In this article, we reviewed Philip Best’s investment philosophy and portfolio management strategies. We also examined the top 10 stock picks of Philip Best’s Quaero Capital. You can skip our comprehensive list and detailed analysis and jump directly to the Top 5 Stock Picks of Philip Best’s Quaero Capital.
Philip Best is the portfolio manager, chairman, and founding partner of Quaero Capital, a specialist fund management firm that focuses on investing in undervalued small- and mid-cap companies. After graduating from Oxford, Philip Best joined Warburg Investment Management in 1983, where he managed the Mercury European Income Fund. He is also the founder of The Argonaut Fund, a value-driven European small-cap fund with annualized returns above 13% since its inception in 2003. Philip Best of Quaero Capital managed $145 million in the 13F securities portfolio as of September.
The most notable stock holdings in Quaero Capital’s 13F portfolio include Ameresco, Inc. (NYSE:AMRC), Sunrun Inc. (NASDAQ:RUN), I-Mab (NASDAQ:IMAB), Plug Power Inc. (NASDAQ:PLUG), and SolarEdge Technologies, Inc. (NASDAQ:SEDG).
Quaero Capital’s largest holding is the mid-cap specialty chemical company Albemarle Corporation (NYSE:ALB) while Enphase Energy, Inc. (NASDAQ:ENPH) ranks second on the list of top 10 stock picks.
Our Methodology
For this article, we made use of Quaero Capital’s 13F portfolio as of September.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, let’s now discuss the top 10 stock picks of Philip Best’s Quaero Capital.
Top 10 Stock Picks of Philip Best’s Quaero Capital
10. Ameresco, Inc. (NYSE:AMRC)
Quaero Capital’s Stake Value: $4.9 million
Percentage of Quaero Capital’s 13F Portfolio: 3.37%
Number of Hedge Fund Holders: 15
Ameresco, Inc. (NYSE:AMRC) is one of the top stock picks of Philip Best’s Quaero Capital because shares of the comprehensive energy services provider soared 82% since the beginning of this year. The firm first initiated a position in Ameresco, Inc. (NYSE:AMRC) during the final quarter of last year and increased its existing position by 10% in the September quarter of 2021. Despite the recent gains, the robust 31% year-over-year growth in awarded backlog in the third quarter makes Ameresco, Inc. (NYSE:AMRC) a compelling investment.
Ameresco, Inc. (NYSE:AMRC) was in 15 hedge funds’ portfolios as of June, according to the data tracked by Insider Monkey. Of the 51.56 million outstanding shares of Ameresco, Inc. (NYSE:AMRC), 53% are held by institutions, while 42% are owned by insiders or individuals.
9. Sunrun Inc. (NASDAQ:RUN)
Quaero Capital’s Stake Value: $5.4 million
Percentage of Quaero Capital’s 13F Portfolio: 3.72%
Number of Hedge Fund Holders: 45
Following a 20% year-to-date decline in stock price, Sunrun Inc. (NASDAQ:RUN) provides an attractive entry point for new investors. BMO Capital has set an outperform rating with a $65 price target for Sunrun Inc. (NASDAQ:RUN) stock, citing a solar boom in U.S. residential markets. Sunrun Inc. (NASDAQ:RUN) posted 100% revenue growth in the third quarter and expects to generate above-market growth and strong cash generation in the quarters ahead.
Like Philip Best’s Quaero Capital, 45 hedge funds were bullish about Sunrun Inc. (NASDAQ:RUN) as of June, according to data tracked by Insider Monkey. Joe Dimenna ZWEIG DIMENNA PARTNERS was among the leading stakeholders in the company.
8. I-Mab (NASDAQ:IMAB)
Quaero Capital’s Stake Value: $5.5 million
Percentage of Quaero Capital’s 13F Portfolio: 3.78%
Number of Hedge Fund Holders: 18
I-Mab (NASDAQ:IMAB), a clinical-stage biopharmaceutical company, is one of the top 10 stock picks of Philip Best’s Quaero Capital. This is because shares of I-Mab (NASDAQ:IMAB) soared 29% year to date. I-Mab (NASDAQ:IMAB) focuses on discovering, developing, and commercializing new biologics to treat diseases with unmet medical needs, particularly autoimmune disorders and cancers.
Insider Monkey tracked 873 elite funds as of June, and 18 were bullish on I-Mab (NASDAQ:IMAB).
7. Plug Power Inc. (NASDAQ:PLUG)
Quaero Capital’s Stake Value: $5.7 million
Percentage of Quaero Capital’s 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 34
Plug Power Inc. (NASDAQ:PLUG) is benefiting from the world’s move towards electric mobility and stationary power. The stock price increase of more than 100% in the past year is evidence of investors’ confidence in the fundamentals of Plug Power Inc. (NASDAQ:PLUG). Despite the recent share price run, Morgan Stanley still rates Plug Power Inc. (NASDAQ:PLUG) as one of the top stocks to buy due to its rapid growth prospects. Plug Power Inc. (NASDAQ:PLUG) forecasts 2022 sales in the range of $850 million and expects to hit $3 billion in annual sales by 2025.
Like Philip Best’s Quaero Capital, other hedge funds also appear bullish over the fundamentals of Plug Power, Inc. (NASDAQ:PLUG). It was in 34 hedge funds’ portfolios as of June compared to 25 positions in the prior quarter.
6. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Quaero Capital’s Stake Value: $6.4 million
Percentage of Quaero Capital’s 13F Portfolio: 4.42%
Number of Hedge Fund Holders: 37
Quaero Capital’s decision to increase its stake by 4% in SolarEdge Technologies, Inc. (NASDAQ:SEDG) during the September quarter proved beneficial to the hedge fund. The share price of SolarEdge Technologies, Inc. (NASDAQ:SEDG) increased 33% in the last month alone, extending the twelve-month gain to around 50%. SolarEdge Technologies, Inc. (NASDAQ:SEDG) is engaged in selling direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations all over the world. Smart energy technology posted record revenue of $526.4 million in the September quarter.
Like Albemarle Corporation (NYSE:ALB), Enphase Energy, Inc. (NASDAQ:ENPH), Plug Power Inc. (NASDAQ:PLUG), Ameresco, Inc. (NYSE:AMRC), Sunrun Inc. (NASDAQ:RUN), and I-Mab (NASDAQ:IMAB), SolarEdge Technologies, Inc. (SEDG) is among the top stock picks of Philip Best’s Quaero Capital.
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Disclosure: None. Top 10 Stock Picks of Philip Best’s Quaero Capital is originally published on Insider Monkey.
