In this article, we discuss the top 10 stock picks of David Halpert’s Prince Street Capital Management based on Q3 holdings of the fund. If you want to skip our detailed analysis of Halpert’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stock Picks of David Halpert’s Prince Street Capital Management.
Prince Street Capital Management is based in New York. David Halpert is the founder, chief investment officer, and portfolio manager of the hedge fund. He invented ‘Digital Decolonization,’ a new paradigm for appraising investments in emerging and frontier markets, based on his 30 years of experience researching and investing in the developing world.
Before starting Prince Street Capital Management in March-2001, Mr. Halpert worked as an equities research analyst in Indonesia and ran a long-only EM portfolio at Zesiger Capital Group. Halpert earned a BA in Asian Studies from the University of California, Berkeley, and an MBA from Harvard Business School.
As of the third quarter of 2021, Prince Street Capital has shares in Sea Limited (NYSE:SE), Yandex N.V. (NASDAQ:YNDX), and MercadoLibre, Inc. (NASDAQ:MELI).
Based on the 13F holdings for the third quarter of 2021, Prince Street Capital Management disclosed a $16.45 million position in Sea Limited (NYSE:SE) with 51,600 shares after increasing its stake by 27% from the previous quarter. On November 16, BofA analyst Sachin Salgaonkar downgraded Sea Limited to “Neutral” from “Buy” with a price target of $385, up from $380. Following the company’s Q3 earnings reports, the analyst said that Sea Limited’s (NYSE:SE) gaming outlook suggested a deceleration of Q4 growth.
Prince Street Capital Management has a $19.97 million stake in Yandex N.V. (NASDAQ:YNDX). Citi analyst Catherine O’Neill raised Yandex N.V.’s (NASDAQ:YNDX) price target to $90 from $82 in October, while maintaining her “Buy” rating.
David Halpert’s Prince Street Capital Management also has a significant stake in MercadoLibre, Inc. (NASDAQ:MELI), with $26.53 million stake in the firm. Following the Q3 results, Barclays analyst Trevor Young in November boosted the firm’s price objective on MercadoLibre, Inc. (NASDAQ:MELI) to $2,200 from $2,100 and maintained an “Overweight” rating on the stock.
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With this background in mind, let’s start our list of top 10 stock picks of David Halpert’s Prince Street Capital Management. We used Halpert’s 13F portfolio for Q3 2021 for this analysis.
Top Stock Picks of David Halpert’s Prince Street Capital Management
10. Coinbase Global, Inc. (NASDAQ:COIN)
Prince Street Capital Management Stake Value: $4,959,000
Percentage of Prince Street Capital Management’s 13F Portfolio: 3.08%
Number of Hedge Fund Holders: 49
Coinbase Global, Inc. (NASDAQ:COIN) is a cryptocurrency trading platform based in the United States. On November 10, Canaccord analyst Joseph Vafi increased his price target on Coinbase to $342 from $325 and rated the stock as “Buy.”
Earlier in November, Coinbase Global, Inc. (NASDAQ:COIN) reported its Q3 results, with an EPS of $1.62, beating the estimates by $0.19.
Catherine D. Wood’s ARK Investment Management owns 6.99 million shares of Coinbase Global, Inc. (NASDAQ:COIN), worth over $1.59 billion.
Sea Limited (NYSE:SE), Yandex N.V. (NASDAQ:YNDX), and MercadoLibre, Inc. (NASDAQ:MELI) are some of the stocks attracting the attention of David Halpert’s Prince Street Capital Management, along with Coinbase Global, Inc. (NASDAQ:COIN).
In its third-quarter 2021 investor letter, Hayden Capital, an investment management firm, mentioned Coinbase Global, Inc. (NASDAQ:COIN). Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
9. Despegar.com, Corp. (NYSE:DESP)
Prince Street Capital Management Stake Value: $6,736,000
Percentage of Prince Street Capital Management’s 13F Portfolio: 4.19%
Number of Hedge Fund Holders: 22
Despegar.com, Corp. (NYSE:DESP) is a web-based travel company. Quincy Lee’s Ancient Art (Teton Capital) is the most significant stakeholder in the company, with 4.10 million shares worth $49.33 million.
Despegar.com, Corp. (NYSE:DESP) declared its fiscal Q3 results on November 17 and posted an EPS of -$0.38, missing the estimates by $0.06. Despegar.com, Corp.’s (NYSE:DESP) revenue stood at $83.37 million, showcasing a 610.1% year-over-year growth, beating the analysts’ expectations by $8.47 million.
Prince Street Capital Management holds 560,000 shares in Despegar.com, Corp. (NYSE:DESP) worth over $6.74 million, representing 4.19% of their portfolio. In addition, hedge fund sentiment increased for Despegar.com, Corp. (NYSE:DESP) in the second quarter. Insider Monkey’s data shows that 22 elite hedge funds held stakes in Despegar at the end of the second quarter, up from 18 funds a quarter earlier.
8. Freeport-McMoRan Inc. (NYSE:FCX)
Prince Street Capital Management Stake Value: $8,945,000
Percentage of Prince Street Capital Management’s 13F Portfolio: 5.56%
Number of Hedge Fund Holders: 76
Freeport-McMoRan Inc. (NYSE:FCX) is a copper, gold, and molybdenum mining company. The company announced its Q3 results on October 21, posting an EPS of $0.89, beating the estimates by $0.09. Freeport-McMoRan Inc.’s (NYSE:FCX) revenue stood at $6.08 billion, versus the forecast of $140 million.
Freeport-McMoRan Inc.’s (NYSE:FCX) largest shareholder is Martin Taylor’s Crake Asset Management, which owned 1.10 million shares worth $35.79 billion in the third quarter of 2021. On November 16, Wolfe Research analyst Timna Tanners initiated coverage of Freeport-McMoRan Inc. (NYSE:FCX), rating the stock as “Outperform” and gave a price target of $47.
Overall, hedge funds are loading up on Freeport-McMoRan Inc. (NYSE:FCX), as 76 out of the 873 funds tracked by Insider Monkey held stakes in the company, compared to 68 funds a quarter earlier.
7. Afya Limited (NASDAQ:AFYA)
Prince Street Capital Management Stake Value: $9,317,000
Percentage of Prince Street Capital Management’s 13F Portfolio: 5.79%
Number of Hedge Fund Holders: 6
Afya Limited (NASDAQ:AFYA) is a well-known medical education organization in Brazil. Oaktree Capital Management, with 1.65 million shares, is the biggest stakeholder in Afya Limited (NASDAQ:AFYA).
In October, Afya Limited (NASDAQ:AFYA) announced the acquisition of 100% of RX PRO’s whole share capital for R$35.4 million. RX PRO is a platform that connects doctors with pharmaceutical firms, allowing them to get specialized and tailored marketing.
The number of bullish hedge fund holdings has recently decreased by one. Afya Limited (NASDAQ:AFYA) was in 6 hedge funds’ portfolios at the end of the second quarter of 2021, compared to 5 in the preceding quarter. The all-time-high for this statistic is 9.
6. CEMEX, S.A.B. de C.V. (NYSE:CX)
Prince Street Capital Management Stake Value: $10,554,000
Percentage of Prince Street Capital Management’s 13F Portfolio: 6.56%
Number of Hedge Fund Holders: 23
Cement, ready-mix concrete, and aggregates are produced, distributed, marketed, and sold by CEMEX, S.A.B. de C.V. (NYSE:CX). On October 11, Citi analyst Andres Cardona upgraded CEMEX, S.A.B. de C.V. (NYSE:CX) to “Buy” from “Neutral” with a price target of $9.30, down from $9.80.
David Halpert’s Prince Street Capital Management holds 1.47 million shares of CEMEX, S.A.B. de C.V. (NYSE:CX) worth $10.55 million. In the third quarter of 2021, Cemex S.A.B. de C.V. posted EPADS of -$0.24, missing estimates by $0.41. In addition, CEMEX, S.A.B. de C.V.’s (NYSE:CX) revenue stood at $3.77 billion, missing analysts’ forecasts by $40 million.
As of the end of the second quarter of 2021, 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in CEMEX, S.A.B. de C.V. (NYSE:CX) worth $601.77 million, compared to 24 hedge funds holding $471.44 million worth of positions in the company in the preceding quarter.
Along with Sea Limited (NYSE:SE), Yandex N.V. (NASDAQ:YNDX), and MercadoLibre, Inc. (NASDAQ:MELI), Cemex S.A.B. de C.V. (NYSE: CX) is one of the top stock picks of David Halpert’s Prince Street Capital Management.
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Disclosure: None. Top 10 Stock Picks of David Halpert’s Prince Street Capital Management is originally published on Insider Monkey.
