In this article, we discuss the top 5 new stocks to invest in according to David Greenspan’s Slate Path Capital. If you want to read our detailed analysis of Greenspan’s history, investment philosophy, and hedge fund performance, go directly to David Greenspan’s Slate Path Capital is Buying Coinbase, Stitch Fix, and More.
5. Coinbase Global, Inc. (NYSE:COIN)
Slate Path Capital’s Stake Value: $44.3 million
Percentage of Slate Path Capital’s 13F Portfolio: 2.47%
Number of Hedge Fund Holders: 49
In Q2 2021, 49 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company totaling $2.96 billion. Catherine D. Wood’s ARK Investment Management is the finance company’s most prized stakeholder, with stakes reaching a high of $1.4 billion.
In the Q2 2021 investor letter, Miller Value Partners mentioned COIN. Here is what the fund said:
“Coinbase (COIN) became a public company in mid-April following their direct listing at a reference price of $250. Coinbase is a cryptocurrency exchange that allows consumers, financial institutions and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space.
COIN’s 2021 revenues are expected to be 4.5x its 2020 revenues as crypto prices and volumes have exploded. It trades at 30x this year’s earnings, which is quite a steal for a quickly growing company in this market. That’s because the market believes this is peak cycle revenues and earnings, and retail margins will be pressured. That all very well may be true, but we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements it’s position as the leading platform.”
4. Antero Resources Corporation (NYSE:AR)
Slate Path Capital’s Stake Value: $47.6 million
Percentage of Slate Path Capital’s 13F Portfolio: 2.66%
Number of Hedge Fund Holders: 33
By June 30, 33 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $841 million with the same number of hedge funds with a stake of $610 million in the previous quarter. With a stake of $139.6 million, Mackenzie B. Davis And Kenneth L. Settles Jr’s SailingStone Capital Partners have the most stakes in the company.
3. Chesapeake Energy Corporation (NASDAQ:CHK)
Slate Path Capital’s Stake Value: $103.9 million
Percentage of Slate Path Capital’s 13F Portfolio: 5.8%
Number of Hedge Fund Holders: 43
Chesapeake Energy Corporation (NASDAQ:CHK) specializes in the production side of the oil and gas industry.
During the second quarter, 43 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the energy company worth $1.9 billion while there were 42 hedge funds with $1.8 billion worth of stakes in the previous quarter. With a stake of $620 million, Howard Marks’s Oaktree Capital Management has the highest stake in the company.
2. Frontier Communications Parent, Inc. (NASDAQ:FYBR)
Slate Path Capital’s Stake Value: $131 million
Percentage of Slate Path Capital’s 13F Portfolio: 7.34%
Number of Hedge Fund Holders: 43
Originated in 1935 and rooted in Norwalk, Connecticut, Frontier Communications Parent, Inc. (NASDAQ:FYBR) lands second on our list of top stocks recently picked by David Greenspan’s Slate Path Capital according to analysts.
As of the second quarter, 43 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $3.56 billion.
1. Stitch Fix, Inc. (NASDAQ:SFIX)
Slate Path Capital’s Stake Value: $152.8 million
Percentage of Slate Path Capital’s 13F Portfolio: 8.53%
Number of Hedge Fund Holders: 35
As of the second quarter, 35 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in Stitch Fix, Inc. (NASDAQ:SFIX) worth $703 million versus 28 hedge funds with $466 million worth of stakes in the previous quarter.
In the Q2 2021 investor letter of RGA Investment Advisors, the fund mentioned Stitch Fix, Inc. (NASDAQ: SFIX). Here is what the fund has to say about the firm:
“We purchased a new position–Stitch Fix–which is attacking this problem of abundance and the friction of shopping digitally head on with curation and personalization.
Your Own Personal Clothing Store
Stitch Fix is incredibly interesting. Founded by Katrina Lake in 2011, Stitch Fix turned apparel shopping into a delightfully personalized, subscription-based platform. The company collects numerous data points when onboarding a customer from the generics and quirks of each individual’s size and shape to tastes in designers, colors and styles. This empowers the company’s stylists to curate a “fix” with five clothing items on a periodic cadence (monthly, quarterly, semi-annually, etc.) of the customer’s choosing. A box arrives with its contents formerly unseen by the customer, with the constant being each item is already a known fit based on the size and shape of the customer’s body type and the trove of data Stitch Fix has on other “look alikes” across their customer base. Of the 5 items, a customer can keep all or none, but they must pay $20 irrespective of whether they keep anything. After reviewing the items, a customer can keep all items (for which they would get a 25% keep five discount) or return some items and checkout online to
pay full price…” (Click here to see the full text)
You can also read about 10 Stocks to Buy and Hold According to Bill Gates and Seth Klarman’s Portfolio: Top 10 Stock Picks.
