Below is the list of the top 5 stock picks of Fang Zheng’s Keywise Capital. For a comprehensive list and detailed discussion about Fang Zheng’s investment strategy, please see the Top 10 Stock Picks of Fang Zheng’s Keywise Capital.
5. The Estée Lauder Companies Inc. (NYSE:EL)
Keywise Capital’s Stake Value: $35.7 million
Percentage of Keywise Capital’s 13F Portfolio: 8.75%
Number of Hedge Fund Holders: 50
The Estée Lauder Companies Inc. (NYSE:EL) is one of the best performers among the top 10 stock picks of Fang Zheng’s Keywise Capital. The share price of the consumer staple company surged 31% since the beginning of this year. In addition to share price gains, the company also offers a dividend yield of around 0.70%. The Estée Lauder recently raised its dividend by 13% to $0.60 per share.
The Estee Lauder Companies was in 50 hedge funds’ portfolios as of June. Ako Capital was the leading stakeholder in the company with shares worth $336 million. Kevin Parker’s Sustainable Insight Capital Management, the second leading stakeholder in the company, lifted its position by 520% to $7.1 million worth of shares.
4. Adobe Inc. (NASDAQ:ADBE)
Keywise Capital’s Stake Value: $52.5 million
Percentage of Keywise Capital’s 13F Portfolio: 12.87%
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ:ADBE) stock price outperformed the broader market index year to date amid strong demand for its software products. The company posted $3.94 billion in revenue in the September quarter and expects its revenues to hit $4.07 billion in the final quarter of 2021. For Adobe’s stock, Oppenheimer analyst Brian Schwartz set an outperform rating and $68 price target.
Adobe Inc. (NASDAQ:ADBE) was in 89 hedge funds’ portfolios at the end of June. Our calculations also showed that ADBE ranked 25th among the 30 most popular stocks among hedge funds.
3. Sea Limited (NYSE:SE)
Keywise Capital’s Stake Value: $62.9 million
Percentage of Keywise Capital’s 13F Portfolio: 15.41%
Number of Hedge Fund Holders: 104
Sea Limited (NYSE:SE) achieved stellar financial and operational performance in the past year and recently raised $6 billion to invest in growth opportunities. The shares of the popular game developer are up 93% in the past year, showing investors’ confidence.
Like Adobe, Sea Limited (NYSE:SE) was popular among hedge funds. It was in 104 hedge funds’ portfolios as of June. Our calculations also showed that SE ranked 18th among the 30 most popular stocks among hedge funds.
2. Beyond Meat, Inc. (NASDAQ:BYND)
Keywise Capital’s Stake Value: $68.9 million
Percentage of Keywise Capital’s 13F Portfolio: 16.9%
Number of Hedge Fund Holders: 17
After a 20% selloff since the beginning of the year, Beyond Meat, Inc. (NASDAQ:BYND), the second-largest stock holding of Fang Zheng’s Keywise Capital, provides investors with an attractive buying opportunity. The company’s share price is under pressure due to short-term macro and micro-economic factors, a decrease in retail orders, the effects of the COVID-19 Delta variant, and delays in distribution expansion.
Fang Zheng’s Keywise Capital held 438100 shares of Beyond Meat, Inc. (NASDAQ:BYND) as of June. Overall, it was in 17 hedge funds’ portfolios at the end of June.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Keywise Capital’s Stake Value: $119.8 million
Percentage of Keywise Capital’s 13F Portfolio: 29.36%
Number of Hedge Fund Holders: 64
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the top stocks to buy. In addition to the stock price gains, the company also offers a dividend yield of over 1.50%. The company raised its dividends in the last seven consecutive years. Moreover, its returns are backed by strong financial numbers. It generated $14.88 billion in third-quarter revenue, up 11.4% quarter over quarter.
In the third quarter investor letter, Wedgewood Partners, an investment management firm, mentioned a few stocks including Taiwan Semiconductor. Here is what Wedgewood Partners stated:
“Taiwan Semiconductor Manufacturing detracted from performance as the market attempted to price in a downturn in the semiconductor cycle. Although there are some signs that memory markets might be somewhat oversupplied, we have yet to see any tangible signs that logic semiconductors – particularly at the leading-nodes where the Company dominates – are in anything but short supply. In addition, and as a result of this strong demand, the Company should be able to pass through price increases to help fund very attractive returns on the rare leading-edge capacity that serves this demand.”
You can also take a look at Best Stocks Under $11 in Cathie Wood’s Portfolio and Top 10 Stock Picks of Boykin Curry’s Eagle Capital Management.
