In this article, we discuss the top 2 stock picks of Vikram Kumar’s Kuvari Partners. If you want our detailed analysis of these stocks, go directly to the Top 7 Stock Picks of Vikram Kumar’s Kuvari Partners.
2. Zillow Group, Inc. (NASDAQ:Z)
Kuvari Partners’ Stake Value: $67,549,000
Percentage of Kuvari Partners’ 13F Portfolio: 26.46%
Number of Hedge Fund Holders: 76
As one of the top stocks from Vikram Kumar’s portfolio, Zillow Group, Inc. (NASDAQ:Z) represents 26.46% of Kuvari Partners’ 13F securities as of the second quarter. Kuvari Partners holds a $67.5 million stake in Zillow Group, Inc. (NASDAQ:Z), making it one of the leading stakeholders of the firm as of Q2. Overall, 76 hedge funds monitored by Insider Monkey were bullish on Zillow Group, Inc. (NASDAQ:Z), as of June, down from 82 in the preceding quarter.
Zillow Group, Inc. (NASDAQ:Z) is one of the most visited real estate websites in the United States, offering end-to-end real estate advisory services to customers, including selling, renting, buying, and financing of properties. Zillow Group, Inc. (NASDAQ:Z) offers bespoke real estate properties in the United States and Canada. The company makes the mortgage process quite simple and transparent for homeowners via their website.
On November 2, the Q3 results for Zillow Group, Inc. (NASDAQ:Z) were posted, with an earnings per share of -$0.95, missing estimated EPS by -$1.11. Revenue for the quarter came in at $1.74 billion, failing to meet estimated revenue by -$269.01 million.
Zillow Group, Inc. (NASDAQ:Z) was downgraded on November 4 from Buy to Neutral by Citi analyst Nicholas Jones. He also lowered the price target from $185 to $86. This rating followed Zillow Group, Inc. (NASDAQ:Z)’s announcement that it would exit the home buying business, which affected the stock’s valuation tremendously.
Here is what Third Avenue Management has to say about Zillow Group, Inc. (NASDAQ:Z) in its Q3 2021 investor letter:
“In the past, we have railed against the failure of inflation statistics to capture important developments related to housing costs. If that point was debatable then, it certainly is not now. In August, Zillow reported that its Home Value Index3 had risen 17.7% year-over-year. S&P Case Shiller has not yet reported its August home price figures but, in July, the index measured a 19.7% year over year increase, which had been preceded by an 18.7% increase in June and 16.9% in May, each a record at the time. Zillow’s Observed Rent Index rose by 11.5% year over year in August. Meanwhile, the U.S. Bureau of Labor Statistics calculated that “rent of primary residence” rose 2.1% year over year in August while “owners’ equivalent rent of residences” rose by 2.6%. If one were to accept Zillow’s Observed Rent Index data as a reasonably accurate depiction of the pace of rental rate increases—and it is similar to several other independent sources of national home rental data—the incorporation of that data into the CPI weighting system in August would have caused CPI to be measured at something like 8.1% rather than 5.3%.”
1. Upstart Holdings, Inc. (NASDAQ:UPST)
Kuvari Partners’ Stake Value: $81,164,000
Percentage of Kuvari Partners’ 13F Portfolio: 31.79%
Number of Hedge Fund Holders: 21
Upstart Holdings, Inc. (NASDAQ:UPST) is the largest holding in the Q2 portfolio of Vikram Kumar, who owns 649,829 shares in Upstart Holdings, Inc. (NASDAQ:UPST) via Kuvari Partners as of June this year. This stock accounts for 31.79% of the firm’s investment portfolio.
The leading stakeholder in Upstart Holdings, Inc. (NASDAQ:UPST) according to the hedge funds tracked by Insider Monkey, as of the second quarter, is Aubrey Capital Management, with stakes valued at more than $8.6 billion. Overall, 21 hedge funds in the database of Insider Monkey were long Upstart Holdings, Inc. (NASDAQ:UPST) as of Q2.
Upstart Holdings, Inc. (NASDAQ:UPST) posted Q3 results on November 9. EPS for the period totaled $0.60, topping estimates by $0.27. Revenue for the quarter came in at $228.45 million, beating estimated revenue by $13.57 million.
Arvind Ramnani from Piper Sandler, on November 10, stated that the Q3 earnings beat was a result of the increased loan volume and stable conversion rate, however, the stock is down by 20% since investors have high expectations and Upstart Holdings, Inc. (NASDAQ:UPST)’s auto opportunity is yet to be quantified. According to Ramnani, this stock dip is a good opportunity to purchase Upstart Holdings, Inc. (NASDAQ:UPST), which was awarded an Overweight rating and a $300 price target by the analyst.
Here is what Third Point Management has to say about Upstart Holdings, Inc. (NASDAQ:UPST) in its Q3 2021 investor letter:
“Our top winners on a percentage basis in Q3 were our two largest positions (which includes) Upstart, up 153%. Upstart has started to upend the FICO-dependent, $84 billion unsecured personal loan market with its AI-driven underwriting approach and is ramping up its footprint in the $685 billion auto lending market. In its most recent earnings report, the company raised its full-year revenue estimates by 25%.”
You can also take a look at 10 Stocks That Beat Profit Expectations and 10 Stocks to Buy in 2021 According to Guy Spier’s Aquamarine Capital.
