In this article, we discuss the top 10 stock picks of Eli Cohen’s Crescent Park Management. If you want to skip our detailed analysis of Cohen’s history, investment philosophy, and hedge fund performance, go directly to Top 5 Stock Picks of Eli Cohen’s Crescent Park Management.
Crescent Park Management is a hedge fund located in East Palo Alto. It was established in 2014 by Eli Cohen and other representatives of the Palo Alto-based team who had served at ZBI Equities since 2002. Cohen is the chief investment officer, overseeing a staff of four investment analysts tasked with studying ideas in various industries and regions. Crescent Park Management invests in worldwide equity securities that are publicly traded. The hedge fund’s investing strategy is mostly bottom-up, emphasizing long-term change-intensive topics and the application of well-known investment techniques. The investing business is looking for opportunities where its work reveals a different perspective and may be compounded over time.
Crescent Park Management’s 13F portfolio was valued at $614.38 million as of December 31, with a 63.8% concentration of top 10 holdings. Other than these top 10 holdings, Crescent Park Management has significant stakes in Mastercard Incorporated (NYSE:MA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Yandex N.V. (NASDAQ:YNDX).
Mastercard Incorporated (NYSE:MA), in which Eli Cohen increased his hold by 1% in the fourth quarter, announced its first quarter 2022 financial results on April 28. Mastercard Incorporated (NYSE:MA)’s EPS came in at $2.76, beating estimates by $0.60. Revenue over the period was $5.2 billion, crossing estimates by $300 million.
Photo by Austin Distel on Unsplash
Crescent Park Management also has a significant stake in PayPal Holdings, Inc. (NASDAQ:PYPL). On April 27, PayPal Holdings, Inc. (NASDAQ:PYPL) published earnings for the first quarter of 2022, announcing a revenue of $6.5 billion, exceeding estimates by $90 million.
Yandex N.V. (NASDAQ:YNDX) is another large-cap stock in Crescent Park Management’s portfolio, in which the fund has upped its stake by 1%. Yandex N.V. (NASDAQ:YNDX)’s major Russian operational company, known as the “Google of Russia,” struck a deal in principle with VKontakte (the local Facebook counterpart) on April 28 to sell Yandex’s news aggregation platform and entertainment service, Zen.
Our Methodology
With this industry outlook in mind, let’s start our list of top 10 stock picks of Eli Cohen’s Crescent Park Management. We picked these stocks from the Q4 portfolio of Cohen’s hedge fund. Insider Monkey’s used data from over 900 prominent hedge funds to measure hedge fund sentiment for each stock.
Top Stock Picks of Eli Cohen’s Crescent Park Management
10. Microsoft Corporation (NASDAQ:MSFT)
Crescent Park Management’s Stake Value: $27,534,000
Percentage of Crescent Park Management’s 13F Portfolio: 4.48%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) starts off our list of the top 10 stock picks of Eli Cohen’s Crescent Park Management. Eli Cohen held a $27.53 million stake in the firm consisting of 81,867 shares, representing 4.48% of his overall portfolio.
Microsoft Corporation (NASDAQ:MSFT), located in Redmond, Washington, is a multinational technology business that produces computer software, consumer electronics, personal computers, and related products and services. After Microsoft Corporation (NASDAQ:MSFT)’s earnings announcement on April 27, Morgan Stanley analyst Keith Weiss maintained an “Overweight” rating on MSFT shares with a price objective of $372. He stated that Microsoft Corporation (NASDAQ:MSFT) traded at a favorable multiple and provided a “strong” forecast.
Out of the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 262 were long Microsoft Corporation (NASDAQ:MSFT), with combined stakes worth $75.67 billion. This is compared to 250 hedge funds with total stakes worth $65.88 billion in Microsoft Corporation (NASDAQ:MSFT) a quarter ago.
In addition to Mastercard Incorporated (NYSE:MA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Yandex N.V. (NASDAQ:YNDX), Microsoft Corporation (NASDAQ:MSFT) is one of the top stocks to buy according to Eli Cohen’s Crescent Park Management.
In its Q4 2021 investor letter, Vulcan Value Partners highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”
9. Verra Mobility Corporation (NASDAQ:VRRM)
Crescent Park Management’s Stake Value: $28,959,000
Percentage of Crescent Park Management’s 13F Portfolio: 4.71%
Number of Hedge Fund Holders: 32
Verra Mobility Corporation (NASDAQ:VRRM) is a company that sells smart mobility technologies. Government Solutions, Commercial Services, and Parking Solutions are the company’s three segments. On March 29, Deutsche Bank analyst Faiza Alwy boosted her price target on Verra Mobility Corporation (NASDAQ:VRRM) to $18 from $17 and reiterated a Hold rating on the stock.
On April 21, Verra Mobility Corporation (NASDAQ:VRRM) posted earnings for the fourth quarter of 2021, reporting earnings per share of $0.25, beating market estimates by $0.03. In addition, revenue for the quarter was $168.98 million, up 68.6% from the third-quarter revenue.
As of the fourth quarter, 32 out of the 924 elite hedge funds tracked by Insider Monkey were bullish on Verra Mobility Corporation (NASDAQ:VRRM), with combined stakes worth $651.41 million. In contrast, 25 hedge funds were long Verra Mobility Corporation (NASDAQ:VRRM) in the preceding quarter.
Eli Cohen cut his stake in Verra Mobility Corporation (NASDAQ:VRRM) in the fourth quarter by more than 302,092 shares, reducing his total position by 14%. He first invested in Verra Mobility Corporation (NASDAQ:VRRM) in the fourth quarter of 2018. However, he still holds more than 1.88 million shares of Verra Mobility Corporation (NASDAQ:VRRM), worth more than $28.96 million.
8. Crown Holdings, Inc. (NYSE:CCK)
Crescent Park Management’s Stake Value: $30,741,000
Percentage of Crescent Park Management’s 13F Portfolio: 5%
Number of Hedge Fund Holders: 55
Crown Holdings, Inc. (NYSE:CCK) is a company that designs, manufactures, and sells consumer goods packaging and equipment. Aerosol cans, beverage, promotional and transit packaging, closures and capping, and food cans are all manufactured by the company.
On April 28, Crown Holdings, Inc. (NYSE:CCK) declared a quarterly dividend of $0.22 per share, in line with the previous. The forward yield was 0.79%. In the fourth quarter, Eli Cohen loaded up on Crown Holdings, Inc. (NYSE:CCK), increasing his hold on the company by 5%. Crescent Park Management owned 277,895 shares of Crown Holdings, Inc. (NYSE:CCK), worth $30.74 million.
On April 27, Mizuho analyst Christopher Parkinson cut his price objective on Crown Holdings, Inc. (NYSE:CCK) from $131 to $126 and maintained a Buy rating. Despite a weak quarter, the analyst remained bullish on Crown, noting capacity expansions in 2022 and 2023, as well as pricing adjustments.
55 hedge funds were long on Crown Holdings, Inc. (NYSE:CCK) shares in the fourth quarter, with total stakes worth $2.23 billion. Iridian Asset Management of David Cohen And Harold Levy was one of the leading shareholders of Crown Holdings, Inc. (NYSE:CCK) in the first quarter of 2022, with a stake consisting of 516,064 shares with a value of $64.55 million.
In its Q4 2020 Investor Letter, Upslope Capital highlighted a few stocks and Crown Holdings Inc (NYSE:CCK) was one of them. Here is what the fund said:
“We exited Crown Holdings near the end of the quarter. The business is performing well and an exit feels early. But, CCK was a “Tactical” holding (historically, we’ve been short CCK about as often as long) and thus I am more sensitive to valuation. Today, Crown’s valuation and leverage are relatively full and the long thesis is well-understood by investors.”
7. Caesars Entertainment, Inc. (NASDAQ:CZR)
Crescent Park Management’s Stake Value: $31,526,000
Percentage of Crescent Park Management’s 13F Portfolio: 5.13%
Number of Hedge Fund Holders: 72
Caesars Entertainment, Inc. (NASDAQ:CZR) is a casino and resort company that operates under the Caesars, Harrah’s, Horseshoe, and Eldorado brands. On May 4, Stifel analyst Steven Wieczynski decreased his price objective on Caesars to $113 from $127 and maintained a Buy rating. Wieczynski lowered his price forecast for 2023 to reflect the findings of his sum-of-the-parts research, fearing that positive consumer trends may be fading.
Investors were seen loading up on Caesars Entertainment, Inc. (NASDAQ:CZR) in the fourth quarter of 2021, where 72 hedge funds were long on the company shares, in comparison to 64 in the previous quarter. On May 3, Caesars Entertainment, Inc. (NASDAQ:CZR) published earnings for the quarter ending March 31, 2022, announcing a revenue of $2.3 billion, up 28.5% year-over-year, missing estimates by $50 million.
Crescent Park Management also strengthened its position in Caesars Entertainment, Inc. (NASDAQ:CZR) by buying 74,744 additional shares in Q4. This makes their stake in Caesars Entertainment, Inc. (NASDAQ:CZR) total 337,065 shares worth $31.53 million.
Here is what Carillon Eagle Mid Cap Growth Fund had to say about Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q4 2021 investor letter:
“Caesars Entertainment, a diversified casino-entertainment and resort company, underperformed in the period as its quarterly earnings update was viewed as disappointing by investors. The firm highlighted a number of one-time headwinds that ultimately weighed on margins, as well as some negative impacts brought on by the surge in COVID cases. Despite this, we believe that the sizeable overall margin improvements Caesars has realized coming out of the pandemic will ultimately prove sustainable in the long run.”
6. Broadcom Inc. (NASDAQ:AVGO)
Crescent Park Management’s Stake Value: $35,764,000
Percentage of Crescent Park Management’s 13F Portfolio: 5.82%
Number of Hedge Fund Holders: 62
Broadcom Inc. (NASDAQ:AVGO) is a multinational technology firm that develops, manufactures, and sells semiconductors and infrastructure software. Broadcom Inc. (NASDAQ:AVGO) is divided into two main sections – Infrastructure Software and Semiconductor Solutions. Truist analyst William Stein decreased his price objective on Broadcom Inc. (NASDAQ:AVGO) to $657 from $686 on April 8 and maintained a Buy recommendation on the stock. Stein stated that while justifying any downgrades is difficult, his conviction in Semiconductors has decreased.
Eli Cohen’s Crescent Park Management owned approximately 53,747 Broadcom Inc. (NASDAQ:AVGO) shares as of Q4 2021, worth more than $35.76 million, representing 5.82% of the fund’s 13F portfolio. Broadcom Inc. (NASDAQ:AVGO) is getting the attention of the smart money, as 62 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 50 funds a quarter earlier.
Along with Mastercard Incorporated (NYSE:MA), PayPal Holdings, Inc. (NASDAQ:PYPL), and Yandex N.V. (NASDAQ:YNDX), Broadcom Inc. (NASDAQ:AVGO) is one of the stocks attracting the attention of Eli Cohen’s Crescent Park Management.
ClearBridge Investments, an investment management firm, in its fourth quarter 2021 investor letter, mentioned Broadcom Inc. (NASDAQ:AVGO). Here is what the fund said:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
Click to continue reading and see Top 5 Stock Picks of Eli Cohen’s Crescent Park Management.
Suggested articles:
- Cathie Wood’s 10 Stock Picks for the Next 5 Years
- Bill Gates’ Latest Portfolio: Top 12 Stock Picks
- Top 10 Stock Picks of Julian Robertson’s Tiger Management
Disclosure: None. Top 10 Stock Picks of Eli Cohen’s Crescent Park Management is originally published on Insider Monkey.
