In this article, we discuss the technology stocks Girish Kumar’s TenCore Partners is investing in. If you want to skip our detailed analysis of Kumar’s history, investment philosophy, and hedge fund performance, go directly to Girish Kumar’s TenCore Partners is Investing in These 5 Technology Stocks.
Technology stocks have witnessed a phenomenal period of growth in the past couple of years, largely due to the digitization of business and services, amplified greatly by the pandemic. Girish Kumar, the Chief Executive Officer of TenCore Partners, seized this opportunity for growth in recent months. Kumar’s TenCore Partners manages more than $694 million in its portfolio.
According to the most recent 13F filings, TenCore Partners’ portfolio is diversified into 4 key sectors, with the technology sector dominating, making up 67.2% of the fund’s total portfolio value. A majority of the companies in the fund’s portfolio are large-cap companies based in the United States, with stocks scaling up to more than $10 billion in market capitalization making up 85% of the total value, while small-cap companies account for only 0.1% of the portfolio.
Some of the top stocks present in the investment portfolio of TenCore Partners at the end of the second quarter of 2021 include Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), among others.
Photo by Tech Daily on Unsplash
Our Methodology
With this background in mind, let us now look towards the 10 technology stocks Girish Kumar’s TenCore Partners is investing in. We made use of TenCore Partners’ 13F portfolio for the second quarter for this analysis.
It has undoubtedly become difficult to identify the right decisions regarding stocks due to market volatility in recent years, with the hedge fund industry’s showing being underwhelming, as the hedged returns failed to keep up with the unhedged returns. However, 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 124 percentage points since March 2017. Between March 2017 and February 2021, Our monthly newsletter’s stock picks returned 197.2%, outperforming SPY by 72.4%(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.
Girish Kumar’s TenCore Partners is Investing in These 10 Technology Stocks
10. Okta, Inc. (NASDAQ:OKTA)
Kumar’s Stake Value: $22,021,000
Percentage of Girish Kumar’s 13F Portfolio: 3.17%
Number of Hedge Fund Holders: 57
Okta, Inc. (NASDAQ:OKTA) is an access management company based in San Francisco that engages in the provision of cloud software to companies and developers. Ranked 10th on the list of the 10 technology stocks Girish Kumar’s TenCore Partners is investing in, Okta, Inc. (NASDAQ:OKTA) has a market capitalization of $38.76 billion.
Girish Kumar’s TenCore Partners currently owns 90,000 shares of Okta, Inc.(NASDAQ:OKTA), amounting to around $22.02 million and representing 3.17% of the fund’s portfolio. At the end of the second quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Okta, Inc. (NASDAQ:OKTA), up from 48 in the preceding quarter worth $1.6 billion.
Just like Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), Okta, Inc. (NASDAQ:OKTA) is one of the top stocks in Girish Kumar’s portfolio.
In the Q2 2021 investor letter of Lakehouse Capital, the fund mentioned Okta, Inc. (NASDAQ:OKTA). Here is what the fund said:
“The Fund held 20 positions as of the end of June and exited four during the year (including) Okta. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”
9. MercadoLibre, Inc. (NASDAQ:MELI)
Kumar’s Stake Value: $22,820,000
Percentage of Girish Kumar’s 13F Portfolio: 3.28%
Number of Hedge Fund Holders: 69
MercadoLibre, Inc. (NASDAQ:MELI), based in Buenos Aires, Argentina, is a company that operates online marketplaces dedicated to e-commerce, as well as online auctions. Ranked 9th on the list of the 10 technology stocks Girish Kumar’s TenCore Partners is investing in, MercadoLibre, Inc. (NASDAQ:MELI) has a market capitalization of $93.10 billion.
Girish Kumar’s TenCore Partners currently owns 14,649 shares of MercadoLibre, Inc. (NASDAQ:MELI), amounting to $22.82 million in worth and representing 3.28% of the fund’s portfolio. At the end of the first half of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $5.2 billion in MercadoLibre, Inc. (NASDAQ:MELI), down from 69 in the previous quarter worth $8.7 billion.
MercadoLibre, Inc. (NASDAQ:MELI) issued its earning reports on August 4th, 2021, with reported earnings per share of $1.37, topping estimates of $0.09. The company also reported a revenue of $1.70 billion, compared to the consensus estimate of $1.48 billion.
Just like Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), MercadoLibre, Inc. (NASDAQ:MELI) is one of the top stocks in Girish Kumar’s portfolio.
In the Q2 2021 investor letter of Polen Capital, the fund mentioned MercadoLibre, Inc. (NASDAQ:MELI). Here is what the fund had to say:
“Argentina-based MercadoLibre operates Latin America’s leading ecommerce website and digital wallet. Both e-commerce and consumer finance are underpenetrated among the nearly 400 million citizens living in the company’s three largest markets: Brazil, Argentina, and Mexico.
MercadoLibre’s digitally native solution gives more than 70 million users an easy access point for both online shopping and a digital wallet.
From humble beginnings as a third-party marketplace, MercadoLibre’s management built the business over the last twenty years by steadily expanding the platform’s reach with new services to suit both merchants and consumers. Today’s offerings include financing capabilities for buyers and sellers, logistics, loyalty programs, classifieds listings, and grocery items. We think MercadoLibre can compound earnings at a 25% rate for the next five years.”
8. HubSpot, Inc. (NYSE:HUBS)
Kumar’s Stake Value: $35,255,000
Percentage of Girish Kumar’s 13F Portfolio: 5.07%
Number of Hedge Fund Holders: 54
HubSpot, Inc. (NYSE:HUBS) is an American software company that focuses on cloud-based software solutions for inbound marketing, customer service, and sales. Ranked 8th on the list of the 10 technology stocks Girish Kumar’s TenCore Partners is investing in, HubSpot, Inc. (NYSE:HUBS) has a market capitalization of $31.84 billion.
Girish Kumar’s TenCore Partners currently owns 60,500 shares of HubSpot, Inc. (NYSE:HUBS), amounting to $33.25 million in worth and accounting for 5.07% of the fund’s portfolio. HubSpot, Inc. (NYSE:HUBS) was in 54 hedge fund portfolios at the end of the first half of 2021, compared to 46 funds in the previous quarter, delivering a 43.01% return in the past 3 months.
HubSpot, Inc. (NYSE:HUBS) announced its earnings on 4th August, 2021, with reported earnings at $0.43, beating estimated earnings per share of $0.32. The company also reported a 52.7% increase in revenue from the same quarter in 2020, earning around $310.80 million.
Just like Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT), HubSpot, Inc. (NYSE:HUBS) is one of the top stocks in Girish Kumar’s portfolio.
In the Q2 2021 investor letter of Artisan Partners, the fund mentioned HubSpot, Inc. (NYSE: HUBS). Here is what the fund said:
“HubSpot has its roots in marketing automation software for small and medium-sized businesses, but during our ownership period has steadily expanded its offering to become a broad front-office solution suite across marketing, sales, service, website content management and customer data analytics (and has simultaneously enriched these tools to attract larger customers). The pandemic has prompted companies across the globe to modernize their customer-facing software at a record pace as they increasingly rely on their digital capabilities. HubSpot’s ability to meet this need was on full display in its recent earnings results. New customer additions hit a record pace (+45% YoY), and the company demonstrated both high retention of existing customers and strong progress in driving higher adoption of additional software modules. Furthermore, the company’s sales and marketing spend is getting more efficient, which is driving a steady increase in margins. Given the positive profit cycle momentum, we added to our position at a valuation we consider attractive.”
7. Alibaba Group Holding Limited (NYSE:BABA)
Kumar’s Stake Value: $42,712,000
Percentage of Girish Kumar’s 13F Portfolio: 6.15%
Number of Hedge Fund Holders: 146
Alibaba Group Holding Limited (NYSE:BABA) is a multinational technology company that specializes in e-commerce, retail and cloud computing. Ranked 7th on the list of the 10 technology stocks Girish Kumar’s TenCore Partners is investing in, Alibaba Group Holding Limited (NYSE:BABA) has a market capitalization of $427.13 billion.
Girish Kumar’s TenCore Partners currently owns 188,340 shares of Alibaba Group Holding Limited (NYSE:BABA), amounting to $42.71 million in worth and representing 6.15% of the fund’s portfolio
In the Q2 2021 investor letter of Semper Vic Partners, the fund mentioned Alibaba Group Holding Limited (NYSE:BABA). Here is what the fund said:
“It is hard to believe that it was over eight months ago that I wrote about our new investment which we had initiated late last year, Alibaba. As I mentioned at the time, I had long admired access Alibaba provides Western investors across a host of consumer products companies to Chinese commerce and economy.
Alibaba has long provided exposure to China’s foremost commerce hubs, especially through the form of Taobao and Tmall (especially its Luxury Pavilion collections). With roughly one billion Chinese average annual consumers and roughly 260 million additional consumers outside of China, it is hard to imagine shopping in China without involvement in one manner or another with Alibaba.
Alibaba’s focus on serving the needs of both merchants and consumers alike has allowed it to deliver its e-commerce at amongst the lowest take rate of any leading retailers. Alibaba also provides investors access to China’s leading cloud business. Alibaba, in efforts to be transparent, has reported its cloud segment separately since 2017.
By reporting cloud results separately, Alibaba allows investors to measure the substantial extent to which Alibaba has exercised both the “capacity to reinvest” as well as Alibaba’s management’s “capacity to suffer.” Alibaba’s management team enjoys the “capacity to suffer” as the result of protection from Wall Street’s disruptive censures as a result of protection provided them by Alibaba’s founding shareholder, Jack Ma.
During decades of Alibaba’s greatest growth, Mr. Ma evidenced a preference for taking on projects which, more often than not, eroded reported profits as investments he selected for greatest long-term growth in intrinsic value on a per share basis burdened reported profits in the near term.
In addition to attractive businesses which possessed the ability to reinvest internally, Alibaba was well capitalized. In late 2020, as we sized up our potential investment interest in Alibaba, we realized that Alibaba had a rock-solid balance sheet and financials in general. Not only did Alibaba have nearly $71 billion in cash and short-term securities within the company, but they also had investments in a portfolio of over 100 independent, digitally disruptive start-up companies. While most start-up investments are in Chinese companies, there are portfolio companies that also include non-Chinese start-up businesses. Finally, Alibaba currently has over a 30 percent interest in Ant Financial, which at the time of our initial investment research had
been recently valued at over $300 billion of estimated value…” (Click here to see the full text)
6. Microsoft Corporation (NASDAQ:MSFT)
Kumar’s Stake Value: $42,935,000
Percentage of Girish Kumar’s 13F Portfolio: 6.18%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that specializes in the production of computer software, consumer electronics and computer related services. Ranked 6th on the list of the 10 technology stocks Girish Kumar’s TenCore Partners is investing in, Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.29 trillion.
Girish Kumar’s TenCore Partners currently owns 158,490 shares of Microsoft Corporation (NASDAQ:MSFT), amounting to $42.93 million in worth and representing 6.18% of the fund’s portfolio. Of the 873 hedge funds tracked by Insider Monkey, 238 funds have positions in Microsoft Corporation (NASDAQ: MSFT) in the second quarter of 2021, worth over $62.4 billion.
Microsoft Corporation (NASDAQ:MSFT) announced its earnings for the quarter on July 26th, 2021, with reported earnings per share of $2.17, beating estimates of $1.92. The software giant also reported a revenue of $46.15 billion, compared to estimates of $44.30 billion, an increase of 21.3% compared to the same quarter in 2020.
Just like Alphabet Inc. (NASDAQ:GOOG), Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN) and DoorDash, Inc. (NYSE:DASH), Microsoft Corporation (NASDAQ:MSFT) is one of the top stocks in Girish Kumar’s portfolio.
Baron Opportunity Fund, in its Q2 2021 Investor Letter, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) is one of them. Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
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Disclosure. None. Girish Kumar’s TenCore Partners is Investing in These 10 Technology Stocks is originally published on Insider Monkey.
