In this article, we discuss the top 10 stocks in Glen Kacher’s Light Street Capital’s portfolio. If you want to skip our detailed analysis of Kacher’s history, investment philosophy, and hedge fund performance, go directly to Light Street Capital Portfolio: Top 5 Stocks.
Light Street Capital is a Palo Alto-based investment management firm, that primarily invests in public companies from the technology and media sectors. Its founder and portfolio manager, Glen Kacher, holds a B.S in Commerce with Distinction from the University of Virginia’s McIntire School of Commerce, and an M.B.A from Stanford University’s Graduate School of Business. Prior to founding Light Street Capital in 2010, Glen Kacher worked at Integral Capital Partners as a managing director, where he was in charge of both public and private investments in the technology sectors, with a focus on Internet, security and software markets. Before he joined Integral Capital Partners, Glen Kacher was employed at Julian Robertson‘s Tiger Management as a full-time research analyst, and later as a part-time consultant at the firm, where he focused on investments in the software, hardware, and networking industries.
Managing more than $2.3 billion in its investment portfolio, Light Street Capital’s portfolio is branched out into seven sectors, of which the technology sector is the largest, making up 35.5% of the total value. The majority of the companies that the fund has invested in are large-cap stocks. Companies with a market cap above $10 billion represent 55% of the fund’s total portfolio value.
In its latest 13F filing, Light Street Capital disclosed significant stakes in companies like Sea Limited (NYSE:SE), Zoom Video Communications, Inc. (NASDAQ:ZM), and Pinterest, Inc. (NYSE:PINS). Of these companies, Sea Limited (NYSE:SE) represents the largest holding as well as one of the oldest positions in the fund’s equity portfolio. Light Street is long Sea Limited (NYSE:SE) since the beginning of 2019 and currently owns a $147.38 million stake in the company. In addition, the investor has been bullish on Pinterest, Inc. (NYSE:PINS) since the second quarter of 2019. In Zoom Video Communications, Inc. (NASDAQ:ZM), Light Street has been holding a stake since 2020, but during the second quarter, it boosted the position by more than 300%, propelling it to one of its top 5 picks.
Glen Kacher of Light Street Capital
Our Methodology
Why should we pay attention to Glen Kacher’s stocks? 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 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (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.
With this background in mind, let us now look towards the top 10 stocks in Light Street Capital’s portfolio. We analyzed Light Street Capital’s 13F portfolio for the second quarter of 2021 for our list, ranking the stocks based on the value of stakes that the fund holds.
Light Street Capital Portfolio: Top 10 Stocks
10. Pinterest, Inc. (NYSE:PINS)
Light Street Capital’s Stake Value: $65.27 million
Percentage of Light Street Capital’s 13F Portfolio: 2.83%
Total Number of Hedge Fund Holders: 63
Pinterest Inc. (NYSE:PINS) is a social media company that provides image-sharing services. Shares of the company rose 6.5% on November 4, as increased demand from large retail advertisers and growth in its international business boosted third-quarter revenue by 43%.
Based on the second quarter 13F filing, Glen Kacher’s hedge fund holds 826,721 shares of Pinterest, Inc. (NYSE:PINS), worth $65.2 million. These shares represent 2.83% of his fund’s investment portfolio. Overall, at the end of June, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Pinterest, Inc. (NYSE: PINS) worth roughly $2.9 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of approximately $4.18 billion.
On November 1, BofA analyst Justin Post reinstated coverage of Pinterest, Inc. (NYSE:PINS) with a Neutral rating and a $57 price target on its shares.
Carillon Tower Advisers, in its third-quarter investor letter, mentioned Pinterest, Inc. (NYSE:PINS) and discussed its stance on the firm:
“Pinterest operates a pinboard-style social media website that enables users to create theme-based image collections for events, hobbies, and other personal interests. Despite a quarterly report that displayed solid revenue and profitability versus expectations, the stock was pressured as user engagement metrics decreased as the world reopened post-pandemic. We believe the company can continue to drive growth in the face of this headwind by increasing the number of advertisers, adding engaging video content, and ramping ecommerce capabilities.”
9. Doximity, Inc. (NYSE:DOCS)
Light Street Capital’s Stake Value: $66.12 million
Percentage of Light Street Capital’s 13F Portfolio: 2.86%
Total Number of Hedge Fund Holders: 35
Doximity, Inc. (NYSE:DOCS) is a California-based online networking service for medical professionals. Launched in 2010, the platform offers its members curated medical news, telehealth tools, and case collaboration.
On November 11, Piper Sandler analyst Sean Wieland raised the price target on Doximity, Inc. (NYSE:DOCS) to $81 from $68, and kept an Overweight rating on the shares following what he calls a “robust’ fiscal second quarter results.
Light Street Capital initiated a stake in Doximity, Inc. (NYSE:DOCS) during the second quarter and disclosed ownership of 1.13 million shares worth more than $66.1 million.
Of the 873 funds tracked by Insider Monkey, 35 were long Doximity, Inc. (NYSE:DOCS) at the end of June. Alex Sacerdote of Whale Rock Capital Management is one of the top shareholders of the company.
In its second-quarter investor letter of ClearBridge Investments, the fund mentioned Doximity, Inc. (NYSE:DOCS), saying that:
“We participated in the IPO of Doximity, a cloud-based telehealth and digital information platform for physicians. The company’s registered physicians use the platform to manage their practices, share and access information and provide feedback to health systems. In turn, Doximity’s 600+ subscription customers (pharmaceutical companies and health systems) market to an extremely pre-qualified and engaged physician base.”
8. Confluent, Inc. (NASDAQ:CFLT)
Light Street Capital’s Stake Value: $66.23 million
Percentage of Light Street Capital’s 13F Portfolio: 2.87%
Total Number of Hedge Fund Holders: 30
Next in line among Light Street Capital’s top 10 stocks is Confluent, Inc. (NASDAQ:CFLT). The company provides a stream data platform for their clients in various industries, including retail, logistics and manufacturing . It allows companies access to data as real-time streams.
Glen Kacher’s fund has over 1.39 million shares in Confluent, Inc. (NASDAQ:CFLT) as of the end of June. According to our database, 30 hedge funds reported holding stakes in Confluent, Inc. (NASDAQ:CELT) as of the end of the second quarter.
Among the hedge funds tracked by Insider Monkey, Connecticut-based firm Lone Pine Capital is the top shareholder of Confluent, Inc. (NASDAQ:CFLT) with 3.6 million shares worth more than $172 million.
On November 9, Deutsche Bank analyst Patrick Colville raised his price target on Confluent, Inc. (NASDAQ:CFLT) to $84 from $42, and kept a Hold rating on the shares of the company.
In its second-quarter investor letter, the aforementioned ClearBridge Investments also highlighted Confluent, Inc. (NASDAQ:CFLT). Here is what the fund said:
“The new issue market remains an attractive source of new ideas and we participated in four IPOs in the latest period. Confluent sells and distributes a commercialized version of open source software called Kafka created by former executives at LinkedIn. The solution allows enterprise users the ability to capture data in real time as it is streaming. A prime use case is capturing real-time inventory across retail stores and distribution centers to enable omni-channel commerce. We believe it is early days in the company’s commercialization of this technology which can capture data in both on-premise and hybrid cloud environments. Global-e Online, meanwhile, removes many of the frictions around cross-border ecommerce by handling the different tax structures, languages, currencies, local logistics and fulfillment/returns for any size retailer. The company’s initial customers have been mostly mid to higher end retailers but an investment by Shopify should enable Global-e to significantly increase merchant reach.”
7. AppLovin Corporation (NASDAQ:APP)
Light Street Capital’s Stake Value: $66.47 million
Percentage of Light Street Capital’s 13F Portfolio: 2.88%
Total Number of Hedge Fund Holders: 16
During the second quarter, Light Street Capital added a new stake in AppLovin Corporation (NASDAQ:APP), a California-based mobile technology company that provides marketing and advertisement platforms for developers. The most notable of these analytic and advertisement platforms include MAX, AppDiscovery, and SparkLabs. As of the end of June, the fund owns 884,205 shares of the company.
On October 26, BTIG analyst Clark Lampen initiated coverage of AppLovin Corporation (NASDAQ:APP) with a Buy rating and $114 price target.
During the second quarter 0f 2021, 16 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in AppLovin Corporation (NASDAQ:APP) worth $987 million. Among these funds, New York-based Southpoint Capital Advisors is the largest shareholder of AppLovin Corporation (NASDAQ:APP) in Q2, with shares worth $263 million.
6. Futu Holdings Limited (NASDAQ:FUTU)
Light Street Capital’s Stake Value: $69.41 million
Percentage of Light Street Capital’s 13F Portfolio: 3.01%
Total Number of Hedge Fund Holders: 31
Another addition to Light Street Capital’s 13F portfolio is Futu Holdings Limited (NASDAQ:FUTU), a Hong Kong-based holding company that is involved in digitized brokerage and provides a wealth management platform in multiple countries. Shares of the company are up by 14.34% year-to-date.
On October 19, CLSA analyst Ethan Wang initiated coverage of Futu Holdings Limited (NASDAQ:FUTU) with a ‘Buy’ rating and $110 price target.
According to its second-quarter 13F filing, Glen Kacher’s Light Street Capital holds 387,557 shares of Futu Holdings Limited (NASDAQ:FUTU). Overall, 31 funds were bullish on Futu Holdings Limited (NASDAQ:FUTU) by the end of the June quarter, compared to 26 in the previous quarter.
Among the hedge funds tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder of Futu Holdings Limited (NASDAQ:FUTU) with 3.4 million shares worth more than $621 million as of the end of June.
Click to continue reading and see the Light Street Capital Portfolio: Top 5 Stocks.
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Disclosure: None. Light Street Capital Portfolio: Top 10 Stocks is originally published on Insider Monkey.
