In this article, we discuss the 5 new stock picks of billionaire Daniel Sundheim. If you want our detailed analysis of these stocks, go directly to Billionaire Daniel Sundheim’s Portfolio: 10 New Stock Picks.
5. Netflix, Inc. (NASDAQ:NFLX)
D1 Capital Partners’ Stake Value: $236,790,000
Percentage of D1 Capital Partners’ 13F Portfolio: 1.32%
Number of Hedge Fund Holders: 106
In Q3 2021, Daniel Sundheim’s D1 Capital Partners purchased 387,964 Netflix, Inc. (NASDAQ:NFLX) shares, worth $236.7 million, accounting for 1.32% of the firm’s total 13F portfolio. Netflix, Inc. (NASDAQ:NFLX) is a subscription-based digital streaming and original production company.
JPMorgan analyst Doug Anmuth is “incrementally positive” on Netflix, Inc. (NASDAQ:NFLX) shares, stating that Netflix, Inc. (NASDAQ:NFLX)’s Q4 content strengthened in December and that subscriber growth should follow. He reiterated an Overweight rating on Netflix, Inc. (NASDAQ:NFLX), keeping a $750 price target.
Of the 106 hedge funds that were bullish on Netflix, Inc. (NASDAQ:NFLX) in the third quarter, Fisher Asset Management is one of the largest Netflix, Inc. (NASDAQ:NFLX) shareholders, with a $2.53 billion position in the company.
Here is what FPA U.S. Core Equity Fund has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2021 investor letter:
“Among the Fund’s biggest winners was Netflix (NASDAQ: NFLX), which appreciated 15.5% during the third quarter. I continue to be very bullish on NFLX’s long-term potential. The market can often take a short-term view and I believe such is the case with how it trades NFLX from quarter to quarter, typically based on how many paid net subscriptions it garners.
I believe the market may define NFLX’s total addressable market too narrowly by focusing on the approximate 74 million of pay TV households in the U.S. and one billion pay TV households across the globe or about 700 million ex-China. Based on those denominators, NFLX’s paid memberships of approximately 74 million in North America and 135 million throughout the rest of the world (as of 6/30/21) would point to a business that is much more mature (at around 30% penetrated) than it likely is…” (Click here to see the full text)
4. Texas Roadhouse, Inc. (NASDAQ:TXRH)
D1 Capital Partners’ Stake Value: $252,436,000
Percentage of D1 Capital Partners’ 13F Portfolio: 1.41%
Number of Hedge Fund Holders: 36
Texas Roadhouse, Inc. (NASDAQ:TXRH), an American chain of steakhouses, is one of the newest stock picks of billionaire Daniel Sundheim as of the third quarter. Sundheim’s D1 Capital Partners bought 2.76 million Texas Roadhouse, Inc. (NASDAQ:TXRH) shares, valued at $252.4 million, accounting for 1.41% of the firm’s total investments.
Barclays analyst Jeffrey Bernstein raised the price target on Texas Roadhouse, Inc. (NASDAQ:TXRH) to $92 from $90 and kept an Equal Weight rating on the shares on December 15. Restaurants are expected to experience an upside in 2022 since pandemic concerns are easing with no lasting impact on sales, labor supply is improving, and inflation is becoming less pressing.
Melvin Capital Management is the biggest Texas Roadhouse, Inc. (NASDAQ:TXRH) stakeholder as of Q3 2021, with an approximately $370 million position in the company. Overall, 36 hedge funds in the third quarter database of Insider Monkey were bullish on Texas Roadhouse, Inc. (NASDAQ:TXRH), with total stakes amounting to $993.4 million.
3. Warby Parker Inc. (NYSE:WRBY)
D1 Capital Partners’ Stake Value: $432,521,000
Percentage of D1 Capital Partners’ 13F Portfolio: 2.41%
Number of Hedge Fund Holders: 12
Daniel Sundheim, via D1 Capital Partners, purchased 8.15 million Warby Parker Inc. (NYSE:WRBY) shares, worth $432.5 million, representing 2.41% of the firm’s Q3 portfolio. Warby Parker Inc. (NYSE:WRBY) is an online retailer from the United States, selling prescription glasses and sunglasses.
On November 12, Warby Parker Inc. (NYSE:WRBY) announced its Q3 earnings. The company posted an EPS of $0.02, exceeding estimates by $0.24. The quarterly revenue totaled $137.37 million, beating estimates by $4.28 million.
Loop Capital analyst Anthony Chukumba on December 10 lowered the price target on Warby Parker Inc. (NYSE:WRBY) to $52 from $60 and kept a Hold rating on the shares, citing the rising inflation, which may negatively impact the valuations for high growth companies like Warby Parker Inc. (NYSE:WRBY).
Chase Coleman’s Tiger Global Management is the largest Warby Parker Inc. (NYSE:WRBY) stakeholder, with 15.1 million shares worth $802.7 million. Overall, 12 hedge funds were long Warby Parker Inc. (NYSE:WRBY) in Q3, with stakes totaling $1.41 billion.
2. Bath & Body Works, Inc. (NYSE:BBWI)
D1 Capital Partners’ Stake Value: $573,762,000
Percentage of D1 Capital Partners’ 13F Portfolio: 3.20%
Number of Hedge Fund Holders: 56
Bath & Body Works, Inc. (NYSE:BBWI) is an American retailer selling body wash, lotions, fragrances, and candles, among other similar personal care products. Daniel Sundheim, as of Q3 2021, acquired 9.10 million Bath & Body Works, Inc. (NYSE:BBWI) shares, worth $573.7 million, representing 3.20% of the billionaire’s total 13F securities.
Bath & Body Works, Inc. (NYSE:BBWI), on November 17, posted its Q3 results. The company announced an EPS of $0.92, beating estimates by $0.31. The revenue came in at $1.68 billion, exceeding estimates by $69.03 million.
Goldman Sachs analyst Kate McShane initiated coverage of Bath & Body Works, Inc. (NYSE:BBWI) with a Buy rating and a $93 price target on December 14. The analyst sees Bath & Body Works, Inc. (NYSE:BBWI) as a “strong brand with high awareness and customer retention”. The company’s strengths also include its omnichannel engagement, attractive valuation, and high margins.
56 hedge funds tracked by Insider Monkey were bullish on Bath & Body Works, Inc. (NYSE:BBWI) in Q3 2021, with stakes equaling $6.5 billion, as compared to 53 funds holding stakes in Bath & Body Works, Inc. (NYSE:BBWI) worth $6.3 billion in the preceding quarter.
1. Robinhood Markets, Inc. (NASDAQ:HOOD)
D1 Capital Partners’ Stake Value: $776,614,000
Percentage of D1 Capital Partners’ 13F Portfolio: 4.34%
Number of Hedge Fund Holders: 20
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the latest additions to Daniel Sundheim’s third quarter portfolio, with the billionaire buying 18.45 million shares of the company, worth $776.6 million, representing 4.34% of his total 13F investments. Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services company that operates as a stockbroker and runs an electronic trading platform, assisting users with stock trading, ETFs, and cryptocurrencies.
Deutsche Bank analyst Brian Bedell on December 17 lowered the price target on Robinhood Markets, Inc. (NASDAQ:HOOD) to $17 from $32 and kept a Hold rating on the shares. The analyst heads into 2022 “even more constructive than at the start of 2021” on the brokers, asset managers, and exchanges sector.
Neil Mehta’s Greenoaks Capital is the biggest Robinhood Markets, Inc. (NASDAQ:HOOD) stakeholder as of September 2021, with 22.65 million shares worth $776.6 million. Overall, 20 hedge funds were bullish on Robinhood Markets, Inc. (NASDAQ:HOOD) in the third quarter, with total stakes amounting to $4.6 billion.
You can also take a look at 10 Best Biotech Stocks to Buy According to Mark Lampert and Gabriel Plotkins’ Melvin Capital Portfolio: Top 10 Picks.
