Thomas Bancroft’s Makaira Partners’ Stock Picks: Liberty Broadband (LBRDA), Bath and Body Works (BBWI) and More

Published September 23, 2021 at 12:24 pm EDT Updated September 7, 2026 at 12:58 pm EDT

In this article, we discuss Thomas Bancroft’s Makaira Partners’ stock picks: Liberty Broadband (LBRDA), Bath & Body Works (BBWI), and more.

Makaira Partners is a private investment management firm based in La Jolla, California. Employing a process that combines investigative research with rigorous financial analysis and concentrating their investments in a handful of high-quality companies, Makaira seeks to generate long-term compound annual returns while minimizing the risk of permanent loss of capital. Makaira invests primarily in publicly traded equity securities of U.S. and foreign companies.

Thomas Bancroft founded Makaira Partners in 2007 after spending 13 years at GEICO working with Lou Simpson and Warren Buffett. He spent his last six years at GEICO as Portfolio Manager and Senior Managing Director of the $3.5 billion equity portfolio, the only independently managed portfolio at Berkshire Hathaway. During his tenure at GEICO, Mr. Bancroft developed an investment style that mirrors the patient, concentrated and long-term approach of his mentors at Berkshire. Mr. Bancroft manages over $504 million in assets through his hedge fund. Thomas received his B.S. in Political Science from the University of Colorado at Boulder.

Thomas Bancroft likes to diversify his portfolio. As a result of which, Makaira Partners has stakes in both small and large companies with strong fundamentals and future growth potential. Among the top contributors of Makaira Partners’ 13F portfolio, we have companies like Bath & Body Works, Inc. (NYSE: BBWI), Liberty Broadband Corporation (NASDAQ: LBRDA), and Qurate Retail, Inc. (NASDAQ: QRTEA).

Mr. Bancroft holds 1,348,654 shares in Bath & Body Works, Inc. that are worth more than $97 million. The investment covers an impressive 19.27% of the fund’s 13F portfolio. Bath & Body Works, Inc. pays an annual dividend of $0.60 per share and currently has a dividend yield of 0.90%.

Based on Makaira Partners’ latest 13F holdings for the second quarter of 2021, the fund owns 919,556 shares in Liberty Broadband Corporation, worth an $159.6 million.

Mr. Bancroft has stakes in Qurate Retail, Inc. worth more than $39 million. The investment covers an impressive 7.73% of Makaira Partners’ portfolio. QVC is the only live stream shopping channel on SLING, which is available on most internet-connected devices, including streaming media players, phones and tablets, smart TVs, laptops and computers, and gaming consoles.

Thomas Bancroft – Makaira Partners

Why should we pay attention to Bancroft’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Our Methodology

With this context in mind, here is our list of Thomas Bancroft’s Makaira Partners’ stock picks. These were ranked according to the investment portfolio of Makaira Partners at the end of the second quarter of 2021. The analyst ratings and hedge fund sentiment of each company are also discussed to provide readers with some more context for their investment decisions.

9. HEICO Corporation (NYSE:HEI)

Bancroft’s Stake Value: $4,246,000

Percentage of Thomas Bancroft’s 13F Portfolio: 0.84%

Number of Hedge Fund Holders: 41

HEICO Corporation (NYSE: HEI), through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic products and services in the United States and internationally. HEICO Corporation serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida.

On August 26, Truist analyst Michael Ciarmoli raised his price target on HEICO Corporation from $120 to $125 and kept a Hold rating on the shares. The analyst notes that the company’s third-quarter results were mixed, though he believes that recovery in Europe and the APAC region along with the return of long-haul flights could position HEICO Corporation well into the summer’s flying season.

According to the latest filings, Makaira Partners owned over 34,000 shares in the firm at the end of June 2021 worth $4.24 million, representing 0.84% of the portfolio.

As of the fiscal third quarter of 2021, HEICO Corporation reported an EPS of $0.56, beating estimates by $0.01. Total revenue grew 22.07% year over year to $471.71 million missing estimates by -$14.78 million. The share price of HEICO Corporation has also gained 8% over the past 6 months.

By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in HEICO Corporation worth about $644.5 million. This is compared to 45 hedge funds in the previous quarter with a total stake value of approximately $638 million.

Just like Bath & Body Works, Inc., Liberty Broadband Corporation, and Qurate Retail, Inc., HEICO Corporation is a top pick of Mr. Bancroft’s Makaira Partners.

8. Cactus, Inc. (NYSE:WHD)

Bancroft’s Stake Value: $4,957,000

Percentage of Thomas Bancroft’s 13F Portfolio: 0.98%

Number of Hedge Fund Holders: 14

Cactus, Inc. (NYSE: WHD) designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States. The company sells or rents its products for onshore unconventional oil and gas wells that are utilized during the drilling, completion, and production phases of its customers’ wells. Cactus, Inc. operates 14 service centers in the United States, as well as 3 service centers in Eastern Australia. The company was founded in 2011 and is headquartered in Houston, Texas.

This July, Stifel analyst Stephen Gengaro raised the firm’s price target on Cactus, Inc. from $38 to $43 and kept a Buy rating on the shares. Gengaro believes a higher multiple is warranted based on expectations for continued market share gains, growth in 2022-23.

According to the latest filings, Makaira Partners owned 135,000 shares in the firm at the end of June 2021 worth $4.95 million, representing 0.98% of the portfolio.

As of the fiscal second quarter of 2021, Cactus, Inc. reported an EPS of $0.16, missing estimates by -$0.02. Total revenue grew 63.63% year over year to $108.89 million beating estimates by $7.95 million. The share price for Cactus, Inc. has gained 12.94% over the past 6 months and 29.96% year to date.

By the end of the second quarter of 2021, 14 hedge funds out of the 873 tracked by Insider Monkey held stakes in Cactus, Inc. worth about $109.6 million. This is compared to 20 hedge funds in the previous quarter with a total stake value of approximately $135.75 million.

Cactus, Inc., along with Body Works, Inc., Liberty Broadband Corporation, and Qurate Retail, Inc., contributes significantly to Thomas Bancroft’s 13F portfolio.

7. CDK Global, Inc. (NASDAQ:CDK)

Bancroft’s Stake Value: $35,029,000

Percentage of Thomas Bancroft’s 13F Portfolio: 6.94%

Number of Hedge Fund Holders: 24

CDK Global, Inc. (NASDAQ: CDK), together with its subsidiaries, provides integrated data and technology solutions to the automotive, heavy truck, recreation, and heavy equipment industries in the United States and internationally. CDK Global, Inc. offers subscription-based software and technology solutions to automotive retailers, as well as to retailers and manufacturers of heavy trucks, construction and agricultural equipment, motorcycles, boats, and other marine and recreational vehicles. The company serves approximately 15,000 retail locations. CDK Global, Inc. was incorporated in 2014 and is headquartered in Hoffman Estates, Illinois.

This February, Wells Fargo analyst Timothy Willi raised the firm’s price target on CDK Global, Inc. from $60 to $65 and kept an Overweight rating on the shares.

According to the latest filings, Makaira Partners owned over 704,000 shares in the firm at the end of June 2021 worth more than $35 million, representing 6.94% of the portfolio.

As of the fiscal fourth quarter of 2021, CDK Global, Inc. reported an EPS of $0.66, missing estimates by -$0.01. Total revenue fell 6.56% year over year to $420.10 million missing estimates by -$7.63 million.

By the end of the second quarter of 2021, 24 hedge funds out of the 873 tracked by Insider Monkey held stakes in CDK Global, Inc. worth about $225.7 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $298 million.

CDK Global, Inc. is a stock worth buying, according to Mr. Bancroft. Other top buys include Body Works, Inc., Liberty Broadband Corporation, and Qurate Retail, Inc..

6. Qurate Retail, Inc. (NASDAQ:QRTEA)

Bancroft’s Stake Value: $39,014,000

Percentage of Thomas Bancroft’s 13F Portfolio: 7.73%

Number of Hedge Fund Holders: 39

Qurate Retail, Inc., together with its subsidiaries, engages in the video and online commerce industries in North America, Europe, and Asia. The company markets and sells various consumer products primarily through live televised shopping programs, Internet, and mobile applications to approximately 218 million households. Qurate Retail, Inc. also operates as an online retailer offering women’s, children’s, and men’s apparel. The company offers other products as well, such as home, accessories, and beauty products through its mobile and desktop applications. Qurate Retail, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.

According to the latest filings, Makaira Partners owned over 2.98 million shares in the firm at the end of June 2021 worth over $39 million, representing 7.73% of the portfolio.

As of the fiscal second quarter of 2022, Qurate Retail, Inc. reported an EPS of $0.54, beating estimates by $0.04. Total revenue grew 2.40% year over year to $3.50 billion beating estimates by $117.86 million.

By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in Qurate Retail, Inc. worth about $889.7 million. This is compared to 31 hedge funds in the previous quarter with a total stake value of approximately $776.29 million.

Qurate Retail, Inc. is one of the top picks of Mr. Bancroft, similar to Body Works, Inc., and Liberty Broadband Corporation.

Weitz Investment Management, in their fourth-quarter 2020 investor letter, mentioned Qurate Retail, Inc.. Here’s what they had to say:

“The strongest performance for the calendar year came from Qurate Retail. Starting from a very low valuation, shares rallied as the business’s turnaround gained traction, in turn giving management the confidence to return a substantial amount of capital to shareholders, including distributing $3 per share in special dividends (more than one-third of the start-of-year stock price).”

5. CDW Corporation (NASDAQ:CDW)

Bancroft’s Stake Value: $50,471,000

Percentage of Thomas Bancroft’s 13F Portfolio: 10.01%

Number of Hedge Fund Holders: 27

CDW Corporation (NASDAQ: CDW) provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including on-premise, hybrid, and cloud capabilities across data-center and networking, digital workspace, security, and virtualization. CDW Corporation was founded in 1984 and is based in Lincolnshire, Illinois.

This August, Credit Suisse analyst Matthew Cabral raised the firm’s price target on CDW Corporation from $200 to $210 and kept an Outperform rating on the shares. The analyst cites CDW’s second-quarter “solid beat,” with revenues and EPS of $5.15 billion and $2.02 respectively.

According to the latest filings, Makaira Partners owned roughly 289,000 shares in the firm at the end of June 2021 worth $50.4 million, representing 10.01% of the portfolio.

As of the fiscal second quarter of 2021, CDW Corporation reported an EPS of $2.02, beating estimates by $0.22. Total revenue grew 17.88% year over year to $5.15 billion beating estimates by $173.28 million. The share price of CDW Corporation has gained 20.95% over the past 6 months and 50.31% year to date.

By the end of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in CDW Corporation worth about $1.76 billion. This is compared to 30 hedge funds in the previous quarter with a total stake value of approximately $1.90 billion.

Wedgewood Partners, an investment management firm, published its second-quarter 2021 investor letter. The fund mentioned CDW Corporation and discussed its stance on the firm. Here’s what they had to say:

“We have owned CDW stock for nearly two years now, and we have been quite pleased to see our thesis playing out as expected – even with the completely unexpected trauma of the pandemic fireworks during our holding period. These are the key components of our investment thesis, in simplistic form: First, the IT distribution and consulting industry is an attractive place to invest, with secular growth above that of the broad economy. Second, we expect the Company to continue to take share within the IT distribution and consulting industry, growing faster than the industry while continuing to improve margins and returns. The pandemic emerged shortly after our purchase, but even that did not alter the favorable dynamics underlying our thesis, as you can see below…”

4. CarMax, Inc. (NYSE:KMX)

Bancroft’s Stake Value: $56,487,000

Percentage of Thomas Bancroft’s 13F Portfolio: 11.2%

Number of Hedge Fund Holders: 39

CarMax, Inc. (NYSE: KMX), through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, namely, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old. CarMax, Inc. also provides reconditioning and vehicle repair services; and financing alternatives for retail customers across a range of credit spectrum through its CarMax Auto Finance and arrangements with various financial institutions. As of February 28, 2021, it operated approximately 220 used car stores and 1 new car franchise. CarMax, Inc. was founded in 1993 and is based in Richmond, Virginia.

This July, BofA analyst John Murphy raised the firm’s price target on CarMax, Inc. from $150 to $200 and kept a Buy rating on the shares.

According to the latest filings, Makaira Partners owned over 437,000 shares in the firm at the end of June 2021 worth $56.4 million, representing 11.2% of the portfolio.

As of the fiscal first quarter of 2022, CarMax, Inc. reported an EPS of $2.63, beating estimates by $0.99. Total revenue grew 138.41% year over year to $7.70 billion beating estimates by $1.51 billion. On top of this, the share price of CarMax, Inc. has grown by 5.29% over the past 6 months and 50.36% year to date.

By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in CarMax, Inc. worth about $1.62 billion. This is compared to 46 hedge funds in the previous quarter with a total stake value of approximately $2.03 billion.

Giverny Capital, an asset management firm, published its second-quarter 2021 investor letter. The fund mentioned CarMax, Inc. and discussed its stance on the firm. Here’s what they had to say:

“We’re quite optimistic about Carmax, our second largest position. For several years, investors have gravitated to a thesis that a handful of start-ups that sell used cars in an online-only format will end up with a lower cost structure than Carmax. This even though Carmax appears today to have lower costs to buy used cars for its inventory, recondition them for resale and transport them to stores – all problems that are not solved by a good web site. Carmax also amortizes its national advertising over a much larger sales base than competitors, giving it lower marketing expense per vehicle…”

3. Zebra Technologies Corporation (NASDAQ:ZBRA)

Bancroft’s Stake Value: $57,121,000

Percentage of Thomas Bancroft’s 13F Portfolio: 11.32%

Number of Hedge Fund Holders: 34

Zebra Technologies Corporation (NASDAQ: ZBRA), together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It operates in two segments, namely, Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The company serves retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, government, education, and banking enterprises. It sells its products, solutions, and services through distributors, value-added resellers, independent software vendors, direct marketers, and original equipment manufacturers. Zebra Technologies Corporation was founded in 1969 and is headquartered in Lincolnshire, Illinois.

This August, Baird analyst Richard Eastman raised the firm’s price target on Zebra Technologies Corporation from $490 to $560 and kept an Outperform rating on the shares. The analyst believes in strong secular demand in its expanding offering of solutions to digitize and automate workflows, plus strong competitive positioning and balance sheet support his long-term growth view.

According to the latest filings, Makaira Partners owned over 107,000 shares in the firm at the end of June 2021 worth more than $57 million, representing 11.32% of the portfolio.

As of the fiscal second quarter of 2021, Zebra Technologies Corporation reported an EPS of $4.57, beating estimates by $0.45. Total revenue grew 44.04% year over year to $1.38 billion beating estimates by $30.88 million. On top of this, Zebra Technologies Corporation has gained 23.74% over the past 6 months and 50.52% year to date.

By the end of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes in Zebra Technologies Corporation worth about $1.20 billion. This is compared to 35 hedge funds in the previous quarter with a total stake value of approximately $1.16 billion.

2. Bath & Body Works, Inc. (NYSE:BBWI)

Bancroft’s Stake Value: $97,184,000

Percentage of Thomas Bancroft’s 13F Portfolio: 19.27%

Number of Hedge Fund Holders: N/A

Bath & Body Works, Inc. engages in the retailing of body care, home fragrance products, soaps, and sanitizers. The company sells its products under Bath & Body Works, White Barn, C.O. Bigelow, and other brand names online and at retail stores located in the United States, Canada, and internationally. Bath & Body Works, Inc. operates approximately 1,750 company-operated locations and 300 international franchised locations, as well as bathandbodyworks.com. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

This August B. Riley analyst Susan Anderson raised the firm’s price target on Bath & Body Works, Inc. from $71.93 to $78 and kept a Buy rating on the shares. She anticipates “solid growth” for Bath & Body Works, Inc. given the company’s growth initiatives and “replenishment nature” of its products.

According to the latest filings, Makaira Partners owned over 1.34 million shares in the firm at the end of June 2021 worth more than $97 million, representing 19.27% of the portfolio.

As of the fiscal second quarter of 2022, Bath & Body Works, Inc. reported an EPS of $1.34, beating estimates by $0.57. Total revenue grew 43.03% year over year to $3.32 billion beating estimates by $1.63 billion. Bath & Body Works, Inc. has gained 35.58% over the past 6 months and 107.31% year to date.

1. Liberty Broadband Corporation (NASDAQ:LBRDA)

Bancroft’s Stake Value: $159,690,000

Percentage of Thomas Bancroft’s 13F Portfolio: 31.67%

Number of Hedge Fund Holders: 28

Liberty Broadband Corporation is a cable operator and provides video, Internet, and voice services to residential, and small and medium business customers in the United States. Liberty Broadband Corporation operates through Skyhook and Charter segments. The company also provides internet services, including an in-home Wi-Fi product that provides customers with high-performance wireless routers, and a security suite that offers protection against computer viruses and spyware. Liberty Broadband Corporation is based in Englewood, Colorado.

This August, Pivotal Research analyst Jeffrey Wlodarczak raised the firm’s price target on Liberty Broadband Corporation from $226 to $267 and kept a Buy rating on the shares.

According to the latest filings, Makaira Partners owned over 919,000 shares in the firm at the end of June 2021 worth more than $159.6 million, representing 31.67% of the portfolio.

As of the fiscal second quarter of 2021, Liberty Broadband Corporation reported an EPS of $0.30, missing estimates by -$1.33. Total revenue grew 5,789.26% year over year to $242.28 million missing estimates by -$8.32 million. The share price of Liberty Broadband Corporation has gained 16.07% over the past 6 months and 10.92% year to date.

By the end of the second quarter of 2021, 28 hedge funds out of the 873 tracked by Insider Monkey held stakes in Liberty Broadband Corporation worth about $904.8 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $774.8 million.

Alphyn Capital Management, an investment management firm, published its first-quarter 2021 investor letter in which the fund mentioned Liberty Broadband Corporation. Here’s what they said:

“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”

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