IvyRock Asset Management: Charles Huang’s Top 5 Stock Picks

2. Futu Holdings Limited (NASDAQ:FUTU)

IvyRock Asset Management’s Stake Value: $23,545,000

Percentage of IvyRock Asset Management’s 13F Portfolio: 22.30%

Number of Hedge Fund Holders: 31

Futu Holdings Limited (NASDAQ:FUTU) has revolutionized the investing experience by digitizing brokerage and wealth management via its online platform. Futu Holdings Limited (NASDAQ:FUTU) helps investors with stock trading, margin financing, and wealth management for stocks from the Hong Kong, China, the US, and Singapore exchanges. 

IvyRock Asset Management owns 258,674 shares in Futu Holdings Limited (NASDAQ:FUTU), worth $23.54 million, representing 22.30% of the firm’s Q2 portfolio. 

Bocom analyst Jingyi Zhang, on November 1, kept a Buy rating on Futu Holdings Limited (NASDAQ:FUTU), with a $53.30 price target. 

As of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey were bullish on Futu Holdings Limited (NASDAQ:FUTU), up from 26 in the previous quarter. 

Here is what Tao Value has to say about Futu Holdings Limited (NASDAQ:FUTU) in their Q1 2021 investor letter:

“Futu is a new “Opportunistic” position. It is an HK based online brokerage & wealth management platform with deep roots in technology. Futu sits in the confluence of 3 strong favorable forces of Meteorology, Topography & Commander, yet was underpriced at the time of our entry. In terms of Meteorology, there is a huge addressable market of Chinese domestic middle to upper classes’ wealth being deployed to overseas assets allocation in the next decade. Additionally, the incumbents being disrupted are extremely weak in their digital transformation. On Topography, Futu’s user-centric product design built an intuitive front end and great user experience, while the digital native development framework built a solid & reliable back end (including a self-developed order routing & execution system for the HK market). This is a rare combination compared to both offline incumbents (who lack flashy front end & UX) & other new online disrupters (who lack solid infrastructure). On Commander factor, founder CEO Li Hua was a Tencent engineer in its early days with deep knowledge in product design and development. Li is said to be a fanatic product manager, to this day still at the front-line, alpha testing any new features. Based on analyses of these factors, I think Futu could compound its revenue at a very high rate with very high certainty and with strong operating leverage, putting our entry price very attractive compared to earning power in 3-5 years. Yet just as we finished building a small position, the price started to take off and more than tripled in a month. When such price action happens, it is obvious that Mr. Market has turned very euphoric to this name. I decided to trim but kept a reasonable position given its growth certainty.”