Below is the list of top 5 stock picks of Joe Milano’s Greenhouse Funds. For a detailed discussion about Joe Milano’s investment philosophy and portfolio management strategy please see Top 10 Stock Picks of Joe Milano’s Greenhouse Funds.
5. Dropbox, Inc. (NASDAQ:DBX)
Greenhouse Funds’ stake value: $48M
A potential acquisition candidate such as Dropbox, Inc. (NASDAQ:DBX) could generate hefty gains for investors in the quarters ahead. Dropbox is reportedly being approached by large software companies for a possible takeover. Speculations about a takeover increased as prominent activist Elliott Management recently took a stake in Dropbox. During the March quarter, Joe Milano’s fund increased its stake in Dropbox by 4%.
As of the end of the March quarter, Dropbox was in 43 hedge fund portfolios. Catherine D. Wood’s ARK Investment Management was a leading stakeholder in the company. The hedge fund sentiment however fell sharply in the second quarter as hedge funds began fleeing risky growth stocks. At the end of June, just 32 funds had stakes in the company.
4. Chefs’ Warehouse Inc (NASDAQ:CHEF)
Greenhouse Funds’ stake value: $65M
Chefs’ Warehouse Inc (NASDAQ:CHEF) has been among the best performers in Joe Milano’s portfolio over the past year. The company’s shares surged more than 10% in the last twelve months, thanks to robust financial numbers. The company posted 82% year-over-year revenue growth in the March quarter and raised its full-year sales outlook in the range of $2.325 billion to $2.425 billion compared to the prior range of $2.13 billion to $2.23 billion. Moreover, strong underlying trends continue increasing analysts’ confidence in Chefs’. BMO Capital raised its stock price target to $48 for Chefs’ Warehouse, while BTIG reiterated a Buy rating.
3. Infinera Corporation (NASDAQ:INFN)
Greenhouse Funds’ stake value: $38M
Infinera Corporation (NASDAQ:INFN) is a long-running holding of Joe Milano’s Greenhouse Funds. The hedge fund looks bullish over Infinera’s fundamentals as it bought more shares of the company after its price plummeted in the first quarter. Infinera Corporation is an information technology company that provides optical transport networking equipment, software, and services worldwide. The latest price selloff is blamed on supply chain disruptions and suspension of operations in Russia. Despite short-term headwinds, the company expects revenue growth in the range of 8% to 12% over the next three years amid strong acceptance of its ICE-6 products and ICE-XR point-to-multipoint pluggable. Rosenblatt’s Mike Genovese set a $12 price target for Infinera, representing a substantial upside from its current price of $6.
At the end of the June quarter, 19 hedge funds tracked by Insider Monkey had stakes in INFN.
2. EVO Payments, Inc. (NASDAQ:EVOP)
Greenhouse Funds’ stake value: $69 million
Joe Milano has been holding a stake in EVO Payments, Inc. (NASDAQ:EVOP) since 2018. The company had been in news over the past couple of quarters amid a potential takeover. Finally, in August, Global Payments said it will buy EVO Payments for $34 per share.
It is a small-cap and operates as an integrated merchant acquirer and payment processor in the Americas and Europe. The company has been growing its revenue and customer base at a healthy pace over the years. Its first-quarter revenue jumped 19% compared to the past year. The company’s 2022 full-year revenue forecast ranges from $550 million to $560 million.
1. Clarus Corporation (NASDAQ:CLAR)
Greenhouse Funds’ stake value: $52M
Since 2016, Joe Milano’s Greenhouse Funds has held a stake in Clarus Corporation (NASDAQ:CLAR). CLAR is up 80% in the last 5 years. However, in 2022, the stock took a beating and has lost almost half of its value in the past 12 months.
A total of 18 hedge funds tracked by Insider Monkey reported having stakes in CLAR at the end of June.
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