Top 5 Stock Picks of Mark Moore’s ThornTree Capital

1. Zillow Group, Inc. (NASDAQ:Z)

Value of Mr. Moore’s Stake: $47.6 Million

Percentage of ThornTree Capital’s 13F Portfolio: 6.43%

Number of Hedge Fund Holders: 76

Zillow Group, Inc. (NASDAQ:Z) is an American company headquartered in Seattle, Washington that provides its customers with the means to conduct transactions and other services in the real estate sector. These include buying, selling, insurance, financing and more.

Mr. Moore held 390,266 shares of Zillow Group, Inc. (NASDAQ:Z) by the end of the second quarter. These were worth $47.6 million and represented 6.43% of his portfolio. During the same time period, 76 out of the 873 hedge funds surveyed by Insider Monkey held a stake in the company.

During its third quarter, Zillow Group, Inc. (NASDAQ:Z) earned $1.74 billion in revenue and -$0.95 in non-GAAP EPS, missing analyst estimates on both counts. The company’s price target was reduced to $95 by Craig Hallum in a November 2021 analyst note which highlighted that while some company initiatives failed miserably, others carry a good chance of performing well.

Zillow Group, Inc. (NASDAQ:Z)’s largest investor is Catherine D. Wood’s ARK Investment Management who owns 10 million shares worth $1.2 billion.

In a third quarter 2021 investor letter, Third Avenue Management had the following to say about Zillow Group, Inc. (NASDAQ:Z):

“In the past, we have railed against the failure of inflation statistics to capture important developments related to housing costs. If that point was debatable then, it certainly is not now. In August, Zillow reported that its Home Value Index3 had risen 17.7% year-over-year. S&P Case Shiller has not yet reported its August home price figures but, in July, the index measured a 19.7% year over year increase, which had been preceded by an 18.7% increase in June and 16.9% in May, each a record at the time. Zillow’s Observed Rent Index rose by 11.5% year over year in August. Meanwhile, the U.S. Bureau of Labor Statistics calculated that “rent of primary residence” rose 2.1% year over year in August while “owners’ equivalent rent of residences” rose by 2.6%. If one were to accept Zillow’s Observed Rent Index data as a reasonably accurate depiction of the pace of rental rate increases—and it is similar to several other independent sources of national home rental data—the incorporation of that data into the CPI weighting system in August would have caused CPI to be measured at something like 8.1% rather than 5.3%.”

Disclosure: None. You can also take a peek at the Top 10 Stock Picks of Anand Desai’s Darsana Capital Partners and Top 10 Stock Picks of Donald Sussman’s Paloma Partners.

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