In this article, we will discuss the top 5 stock picks of Anand Desai’s Darsana Capital Partners. If you want to read our detailed analysis of Anand Desai’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Anand Desai’s Darsana Capital Partners.
5. Microsoft Corporation (NASDAQ:MSFT)
Desai’s Stake Value: $270,900,000
Percentage of Anand Desai’s 13F Portfolio: 7.7%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) is one of the biggest names in the world with its services and products being used in all corners of the world.
On September 17, Barclays analyst Raimo Lenschow maintained an Overweight rating on Microsoft’s shares, increasing the price target from $330 to $345.
Darsana Capital Partners owns 1 million shares in the company worth $270 million.
In its Q2 2021 investor letter, Baron Opportunity Fund highlighted a few stocks, and Microsoft Corp. (NASDAQ:MSFT) is one of them. Here‘s what the fund said about the company:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
4. Guidewire Software, Inc. (NYSE:GWRE)
Desai’s Stake Value: $281,800,000
Percentage of Anand Desai’s 13F Portfolio: 8.01%
Number of Hedge Fund Holders: 27
Founded by Marcus Ryu, John Seybold, Ken Branson, John Raguin, James Kwak, and Mark Shaw in 2001, Guidewire Software, Inc. (NYSE:GWRE) is a renowned software company headquartered in San Mateo, California. It focuses on property and casualty (P&C) insurance with ClaimCenter, PolicyCenter, and BillingCenter as its main products.
Darsana Capital Partners has 2.5 million shares worth $281.8 million in Guidewire Software, Inc. (NYSE:GWRE).
Wasatch Global Investors, in its Q1 2021 investor letter, mentioned Guidewire Software, Inc. (NYSE:GWRE). Here is what they said:
“Guidewire Software, Inc. (GWRE) was another large detractor. The company provides enterprise software for the property and casualty insurance industry. The software supports collaborative workflow, cooperation with external partners and rule-based decision making—all of which characterize modern underwriting and claims operations. Guidewire’s InsuranceSuite platform allows insurance-industry customers to manage claims, policies and billing functions. Other modules can be added to assist in data management, analytics and digital engagement. We believe Guidewire will eventually be well-positioned to benefit as insurance companies increasingly replace their core (usually on-premises) legacy software with centralized, cloud-based offerings. In the shortterm, however, Guidewire has seen some challenges with its move to the cloud. We think these challenges, along with the broad correction among technology names, accounted for the stock-price decline.”
3. Facebook, Inc. (NASDAQ:FB)
Desai’s Stake Value: $295,554,000
Percentage of Anand Desai’s 13F Portfolio: 8.4%
Number of Hedge Fund Holders: 266
Mark Zuckerberg’s Facebook, Inc. (NASDAQ:FB) was founded in 2004 and is headquartered in Menlo Park, California. It is one of the biggest technology companies in the world.
Darsana Capital Partners holds a total of $295.554 million worth of shares in Facebook, Inc. (NASDAQ:FB). The number of hedge funds that held stakes in Facebook has increased from 257 in Q1 to 266 in Q2 this year.
In the Q2 2021 investor letter of First Eagle Investment Management, the fund mentioned Facebook, Inc. (NASDAQ:FB). Here is what they said:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
2. DoorDash, Inc. (NYSE:DASH)
Desai’s Stake Value: $329,911,000
Percentage of Anand Desai’s 13F Portfolio: 9.38%
Number of Hedge Fund Holders: 45
Darsana Capital Partners holds 1.85 million shares worth $329.911 million in DoorDash, Inc. (NYSE:DASH). At the end of the second quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes in DoorDash, up from 38 in the preceding quarter.
1. The New York Times Company (NYSE:NYT)
Desai’s Stake Value: $410,401,000
Percentage of Anand Desai’s 13F Portfolio: 11.67%
Number of Hedge Fund Holders: 48
The New York Times Company (NYSE:NYT) is one of the top media organizations with an audience spread in all parts of the world. Founded in 1851 and headquartered in Manhattan, New York, the company owns the New York Times newspaper, NYTimes.com as well as a few other digital properties. It is one of the top 5 stock picks of Anand Desai’s Darsana Capital Partners.
According to the data on Insider Monkey, out of the 48 hedge funds with stakes in The New York Times Company, Darsana Capital Partners is the biggest shareholder in The New York Times with 9.42 million shares valued at $410.4 million, representing 11.67% of the fund’s total portfolio, at the end of Q2.
You can also take a look at the 25 Largest ETFs by Assets Under Management and 10 Best Data Center REIT Dividend Stocks to Buy.
