In this article, we discuss the top 5 stock picks of Jacob Doft’s Highline Capital Management. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Jacob Doft’s Highline Capital Management.
5. Hawaiian Holdings, Inc. (NASDAQ:HA)
Highline Capital Management’s Stake Value: $11,173,000
Percentage of Highline Capital Management’s 13F Portfolio: 9.32%
Number of Hedge Fund Holders: 16
Hawaiian Holdings, Inc. (NASDAQ:HA) operates airlines that offer non-stop flights from North America, Asia, and the South Pacific to Hawaii, and all major Hawaiian Islands. Hawaiian Holdings, Inc. (NASDAQ:HA) has flights that are themed according to Hawaiian traditions that are meant to engage and educate the passengers.
Hawaiian Holdings, Inc. (NASDAQ:HA) is a top stock in Doft’s portfolio, with Highline Capital Management owning 458,476 shares in the company, worth $11.1 million, representing 9.32% of the firm’s investment portfolio at the end of June.
As of the second quarter, 16 hedge funds in the database of Insider Monkey were bullish on Hawaiian Holdings, Inc. (NASDAQ:HA), with stakes valued at $63.6 million.
On October 26, Hawaiian Holdings, Inc. (NASDAQ:HA) announced Q3 earnings. EPS for the period totaled -$0.95, exceeding estimates by $0.38. The Q3 revenue came in at $508.85 million, beating estimates by $20.02 million.
4. Avantor, Inc. (NYSE:AVTR)
Highline Capital Management’s Stake Value: $11,332,000
Percentage of Highline Capital Management’s 13F Portfolio: 9.45%
Number of Hedge Fund Holders: 44
Avantor, Inc. (NYSE:AVTR) is a Pennsylvania-based chemicals and materials company which is one of the top holdings of Highline Capital Management, with the investment firm owning 319,119 shares in the company. The total stake value of Doft’s Highline Capital in Avantor, Inc. (NYSE:AVTR) is $11.3 million, which represents 9.45% of the firm’s Q2 portfolio. Avantor, Inc. (NYSE:AVTR) offers its products and services to the life sciences, advanced technologies, and applied materials industries.
Avantor, Inc. (NYSE:AVTR) reported Q3 earnings on October 28. The Q3 EPS came in at $0.35, beating estimates by $0.03. Revenue for the quarter was $1.83 billion, missing estimates by -$6.55 million.
Barclays analyst Luke Sergott on November 1 kept an Overweight rating on Avantor, Inc. (NYSE:AVTR), raising the price target from $43 to $48. The analyst stated that Avantor, Inc. (NYSE:AVTR)’s Q3 results were solid and the underlying business is accelerating.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Highline Capital Management’s Stake Value: $11,851,000
Percentage of Highline Capital Management’s 13F Portfolio: 9.89%
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is one of the top stocks in Jacob Doft’s Highline Capital Management’s portfolio, with the investment firm owning stakes worth $11.85 million in the US tech giant, which represents 9.89% of Doft’s portfolio as of the end of June. Amazon.com, Inc. (NASDAQ:AMZN) is engaged in ecommerce, cloud computing, digital streaming, and artificial intelligence. Recently, Amazon.com, Inc. (NASDAQ:AMZN) is expanding its cloud computing business segment by entering into long-term contracts with vendors like Teradata Corporation (NYSE:TDC) and Allegiant Travel Company (NASDAQ:ALGT), so they can migrate to the cloud with Amazon Web Services.
At the end of the second quarter of 2021, 271 hedge funds out of the 873 funds tracked by Insider Monkey were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 243 in the preceding quarter.
Here is what Madison Funds has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and above average growth.”
2. Passage Bio, Inc. (NASDAQ:PASG)
Highline Capital Management’s Stake Value: $13,207,000
Percentage of Highline Capital Management’s 13F Portfolio: 11.02%
Number of Hedge Fund Holders: 16
Passage Bio, Inc. (NASDAQ:PASG) is a genetics medicine company from Philadelphia, offering therapeutics for central nervous system disorders. Passage Bio, Inc. (NASDAQ:PASG) is a notable stock in Doft’s portfolio as of June this year, with Highline Capital Management owning 997,506 shares in the healthcare company. With an approximate stake value of $13.2 million, Passage Bio, Inc. (NASDAQ:PASG) represents 11.02% of Highland Capital’s Q2 portfolio.
Passage Bio, Inc. (NASDAQ:PASG) announced on November 4 earnings for the third quarter. The EPS for Q3 totaled -$0.77, beating estimates by $0.10.
As of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey’s elite funds were long Passage Bio, Inc. (NASDAQ:PASG), up from 14 in the preceding quarter.
1. Vimeo, Inc. (NASDAQ:VMEO)
Highline Capital Management’s Stake Value: $13,400,000
Percentage of Highline Capital Management’s 13F Portfolio: 11.18%
Number of Hedge Fund Holders: 48
Vimeo, Inc. (NASDAQ:VMEO) is the largest holding in Jacob Doft’s portfolio as of June this year. Highland Capital Management owns 273,474 shares in Vimeo, Inc. (NASDAQ:VMEO), worth $13.4 million, representing 11.18% of the firm’s Q2 portfolio. Vimeo, Inc. (NASDAQ:VMEO) is an American video hosting platform that allows high definition video sharing across multiple devices. Vimeo, Inc. (NASDAQ:VMEO) operates an SaaS platform, where subscribers can gain access to content creation tools, editing software, broadcasting and enterprise software solutions, and a platform where clients and professionals can collaborate.
Vimeo, Inc. (NASDAQ:VMEO) reported Q3 earnings on November 3, with the EPS for the period being -$0.07, beating estimates by $0.03. Revenue for the quarter came in at $100.19 million, missing estimates by -$1,410.
BMO Capital analyst Daniel Salmon, on November 5, kept a Market Perform rating on Vimeo, Inc. (NASDAQ:VMEO), lowering the price target from $42 to $28, citing muted growth for 2022 and tough comps.
As of the second quarter, 48 hedge funds tracked by Insider Monkey reported owning stakes in Vimeo, Inc. (NASDAQ:VMEO), worth $1.12 billion.
Here is what Alphyn Capital Management has to say about Vimeo, Inc. (NASDAQ:VMEO) in its Q2 2021 investor letter:
“Clients will notice a new ticker, VMEO, on your brokerage statements following its spin-out from IAC. I profiled IAC’s companies, including Vimeo, in some detail last year. The pandemic accelerated the use of video by both enterprises and small businesses, and I believe this will continue given the high engagement that video generates. The most recent numbers bear this out: May revenues rose 42% from a year earlier while subscriber base and average revenue per user increased 18%. With its comprehensive set of tools to make video creation more accessible, Vimeo has a great opportunity to capture a share of this growth. It further benefits from an attractive customer acquisition funnel – 65% of Fortune 500 enterprises have at least one self-serve Vimeo subscription (with ARPU6 of $250). The company is building out its sales team to help upsell these into enterprise accounts (with ARPU of $12,000). Finally, by buying IAC shares ahead of the spin, we received a long-term, high-growth SAAS “call option” at a much more palatable valuation than the current 20x price-to-sales. Historically, it has been very rewarding to hold onto IAC spins…”
You can also take a look at 10 Best Stocks to Buy According to Peter Lewis’ LFL Advisers and 10 Monthly Dividend Covered Call ETFs and ETNs You Can Count On.
