Bares Capital’s Top 5 Stock Picks

In this article, we will take a look at Bares Capital’s top 5 stock picks. To see more such companies, go directly to Bares Capital’s Top 12 Stock Picks.

5. Interactive Brokers Group, Inc. (NASDAQ:IBKR)

Number of Hedge Fund Holders: 45
Bares Capital Management’s Equity Stake: $211.02 Million
2023 share price performance: 15%

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of Bares Capital Management’s top stock picks in financial services, operating as an automated electronic broker worldwide. Interactive Brokers Group, Inc. (NASDAQ:IBKR) engages in the execution, clearance, and settlement of trades in stocks, options, futures, bonds, foreign exchange, etc.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) was one of the stocks that benefited from solid investor sentiment in 2023, resulting in significant trading activities on stocks, bonds, and mutual funds, among other instruments. The stock was up by 15% last year.

Analyst James Yaro believes the stock is a ‘Strong Buy’ as it is well positioned to benefit from interest rate cuts in 2024.

“However, we see substantial upside to these market-implied earnings,” the analyst wrote. “The company should be able to keep EPS flat, even in a deep downside earnings scenario with 10 rate cuts from 2023-25E (2 more than the market forward curve), as the company offsets rate cuts with strong balance sheet growth and mix shift, and commissions growth,” he added. “Put another way, we see current valuation as offering an attractive entry point, with risk skewed to the upside,” Yaro stated.

As of the end of the fourth quarter of 2023, 45 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Interactive Brokers Group, Inc. (NASDAQ:IBKR). The most significant hedge fund stakeholder of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was William B. Gray’s Orbis Investment Management, which owns a $644.04 million stake in Interactive Brokers Group, Inc. (NASDAQ:IBKR).

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