5 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management

1. Alliance Data Systems Corporation (NYSE:ADS)

Immerman and Schiffman’s Stake Value: $350,945,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 7.55%
Number of Hedge Fund Holders: 34

Alliance Data Systems Corporation (NYSE:ADS) is a data-driven marketing, loyalty, and payment solutions provider for big consumer-based businesses. The company was founded in 1996, and it stands first on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Alliance Data Systems Corporation (NYSE:ADS) presently has a market capitalization of $4.8 billion and was able to deliver 112.44% return in the past 12 months.

On August 31, BofA analyst Mihir Bhatia upgraded Alliance Data Systems Corporation (NYSE:ADS) to “Buy” from “Neutral” and gave his price target of $121. 

In the second quarter of 2021, Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management owned 3.37 million shares in Alliance Data Systems Corporation (NYSE:ADS), worth $350.95 million. The huge investment covers an impressive 7.55% of the fund’s portfolio. Alliance Data Systems Corporation (NYSE:ADS) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions reduced to 34 in the second quarter of 2021 compared to 36 positions in the previous quarter.

Alphyn Capital Management, in its fourth-quarter 2020 investor letter, mentioned Alliance Data Systems Corporation (NYSE: ADS). Here is what the fund said:

“My investment in Alliance Data Systems was a mistake, as mentioned in my Q1 letter. I allowed myself to be drawn to management’s narrative and was not critical enough of their excuses for poor performance. I was also heavily influenced by the notion that the valuation appeared cheap on a price-to-free cash flow basis. As I should have better remembered from my investment banking days in the early 2000’s when I was involved with IPOs, the stock market seeks growth and does not attribute high terminal value to stagnating companies, especially when management teams have lost the market’s confidence. While this seems obvious in hindsight, the lesson is to act more decisively in cutting a “bad” position in the future.”

You can also take a peek at 15 Best New Tech Stocks to Buy Now and 10 Best Tech Stocks to Buy According to Japanese Billionaire Masayoshi Son