Top 5 Stock Picks of Michael Pausic’s Foxhaven Asset Management

4. Amazon.com, Inc. (NASDAQ:AMZN)

Foxhaven Asset Management’s Stake Value: $278 million

Percentage of Foxhaven Asset Management’s 13F Portfolio: 8.02%

Number of Hedge Fund Holders: 243

Amazon.com, Inc. (NASDAQ:AMZN) is the long-running stock holding of Michael Pausic’s Foxhaven Asset Management. The firm first initiated a position in the company in 2013. It was the fourth-largest stock holding of Foxhaven as of the end of September. Share of Amazon.com surged sharply in the past year amid people’s move towards online platforms. 

In the third quarter investor letter, ClearBridge Investments, an investment management firm, expressed confidence in Amazon’s growth potential. Here is what ClearBridge said:

“While Amazon.com and Facebook, the Strategy’s overweights in the mega cap group, underperformed both their FAAMG peers and the benchmark in the third quarter, we maintain conviction in these names because they have the highest growth profiles. Amazon is projected to grow earnings per share at 19% next year and Facebook at 13%, while Apple is expected to see only breakeven earnings in 2022 (Exhibit 1). Amazon is spending at an elevated level right now, but the underlying demand trends are healthy, and we believe that once the rate of spending moderates, returns will improve.”