In this article, we discuss 9 stocks to invest in according to Joshua Kushner’s Thrive Capital. If you want to skip our detailed analysis of Kushner’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Invest In According to Joshua Kushner’s Thrive Capital.
Joshua Kushner is an American businessman and investor. He is an active partner at Thrive Capital, a hedge fund focused on venture capital and the co-founder of Oscar Health.
Thrive Capital is a private equity hedge fund that focuses on investments in media and technology. It is located in New York and was founded in 2009. The hedge fund concluded its eighth fund on February 17, with about $3 billion. It intends to invest $500 million in early-stage start-ups and the remaining $2.5 billion in later-stage enterprises. Oscar Health Inc., Compass Inc., Affirm Holdings Inc., Opendoor Technologies Inc., Unity Software Inc., Lemonade Inc., and Hims & Hers Health Inc. are a few companies Kushner’s business has backed that have gone public. As of the fourth quarter of 2021, Thrive Capital had a portfolio worth $1.06 billion.
Among the essential stocks in the portfolio of Joshua Kushner’s Thrive Capital are Compass, Inc. (NYSE:COMP), Vimeo, Inc. (NASDAQ:VMEO), and Robinhood Markets, Inc. (NASDAQ:HOOD).
In Compass, Inc. (NYSE:COMP), Joshua Kushner owns 7.29 million shares. The considerable investment covers 6.22% of the fund’s portfolio. As of February 28, Compass, Inc. (NYSE:COMP) shares shed 62.98% over the last twelve months.
Another mid-cap stock in Joshua Kushner’s portfolio is Vimeo, Inc. (NASDAQ:VMEO). The hedge fund chaired by Joshua Kushner owns more than 5.85 million shares in Vimeo, Inc. (NASDAQ:VMEO) worth over $105.12 million, representing 9.88% of its investment portfolio.
Based on the 13F holdings for the fourth quarter of 2021, Thrive Capital owns 20.41 million shares in Robinhood Markets, Inc. (NASDAQ:HOOD). On February 18, Deutsche Bank analyst Brian Bedell boosted his price target on Robinhood Markets, Inc. (NASDAQ:HOOD) to $14 from $12 and reiterated a Hold rating on the shares.
Source:Pixabay
Our Methodology
With this context in mind, here is our list of 9 stocks to invest in according to Joshua Kushner’s Thrive Capital. We picked these stocks from the Q4 portfolio of Kushner’s hedge fund.
Stocks to Invest In According to Joshua Kushner’s Thrive Capital
9. Twilio Inc. (NYSE:TWLO)
Thrive Capital Stake Value: $458,000
Percentage of Thrive Capital’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 80
Twilio Inc. (NYSE:TWLO) is a communications software company that offers a cloud-based platform and services. Based on its 13F holdings for the fourth quarter of 2021, Thrive Capital owns 1,741 shares in Twilio Inc. (NYSE:TWLO), a position valued at $458,000.
Needham analyst Ryan Koontz cut Twilio Inc. (NYSE:TWLO)’s price target from $400 to $350 on February 10, after noting many reductions among software rivals, but kept a Buy rating on the company following its Q4 results and projection. Twilio Inc. (NYSE:TWLO) reported earnings for the fourth quarter of 2021 on February 9, with revenue of $842.74 million, beating predictions by $73.34 million.
Of the 80 hedge funds that were bullish on Twilio Inc. (NYSE:TWLO) according to the fourth quarter database of Insider Monkey, Catherine D. Wood’s ARK Investment Management is the leading stakeholder of the company, holding 4.06 million shares worth $1.07 billion.
Twilio Inc. (NYSE:TWLO) is one of the notable stocks gaining the attention of Thrive Capital, just like Compass, Inc. (NYSE:COMP), Vimeo, Inc. (NASDAQ:VMEO), and Robinhood Markets, Inc. (NASDAQ:HOOD).
In its second quarter 2021 investor letter, Lakehouse Capital mentioned Twilio Inc. (NYSE:TWLO). Here is what the fund said:
“The Fund held 20 positions as of the end of June and exited four during the year (including) Twilio. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”
8. Roblox Corporation (NYSE:RBLX)
Thrive Capital Stake Value: $981,000
Percentage of Thrive Capital’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) is an internet gaming company that offers a diverse selection of games. Roblox Client, Roblox Studio, and Roblox Cloud are the platform’s three components. Roblox Corporation (NYSE:RBLX) is getting the attention of the smart money, as 61 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 50 funds a quarter earlier.
On February 18, Jefferies analyst Andrew Uerkwitz decreased his price target on Roblox Corporation (NYSE:RBLX) from $70 to $60 and maintained a Hold rating. He stated that the company’s Q4 results were the most divided since coming public, with high DAU growth mixed with the company’s worst net bookings growth.
On February 15, Roblox Corporation (NYSE:RBLX) published earnings for the fourth quarter, announcing bookings of $770 million, missing estimates by $2 million. However, the 49.5 million average daily active users (DAUs) for the period was up 33% year-over-year.
In its third quarter 2021 investor letter, Jefferies Group, an investment management firm, mentioned Roblox Corporation (NYSE:RBLX). Here is what the fund said:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new mulit-billion dollar companies will rise as the Metaverse becomes more mature.
Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition….(Click to read full text)
7. Blend Labs, Inc. (NYSE:BLND)
Thrive Capital Stake Value: $2,547,000
Percentage of Thrive Capital’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 16
Blend Labs, Inc. (NYSE:BLND) is a cloud-based software platform that supports the end-to-end client journey for banking solutions for financial services companies. On February 14, Keefe Bruyette analyst Ryan Tomasello initiated coverage of Blend Labs, Inc. (NYSE:BLND), rating the stock as Market Perform and setting a price target of $11.75.
The fund first bought a stake in Blend Labs, Inc. (NYSE:BLND) in the third quarter of 2021. According to the 13F filings for the fourth quarter of 2021, Thrive Capital holds 346,970 shares of Blend Labs, Inc. (NYSE:BLND), amounting to more than $2.55 million and representing 0.23% of the fund’s portfolio value.
At the end of the fourth quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $325.58 million in Blend Labs, Inc. (NYSE:BLND), down from 19 the preceding quarter worth $487.75 million.
6. Hims & Hers Health, Inc. (NYSE:HIMS)
Thrive Capital Stake Value: $20,977,000
Percentage of Thrive Capital’s 13F Portfolio: 1.97%
Number of Hedge Fund Holders: 22
Hims & Hers Health, Inc. (NYSE:HIMS) is a company that provides telemedicine consultations. It links patients with healthcare providers, allowing them to get mental health, sexual health, dermatology, and general care services. The number of hedge funds tracked by Insider Monkey having stakes in Hims & Hers Health, Inc. (NYSE:HIMS) grew to 22 in Q4, up from 14 in the preceding quarter. These funds hold a consolidated value of $74.99 million, up from $55.22 million.
Sean Wieland of Piper Sandler cut his price objective on Hims & Hers Health, Inc. (NYSE:HIMS) to $8 from $12 on February 23 and kept an Overweight rating on the stock. In a research note, Wieland informed investors that the lowered price target reflected significant reductions across the market in expectation of increasing rates and concerns connected with a shifting data privacy scenario.
Hims & Hers Health, Inc. (NYSE:HIMS) and GNC Holdings, LLC announced a collaboration on February 15 to provide consumers health and wellness solutions at select GNC locations nationally and online at GNC.com.
Along with Compass, Inc. (NYSE:COMP), Vimeo, Inc. (NASDAQ:VMEO), and Robinhood Markets, Inc. (NASDAQ:HOOD), Hims & Hers Health, Inc. (NYSE:HIMS) is one of the stocks on the radar of Joshua Kushner.
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Disclosure: None. 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital is originally published on Insider Monkey.
