In this article, we discuss the top 5 stock picks of billionaire Nicholas Pritzker. If you want to read our detailed analysis of Pritzker’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Billionaire Nicholas Pritzker.
5. ironSource Ltd. (NYSE:IS)
Tao Capital Stake Value: $40,268,000
Percentage of Tao Capital’s 13F Portfolio: 10.72%
Number of Hedge Fund Holders: 29
ironSource Ltd. (NYSE:IS) is a multinational software firm specializing in building app monetization and distribution technology, emphasizing the app economy. Tao Capital holds more than 3.70 million shares in ironSource Ltd. (NYSE:IS), worth over $40.27 million, representing 10.72% of its portfolio.
ironSource Ltd. (NYSE:IS) announced its Q3 earnings in November. The $140.44 million revenue jumped 59.6% year-over-year, outperforming estimates by $11.06 million.
Tiger Global Management LLC is one of the most significant stakeholders of ironSource Ltd. (NYSE:IS) in Q3, with 20.50 million shares worth over $222.84 million. Overall, 29 hedge funds tracked by Insider Monkey were bullish on ironSource Ltd. (NYSE:IS) in the third quarter, down from 32 funds in the preceding quarter.
4. Tesla, Inc. (NASDAQ:TSLA)
Tao Capital Stake Value: $44,591,000
Percentage of Tao Capital’s 13F Portfolio: 11.88%
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) is an electric car and sustainable energy corporation headquartered in Austin, Texas. In the fourth quarter of 2019, Tao Capital started building its stake in Tesla, Inc. (NASDAQ:TSLA). The hedge fund had a $44.59 million stake in the company in the third quarter of 2021.
New Street Research analyst Pierre Ferragu boosted his price objective on Tesla, Inc. (NASDAQ:TSLA) to $1,580 from $1,298 on December 8 and maintained a “Buy” recommendation on the stock. Ferragu estimates 280,000-285,000 units to be delivered in Q4, up 40,000 units from the previous quarter and compared to a consensus prediction of 266,000.
Overall, 60 hedge funds monitored by Insider Monkey were bullish on Tesla, Inc. (NASDAQ:TSLA) in the third quarter. The stakes of these funds are valued at $10.65 billion.
In its third-quarter 2021 investor letter, Baron Funds addressed Tesla, Inc. (NASDAQ:TSLA). Here is what the fund said:
“Tesla, Inc. – CEO Elon Musk co-founded Tesla with the auspicious goal of addressing and disrupting the entire automobile market, in which about 100 million new cars are sold each year, to bring sustainable and safer automotive transportation to the entire world, with a full line of vehicles of various styles and price points and innovations like Autopilot autonomous driving. Tesla has had more “acts” and TAM expanders over the last decade than most companies have over their lifetimes. Tesla first hit the market with the Roadster, an ultra-high-end sports car. It further attacked the high end of the auto market with the Model S sedan and the Model X SUV. But Tesla vastly expanded its TAM, and forever disrupted the automotive mass market, with its Model 3 and Model Y vehicles. Model 3 is now the best-selling car of its class globally, with Model Y set to surpass it next year. Future vehicles aimed at addressing nearly the entire 100 million new passenger car market include the Cybertruck and a $25,000 model. Tesla is now well positioned to achieve CEO Elon Musk’s public goal of selling 20 million cars by growing vehicles delivered at a 50% annual rate. Moreover, Tesla has multiple acts or new TAMs that have yet to hit their stride with Autopilot, for Tesla vehicles and third-party cars; solar and battery storage; ride share; humanoid robots; and more.”
3. Uber Technologies, Inc. (NYSE:UBER)
Tao Capital Stake Value: $57,562,000
Percentage of Tao Capital’s 13F Portfolio: 15.33%
Number of Hedge Fund Holders: 143
Uber Technologies, Inc. (NYSE:UBER) is a San Francisco-based mobility-as-a-service firm that operates in more than 900 locations worldwide.
JPMorgan analyst Doug Anmuth decreased his price objective on Uber Technologies, Inc. (NYSE:UBER) to $68 from $72 on December 15 and maintained an “Overweight” rating on the stock.
Uber Technologies, Inc. (NYSE:UBER) remains the seventh-largest holding among hedge funds in the third quarter of 2021, and fund managers increased their net holdings. As of Q3 2021, 143 hedge funds have positions in Uber Technologies, Inc. (NYSE:UBER), compared with 135 in the previous quarter.
In its second-quarter 2021 investor letter, ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund had to say:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
2. Ouster, Inc. (NYSE:OUST)
Tao Capital Stake Value: $82,374,000
Percentage of Tao Capital’s 13F Portfolio: 21.94%
Number of Hedge Fund Holders: 20
Ouster, Inc. (NYSE:OUST) manufactures high-resolution digital lidar sensors that provide superior 3D vision to machines, vehicles, robotics, and infrastructure assets. After Ouster, Inc. (NYSE:OUST) posted strong Q3 results in November, Citi analyst Itay Michaeli boosted his price objective on Ouster to $19 from $18 and maintained a “Buy” rating on the stock.
Ouster, Inc. (NYSE:OUST) reported its Q3 results in November. It posted an EPS of -$0.08, vs. the EPS of -$0.21 for the second quarter of 2021. The Q3 revenue totaled $7.75 million, up 30.5% year-over-year, missing estimates by $1.15 million.
Hedge funds are loading up on Ouster, Inc. (NYSE:OUST), as Insider Monkey’s data shows that 20 hedge funds held stake in the company in the third quarter of 2021, compared to 14 funds in the previous quarter.
1. Twist Bioscience Corporation (NASDAQ:TWST)
Tao Capital Stake Value: $88,659,000
Percentage of Tao Capital’s 13F Portfolio: 23.62%
Number of Hedge Fund Holders: 19
Twist Bioscience Corporation (NASDAQ:TWST), situated in South San Francisco, is a public firm that produces synthetic DNA and DNA products for various sectors. As of the third quarter, Catherine D. Wood’s ARK Investment Management is the largest Twist Bioscience Corporation (NASDAQ:TWST) stakeholder, holding 3.95 million shares worth $422.15 million.
In November, Twist Bioscience Corporation (NASDAQ:TWST) announced that it had struck a formal agreement to purchase Abveris. This privately-owned company specializes in vivo antibody discovery services for up to $190 million in cash.
A total of 19 hedge funds were bullish on Twist Bioscience Corporation (NASDAQ:TWST) at the end of the third quarter, holding stakes worth $780.11 million. This is comparable to 23 funds holding stakes valued at over $1.16 billion in the company in the previous quarter.
In its second-quarter investor letter, Baron Funds expressed confidence in Twist Bioscience Corporation (NASDAQ:TWST). Here is what the fund said:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
You can also take a peek at 11 Stocks to Buy Now According to Chet Kapoor’s Tenzing Global and Top 10 Stock Picks of John Overdeck and David Siegel’s Two Sigma Advisors
