In this article, we present the list of Top 10 Stocks for 2022 According To Chet Kapoor’s Tenzing Global Investors. You can skip our detailed analysis of Tenzing Global Investors’ history, investment philosophy, and hedge fund performance, and go directly to Top 5 Stocks for 2022 According To Chet Kapoor’s Tenzing Global Investors.
Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:FVRR), and Zoom Video Communications, Inc. (NASDAQ:ZM) are some of Tenzing Global’s most prominent former investments, as the fund has previously shown a strong interest in social media and online work-related stocks.
Chet Kapoor’s Tenzing Global Investors is a San Francisco-based investment advisor that was co-founded in 2011 by Mr. Kapoor, who previously worked at Blum Capital and Credit Suisse First Boston. Mr. Kapoor has a B.S and a B. A. from Rice University as well as an MBA from Stanford.
Tenzing Global aims to deliver superior risk-adjusted returns for its clients through building a concentrated portfolio of only its best long ideas. Unlike a traditional hedge fund, Tenzing only uses short positions as a means to generate alpha for its clients rather than as a hedge against its other holdings.
Since its founding in January 2012, the Tenzing Global Investors Fund I LP has been a solid performer, delivering a compound annual return of 11.42% through April 2020. The fund really began hitting its stride before the coronavirus outbreak, posting double-digit gains each year between 2016 and 2019, including 32.75% gains in 2017. Tenzing Global had nearly $456 million in assets under management as of March 30, 2021.
Tenzing Global had just 13 long positions in its 13F portfolio as of September 30, 2021, though that was up from just 9 a quarter earlier as Tenzing initiated several new positions during the quarter. Its 13F portfolio was valued at just under $296 million at the end of Q3 and was heavily weighted towards industrial, telecommunication, and consumer discretionary stocks. We’ll take a look at the money manager’s top 10 stock picks in this article.
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Now then, let’s check out the Top 10 Stocks for 2022 According To Chet Kapoor’s Tenzing Global Investors. Note that all hedge fund data is based on the exclusive group of 800+ funds tracked by Insider Monkey as part of our market-beating investment strategy.
Top 10 Stocks for 2022 According To Chet Kapoor’s Tenzing Global Investors
10. 2U Inc (NASDAQ:TWOU)
The second part of our list of Tenzing Global’s top stock picks for 2022 begins with 2U Inc (NASDAQ:TWOU), which the investment advisor has owned since the second quarter of 2020. Tenzing owned 300,000 TWOU shares on September 30, selling off a net total of 180,000 shares during the quarter.
One of the 5 Online Education Stocks to Buy, 2U Inc (NASDAQ:TWOU) was owned by 23 of the hedge funds tracked by Insider Monkey as September 30, down from 29 a year earlier. In its Q3 2021 investor letter, Artisan Partners’ Artisan Small Cap Fund lauded the company’s impressive customer base, which includes Yale, Harvard, and Columbia, and praised its acquisition of learning platform edX. The fund believes that 2U Inc (NASDAQ:TWOU) is well-positioned as a market leader to capitalize on the on-campus to online trend in the $2.2 trillion higher education market, a trend which it believes will only intensify in the years to come as online learning credentials become more widely accepted.
9. Overstock.com, Inc. (NASDAQ:OSTK)
Online retailer Overstock.com, Inc. (NASDAQ:OSTK) was another new addition to Tenzing Global’s 13F portfolio in Q3 and ranks ninth on this list after the firm bought 50,000 shares valued at just under $3.9 million as of September 30.
Tenzing is far from the only money manager to have taken a recent interest in Overstock.com, Inc. (NASDAQ:OSTK) as there’s been a greater than four-fold increase in hedge fund ownership of the stock since the end of Q1 2020. Overstock shares gained over 2000% between March and August 2020 but have declined sharply in recent months on weaker consumer spending as the omicron variant has become dominant, as well as prominent supply chain disruptions.
Overstock.com, Inc. (NASDAQ:OSTK) was recently named a Best Idea by Wedbush, which likes the company’s varied selection of commodity and unbranded products as well as its potential to significantly grow revenue through the home furnishings market, the future growth of which the firm predicts will be captured entirely by the eCommerce market.
8. VIZIO Holding Corp. (NYSE:VZIO)
Tenzing Global is also bullish on VIZIO Holding Corp. (NYSE:VZIO), which manufactures smart TVs and other home entertainment devices, as well as its own smart TV operating system, which generates advertising revenue. Tenzing owned 250,000 VZIO shares on September 30 after selling off 125,000 shares during Q3. Other hedge funds were buying Vizio shares however, as there was a net increase of 850,000 shares owned by the hedge funds tracked by Insider Monkey.
In its Q2 2021 investor letter, Argosy Investors noted that VIZIO Holding Corp. (NYSE:VZIO) was now one of its five largest positions, even as the fund noted that the company could be negatively impacted by higher wage inflation in terms of producing its low-margin televisions. It also believes the company may have less negotiating power with advertisers compared to larger rivals like Roku when it comes to raising advertising prices, though it believes VIZIO Holding Corp. (NYSE:VZIO)’s ad business is otherwise well insulated.
7. Kaltura, Inc. (NASDAQ:KLTR)
Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:FVRR), and Zoom Video Communications, Inc. (NASDAQ:ZM) weren’t among the stocks that Tenzing Global was buying in Q3 2021, but enterprise video company and Zoom competitor Kaltura, Inc. (NASDAQ:KLTR), which had its IPO during the quarter, was. The investment advisor initiated a position of 225,000 KLTR shares valued at $2.32 million on September 30. Tenzing was one of 15 hedge funds tracked by Insider Monkey that went long Kaltura during the quarter.
Kaltura, Inc. (NASDAQ:KLTR) went public in July after 15 years as a private company, raising $150 million through its IPO to help accelerate its growth. The stock has crumbled since its $12.00 offering however, sitting at just $3.37 as the phenomenal 46% year-over-year growth in Q1 that fueled its IPO hype has already begun to wane. Q4 revenue projections call for flat growth quarter-over-quarter, while Kaltura, Inc. (NASDAQ:KLTR) has also admitted to being behind on its sales force hiring targets, which could further hamper its revenue targets.
6. Enovix Corporation (NASDAQ:ENVX)
In addition to adding 182,500 of Enovix Corporation (NASDAQ:ENVX)’s public warrants to its 13F portfolio during Q3, which the company has since redeemed, Tenzing Global also added a 400,000-share long position in the company, which produces lithium-ion batteries for the electric vehicle industry.
Enovix Corporation (NASDAQ:ENVX) went public in July after completing its reverse merger with Rodgers Silicon Valley Acquisition Corp., which Tenzing had owned 405,000 shares of as of June 30. 29 hedge funds tracked by Insider Monkey are long ENVX following its first quarter as a public company, owning 46 million of its shares.
Enovix Corporation (NASDAQ:ENVX) has been a relatively secretive company until its public debut, focusing on developing its proprietary 3D stacking structure, which allows it to create more powerful silicon-based batteries. The company now believes it’s ready to scale up and bring its batteries into the limelight, raising $405 million through its offering to do just that. To that end, Enovix plans to build an additional plant to complement its existing facility in Fremont, California.
Will some of these stocks eventually go the way of Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:FVRR), and Zoom Video Communications, Inc. (NASDAQ:ZM), and be sold off by Tenzing Global in favor of more compelling opportunities? Only time will tell. What we do know is that Tenzing has five more stocks that it thinks very highly of right now, which you can read about at the link below.
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Disclosure: None. Top 10 Stocks for 2022 According To Chet Kapoor’s Tenzing Global Investors is originally published at Insider Monkey.
