8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital

Published on October 31, 2022 at 9:26 am by Ruchi Gupta in Hedge Funds, News

In this article, we discuss 8 stocks to buy according to Alexander Captain’s Cat Rock Capital. If you want to skip our detailed analysis of Captain’s investment philosophy and performance, go directly to 4 Stocks to Buy According to Alexander Captain’s Cat Rock Capital.

In the first quarter of 2015, Alexander Captain established the Connecticut-based hedge fund Cat Rock Capital. Captain has a Master of Arts in Statistics from the Harvard Graduate School of Arts and Sciences and a Bachelor of Arts in Economics from Harvard College. He worked at Chase Coleman’s Tiger Global and Blackstone before launching Cat Rock Capital. He is the founder and managing partner at the Cat Rock Capital.

Cat Rock Capital uses in-depth fundamental analysis and targeted value investing in providing returns for investors over the long term in high-quality, publicly traded firms. It often keeps investments for several years, borrows little to nothing, and has 10 to 15 core holdings. Cat Rock Capital’s investment strategy emphasizes on reliability, firm, people, and pricing.

The fund’s Q2 2022 portfolio was worth $469.92 million, and some renowned names in Cat Rock Capital’s include TransDigm Group Incorporated (NYSE:TDG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). The hedge fund primarily invests in the information technology, industrials, and communication sectors, focusing on small and big companies with solid fundamentals and potential for future growth.

Our Methodology

Let’s start our list of 8 stocks to buy according to Alexander Captain’s Cat Rock Capital. These equities were chosen from Cat Rock Capital’s Q2 portfolio. The Q2 2022 database of Insider Monkey, which contains data on approximately 900 hedge funds, was utilised to ascertain the sentiment of the hedge funds towards these equities.

Stocks to Buy According to Alexander Captain’s Cat Rock Capital

8. DocuSign, Inc. (NASDAQ:DOCU)

Cat Rock Capital’s Stake Value: $16,411,000

Percentage of Cat Rock Capital’s 13F Portfolio: 3.49%

Number of Hedge Fund Holders: 37

DocuSign, Inc. (NASDAQ:DOCU) provides cloud-based electronic signing solutions. DocuSign, Inc. (NASDAQ:DOCU) was upgraded by Wedbush analyst Daniel Ives on October 12 from ‘Underperform’ to ‘Neutral’ with a $55 price target. According to the analyst, CLM deal execution has generally steadied, with numbers currently within reach for 2023–2024. DocuSign, Inc. (NASDAQ:DOCU) launched CLM Essentials in April to streamline contracts for expanding businesses.

At the end of Q2 2022, 37 hedge funds tracked by Insider Monkey owned stakes in DocuSign, Inc. (NASDAQ:DOCU), down from 45 a quarter earlier. The collective value of these stakes is over $1.01 billion. With nearly 5.22 million shares, Fisher Asset Management is DocuSign, Inc. (NASDAQ:DOCU)’s leading stakeholder as of Q2 2022.

Cat Rock Capital increased its stake in DocuSign, Inc. (NASDAQ:DOCU) during the second quarter of 2022 by around 30%. The fund now owns over 286,000 shares of DocuSign, Inc. (NASDAQ:DOCU), worth close to $16.41 million, representing 3.49% of the portfolio.

In addition to TransDigm Group Incorporated (NYSE:TDG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), Alexander Captain’s Cat Rock Capital is bullish on DocuSign, Inc. (NASDAQ:DOCU).

Rowan Street Capital, an investment management company, mentioned DocuSign, Inc. (NASDAQ:DOCU) in its Q3 2022 investor letter. Here is what the fund said:

“In the case of DocuSign, Inc. (NASDAQ:DOCU), the “Management” part no longer satisfies our requirements in order to remain in our investment portfolio. In the past 6-9 months, the company has had a huge turnover in both employees and upper management. In June of 2021, the board decided to get rid of Dan Springer, who had been a CEO of DocuSign since 2017 and took the company public in 2018. We found this decision strange as we thought that he actually did a great job growing the company over the past 5 years (revenues grew almost 5x from $519 million in 2017 to an estimated $2.4 billion this year).…” (Click here to read the full text)

7. eXp World Holdings, Inc. (NASDAQ:EXPI)

Cat Rock Capital’s Stake Value: $32,462,000

Percentage of Cat Rock Capital’s 13F Portfolio: 6.9%

Number of Hedge Fund Holders: 19

eXp World Holdings, Inc. (NASDAQ:EXPI) owns and runs a technology platform that enables businesses to run remotely, as well as a cloud-based real estate brokerage. eXp Realty has more than 85,000 agents globally, a 30% increase from the 65,286 agents it had at the start of October 2021. eXp World Holdings, Inc. (NASDAQ:EXPI) is the parent company of eXp Realty.

In light of eXp World Holdings, Inc. (NASDAQ:EXPI)’s Q2 earnings deficit, DA Davidson analyst Tom White on August 4 maintained a ‘Buy’ rating on shares of eXp World Holdings while decreasing his price objective from $28 to $22. In addition, according to Insider Monkey’s data, 19 hedge funds were bullish on eXp World Holdings, Inc. (NASDAQ:EXPI) at the end of Q2 2022, compared to 18 funds in the prior quarter.

Alexander Captain’s Cat Rock Capital is the leading position holder in eXp World Holdings, Inc. (NASDAQ:EXPI). The hedge fund first bought a stake in eXp World Holdings, Inc. (NASDAQ:EXPI) in the fourth quarter of 2021. In Q2 2022, the hedge fund increased its position in eXp World Holdings, Inc. (NASDAQ:EXPI) by 8% to 2.76 million shares, accounting for 6.9% of the overall portfolio.

Here is what East 72 has to say about eXp World Holdings, Inc. (NASDAQ:EXPI) in its Q1 2022 investor letter:

“Investors don’t like listed real estate brokers – at all. There are three significant US listed residential real estate brokers or franchisors (which includes) eXp World Holdings (EXPI: market capitalisation US$3.03billion less $108m in cash) with 72,000 agents connected via the eXp World and Virbela platforms; EXPI earned ~$41million in operating profit in 2021, after $144million in stock based compensation!”

6. Liberty Broadband Corporation (NASDAQ:LBRDA-C)

Cat Rock Capital’s Stake Value: $36,753,000

Percentage of Cat Rock Capital’s 13F Portfolio: 7.82%

Number of Hedge Fund Holders: 27

Liberty Broadband Corporation (NASDAQ:LBRDA-C) provides telecommunications services in the United States. Both household users and small to medium-sized businesses can access cable services using the company’s infrastructure of fibre, hybrid fibre, and coaxial connections.

In Q2 2022, Cat Rock Capital decreased its position in Liberty Broadband Corporation (NASDAQ:LBRDA-C) by 70%, holding a total of 317,820 shares worth over $36.75 million. The company represented 7.82% of the fund’s total 13F portfolio. Eagle Capital Management is the leading Liberty Broadband Corporation (NASDAQ:LBRDA-C) stakeholder, with a $960.27 million stake in the company.

According to Insider Monkey’s data, 27 hedge funds held stakes worth $543.50 million in Liberty Broadband Corporation (NASDAQ:LBRDA-C) at the end of June 2022, compared to 26 funds in the prior quarter worth $606.16 million.

Here is what Longleaf Partners Fund had to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q1 2022 investor letter:

“Liberty Broadband – A new position in 4Q 2021, holding company Liberty Broadband also suffered from a widening of a market-imposed holdco discount in an uncertain quarter. Liberty’s stakes in Charter and Alaskan cable company GCI also faced near-term concerns over slowing industry broadband additions, but these businesses have over a decade of pricing power history and are well positioned to weather an inflationary environment. We have a high degree of respect for our partners in John Malone and Greg Maffei, who are focused on growing value per share and are actively repurchasing discounted shares to help close the price-to-value gap.”

5. TransDigm Group Incorporated (NYSE:TDG)

Cat Rock Capital’s Stake Value: $43,644,000

Percentage of Cat Rock Capital’s 13F Portfolio: 9.28%

Number of Hedge Fund Holders: 66

TransDigm Group Incorporated (NYSE:TDG) is a designer, producer, and supplier of engineered aviation components for use in operational, commercial, and military aircraft. Sharlyn C. Heslam’s Stockbridge Partners is the leading position holder in TransDigm Group Incorporated (NYSE:TDG), with 1.60 million shares worth $859.93 million.

On October 11, Credit Suisse analyst Scott Deuschle initiated coverage of TransDigm Group Incorporated (NYSE:TDG), assigning an ‘Outperform’ rating and a $661 price target. The expert asserted that TransDigm Group Incorporated (NYSE:TDG)’s over-earning is not an issue and that there is still time for the commercial aerospace revival.

TransDigm Group Incorporated (NYSE:TDG) is a notable position in Alexander Captain’s Cat Rock Capital portfolio, alongside Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). Shares of TransDigm Group Incorporated (NYSE:TDG) rallied 7.11% last month, resulting in a $30.96 billion market capitalization. According to Insider Monkey’s data, 66 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG) at the end of Q2 2022, compared to 64 funds in the preceding quarter.

The hedge fund of Alexander Captain entered the second quarter of 2022 with 81,323 shares of TransDigm Group Incorporated (NYSE:TDG) in its portfolio worth around $43.64 million. The company has featured on Captain’s portfolio since the fourth quarter of 2015.

In its Q2 2022 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE:TDG) and explained its insights for the company. Here is what the fund said:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”

Click to continue reading and see 4 Stocks to Buy According to Alexander Captain’s Cat Rock Capital.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up