In this article, we discuss Chamath Palihapitiya and the 5 stocks he pumped in the last 10 years. If you want to read about some more Chamath Palihapitiya stocks, go directly to Chamath Palihapitiya Stocks: 10 Stocks Picked in the Last 10 Years.
5. Latch, Inc. (NASDAQ:LTCH)
Number of Hedge Fund Holders: 17
Latch, Inc. (NASDAQ:LTCH) operates as an enterprise technology company in the United States and Canada. In January 2021, Chamath Palihapitiya announced that his SPAC would be merging with Latch and taking the latter public. The firm went public in June, raising $453 million in cash out of a $1.56 billion valuation at the public offering. The stock has been on a downward trajectory since the IPO and as of December 26, has a market capitalization of $96 million.
At the end of the third quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $2.8 million in Latch, Inc. (NASDAQ:LTCH), compared to 16 in the preceding quarter worth $6.2 million.
4. Clover Health Investments, Corp. (NASDAQ:CLOV)
Number of Hedge Fund Holders: 17
Clover Health Investments, Corp. (NASDAQ: CLOV) operates as a medicare advantage insurer in the United States. In October 2020, Chamath Palihapitiya announced that he would be taking Clover public through his SPAC in a deal valuing the firm at over $3.7 billion. Palihapitiya became the largest shareholder in the company after the IPO, buying around 60 million shares, representing a 12% stake in the firm. Clover stock has slumped since the public offering and as of December 26, has a market capitalization of $447 million. Palihapitiya is also under regulatory scrutiny over the IPO.
On November 16, Citi analyst Jason Cassorla maintained a Neutral rating on Clover Health Investments, Corp. (NASDAQ:CLOV) stock and lowered the price target to $1.80 from $3.50, noting that models were updated based on third-quarter results.
At the end of the third quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $19.7 million in Clover Health Investments, Corp. (CLOV), compared to 11 in the preceding quarter worth $20 million.
3. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 25
SoFi Technologies, Inc. (NASDAQ:SOFI) provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. In January 2021, Chamath Palihapitiya revealed that his SPAC would take SoFi Tech public in a deal valuing the firm at more than $8 billion. As of December 26, the firm has a market capitalization of $3.6 billion. SoFi was founded in 2011 with a focus on student loan refinancing for millennials, but has evolved since then, now offering stock and cryptocurrency trading, personal and mortgage loans, and wealth management services.
On December 15, Piper Sandler analyst Kevin Barker maintained an Overweight rating on SoFi Technologies, Inc. (NASDAQ:SOFI) and lowered the price target to $7.50 from $8.50, noting that due to the market’s rising prices, consumer lenders have been under pressure throughout the majority of 2022.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Silver Lake Partners is a leading shareholder in SoFi Technologies, Inc. (NASDAQ:SOFI) with 31.2 million shares worth more than $152 million.
In its Q4 2021 investor letter, Altron Capital Management, an asset management firm, highlighted a few stocks and SoFi Technologies, Inc. (NASDAQ:SOFI) was one of them. Here is what the fund said:
“We have been building our position in SoFi Technologies, Inc. (NASDAQ:SOFI) over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services. (read more)
2. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 36
MP Materials Corp. (NYSE:MP) owns and operates rare earth mining and processing facilities. In addition to his own SPAC deals, Chamath Palihapitiya has also funded other SPAC deals through the Private Investment in Public Equity (PIPE) track. MP Materials was one such firm, in which Palihapitiya helped pump up the stock for the IPO, co-leading a $200 million PIPE investment in the firm.
At the end of the third quarter of 2022, 36 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in MP Materials Corp. (NYSE:MP), compared to 26 in the previous quarter worth $1.98 billion.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and MP Materials Corp. (NYSE:MP) was one of them. Here is what the fund said:
“ClearBridge has visited and engaged with holding MP Materials Corp. (NYSE:MP), for example, a U.S. mining company with a facility that supplies neodymium and praseodymium, two rare earth minerals used to make powerful magnets found in 90% of EV motors. The facility recycles all water from its process such that recycled water meets 95% of the facility’s water needs, while the rest comes from groundwater. In the recycling process, wastewater is piped to an on-site water treatment plant where it is treated using reverse osmosis and then reused. In a recent engagement with the company, we encouraged it to disclose the groundwater extraction quantities that make up the other 5% and compare these to peers.”
1. Opendoor Technologies Inc. (NASDAQ:OPEN)
Number of Hedge Fund Holders: 41
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate in the United States. In September 2020, Social Capital Hedosophia II, the SPAC led by Chamath Palihapitiya, announced that it would acquire Opendoor, an online marketplace for buying and selling houses, in an IPO deal that valued Opendoor at $4.8 billion. As of December 26, the firm has a market capitalization of $646 million.
On October 25, JMP Securities analyst Nicholas Jones maintained an Outperform rating on Opendoor Technologies Inc. (NASDAQ:OPEN) stock and lowered the price target to $4.50 from $9, highlighting that as a result of fears over the likelihood of a recession in 2023, rising interest rates, and low affordability, valuations in the industry have considerably decreased.
At the end of the third quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $396.4 million in Opendoor Technologies Inc. (NASDAQ:OPEN), compared to 39 in the preceding quarter worth $861.7 million.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Opendoor Technologies Inc. (NASDAQ:OPEN) was one of them. Here is what the fund said:
“The Fund invests in secular growth and innovative businesses across all market capitalizations, with the bulk of the portfolio landing in the large-cap zone. The Fund is categorized as US Large Growth by Morningstar. As of the end of the fourth quarter, the largest market cap holding in the Fund was $2.5 trillion and the smallest was $791 million. The median market cap of the Fund was $27.5 billion. The Fund had $1.7 billion of assets under management. The Fund had investments in 63 securities. The Fund’s top 10 positions accounted for 45.4% of net assets. Fund inflows were positive for 2021. We sold Opendoor Technologies Inc. (NASDAQ:OPEN) because we identified issues relating to our long-term theses in the company, and we decided to exit the positions to fund other purchases.”
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