5 Tech Stocks to Buy According to Nathan Przybylo’s L2 Asset Management

1. Dell Technologies Inc. (NYSE:DELL)

L2 Asset Management’s Stake Value: $1,393,000

Percentage of L2 Asset Management’s 13F Portfolio: 3.52%

Number of Hedge Fund Holders: 60

Dell Technologies Inc. (NYSE:DELL) is a Texas-based multinational technology corporation, providing computer software, computer hardware, cloud computing, data storage, information security, and consulting services. Dell Technologies Inc. (NYSE:DELL) stock represents 3.52% of L2 Asset Management’s third quarter securities, with Nathan Przybylo holding 13,387 shares worth $1.39 million. 

On January 11, Bernstein analyst Toni Sacconaghi upgraded Dell Technologies Inc. (NYSE:DELL) to Outperform from Market Perform with a $72 price target. The analyst noted that Dell Technologies Inc. (NYSE:DELL) is entering 2022 with an estimated 6 weeks of backlog in its PC business and has a relatively high mix of commercial versus consumer PCs, which should help cushion results should consumer PC demand slow. 

According to Insider Monkey’s Q3 database, 60 hedge funds were long Dell Technologies Inc. (NYSE:DELL), with stakes totaling $6.14 billion, as compared to 62 funds in the prior quarter, holding stakes in Dell Technologies Inc. (NYSE:DELL) worth $5.60 billion. In Q3 2021, Paul Singer’s Elliott Management was the biggest Dell Technologies Inc. (NYSE:DELL) stakeholder, with a $2.58 billion position in the company. 

Here is what Third Point Management has to say about Dell Technologies Inc. (NYSE:DELL) in its Q3 2021 investor letter:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”

You can also take a look at Top 10 Stock Picks of Matthew Halbower’s Pentwater Capital Management and Billionaire Michael Hintze Portfolio: Top 10 Stock Picks.

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