidders emerged. Between the takeover announcement and the bidding war among Coherent suitors, the shares rallied strongly during the quarter.”
2. IHS Markit Ltd. (NYSE:INFO)
Berry Street Capital Stake Value: $64,754,000
Percentage of Berry Street Capital’s 13F Portfolio: 6.67%
Number of Hedge Fund Holders: 69
IHS Markit Ltd. (NYSE:INFO) is a globally diversified information, analytics, and solutions company. Matthew Halbower’s Pentwater Capital Management is the biggest stakeholder of IHS Markit Ltd. (NYSE:INFO) in our database, owning 9.31 million shares worth $1.24 billion.
Out of the 924 hedge funds in our database that filed 13Fs for the December quarter, 69 of them were shareholders of IHS Markit Ltd. (NYSE:INFO) on December 31, with positions worth $8.55 billion, up from 64 funds holding stakes in IHS Markit Ltd. (NYSE:INFO) worth $6.72 billion a quarter earlier.
BMO Capital analyst Jeffrey Silber trimmed his price objective on IHS Markit Ltd. (NYSE:INFO) to $118 from $142 on January 24 and maintained a ‘Market Perform’ rating on the stock. Silber told investors that his lower target price reflected the projected takeover value of S&P Global Inc. (NYSE:SPGI), expected to be completed this quarter.
Artisan Partners, an investment management firm, mentioned IHS Markit Ltd. (NYSE:INFO) in its investor letter for the first quarter of 2021. Here is what it said:
“We ended our campaign in IHS Markit. IHS Markit is a global provider of information services to the financial services, automotive, and energy sectors. Since beginning our investment campaign in 2009, we have been attracted to the company’s position relative to the meaningful secular tailwind driving demand for data and analytics to help guide business decisions. The company announced in Q4 it is merging with S&P Global, one of the largest credit ratings agencies globally and a provider of benchmarks, data and analytics to the global capital and commodities markets. We believe the combination provides a good level of cost and revenue synergies which will help drive profit growth, and S&P Global has a solid track record of acquiring and integrating new businesses. However, we exited our position as the combined entity will be well beyond our mid-cap market cap mandate.”
1. Xilinx, Inc. (NASDAQ:XLNX)
Berry Street Capital Stake Value: $100,714,000
Percentage of Berry Street Capital’s 13F Portfolio: 10.37%
Number of Hedge Fund Holders: 68
Xilinx, Inc. (NASDAQ:XLNX) is a technology business that creates processing systems that are both versatile and adaptable. Berry Street Capital increased its Xilinx, Inc. (NASDAQ:XLNX) stake by 34% in the fourth quarter of 2021, holding 475,000 shares of the company worth $100.71 million.
On February 14, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced that it had completed its all-stock purchase of Xilinx, Inc. (NASDAQ:XLNX). AMD anticipates the acquisition to enhance non-GAAP margins, non-GAAP EPS, and free cash flow generation in the first year. On February 22, Bernstein analyst Stacy Rasgon upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) to ‘Outperform’ from ‘Market Perform’ and gave a price target of $150.
The number of hedge funds tracked by Insider Monkey having stakes in Xilinx, Inc. (NASDAQ:XLNX) grew to 68 in Q4, up from 62 in the preceding quarter. Those stakes held a consolidated value of $5.91 billion, up from $4.54 billion at the end of Q3.
For more on the latest hedge fund moves, check out 9 Stocks to Buy According to Robert W. Koehn’s Ivy Lane Capital and 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital
