In this article, we will look at 5 stocks to sell now according to Julian Robertson’s hedge fund. If you want to see other stocks discarded by the legendary investor and hedge fund manager, you can go to 10 Stocks to Sell Now According to Julian Robertson’s Hedge Fund.
5. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 57
Enphase Energy, Inc. (NASDAQ:ENPH) is a leading home energy solutions provider for the solar photovoltaic industry in the United States and internationally. Analysts are bullish on the stock. On May 2, Truist analyst Bronson Fleig assumed coverage of Enphase Energy, Inc. (NASDAQ:ENPH) with a Buy rating and a $205 price target. However, Julian Robertson’s Tiger Management sold its stakes in the company and discarded Enphase Energy, Inc. (NASDAQ:ENPH) in Q1 2022.
By the end of Q1 2022, 57 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH). The total stakes of these hedge funds were estimated at $749.49 million, down from $763.28 million in the previous quarter with 50 positions.
ClearBridge Investments mentioned several companies in its “Sustainability Leaders Strategy” first-quarter 2022 investor letter, one of which was Enphase Energy, Inc. (NASDAQ:ENPH). Here is what experts at ClearBridge think about the stock:
“Enphase Energy (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”
4. JD.Com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 59
Tiger Management owned more than 26,000 shares of JD.Com, Inc. (NASDAQ:JD) in Q4 2021. The fund’s stakes in the company were valued at roughly $1.83 million. Julian Robertson’s fund exited JD.Com, Inc. (NASDAQ:JD) in the first quarter of 2022.
On May 18, Benchmark analyst Fawne Jiang lowered his price target on JD.Com, Inc. (NASDAQ:JD) to $106 from $117 but maintained a Buy rating on the shares. The analyst noted that the company reported strong Q1 results, but guided to a relatively weaker Q2 growth. However, Jiang contended that JD.Com, Inc.’s (NASDAQ:JD) business fundamentals remain robust even during short-term headwinds due to Covid.
At the close of Q1 2022, 59 hedge funds were long JD.Com, Inc. (NASDAQ:JD) with stakes worth $ 5.40 billion. This is compared to 67 positions in Q4 2021 with stakes of $8.75 billion.
Here is what Argosy Investors had to say about JD.Com, Inc. (NASDAQ:JD) in its third-quarter 2021 investor letter:
“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
3. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 75
At the end of Q4 2021, Tiger Management’s stakes in Twilio Inc. (NYSE:TWLO) were valued at $2.63 million. However, in Q1 2022 the billionaire’s fund sold its 10,000 shares in Twilio Inc. (NYSE:TWLO) and completely discarded the stock.
This May, Wells Fargo analyst Michael Turrin slashed his price target on Twilio Inc. (NYSE:TWLO) to $180 from $225, citing multiple compressions across the software sector. However, the analyst maintained an Overweight rating on the Twilio Inc. (NYSE:TWLO) shares.
At the end of Q1 2022, 75 hedge funds held stakes in Twilio Inc. (NYSE:TWLO) worth $3.25 billion. This is compared to 80 positions in Q4 2021 with stakes of $5.13 billion.
RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third-quarter 2021 investor letter in which it mentioned Twilio Inc. (NYSE:TWLO). Here is what the firm said:
“Twilio: TWLO shares were also down sharply to end the year. Just like after 1Q and 2Q, despite another quarterly beat in 3Q, management guidance–which we believe to be conservative– disappointed some investors. Third quarter revenue of $740 million was up 65% year over year, significantly exceeding management’s guidance of 50%-52% revenue growth. Management guided 4Q21 revenue to +40% revenue growth, which was ahead of sell side expectations, but likely below buy side expectations. Investors were also troubled by the departure of COO George Hu, who has been credited with rebuilding Twilio’s sales and marketing teams after arriving from SaleForce.com shortly after the company’s IPO in 2016.
The COVID crisis has accelerated the adoption of the company’s cloud-based, integrated communications platform that allows companies in a wide range of businesses to embed digital communications capabilities (video, chat, voice, SMS, fax, and email) into their customer facing applications without needing to build back-end infrastructure and interfaces. Twilio’s total addressable market is now greater than $40 billion, which should grow by 50% over the next few years, providing a strong secular tailwind for the company. We expect the company’s gross margin to continue to expand from 54% in the second quarter toward management’s long-term goal of 60%-65%, and, as the company grows to scale, we expect its non-GAAP operating margin to expand to 25%.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 80
While some hedge funds maintained their positions in Tesla, Inc. (NASDAQ:TSLA) in 2022, others discarded them. One of those hedge funds was Tiger Management, which sold its Q4 2021 stakes of $3.33 million in Tesla, Inc. (NASDAQ:TSLA) in Q1 2022 and ultimately exited the stock.
This May, Daiwa analyst Jairam Nathan trimmed his price target on Tesla, Inc. (NASDAQ:TSLA) to $800 from $1,150 and maintained an Outperform rating on the shares.
At the end of Q1 2022, 80 hedge funds were long Tesla, Inc. (NASDAQ:TSLA). The total stakes of these funds were valued at $11.28 billion, down from $12.91 billion in the preceding quarter with 91 positions.
Baron Funds recently published its “Baron Fifth Avenue Growth Fund” first-quarter 2022 investor letter in which it named Tesla, Inc. (NASDAQ:TSLA). Here is what the firm said:
“During the first quarter, we bought back shares in Tesla, Inc., which designs, manufactures, and sells electric vehicles, solar products, energy storage solutions, and batteries. We believe that despite the run in the stock over the last few years, Tesla presents a favorable risk/reward profile and remains a Big Idea with only about 1% market share of the automotive market. Since we bought the stock during the first quarter, shares increased 27.1%, despite a complex supply-chain environment, on continued revenue growth and record profitability. Robust demand and operational optimization allow the company to offset inflationary pressures while vertical integration provides flexibility around supply bottlenecks. Moreover, we expect new localized manufacturing capacity to drive additional efficiencies while software initiatives, including the autonomous driving program, are accelerating, offering valuable optionality to the stock.”
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
This May, Mastercard Incorporated (NYSE:MA) was removed from BofA’s US 1 list, while its rival Visa Inc. (NYSE:V) was added to it. While BofA expressed bearishness toward Mastercard Incorporation (NYSE:MA), Goldman Sachs expressed its bullishness. This May, Will Nance, an analyst at Goldman Sachs, initiated coverage of MasterCard with a Buy rating and a $460 price target.
Insider Monkey found 136 hedge funds long Mastercard Incorporated (NYSE:MA) at the end of Q1 2022. The total stakes of these hedge funds were valued at $15.44 billion, down from $17.24 billion in Q4 2021 with 144 positions.
Here is what Ensemble Capital had to say about Mastercard Incorporated (NYSE:MA) in its first-quarter 2022 investor letter:
“Mastercard (7.6% weight in the Fund): This company literally earns a percent based fee on dollars spent. When inflation increases the prices of goods across the economy, Mastercard’s revenue increases along with inflation. Thus, the company in some respects is perfectly hedged against inflation with their revenue accelerating automatically when inflation surges.”
You can also take a look at 10 Stocks Warren Buffett is Selling and 10 Stocks Stanley Druckenmiller is Selling.
