In this article, we discuss the top 5 stock picks of Teresa Barger’s Cartica Management. If you want to read our detailed analysis of Barger’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Teresa Barger’s Cartica Management.
5. Alibaba Group Holding Limited (NYSE:BABA)
Cartica Management’s Stake Value: $27,080,000
Percentage of Cartica Management’s Portfolio: 7.76%
Number of Hedge Fund Holders: 100
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese global technology business. Alibaba Group Holding Limited (NYSE:BABA) has recently experienced an increase in hedge fund interest. At the end of the first quarter of 2022, 100 hedge funds had Alibaba Group Holding Limited (NYSE:BABA) shares in their portfolios. There were 96 hedge funds in our database with long Alibaba Group Holding Limited (NYSE:BABA) positions at the end of the previous quarter.
Cartica Management bought 288,500 shares in Alibaba Group Holding Limited (NYSE:BABA), worth almost $34.27 million as of the first quarter of 2022. However, the hedge fund in Q1 reduced the stake by 14% by unloading 39,600 shares of the company. The remaining 248,900 shares in Alibaba Group Holding Limited (NYSE:BABA) were worth $27.08 million as of March 31.
Ken Fisher’s Fisher Asset Management held the largest stake in Alibaba Group Holding Limited (NYSE:BABA) during Q1 2022, consisting of 14.45 million shares worth over $1.57 billion.
Here is what Longleaf Partners Fund has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2022 investor letter:
“We took advantage of price volatility to add to three of our most heavily discounted European businesses, including new purchases in 4Q 2021 and we reinitiated a position in Alibaba (NYSE:BABA), as the shares became even more heavily discounted amid broad China volatility in the period.”
4. Sea Limited (NYSE:SE)
Cartica Management’s Stake Value: $28,758,000
Percentage of Cartica Management’s Portfolio: 8.24%
Number of Hedge Fund Holders: 77
Sea Limited (NYSE:SE) works with its subsidiaries throughout Southeast Asia, Latin America, the rest of Asia, and all over the world in the digital entertainment, e-commerce, and financial services categories. Tiger Global Management was the leading shareholder of Sea Limited (NYSE:SE), with 13.52 million shares worth over $1.62 billion. Next on the list was Kora Management, which owned 3.49 million shares of Sea Limited (NYSE:SE), worth over $418.45 million. Overall, at the end of the first quarter of 2022, Sea Limited (NYSE:SE) was in 77 hedge fund portfolios, down from 108 in the previous quarter.
Cartica Management gave a large vote of confidence to Sea Limited (NYSE:SE) in Q1 2022. The hedge fund upped its position by an impressive 116% or 128,900 shares. Cartica Management’s total stake was worth $28.76 million as of March 31, representing 8.24% of its portfolio.
Here is what Baron Funds has to say about Sea Limited (NYSE:SE) in its Q1 2022 investor letter:
“Sea Limited, a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”
3. XP Inc. (NASDAQ:XP)
Cartica Management’s Stake Value: $38,851,000
Percentage of Cartica Management’s Portfolio: 11.13%
Number of Hedge Fund Holders: 31
XP Inc. (NASDAQ:XP) is a Brazilian asset management company offering fixed income, equities, investment funds, private pension packages, wealth management, and other financial services. On June 7, Thiago Batista of UBS upgraded XP Inc. (NASDAQ:XP) to Buy while cutting his price objective from $37 to $31. According to a research note from Batista to investors, XP Inc. (NASDAQ:XP) shares fell 20% year-to-date, which made its value appealing and less expensive than comparable high-growth Brazilian stocks.
Cartica Management also strengthened its position in XP Inc. (NASDAQ:XP) by purchasing an additional 85,000 shares. This made its stake in XP Inc. (NASDAQ:XP) total 1.29 million shares worth $38.85 million. The stock accounted for 11.13% of the fund’s total 13F portfolio.
Among the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global was the leading shareholder of XP Inc. (NASDAQ:XP), with 9.44 million shares worth more than $284.24 million. At the end of the first quarter, 31 hedge funds in Insider Monkey’s database held stakes in XP Inc. (NASDAQ:XP), a decrease compared to 33 funds in the preceding quarter.
Here is what Harding Loevner has to say about XP Inc. (NASDAQ:XP) in its Q4 2021 investor letter:
“Shares of another new Brazilian holding, XP, the country’s premier online investment platform, also sold off as tough economic conditions outweighed management’s optimism about prospective growth from new business lines in pensions, credit cards, and loans. Performance was helped by stock selection and our underweight in China.”
2. Globant S.A. (NYSE:GLOB)
Cartica Management’s Stake Value: $45,276,000
Percentage of Cartica Management’s Portfolio: 12.98%
Number of Hedge Fund Holders: 31
Globant S.A. (NYSE:GLOB) offers global technology services. Ken Fisher’s Fisher Asset Management was the biggest stakeholder of Globant S.A. (NYSE:GLOB) as of the end of March this year, holding 952,083 shares worth almost $249.51 million.
On May 20, Cowen analyst Bryan Bergin maintained an Outperform rating on Globant S.A. (NYSE:GLOB) while trimming his price objective from $305 to $240. Despite macro market concerns, the analyst said they delivered good first-quarter performance and highlighted a record pipeline as evidence.
Securities filings reveal that Cartica Management trimmed its stake in Globant S.A. (NYSE:GLOB) by 9% during the first quarter of 2022. The fund owned 172,762 shares of Globant S.A. (NYSE:GLOB) worth over $45.28 million, representing 12.98% of the portfolio. According to Insider Monkey’s Q1 data, 31 hedge funds were bullish on Globant S.A. (NYSE:GLOB), up from 26 funds in the earlier quarter.
Baron Funds, an asset management firm, in its first-quarter 2022 investor letter, mentioned Globant S.A. (NYSE:GLOB). Here is what the fund said:
“We also initiated a position in Globant, S.A., a provider of outsourced software development, design, and digital marketing services for business customers. Globant helps companies such as Disney (NYSE:DIS), Electronic Arts (NASDAQ:EA), and Banco Santander (NYSE:SAN) pursue digital transformations using a highly skilled workforce of over 23,000 software engineers and consultants primarily based in Latin America. These employees are trained in the latest technologies, including cloud infrastructure, cybersecurity, data analytics, artificial intelligence, digital marketing, enterprise software platforms, blockchain, connected devices, and metaverse. The company was founded in 2003 by four friends in Argentina who still run the company, including Chairman and CEO Martín Migoya. Globant serves over 1,100 customers across a variety of sectors, but its largest vertical is financial services. The company helps financial institutions adopt digital lending practices, improve operational efficiency, optimize risk management practices, comply with changing regulations, and launch new payment and open banking solutions…. “(Click here to read the full text)”
1. MercadoLibre, Inc. (NASDAQ:MELI)
Cartica Management’s Stake Value: $49,937,000
Percentage of Cartica Management’s Portfolio: 14.31%
Number of Hedge Fund Holders: 63
MercadoLibre, Inc. (NASDAQ:MELI), an Argentine firm with its headquarters in Buenos Aires and a U.S. incorporation, runs mercadolibre.com and other online markets for e-commerce and online auctions. David Blood and Al Gore’s Generation Investment Management held a notable stake in MercadoLibre, Inc. (NASDAQ:MELI) at the end of the first quarter of 2022, worth $525.19 million.
63 hedge funds were bullish on MercadoLibre, Inc. (NASDAQ:MELI) in the first quarter of 2022, down from 74 in the preceding quarter. In Q1, Ms. Barger lessened Cartica Management’s exposure to one of her top stock selections. As a result, the hedge fund shed 800 shares, or 2% of its stake, in MercadoLibre, Inc. (NASDAQ:MELI). The move followed an increase in Q4 when Cartica Management purchased an additional 3913 shares.
On July 6, New Street analyst Soomit Datta maintained a Buy rating on MercadoLibre, Inc. (NASDAQ:MELI) while reducing his price objective from $1,700 to $1,100. The analyst claimed that, following a generally stronger-than-expected Q1 for both Nu Holdings Ltd. (NYSE:NU) and MercadoLibre, Inc. (NASDAQ:MELI) in particular, the harsher cycle would likely catch up with the digital banks/wallets in Brazil more in Q2.
Here is what ClearBridge Investments had to say about MercadoLibre, Inc. (NASDAQ:MELI) in its Q1 2022 investor letter:
“Most of our selling over the last several quarters has occurred among emerging growth companies, where we have reduced our exposure to under 5% to better manage risk. Latin America e-commerce platform MercadoLibre (NASDAQ:MELI) has also experienced an unwind of COVID-19-induced demand while high inflation and high interest rates in Brazil create new headwinds for consumer purchasing power, which will likely mean slower sales of high-ticket items on the company’s platform and led to the sale of the position.”
You can also take a peek at Top 10 Stock Picks of Cannell Capital and Top 10 Stock Picks of James Morrow’s Callodine Capital Management.
