In this article, we discuss the top 10 stock picks of billionaire Nicholas Pritzker. If you want to skip our detailed analysis of Pritzker’s history, investment philosophy, and hedge fund performance, go directly to Top 5 Stock Picks of Billionaire Nicholas Pritzker.
Nicholas J. Pritzker is a San Francisco-based real estate and venture entrepreneur. Pritzker earned a BA from Lake Forest College in Illinois and a law degree from the University of Chicago. He is a descendant of the Pritzker family, which owned Conwood chewing tobacco until Reynolds American bought it. Pritzker took over the leadership of Hyatt Hotels Corporation in Chicago, Illinois, after working in real estate with his father, Jack Pritzker. From 1980 through 2007, Pritzker served on the board of directors of Hyatt Hotel Corporation. In addition, he is the co-founder of Tao Capital and an independent entrepreneur.
Tao Capital is a San Francisco-based firm. The hedge fund specializes in companies that work with renewable energy and cutting-edge technologies. Tao Capital’s early investments are Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), SpaceX, Twist Bioscience, Aquion Energy, Atlantica Hotels, United Record Pressing, and Foundations Recovery Network. In addition, Pritzker has been on the board of JUUL Labs, an electronic cigarette firm, since 2017.
In the third quarter of 2021, Tao Capital held positions in 14 stocks with a total 13F portfolio value of $375.34 million. The most notable stock holdings of billionaire Nicholas Pritzker’s fund are Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), and ironSource Ltd. (NYSE:IS).
As of the end of the third quarter of 2021, Tao Capital holds $44.59 million worth of Tesla, Inc. (NASDAQ:TSLA) shares. On December 14, Dogecoin (DOGE-USD) soared 26% to $0.21 after Elon Musk tweeted that the cryptocurrency will be accepted as payment for some of its products.
Nicholas Pritzker’s Tao Capital currently owns 1.28 million shares of Uber Technologies, Inc. (NYSE:UBER) worth $57.56 million. The company occupies 15.33% of the hedge fund’s overall equity. On December 16, Uber Technologies, Inc. (NYSE:UBER) announced a partnership with Motional, a driverless technology company, to start autonomous deliveries for Uber customers in Santa Monica in early 2022.
Tao Capital also has a $40.27 million stake in ironSource Ltd. (NYSE:IS). On December 13, Morgan Stanley analyst Matthew Cost initiated coverage of ironSource Ltd. (NYSE:IS) stock, rating it as “Overweight” with a price target of $10.50.
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Here is a list of Nicholas Pritzker’s top stock picks in 2021. We used Pritzker’s 13F portfolio for Q3 2021 for this analysis.
Top Stock Picks of Billionaire Nicholas Pritzker
10. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)
Tao Capital Stake Value: $4,101,000
Percentage of Tao Capital’s 13F Portfolio: 1.09%
Number of Hedge Fund Holders: 17
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a clinical-stage biopharmaceutical company. In October, Jefferies analyst Akash Tewari initiated coverage of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), rating the stock as “Buy” with a price target of $151.
For the third quarter of fiscal 2021, Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) reported an EPS of -$3.79, beating the estimates by $0.09. The hedge fund chaired by Nicholas Pritzker holds close to 51,396 shares in Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) worth over $4.10 million.
Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 17 at the end of the third quarter compared to 20 positions in the previous quarter.
Like Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), and ironSource Ltd. (NYSE:IS), Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is one of the top stock picks of billionaire Nicholas Pritzker.
9. Hyatt Hotels Corporation (NYSE:H)
Tao Capital Stake Value: $5,397,000
Percentage of Tao Capital’s 13F Portfolio: 1.43%
Number of Hedge Fund Holders: 37
Hyatt Hotels Corporation (NYSE:H) is a hospitality firm that maintains and franchises luxury and business hotels, resorts, and vacation homes.
On December 13, Bernstein analyst Richard Clarke initiated coverage of Hyatt Hotels Corporation (NYSE:H), with an “Outperform,” and gave a price target of $105. Hyatt Hotels Corporation’s (NYSE:H) third-quarter EPS came in at $2.31, beating the estimates by $2.66. In addition, revenues from management and franchise fees reached $96 million in the third quarter, up from $40 million a year before.
In the third quarter, hedge fund sentiment increased for Hyatt Hotels Corporation (NYSE:H). Insider Monkey’s data shows that 37 elite hedge funds held stakes in the company at the end of the third quarter, up from 23 funds a quarter earlier.
Baron Funds, an asset management firm, in its third-quarter 2021 investor letter, mentioned Hyatt Hotels Corporation (NYSE:H). Here is what the fund said:
“Hyatt Hotels Corp.: Following its recent announcement to acquire Apple Leisure Group, a highly desirable independent resort management company with 102 resorts in 10 countries, we reacquired shares in Hyatt, a leading hotel company. We believe this acquisition will accelerate Hyatt’s industry-leading growth by adding a portfolio of resort brands with a large pipeline. Hyatt’s management has also announced its intention to accelerate its transformation to greater fee-based earnings and create additional liquidity by seeking to sell $2 billion of owned hotels in the next three years. We believe the combination of industry-leading growth, hotel asset sales at attractive valuations, and the company’s ongoing transformation to more of an asset-light business will result in an improvement in Hyatt’s valuation and strong shareholder returns.”
8. Warby Parker Inc. (NYSE:WRBY)
Tao Capital Stake Value: $12,642,000
Percentage of Tao Capital’s 13F Portfolio: 3.36%
Number of Hedge Fund Holders: 12
Warby Parker Inc. (NYSE:WRBY) is an online eyeglasses shop for men and women. Its retail locations and e-commerce network sell eyeglasses items and directly provide optical services to consumers. Warby Parker Inc. (NYSE:WRBY) surpassed Wall Street revenue expectations for its third quarter, bringing in $137.37 million, up 32% Y/Y. It also posted an EPS of $0.03, beating the estimates by $0.25.
Loop Capital analyst Anthony Chukumba decreased his price target on Warby Parker Inc. (NYSE:WRBY) to $52 from $60 on December 10 and maintained a “Hold” rating on the stock.
Tiger Global Management LLC, with 15.13 million shares, is the most significant stakeholder in Warby Parker Inc. (NYSE:WRBY). Out of the 867 hedge funds tracked by Insider Monkey at the end of Q3, 12 funds were bullish on Warby Parker Inc. (NYSE:WRBY), with total stakes amounting to $1.41 billion.
7. Benson Hill, Inc. (NYSE:BHIL)
Tao Capital Stake Value: $12,654,000
Percentage of Tao Capital’s 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 26
Benson Hill, Inc. (NYSE:BHIL) is a company that deals with food technology. It works in two segments: Fresh and Ingredients. In December, Oppenheimer analyst Kristen Owen initiated coverage of Benson Hill, Inc. (NYSE:BHIL) and rated it as “Outperform,” with a price objective of $9.
In November, Benson Hill, Inc. (NYSE:BHIL) announced operating and financial results for the third quarter of 2021. The company reported a revenue of $32 million, up 13.5%. Benson Hill, Inc. (NYSE:BHIL) is a new arrival on billionaire Nicholas Pritzker’s portfolio, as his hedge fund bought about 1.77 million shares of the company, worth $12.65 million.
At the end of the third quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $49.97 million in Benson Hill, Inc. (NYSE:BHIL).
6. 908 Devices Inc. (NASDAQ:MASS)
Tao Capital Stake Value: $18,504,000
Percentage of Tao Capital’s 13F Portfolio: 4.92%
Number of Hedge Fund Holders: 8
908 Devices Inc. (NASDAQ:MASS) specializes in creating chemical and biochemical analytical measuring devices. 908 Devices Inc. (NASDAQ:MASS) has had its stock price tumble by 50.51% so far this year. Nicholas Pritzker’s Tao Capital owns 568,981 shares of the company, worth over $18.50 million.
In November, 908 Devices Inc. (NASDAQ:MASS) announced its financial results for the quarter ending September 30, 2021. The company reported a revenue of $12.5 million for Q3, up 107% YoY. In October, Max Masucci from Cowen initiated coverage of 908 Devices Inc. (NASDAQ:MASS), rating the stock as “Outperform.”
The most significant stake in 908 Devices Inc. (NASDAQ:MASS) was held by ARK Investment Management, which reported holding $89.46 million worth of stock in the third quarter of 2021. Millennium Management came in second with a $19.27 million investment.
In addition to Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), and ironSource Ltd. (NYSE:IS), 908 Devices Inc. (NASDAQ:MASS) is a notable stock from billionaire Nicholas Pritzker’s Q3 portfolio.
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Disclosure: None. Top 10 Stock Picks of Billionaire Nicholas Pritzker is originally published on Insider Monkey.
