In this article, we will take a detailed look at Top 10 Stocks to Buy According to 12 West Capital Management.
Joel Ramin founded 12 West Capital Management in August 2011, establishing it as a New York-based hedge fund specializing in global investments across equities, equity-related instruments, and credit securities. Prior to launching 12 West, Ramin worked as an analyst at Bridger Capital, gaining experience in both long equity positions and short-selling strategies. Currently, he serves as the firm’s Managing Member and Portfolio Manager, overseeing investment decisions and advisory services for institutional investors in the United States.
12 West Capital Management focuses on providing tailored investment management solutions, leveraging a research-driven approach to identify opportunities across various markets. The firm actively engages in both long-term and short-term investments, aiming to maximize returns through strategic asset allocation and risk management. Its expertise spans multiple asset classes, allowing it to adapt to changing market conditions while delivering value to its clients.
Joel Ramin holds a degree from the McIntire School of Commerce, where he completed his undergraduate studies in finance in 2000. His background in finance and investment, combined with his experience at Bridger Capital, has shaped his approach to portfolio management at 12 West Capital. Under his leadership, the firm has built a reputation for its disciplined investment strategies and commitment to generating long-term growth for its investors.
According to its most recent 13F filing for the fourth quarter of 2024, 12 West Capital Management reported nearly $954.6 million in managed 13F securities, with its top 10 holdings accounting for a hefty 90.75% of its portfolio.
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Our Methodology
The stocks discussed below were picked from 12 West Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 Stocks to Buy According to 12 West Capital Management
10. Grocery Outlet Holding Corp. (NASDAQ:GO)
Number of Hedge Fund Holders as of Q4: 33
12 West Capital Management’s Equity Stake: $37.47 Million
Grocery Outlet Holding Corp. (NASDAQ:GO) is a US-based discount retailer specializing in supermarket locations that offer name-brand and private-label products at reduced prices, including overstocked and closeout items. The company recently released its financial results for the fourth quarter and fiscal year 2024 while also unveiling a restructuring plan aimed at enhancing long-term profitability and cash flow.
During the fourth quarter, Grocery Outlet Holding Corp. (NASDAQ:GO) initiated a restructuring strategy designed to optimize store growth and reduce costs. This plan involves terminating leases for unopened stores in underperforming locations, canceling certain warehouse projects, and reducing its workforce. The company expects to complete these actions by mid-2025, with estimated costs ranging from $52 million to $61 million, of which $36 million to $45 million will be in cash expenditures.
For the fourth quarter, net sales rose 10.9% year-over-year to $1.10 billion, with comparable-store sales increasing by 2.9%. Grocery Outlet Holding Corp. (NASDAQ:GO) reported a net income of $2.31 million, or $0.02 per diluted share, compared to $14.1 million, or $0.14 per share, in the prior year. Adjusted net income reached $14.5 million, or $0.15 per adjusted diluted share, compared to $18.2 million, or $0.18 per share, in Q4 2023. Adjusted EBITDA increased by 12.5% to $57.2 million, representing 5.2% of net sales.
For the full fiscal year 2024, net sales increased 10% to $4.37 billion, driven by new store openings and a 2.7% rise in comparable-store sales, supported by a 4.2% increase in transactions. Gross profit grew 6.5% to $1.32 billion, though gross margin declined by 110 basis points to 30.2%, largely due to higher inventory shrinkage related to system conversion issues.
During the quarter, total transactions increased by 3%, while the average transaction size remained flat. Grocery Outlet Holding Corp. (NASDAQ:GO) opened five new stores and closed one, ending 2024 with 533 locations across 16 states. Board Chairman Lindberg introduced the new President and CEO Jason Potter, who most recently served as the CEO of The Fresh Market. Lindberg expressed confidence in Potter’s leadership and ability to create long-term value for shareholders.
9. Repligen Corporation (NASDAQ:RGEN)
Number of Hedge Fund Holders as of Q4: 34
12 West Capital Management’s Equity Stake: $35.53 Million
Founded in 1981, Repligen Corporation (NASDAQ:RGEN) is a life sciences company specializing in bioprocessing technology that is headquartered in Waltham, Massachusetts. The company reported revenue of $168 million for the fourth quarter of 2024, showing a slight increase from $167 million in the same period the previous year. Its full-year revenue reached $634 million, up from $632 million in 2023. However, Repligen faced financial challenges, posting a net loss of $34 million in Q4 2024, compared to a $16 million loss in Q4 2023. Adjusted net income for the quarter also declined to $25 million from $27 million in the prior year.
The company’s financial performance showed a decrease in profitability, with gross profit for Q4 2024 at $39 million, down significantly from $78 million in Q4 2023. Adjusted gross profit was $85 million, compared to $87 million the previous year. Additionally, Repligen Corporation (NASDAQ:RGEN) reported an operating loss of $37 million for the fourth quarter, in contrast to an operating income of $10 million in Q4 2023. Despite these setbacks, President and CEO Olivier Loeillot expressed optimism, highlighting 13% revenue growth in Q4 2024. He emphasized strong order momentum in the second half of the year, reinforcing confidence in the company’s 2025 outlook.
Looking ahead, Repligen Corporation (NASDAQ:RGEN) projects total revenue between $685 million and $710 million for 2025, reflecting anticipated growth of 8% to 12%. The company expects non-COVID revenue to increase by 10% to 14%, with adjusted EBITDA margins ranging between 20% and 21%. This forecast does not account for potential acquisitions or currency fluctuations. On March 18, Evercore ISI initiated coverage on Repligen Corporation (NASDAQ:RGEN), assigning an In Line rating and setting a $155 price target. Analysts recognize Repligen as a key player in the bioprocessing sector, with a current market capitalization of $8.58 billion and stock trading at $152.81, with projected targets ranging from $155 to $225.
The Brown Capital Management Small Company Fund stated the following regarding Repligen Corporation (NASDAQ:RGEN) in its Q3 2024 investor letter:
“Repligen Corporation (NASDAQ:RGEN) is a life-sciences company that develops and manufactures products used throughout the complex process of making biological drugs, helping its customers increase efficiency and reduce costs. Toward the end of 2023, a year in which Repligen’s revenue declined 20%, there were some positive signs suggesting that demand might recover in 2024, but that recovery has not yet occurred, causing the stock price to decline 17% year to date through Sept. 30. Repligen revenue declined 17% during the first quarter of 2024 and fell 3% in the second quarter. Management pointed to continued weakness among CDMO (Contract Development and Manufacturing Organization) customers as the pace of R&D investments among smaller biotechs has slowed due to the tough funding environment from high interest rates. Analyzing the results of companies we own in this space, 10X Genomics (TXG), Cryoport (CYRX) and Bio-Techne (TECH), as well as peers like Thermo Fisher Scientific, Danaher and large CDMOs like Catalent and Lonza, it is evident that the slowdown in spending is an industry-wide phenomenon and not specific to Repligen.”