In this article, we discuss the top 5 stocks in Glen Kacher’s Light Street Capital’s portfolio. If you wish to see our detailed analysis of Kacher’s history, investment philosophy, and hedge fund performance, you can take a look at Light Street Capital Portfolio: Top 10 Stocks.
5. Etsy, Inc. (NASDAQ:ETSY)
Light Street Capital’s Stake Value: $74.54 million
Percentage of Light Street Capital’s 13F Portfolio: 3.23%
Number of Hedge Fund Holders: 47
Etsy, Inc. (NASDAQ:ETSY) operates two-sided online marketplaces that connect people and buyers, and sellers around the world with a focus on handmade or vintage items and craft supplies.
According to Light Street Capital’s 13F filing for the second quarter, the investment firm owns 362,130 shares in Etsy, Inc. (NASDAQ:ETSY). As of the end of the second quarter, 47 hedge funds tracked by Insider Monkey reported owning stakes in Etsy, Inc. (NASDAQ:ETSY). The total worth of these stakes is $1.73 billion. This is compared to 53 funds bullish on the company in the previous quarter, with a total worth of $1.64 billion.
On October 25, Wedbush analyst Ygal Arounian raised the price target on Etsy, Inc. (NASDAQ:ETSY) to $264 from $195, and kept an Outperform rating on the shares of the company.
Out of the hedge funds being tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is the top shareholder of Etsy, Inc. (NASDAQ:ETSY), with over 1.76 million shares, worth more than $362.9 million.
In its first-quarter investor letter, Polen Capital mentioned Etsy, Inc. (NASDAQ:ETSY):
“Etsy continued to be a top contributor in the Portfolio during the first quarter. Etsy experienced record levels of demand in 2020. Throughout the beginning of this year, the business has continued to see accelerated growth trends. The company’s recently announced fourth-quarter results provided numerous data points that highlight Etsy’s success in both broadening and deepening the relationship it has with buyers and sellers on its platform. In fact, Etsy now stands as the fourth largest e-commerce site in the U.S. Repeat buyers have grown nearly 100% year-over-year, despite mask sales, which grew rapidly at the onset of the pandemic, shrinking to less than 5% of sales.
4. Elastic N.V. (NYSE:ESTC)
Light Street Capital’s Stake Value: $75.62 million
Percentage of Light Street Capital’s 13F Portfolio: 3.28%
Number of Hedge Fund Holders: 55
Founded in the Netherlands, Elastic N.V. (NYSE:ESTC) is a California-headquartered search company that specializes in self-managed and SaaS services for search, logging, security, observability, and analytics.
As of the end of June, Glen Kacher’s Light Street Capital holds 518,797 shares of Elastic N.V. (NYSE:ESTC), worth more than $75.6 million
On September 17, Barclays analyst Raimo Lenschow raised his price target on Elastic N.V. (NYSE:ESTC) to $200 from $185, and kept an Overweight rating on the shares of the company.
Daniel Gibson of Sylebra Capital Management is one of the biggest stakeholders of Elastic N.V. (NYSE:ESTC) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 55 funds were bullish on Elastic N.V. (NYSE:ESTC) at the end of the June, compared to 52 a quarter earlier
Greenhaven Road Capital, in its third-quarter investor letter, highlighted Elastic N.V. (NYSE:ESTC):
“Elastic Software (ESTC) – Share prices are up more than threefold since our first purchases of Elastic Software. The company continues to report best-in-class net revenue retention (amount generated from existing customers) of 130%. With recent acquisitions, they are continuing their expansion into security. This is the company with the highest product velocity and largest addressable markets in our portfolio. With a massive base of customers using freemium/opensource products, there are fertile hunting grounds for growth.”
3. Zoom Video Communications, Inc. (NASDAQ:ZM)
Light Street Capital’s Stake Value: $86.06 million
Percentage of Light Street Capital’s 13F Portfolio: 3.73%
Number of Hedge Fund Holders: 59
Next in line among Light Street Capital’s top 5 picks is Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company based in California. The company provides a videotelephony platform and online chat services that are used for teleconferencing, telecommuting, and social interactions.
Light Street Capital currently holds 222,350 shares of Zoom Video Communications, Inc. (NASDAQ:ZM), up by 318% over the quarter.
Of the 873 funds tracked by Insider Monkey, 59 were long Zoom Video Communications, Inc. (NASDAQ:ZM) at the end of June, up from 54 in the first quarter of 2021.
On October 22, JPMorgan analyst Sterling Auty upgraded Zoom Video Communications, Inc. (NASDAQ:ZM) to Overweight from Neutral with an unchanged price target of $385.
In its investor letter for the first quarter of 2021, Artisan Partners, an asset management firm, highlighted a few stocks and Zoom Video Communications, Inc. (NASDAQ:ZM) was one of them:
“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”
2. Peloton Interactive, Inc. (NASDAQ:PTON)
Light Street Capital’s Stake Value: $119.84 million
Percentage of Light Street Capital’s 13F Portfolio: 5.19%
Number of Hedge Fund Holders: 67
In Peloton Interactive, Inc. (NASDAQ:PTON), Glen Kacher’s fund owns 966,254 shares as of the end of June, up by 44% on the quarter. Peloton is a New York-based exercise equipment company that sells athleisure and various exercise-related accessories via their application and website.
At the end of the second quarter of 2021, 67 hedge funds held stakes in Peloton Interactive, Inc. (NASDAQ:PTON), worth $6.12 billion in aggregate. This represents a significant increase from 64 funds that held $3.96 billion worth of shares a quarter earlier. The increase is due to a number of funds boosting their positions in the company between April and June. For example, Brad Gerstner‘s Altimeter Capital Management, raised its investment by more than 500% to 5.20 million shares and Philippe Laffont‘s Coatue Management tripled its investment to 4.73 million shares.
Peloton Interactive, Inc. (NASDAQ:PTON) was one of the companies mentioned in the second-quarter investor letter of Carillon Tower Advisers,
Here is what the fund had to say:
“Peloton Interactive operates a connected fitness platform offering live and on-demand classes allowing users to exercise at home. The firm’s shares were pressured in the quarter after Peloton announced a voluntary recall for both its legacy treadmill (Peloton Tread+) and its newly-launched base model treadmill (Peloton Tread). The issue surrounding the latter is somewhat troubling, as it appears it may be the result of an engineering flaw. This new treadmill offering was expected to be a key growth driver in the second half of 2021, and this development reduces our confidence in Peloton’s product pipeline. Therefore, we sold the stock.”
1. Sea Limited (NYSE:SE)
Light Street Capital’s Stake Value: $147.38 million
Percentage of Light Street Capital’s 13F Portfolio: 6.39%
Number of Hedge Fund Holders: 104
The largest position in Light Street Capital’s 13F portfolio is represented by Sea Limited (NYSE:SE) is a Singapore-based consumer technology company that operates in the digital entertainment, e-commerce, and financial services industries. The company’s share price surged by 78% so far this year on account of its expansion into the gaming market. As of the end of June, Light Street holds 536,707 shares of Sea Limited (NYSE:SE) worth $147.38 million. During the second quarter, the fund added 30,907 shares to the position.
At the beginning of November, Barclays analyst Jiong Shao initiated coverage of Sea Limited (NYSE:SE) with an Overweight rating and $427 price target.
Overall. there were 104 funds in our database that held stakes worth $12.2 billion in Sea Limited (NYSE:SE), up from 98 funds and $10.4 billion, respectively, a quarter earlier.
In its second-quarter investor letter, Tao Value mentioned Sea Limited (NYSE:SE):
“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in established ASEAN & LatAm market and received positive reception from new markets
like US. On e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”
You can also take a peek at the 10 Penny Stocks Redditors are Buying in August and 10 Best Small-Cap Stocks to Buy According to Hedge Funds.
