We recently published a list of Top 10 Stocks to Buy According to 12 West Capital Management. In this article, we are going to take a look at where GDS Holdings Limited (NASDAQ:GDS) stands against other top stocks to buy according to 12 West Capital Management.
Joel Ramin founded 12 West Capital Management in August 2011, establishing it as a New York-based hedge fund specializing in global investments across equities, equity-related instruments, and credit securities. Prior to launching 12 West, Ramin worked as an analyst at Bridger Capital, gaining experience in both long equity positions and short-selling strategies. Currently, he serves as the firm’s Managing Member and Portfolio Manager, overseeing investment decisions and advisory services for institutional investors in the United States.
12 West Capital Management focuses on providing tailored investment management solutions, leveraging a research-driven approach to identify opportunities across various markets. The firm actively engages in both long-term and short-term investments, aiming to maximize returns through strategic asset allocation and risk management. Its expertise spans multiple asset classes, allowing it to adapt to changing market conditions while delivering value to its clients.
Joel Ramin holds a degree from the McIntire School of Commerce, where he completed his undergraduate studies in finance in 2000. His background in finance and investment, combined with his experience at Bridger Capital, has shaped his approach to portfolio management at 12 West Capital. Under his leadership, the firm has built a reputation for its disciplined investment strategies and commitment to generating long-term growth for its investors.
According to its most recent 13F filing for the fourth quarter of 2024, 12 West Capital Management reported nearly $954.6 million in managed 13F securities, with its top 10 holdings accounting for a hefty 90.75% of its portfolio.
Our Methodology
The stocks discussed below were picked from 12 West Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
GDS Holdings Limited (NASDAQ:GDS)
Number of Hedge Fund Holders as of Q4: 32
12 West Capital Management’s Equity Stake: $133.27 Million
GDS Holdings Limited (NASDAQ:GDS) specializes in providing data center and IT infrastructure services, including colocation, managed hosting, and cloud solutions. The company generates revenue primarily through the development and operation of high-performance data centers across China and Southeast Asia, serving a diverse range of clients.
The company reported a 17.7% year-over-year increase in net revenue, reaching $422.6 million and surpassing the consensus estimate of $415.42 million. This growth was largely driven by the ongoing expansion of its data centers and business operations. Adjusted gross profit rose 20.4% year over year to $214.1 million, with the margin improving to 50.7% from 49.5% in the previous year.
Chairman and CEO William Huang noted that in China, GDS Holdings Limited (NASDAQ:GDS) continued executing its backlog while being selective with new orders. He also emphasized that the company’s recent rise in equity strengthens GDS’s position to capitalize on international growth opportunities. CFO Dan Newman highlighted that the $1 billion equity raise will fund GDS’s international expansion and enhance shareholder value.
The Chinese data center operator is reportedly pursuing a loan amounting to approximately $3.4 billion for its data center operations in Malaysia. If secured, this would mark GDS Holdings Limited (NASDAQ:GDS)’s largest loan to date and rank among the most significant financing deals within the data center sector by any borrower in Asia.
GDS Holdings Limited (NASDAQ:GDS) demonstrates strong growth potential with its revenue increase, driven by expanding data center operations in China and Southeast Asia. Its equity rise supports ambitious international expansion, positioning the company for long-term profitability, making it second on the list of top stocks to buy according to 12 West Capital Management.
Overall, GDS ranks 2nd on our list of top stocks to buy according to 12 West Capital Management. While we acknowledge the potential for GDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GDS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.