We recently published a list of Top 10 Stocks to Buy According to XN Exponent Advisors LLC. In this article, we are going to take a look at where PCOR stands against other top stocks to buy according to XN Exponent Advisors LLC.
Established in 2018 by Gaurav Kapadia, XN Exponent Advisors LLC is based in New York and manages approximately $2.53 billion in 13F securities according to its latest filing for the fourth quarter of 2024. With just 13 clients, the hedge fund maintains a concentrated portfolio, with its top ten holdings accounting for 69.02% of its total assets. XN employs a global investment strategy that spans both public and private markets, focusing on generating high risk-adjusted returns. The firm targets sectors where it has deep expertise while deliberately avoiding balance sheet-heavy industries such as financials, healthcare, energy, and materials.
The firm primarily invests in North America and Western Europe but remains open to opportunities in other regions that align with its strategic goals. XN’s investment approach is built around a long/short strategy, where it seeks to capitalize on market inefficiencies by purchasing undervalued assets and shorting overvalued ones. This method hinges on the firm’s ability to assess market opportunities accurately, though there is no guarantee of success. Market disruptions pose a significant risk, as they can result in substantial losses and may force XN to close out client positions to mitigate damage.
A key feature of XN’s approach is its flexibility. Unlike traditional investment firms bound by rigid diversification or leverage policies, XN can trade across a wide range of securities, issuers, countries, and sectors to align with its investment objectives. This adaptability enables the firm to respond quickly to shifting market conditions, reallocating client assets as necessary. While this strategy offers significant potential for high returns, it also carries inherent risks, particularly in volatile market environments. However, XN’s focus on specialized knowledge and strategic positioning aims to maximize opportunities while managing downside exposure.
Founder and Chief Executive Officer of XN, Gaurav Kapadia has nearly two decades of experience in public and private markets and has built a reputation as a visionary investor and business leader. Before launching XN, a firm whose name reflects the power of long-term compounding, Kapadia was the Co-Founder and Co-Managing Partner of Soroban Capital Partners, a globally recognized investment firm. Prior to that, he served as a Partner at TPG-Axon Capital, working in both New York and London. His extensive expertise in finance and investing is rooted in his academic background; he earned a Bachelor of Science in Economics from the Wharton School at the University of Pennsylvania in 1999.
Beyond his financial career, Kapadia is deeply committed to philanthropy and civic engagement, particularly in the arts, humanities, education, and social equity. In September 2023, the Mellon Foundation announced his election to its Board of Trustees, recognizing his dedication to supporting cultural and educational initiatives. He has been a strong proponent of the transformative power of art and the humanities, emphasizing their role in fostering positive societal change. Under the leadership of Mellon Foundation President Elizabeth Alexander, Kapadia expressed his excitement to contribute to the organization’s mission, citing its precision and ambitious vision as key reasons for his involvement.
Kapadia also serves on the Boards of Trustees for several influential institutions, including The Whitney Museum of American Art, The Trust for Governors Island, Uncommon Schools, and The Institute for Constitutional Advocacy and Protection at Georgetown University Law Center. His advocacy for education, civic engagement, and equality underscores his commitment to creating meaningful opportunities for underserved communities. Through his leadership in both finance and philanthropy, Kapadia continues to bridge the worlds of business and social impact, demonstrating how strategic investments—whether in financial markets or cultural institutions—can drive long-term positive change.
Our Methodology
The stocks discussed below were picked from XN Exponent Advisors LLC’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).
Procore Technologies, Inc. (NYSE:PCOR)
Number of Hedge Fund Holders as of Q4: 54
XN Exponent Advisors LLC’s Equity Stake: $193.12 Million
Procore Technologies, Inc. (NYSE:PCOR), a leading provider of construction management software, reported strong financial results for the fourth quarter and full year of 2024. Founded in 2002 and headquartered in Carpinteria, California, the company has solidified its position in the construction technology sector. Its revenue for the fourth quarter reached $302 million, reflecting a 16% increase compared to the previous year. For the full year, revenue rose by 21% to $1.15 billion. The company also reported a gross revenue retention rate of 94% and a net revenue retention rate of 106%, demonstrating its ability to maintain and expand its customer base.
Procore Technologies, Inc. (NYSE:PCOR) experienced significant growth in high-value customers, with 2,333 organizations contributing over $100,000 in annual recurring revenue, marking a 16% increase year-over-year. Additionally, the number of customers generating over $1 million in annual recurring revenue grew by 39%, reaching 86 by the end of 2024. The company also expanded its workforce, ending the year with 4,203 employees, a 14% increase from the prior year. As part of its ongoing innovation efforts, Procore Technologies, Inc. (NYSE:PCOR) introduced several new products, including Procore Artificial Intelligence, AI Agents, Resource Management, Safety, and Scheduling, all unveiled at Groundbreak 2024, a premier industry event.
Looking ahead to 2025, Procore Technologies, Inc. (NYSE:PCOR) projects continued growth, with first-quarter revenue expected to range between $301 million and $303 million, reflecting a 12% increase year-over-year. The company anticipates a non-GAAP operating margin of 7% to 8% for the quarter. For the full year, Procore forecasts revenue between $1.28 billion and $1.29 billion, maintaining the same 12% growth rate. Additionally, the company expects to achieve a non-GAAP operating margin between 13% and 13.5%, further strengthening its profitability.
Procore’s consistent revenue growth, expanding customer base, and investment in new technology position it as a resilient player in the construction software industry. With strong financial performance, high customer retention, and continuous product innovation, the company is well-positioned for sustained success. These factors make Procore Technologies, Inc. (NYSE:PCOR) a top stock to buy according to XN Exponent Advisors LLC.
Conestoga Capital Advisors stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q4 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR), founded in 2002 and based in Carpinteria CA, is a market leader in cloud-based construction management software sold to general contractors, subcontractors, and building owners. PCOR competes in an underpenetrated market, has had historical double-digit growth and has recently demonstrated dramatic improvements in operating margins. PCOR has also been making improvements in its go-to-market strategy, which we believe should further accelerate growth and strengthen its customer relationships.”
Overall, PCOR ranks 2nd on our list of top stocks to buy according to XN Exponent Advisors LLC. While we acknowledge the potential for PCOR 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 PCOR 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.
