Should You Follow Christian Leone Into These 5 Tech and Consumer Stocks?

In this article, we will discuss should you follow Christian Leone into these 5 tech and consumer stocks? If you want to read our detailed analysis of Leone’s history, investment philosophy performance, you can go directly to Should You Follow Christian Leone Into These Tech and Consumer Stocks?.

5. Pegasystems Inc. (NASDAQ:PEGA)

Luxor Capital Group’s Equity stake: $127.32 Million
Year-to-date gain: 57%
Number of Hedge Fund Holders: 16 

Pegasystems Inc. (NASDAQ:PEGA) is one of Christian Leone’s top technology stocks that develops, markets, and supports enterprise software applications.

Pegasystems Inc. (NASDAQ:PEGA)’s been one of the best-performing stocks in Leone’s portfolio, going by the 57% year-to-date gain.

[/company-follow-email]

4. On Holding AG (NYSE:ONON)

Luxor Capital Group’s Equity stake: $26.11 Million
Year-to-date gain: 70%
Number of Hedge Fund Holders: 29 

On Holding AG (NYSE:ONON) is a company that develops and distributes sports products worldwide. On Holding AG (NYSE:ONON) offers athletic footwear apparel and accessories online and in stores through independent retailers and distributors.

Leone has been buying and selling shares in On Holding AG (NYSE:ONON) since Q3 2021 and held stakes worth $26 million in Q3 2023.

Baron Funds, an investment management firm, expressed confidence in On Holding AG (NYSE:ONON) in its Q3 2023 investor letter. Here is what the firm stated about On Holding AG (NYSE:ONON):

“In the third quarter, we purchased shares of On Holding AG (NYSE:ONON), a developer and distributor of athletic footwear, apparel, and accessories. On is one of the fastest-growing scaled athletic sports companies in the world. Management’s vision is to build a premium global sportswear brand based on innovation, design, and sustainability. Its products are sold through approximately 10,000 premium retail stores, which account for 65% of revenue. The balance of sales occur through its direct-to-consumer channel, encompassing its own branded and operated stores, as well as its website.

On was founded in Switzerland, but it has expanded quickly across the globe. Its products have exhibited sales momentum in the U.S., Europe, and Asia. The company is rapidly growing its base of roughly 10 flagship retail stores, and it plans to end this year with 47 stores across 18 cities in China. Roughly half of its revenue is generated in North America, 45% in Europe, and 5% in Asia Pacific. On is addressing a large market opportunity: the $355 billion global sportswear industry. This market has seen its growth driven by continued trends toward athleisure. Consumers continue to pivot their spending towards more comfortable and casual attire as they lead healthier, more active lifestyles.

We believe On should be able to grow its revenues faster than 20% for many years, while also expanding its margins. We expect its growth to be driven by expanding brand awareness leading to market share gains in its core running shoe category, particularly as On expands its geographic footprint. We expect the company to continue to reinvest into its business at high rates of return. We believe On has a large opportunity to take market share in newer shoe categories, such as tennis (Roger Federer is an investor and advisor), training, and outdoor. The company also has a significant opportunity to grow its offerings in the apparel category.”

[/company-follow-email]

3. Amazon.com, Inc. (NASDAQ:AMZN)

Luxor Capital Group’s Equity stake: $381.96 Million
Year-to-date gain: 71%
Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is an e-commerce company offering a platform that helps merchants connect with customers worldwide. Luxor Capital Group increased its exposure in Amazon.com, Inc. (NASDAQ:AMZN) by 8% in Q3 2023 through call options valued at about $381.96 million.

Here is what Claret Asset Management said about about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:

“We have mentioned in the last letter that the “magnificent seven”, including Amazon.com, Inc.,dominated the performance of the S&P 500. We might have left you with the feeling that we are bearish because we don’t find the Magnificent 7 attractive. Let us make it clear: we are just not so pessimistic as to believe there are only 7 growth opportunities in the entire global equity market. In fact, we are optimists and think opportunity is abundant. Just not in everyone’s current 7 favorite stocks.”

[/company-follow-email]

2. Meta Platforms, Inc. (NASDAQ:META)

Luxor Capital Group’s Equity stake: $39.25 Million
Year-to-date gain: 160%
Number of Hedge Fund Holders: 234

Meta Platforms, Inc. (NASDAQ:META) remains one of Christian Leone’s top technology stock picks, continuing to outperform the overall market amid strong demand for its solutions. Leone took advantage of a slight pullback in the third quarter to acquire 130,737 shares in the company valued at approximately $39.25 million.

Here is what Artisan Partners said about Meta Platforms, Inc. (NASDAQ:META) in its third quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) added to its string of gains in Q3. The share price is up about 150% this year. Second quarter results were very good: revenue growth is back to double digits, user metrics are solid and show very good engagement, daily active users grew 7%, and importantly, Facebook app users continue to grow across all geographies. Instagram is growing more strongly, but solid growth in the legacy Facebook business is a positive indicator. Importantly, the company has controlled expenses tightly. Headcount was down 14% year over year. Adjusted EBIT grew 44%, and the margin recovered strongly to 38%, from 29% last year.”

[/company-follow-email]

1. Carvana Co. (NYSE:CVNA)

Luxor Capital Group’s Equity stake: $74.07 Million
Year-to-date gain: 700%
Number of Hedge Fund Holders: 38

Carvana Co. (NYSE:CVNA) is a company that runs an e-commerce platform for buying and selling used cars in the US

Luxor Capital trimmed its exposure on Carvana Co. (NYSE:CVNA) by 23% in Q3 2023 through call options valued at about $74.1 million. 

[/company-follow-email]

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on Greedy When Others are Fearful’: Warren Buffett’s New Stock Picks Since 2022 Market Peak and Warren Buffett Sees Big Gains in These Small-Cap Stocks.