In this article, we discuss the top 10 stock picks of Girish Kumar’s TenCore Partners. If you want to skip our detailed analysis of Kumar’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 Stock Picks of Girish Kumar’s TenCore Partners.
Girish Kumar Bhakoo is the Principal, Chief Investment Officer (CIO), and Partner at TenCore Partners with experience of over two decades in the investment world. Kumar was a partner at Acacia Partners from September 2001 to June 2018, where he invested in the developed, developing, and frontier markets. During the same tenure, he also served as a Partner at Ruane, Cunniff, and Goldfarb (RCG) before finding TenCore Partners in 2018.
Kumar completed his Bachelor’s degree in Economics with High Honors from Williams College in 1995. He started as an intern, became an analyst, and finally became one of the three partners at Mason Hill Management and Equinox Partners during his time there from June 1993 till September 2001. He established and launched the Kuruto Fund during this period, which was targeted towards investing in the South Korean consumer sector and finding other strong companies following the 1997 Asian financial crisis.
TenCore Partners invests to achieve high absolute returns in the long run compared to the global equity markets. The hedge fund looks to invest in publicly listed companies across all continents. This is reflected by the holdings in the hedge fund’s portfolio that not only cater to the US markets but also strategize to capture from the Chinese and Latin American market. Some of the popular stocks included in Kumar’s portfolio as of Q3 2021 are Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG). The hedge fund has a portfolio value of over $723.5 million as of the third quarter of 2021.
Photo by Nick Chong on Unsplash
Our Methodology
In this article, we will be going through the top 10 stock picks of Girish Kumar’s TenCore Partners. These stocks have been taken from the Q3 portfolio of TenCore Partners and represent over 86% of the hedge fund’s overall portfolio.
Top 10 Stock Picks of Girish Kumar’s TenCore Partners
10. MercadoLibre, Inc. (NASDAQ:MELI)
Girish Kumar’s TenCore Partners’ Stake Value: $20,000,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 2.76%
Number of Hedge Funds: 68
Stock Price as of December 31: $1,348.40
MercadoLibre, Inc. (NASDAQ:MELI) is the biggest e-commerce platform in Latin America, with a presence in over 19 countries. The company offers advertisement, marketplace, and payment solutions. Furthermore, MercadoLibre, Inc. (NASDAQ:MELI) is the seventh most visited e-commerce website in the world and operates in a region with a population of over 550 million people and one of the fastest internet penetration rates globally.
On December 13, MercadoLibre, Inc. (NASDAQ:MELI) announced its acquisition of Redelcom, a Chilean payment service provider that had started offering point-of-sales (POS) terminals to retailers since October 2019. The acquisition will aid MercadoLibre, Inc. (NASDAQ:MELI) in consolidating its offering in the Chilean market. In November 2021, the company also revealed that it would allow the users of its digital wallet MercadoPago in Brazil to trade cryptocurrencies.
In a report issued to investors on November 5 following the Q3 2021 results, Trevor Young at Barclays increased the price target on MercadoLibre, Inc. (NASDAQ:MELI) from $2,100 to $2,200 and reiterated an Overweight rating. He stated that the company is “executing well in terms of value prop and service levels.”
LRT Capital Management shared its stance on MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2021 investor letter. Here’s what the firm said:
“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”
Besides MercadoLibre, Inc. (NASDAQ:MELI), Girish Kumar also has a stake in popular companies like Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG) as of Q3 2021.
9. HubSpot, Inc. (NYSE:HUBS)
Girish Kumar’s TenCore Partners’ Stake Value: $29,802,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 4.11%
Number of Hedge Funds: 48
Stock Price as of December 31: $659.15
HubSpot, Inc. (NYSE:HUBS) develops and markets software products related to customer relationship management (CRM), inbound marketing, search engine optimization (SEO), social media marketing, and sales. The Cambridge, Massachusetts-based organization was founded by Brian Halligan and Dharmesh Shah in 2006 at the Massachusetts Institute of Technology (MIT).
HubSpot, Inc. (NYSE:HUBS) was mentioned in the Q3 2021 investor letter of ClearBridge Investments. Here’s what the investment management firm said:
“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. HubSpot saw greater utilization of its marketing software by small and medium size businesses. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”
8. Alibaba Group Holding Limited (NYSE:BABA)
Girish Kumar’s TenCore Partners’ Stake Value: $36,311,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 5.01%
Number of Hedge Funds: 115
Stock Price as of December 31: $118.79
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese e-commerce giant that caters to various channels through numerous web portals. The Zhejiang-based corporation also provides cloud computing, electronic payment, and shopping search engines services. Jack Ma, along with 17 friends, founded the company in his Hangzhou apartment in June 1999.
There have been reports that Alibaba Group Holding Limited (NYSE:BABA) is looking to offload its 30% stake in Weibo Corporation (NASDAQ:WB) to state-owned Shanghai Media Group. The move is expected because the Chinese government is looking to control the influence of tech giants in the highly regulated media industry.
On December 22, John Choi at Daiwa kept a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock with a price target of $170.
Miller Value Partners shared its stance on Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2021 investor letter. Here’s what the firm said:
“Alibaba Group Holding Ltd. ADS (BABA) dropped 34.22% during the quarter, along with most Chinese stocks as increased regulatory scrutiny pressured the market. Chinese regulators asked all companies in the industry to stop blocking links from competitors, rumors circulated that Alibaba, and Tencent would be opening up their platforms to one another. During the period, Alibaba reported mixed 1Q Fiscal Year 2022 (FY22) earnings with revenue coming in below expectations due to slower core commerce growth while adjusted earnings before income, taxes, depreciation and amortization (EBITDA) beat. Total revenue of Rmb 205.8B (34% YoY), came in below consensus of Rmb 209.4B with Alibaba Cloud revenue growing 29% YoY to reach Rmb 16.1B. Adjusted EBITDA margin came in at 23.6% versus consensus of 22.5%. The company announced an increase in its share buyback program to $15B from $10B previously while reiterating their original FY22 guidance of revenue of Rmb 930B (30% YoY). Alibaba also announced its plans to invest Rmb 100B by 2025 to support the government’s goal of “Common Prosperity”. Their investments will include tech investments in underdeveloped areas, overseas expansion, agricultural investments, high-quality employment for young adults, and facilitating digital equality between urban and rural areas among others.”
7. Microsoft Corporation (NASDAQ:MSFT)
Girish Kumar’s TenCore Partners’ Stake Value: $42,394,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 5.93%
Number of Hedge Funds: 250
Stock Price as of December 31: $336.32
Microsoft Corporation (NASDAQ:MSFT) is the first member of the Big Five tech giants in Girish Kumar’s TenCore Partners LLC’s portfolio. The Redmond, Washington-based corporation, founded by Bill Gates and Paul Allen in 1975, is involved in the development of the operating system, software, consumer electronics, cloud computing, personal computers, and other related services.
On December 21, Steve Koenig at SMBC Nikko initiated coverage on Microsoft Corporation (NASDAQ:MSFT) with a $410 price target and an Outperform rating. The analyst thinks that Microsoft Corporation (NASDAQ:MSFT) is becoming successful in transitioning its customers to the cloud platform. Furthermore, the tech giant is also in a strong position to benefit from the big secular trends in the software industry and become a beneficiary of the IT spending trends in the future. Koenig talked specifically about the continued momentum of the cloud unit and expects it to be “within spitting distance of Amazon Web Services for market leadership in the public cloud domain by 2025.”
Out of the 867 hedge funds being tracked by Insider Monkey, 250 held a stake in Microsoft Corporation (NASDAQ:MSFT) at the end of Q3 2021, up from 238 in the preceding quarter.
6. Monday.com Ltd. (NASDAQ:MNDY)
Girish Kumar’s TenCore Partners’ Stake Value: $45,668,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 6.31%
Number of Hedge Funds: 17
Stock Price as of December 31: $308.72
Monday.com Ltd. (NASDAQ:MNDY) allows corporations to create personalized work management software applications on their cloud-based platform. The Israel-based corporation went public in June 2021. Girish Kumar’s TenCore Partners LLC initiated a position in Monday.com Ltd. (NASDAQ:MNDY) in Q3 2021.
According to industry experts, the company has a total addressable market (TAM) of over $56 billion, growing at a CAGR of 12%. The value is expected to surpass the $87 billion level by 2024. The existing TAM is 200 times the current revenue of the company and provides a growth opportunity for Monday.com Ltd. (NASDAQ:MNDY).
J. Derrick Wood at Cowen maintained an Outperform rating on Monday.com Ltd. (NASDAQ:MNDY) stock and increased the price target from $410 to $450 in a note issued to investors on November 11. The analyst thinks that the recent pullback in stock price is a great opportunity to enter and initiate a long position in the stock. Furthermore, Wood finds the demand and awareness increasing for the no-code Work OS platform.
In addition to Monday.com Ltd. (NASDAQ:MNDY), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) is also amongst the top 10 stock picks of Girish Kumar’s TenCore Partners.
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Disclose. None. Top 10 Stock Picks of Girish Kumar’s TenCore Partners is originally published on Insider Monkey.
