In this article, we will be discussing the 5 biggest stock picks in Eric Bannasch’s portfolio. If you wish to see our detailed analysis of Bannasch’s history, investment philosophy, and hedge fund performance, go directly to Eric Bannasch Portfolio: 10 Biggest Stock Picks.
5. Anaplan, Inc. (NYSE:PLAN)
Cadian Capital’s Stake Value: $167.1 million
Percentage of Cadian Capital’s 13F Portfolio: 7.42%
Number of Hedge Fund Holders: 52
Anaplan, Inc. (NYSE:PLAN) is placed fifth on our list of the 10 biggest stock picks in Eric Bannasch’s portfolio. The California-based software company sells subscriptions for cloud-based software and provides data for business related decision-making.
On October 1, UBS analyst Taylor McGinnis initiated coverage of Anaplan, Inc. (NYSE:PLAN) with a Buy rating and $72 price target, citing positive revenue expectations for the company.
As of Q2 2021, 52 hedge funds tracked by Insider Monkey have positions in Anaplan, Inc. (NYSE:PLAN), compared with 55 in the previous quarter. These stakes are valued at $2.1 billion. Eric Bannasch reported owning over 3.13 million shares in the company in the second quarter. These shares amount to more than $167.1 million in worth.
Alger, an investment management firm, mentioned Anaplan, Inc. (NYSE:PLAN) in its Q1 2021 investor letter. Here is what the firm had to say:
“Anaplan, Inc. was among the top detractors from performance. Anaplan is a leading provider of cloud-based business planning software. Anaplan’s software platform aims to solve the most complex planning needs of large global enterprises across various business lines. Unlike traditional business planning software, which is often rigid, siloed and opaque, Anaplan’s platform is designed to enable broader enterprise participation and better workforce collaboration during the business planning process. Through better planning, large enterprises can more effectively allocate resources to cut costs and generate revenue. Today Anaplan has over 1,600 customers across a variety of end markets and business use cases.
Anaplan shares underperformed in the first quarter as part of a broader sector rotation as high-growth software stocks fell out of favor relative to more cyclically exposed investment opportunities. We believe Anaplan’s focus on growth over near-term profit generation negatively impacts the company’s stock in a rising interest rate environment.
Fundamentally, Anaplan had strong fourth quarter earnings result, with the company seeing an acceleration of billings growth and a strong demand pipeline as companies realize the need for a more flexible digital planning solution.”
4. Zendesk, Inc. (NYSE:ZEN)
Cadian Capital’s Stake Value: $217.14 million
Percentage of Cadian Capital’s 13F Portfolio: 9.64%
Number of Hedge Fund Holders: 52
Zendesk, Inc. (NYSE:ZEN) is a California-based software development company that provides products and services related to customer support and communications.
According to the second quarter security filings, Cadian Capital owned over 1.5 shares in the company, worth approximately $217.14 million, representing 9.64% of the portfolio.
On October 20, Barclays analyst Ryan MacWilliams assumed coverage of Zendesk, Inc. (NYSE:ZEN) with an Overweight rating and $170 price target.
At the end of the second quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Zendesk, Inc. (NYSE:ZEN), up from 45 in the previous quarter worth $1.4 billion.
3. Uber Technologies, Inc. (NYSE:UBER)
Cadian Capital’s Stake Value: $223.6 million
Percentage of Cadian Capital’s 13F Portfolio: 9.92%
Number of Hedge Fund Holders: 135
Multinational company Uber Technologies, Inc. (NYSE:UBER) is a mobility as a service provider, offering a range of services, including transportation, food delivery and package delivery.
This September 22, Doug Anmuth of JPMorgan raised his price target on Uber Technologies, Inc. (NYSE:UBER) to $72, alongside an Overweight rating on the shares. The analyst praised the company for exhibiting a stronger execution and noted that it is well-positioned to benefit as the supply trends continue to improve.
Eric Bannasch’s hedge fund currently holds more than 4.46 million shares in the company, amounting to over $223.6 million in worth and accounting for 9.92% of his investment firm’s portfolio value. Overall, 135 hedge funds tracked by Insider Monkey were bullish on Uber Technologies, Inc. (NYSE:UBER) in Q2, valued at $10.4 billion. This shows that hedge fund sentiment is positive for the ride-hailing company as 130 hedge funds had stakes in the company in the first quarter.
ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q2 2021 investor letter. Here is what the firm has to say:
“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.
ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”
2. Liberty Broadband Corporation (NASDAQ:LBRDA)
Cadian Capital’s Stake Value: $229.25 million
Percentage of Cadian Capital’s 13F Portfolio: 10.17%
Number of Hedge Fund Holders: 28
Liberty Broadband Corporation (NASDAQ:LBRDA) invests in communication companies providing a wide range of cable, data, wireless, video, voice, and managed services.
On October 12, Deutsche Bank analyst Bryan Kraft raised his price target on Liberty Broadband Corporation (NASDAQ:LBRDA) to $196 from $188, and kept a Buy rating on the shares of the company.
As of Q2 2021, Cadian Capital owns over 1.32 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA), amounting to over $229.25 million in worth and accounting for 10.17% of the fund’s portfolio. There were 28 hedge funds in Insider Monkey’s database that held stakes in Liberty Broadband Corporation (NASDAQ:LBRDA) in the second quarter of 2021, compared to 23 funds in the first quarter.
Alphyn Capital Management, in their Q1 2021 investor letter, mentioned Liberty Broadband Corporation (NASDAQ:LBRDA). Here is what the fund said:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
1. Palo Alto Networks, Inc. (NYSE:PANW)
Cadian Capital’s Stake Value: $273.7 million
Percentage of Cadian Capital’s 13F Portfolio: 12.15%
Number of Hedge Fund Holders: 69
Palo Alto Networks, Inc. (NYSE:PANW) is a California-based multinational cybersecurity company that provides services in network security, cloud security, and various cloud-delivered security.
Based on the 13F Filings for the second quarter of 2021, Eric Bannasch’s Cadian Capital holds 737,896 shares in Palo Alto Networks, Inc. (NYSE:PANW), worth over $273.7 million.
On October 12, Wedbush analyst Daniel Ives raised the price target on Palo Alto Networks, Inc. (NYSE:PANW) to $600 from $470, while maintaining an Outperform rating on the company’s shares.
Of the 873 hedge funds tracked by Insider Monkey, 69 hedge funds have positions in Palo Alto Networks, Inc. (NYSE:PANW) in Q2 2021, compared with 64 in the previous quarter. These stakes are valued at $4.7 billion.
You can also take a look at 10 Best Stocks To Buy According To Billionaire Larry Robbins and 10 Best Stocks To Buy Now According To Quant Billionaires
