In this article, we discuss Daniel Patrick Gibson’s Sylebra Capital Management’s top picks. If you want to skip our detailed analysis of Gibson’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stocks Daniel Patrick Gibson’s Sylebra Capital Management is Buying.
Daniel Patrick Gibson is the founder and chief investment officer at Sylebra Capital Management, managing a portfolio worth more than $4.03 billion. The portfolio has grown by 1.04% this quarter under Gibson’s investment strategies. Before founding Sylebra Capital Management, Gibson was an associate at Calera Capital, principal at UBS AG New York, and partner at Coatue Management LLC.
Gibson manages the capital of sophisticated institutions worldwide, including leading sovereign wealth and pension funds, pre-eminent endowments, and charitable foundations. His hedge fund contains information technology, real estate, communications, consumer staples, energy, finance, and consumer discretionary stocks. In the second quarter of 2021, technology stocks made up about 80% of Gibson’s portfolio. This shows the hedge fund’s immense interest in the tech sector.
Some of the notable tech stocks in Sylebra Capital’s 2021 Q2 portfolio include Chegg Inc. (NYSE:CHGG), DocuSign Inc. (NASDAQ:DOCU), and Pinduoduo Inc. (NASDAQ:PDD), among others.
In the second quarter, Chegg posted an EPS of $0.43, beating the estimates by $0.06. Revenue in the period jumped about 30% to $198.48 million, beating the estimates by $8.37 million. Keeping in mind its strong earnings report, Morgan Stanley assigned an Overweight rating to Chegg Inc. (NYSE:CHGG) on June 17.
Similarly, on September 3, Dan Springer, the CEO of DocuSign Inc. (NASDAQ:DOCU), reported that despite the COVID-19 pandemic impacting the company revenues, high growth is still forecasted for the upcoming years. Currently, the company has penetrated only 5% of the addressable market with its $2 billion annual revenue.
In addition to that, Pinduoduo Inc. (NASDAQ:PDD), which makes up 1.54% of the investment portfolio of Sylebra Capital Management, is also gaining the attention of Wall Street as China begins to pass new data privacy laws. Reports suggest that China might ban e-commerce companies who do not comply with intellectual property laws.
Photo by Stephen Dawson on Unsplash
Our Methodology
With this context in mind, here are some of the top stock holdings of Daniel Patrick Gibson’s Sylebra Capital Management. We used Sylebra Capital Management’s 13F portfolio for the second quarter of 2021 to rank these stocks. The list was compiled according to the value of each holding in the investment portfolio. The analyst ratings for each company are also discussed to provide readers with some more context about their investment decisions. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Why should we pay attention to Gibson’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Daniel Patrick Gibson’s Sylebra Capital Management is Buying AMD and 9 Other Stocks
10. Lattice Semiconductor Corp (NASDAQ:LSCC)
Gibson’s Stake Value: $110,619,000
Percentage of Gibson’s 13F Portfolio: 2.17%
Number of Hedge Fund Holders: 24
Ranked tenth on our list of the stocks that Daniel Patrick Gibson’s Sylebra Capital Management is buying is Lattice Semiconductor Corp (NASDAQ:LSCC), which is an American corporation specializing in manufacturing programmable logic devices. Founded in 1983, headquartered in Oregon, the corporation has a market capitalization of $8.902 billion.
Gibson’s Sylebra Capital Management owns about 1.97 million shares in Lattice Semiconductor Corp (NASDAQ:LSCC) as of the end of the second quarter of 2021, amounting to $110.62 million, and making up 2.17% of Gibson’s 13F portfolio.
At the end of the second quarter of 2021, 24 hedge funds in Insider Monkey’s database held stakes with a value of $306.52 million in Lattice Semiconductor Corp (NASDAQ:LSCC). This is compared to the same number of hedge funds, with stakes worth $276.96 million in the previous quarter.
Lattice Semiconductor last issued its quarterly earnings results on August 3. The company reported earnings per share of $0.25 for the quarter, beating analysts’ consensus estimates of $0.15 by $0.10.
Like Chegg Inc. (NYSE:CHGG), DocuSign Inc. (NASDAQ:DOCU) and Pinduoduo Inc. (NASDAQ:PDD), Lattice Semiconductor Corp (NASDAQ:LSCC) is one of the most notable stocks in Sylebra Capital’s Q2 portfolio.
Artisan Partners, in their Q4 2020 investor letter, mentioned Lattice Semiconductor Corp (NASDAQ:LSCC) and shared their insights about the company. Here is what they said:
“Lattice Semiconductor is a vendor of field-programmable gate array (FPGA) chips used in personal computers, 5G infrastructure, routers and switches, and servers, to name a few. The company now has a new board and management team—the current CEO joined from leading microprocessor provider Advanced Micro Devices in late 2018—which have embarked on a product transformation journey. The company has refreshed its FPGA products in the small/low power segment of the market—making it more focused on addressing high return-on-investment use cases centered around power-efficient applications—carving itself a niche behind the two market leaders focused on high-end, Xilinx and Intel Corporation. In addition to providing FPGA chips to data centers and new 5G infrastructure— particularly compelling opportunities given these end markets are and will likely continue benefiting from strong secular tailwinds—we believe the company is well-positioned to tap into low-power/reprogrammable chips as well as industrial and automotive end markets.”
9. Opendoor Technologies Inc. (NASDAQ:OPEN)
Gibson’s Stake Value: $135,242,000
Percentage of Gibson’s 13F Portfolio: 3.35%
Number of Hedge Fund Holders: 35
The ninth stock on our list of the stocks that Daniel Patrick Gibson’s Sylebra Capital Management is buying is Opendoor Technologies Inc. (NASDAQ:OPEN), which is a real estate development and property management company. Its operations include putting up offers on houses via an online process, repairing them, and then relisting them for sale. Opendoor Technologies Inc. (NASDAQ:OPEN) also offers a mobile application that facilitates property purchase and financing the real estate. The San Francisco-based company has a market cap of $10.977 billion.
Gibson’s Sylebra Capital Management owns about 7.62 million shares in Opendoor Technologies Inc. (NASDAQ:OPEN), amounting to $135.24 million, and making up 3.35% of Gibson’s 13F portfolio. At the end of the second quarter of 2021, 35 hedge funds in Insider Monkey’s database held stakes amounting to $765 million in Opendoor Technologies Inc. (NASDAQ:OPEN), down from 33 in the previous quarter with stakes worth over $1.04 billion. The company reported last quarter’s earnings per share of -$0.27 on August 11, beating analysts’ consensus estimates of -$0.63 by $0.36.
In their Q2 2021 investor letter, Baron Opportunity Fund mentioned Opendoor Technologies Inc. (NASDAQ:OPEN). Here is what they said:
“Opendoor Technologies Inc. operates a digital platform for home purchases and sales on which buyers can tour homes, make offers, and secure financing, and sellers can receive next-day cash offers with flexible close dates. Shares were down in the quarter given rising mortgage rates and the potential knock-on effects to the housing environment. Despite investor concerns, the housing market remains robust. As the iBuying industry leader disrupting an enormous and highly inefficient industry, we believe Opendoor will grow regardless of the housing market environment.”
8. Impinj Inc. (NASDAQ:PI)
Gibson’s Stake Value: $226,859,000
Percentage of Gibson’s 13F Portfolio: 5.62%
Number of Hedge Fund Holders: 20
Impinj Inc. (NASDAQ:PI) is the eighth stock on our list of the stocks that Daniel Patrick Gibson’s Sylebra Capital Management is buying. Impinj Inc. (NASDAQ:PI) manufactures radio-frequency identification (RFID) devices and related software. Founded in 2000, the Seattle-based company has a market cap of $1.372 billion.
Gibson’s Sylebra Capital Management owns about 4.39 million shares in Impinj Inc. (NASDAQ:PI), amounting to $226.86 million, and making up 5.62% of Gibson’s 13F portfolio. At the end of the second quarter of 2021, 20 hedge funds in Insider Monkey’s database held stakes amounting to $279.2 million in Impinj Inc. (NASDAQ:PI), down from 18 in the previous quarter with stakes worth over $427.5 million. The company reported last quarter’s earnings per share of $0.11 on July 28, beating analysts’ consensus estimates of -$0.29 by $0.50.
7. Everbridge Inc. (NASDAQ:EVBG)
Gibson’s Stake Value: $243,226,000
Percentage of Gibson’s 13F Portfolio: 6.03%
Number of Hedge Fund Holders: 26
Everbridge Inc. (NASDAQ:EVBG) is the next stock that Daniel Patrick Gibson’s Sylebra Capital Management is buying. The company provides enterprise software that is meant to offer critical information during times of crisis to enable public safety and business continuity. Founded in 2002, Everbridge Inc. (NASDAQ:EVBG) has headquarters in Pasadena, California, Burlington, and Massachusetts. The market cap of Everbridge Inc. (NASDAQ:EVBG) is $6.178 billion.
Gibson’s Sylebra Capital Management owns about 1.78 million shares in Everbridge Inc. (NASDAQ:EVBG), amounting to $243.23 million, and making up 6.03% of Gibson’s 13F portfolio. At the end of the second quarter of 2021, 26 hedge funds in Insider Monkey’s database held stakes amounting to $1.2 billion in Everbridge Inc. (NASDAQ:EVBG), up from 49 in the previous quarter with stakes worth over $1.08 billion. The company reported last quarter’s earnings per share of $0.03 on August 9, beating analysts’ consensus estimates of -$0.23 by $0.26.
Like Chegg Inc. (NYSE:CHGG), DocuSign Inc. (NASDAQ:DOCU) and Pinduoduo Inc. (NASDAQ:PDD), Everbridge Inc. (NASDAQ:EVBG) is one of the most notable stocks in Sylebra Capital’s Q2 portfolio.
Baron Discovery Fund mentioned Everbridge Inc. (NASDAQ:EVBG) in their Q1 2021 investor letter. Here is what the fund said:
“Everbridge, Inc. provides a cloud-based software solution to companies for critical event management (“CEM”) as well as general population alerts for public authorities. Shares declined during the first quarter as part of the broader market rotation from high-valuation software stocks coupled with continued pandemic-related pressure on Everbridge’s organic growth rates. We retain conviction given the company’s significant lead over its competition and the early stage of CEM adoption, with just 2% of Everbridge’s 5,000-plus population alert customers having adopted CEM thus far.”
6. Aeva Technologies Inc. (NYSE:AEVA)
Gibson’s Stake Value: $268,152,000
Percentage of Gibson’s 13F Portfolio: 6.65%
Number of Hedge Fund Holders: 15
Aeva Technologies Inc. (NYSE:AEVA) is the sixth stock on our list of the stocks that Daniel Patrick Gibson’s Sylebra Capital Management is buying. Aeva Technologies Inc. (NYSE:AEVA) uses frequency modulated continuous wave (FMCW) sensing technology to design a specialized chip that enables the use of LiDAR across different applications. The Californian company belongs to the motor vehicles parts and accessories industry and has a market cap of $2.055 billion.
Gibson’s Sylebra Capital Management owns about 35.3 million shares in Aeva Technologies Inc. (NYSE:AEVA), amounting to $268.15 million, and making up 6.65% of Gibson’s 13F portfolio. At the end of the second quarter of 2021, 15 hedge funds in Insider Monkey’s database held stakes amounting to $413 million in Aeva Technologies Inc. (NYSE:AEVA), up from 16 in the previous quarter holding stakes worth over $378.6 million. The company reported last quarter’s earnings per share of -$0.11 on August 11, missing analysts’ consensus estimates of -$0.09 by $0.02.
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Disclosure: None. Daniel Patrick Gibson’s Sylebra Capital Management is Buying AMD and 9 Other Stocks was originally published on Insider Monkey.
