In this article, we discuss the top 5 stock picks of Wen Han Li’s Andar Capital. If you want our detailed analysis of these stocks, go directly to the Top 10 Stock Picks of Wen Han Li’s Andar Capital.
5. Illumina, Inc. (NASDAQ:ILMN)
Andar Capital’s Stake Value: $8,112,000
Percentage of Andar Capital’s 13F Portfolio: 6.47%
Number of Hedge Fund Holders: 51
Illumina, Inc. (NASDAQ:ILMN) is an American biotechnology company that is engaged in the development of products and services that allow the analysis of genetic variation and biological function. Illumina, Inc. (NASDAQ:ILMN) is the pioneer of the revolutionary technology that made human genome sequencing an affordable process, cutting down the cost of the procedure from $1 million to $1,000.
The biggest Illumina, Inc. (NASDAQ:ILMN) stakeholder is GuardCap Asset Management, which holds over 1.31 million shares in the company, worth $534 million. Overall, 51 hedge funds in Insider Monkey’s database of 873 elite funds were bullish on Illumina, Inc. (NASDAQ:ILMN), with a total stake value of $1.97 billion.
Baird analyst Catherine Ramsey Schulte, on November 8, lowered the price target on Illumina, Inc. (NASDAQ:ILMN) to $437 from $493 and kept a Neutral rating on the stock. She stated that demand for genomics initiatives was higher, but the company is likely to face tougher comps in 2022.
Illumina, Inc. (NASDAQ:ILMN) posted its Q3 results on November 4. EPS in the quarter came in at $1.45, outperforming estimated EPS by $0.23. The $1.11 billion revenue was up 39.55% from the prior-year quarter, exceeding estimates by $63.05 million.
Here is what Polen Capital has to say about Illumina, Inc. (NASDAQ:ILMN) in its Q3 2021 investor letter:
“Illumina shares underperformed on news that the company closed its acquisition of GRAIL despite regulatory reviews in the U.S. and EU that are still pending. We believe there is no precedent for applicable courts to use as a basis for validly concluding this acquisition violates antitrust law. Also, we think U.S. regulators were unnecessarily delaying their regulatory reviews in hopes of deterring Illumina and GRAIL from moving forward. Grail is still a pre-revenue business, and we believe it will be highly dilutive to Illumina’s earnings in the short term. Still, we expect Illumina’s core business to strengthen as a result of this acquisition. We also expect earnings accretion from GRAIL in the intermediate-term as its liquid biopsy test appears to be effective for early cancer detection across 50 of the most lethal cancers (most of which there are no tests for today).”
4. Coupa Software Incorporated (NASDAQ:COUP)
Andar Capital’s Stake Value: $10,082,000
Percentage of Andar Capital’s 13F Portfolio: 8.04%
Number of Hedge Fund Holders: 54
Coupa Software Incorporated (NASDAQ:COUP) offers a business spend management platform to companies that gives them autonomy over the resources and finances spent within their organization. In addition to that, the company offers products related to procurement, invoicing, sourcing, contract management, catalog management, and expense management. On November 16, Susquehanna analyst John Coffey initiated coverage of Coupa Software Incorporated (NASDAQ:COUP) with a Positive rating and a $35 price target.
As of Q3 2021, Andar Capital owns 46,000 shares in Coupa Software Incorporated (NASDAQ:COUP), valued at over $10 million, representing 8.04% of the firm’s stock portfolio.
The biggest Coupa Software Incorporated (NASDAQ:COUP) stakeholder as per Insider Monkey’s records is Stephen Mandel’s Lone Pine Capital, with 4.56 million shares worth over $1 billion. Overall, 54 hedge funds reported owning stakes in Coupa Software Incorporated (NASDAQ:COUP) at the end of June, valued at over $4.69 billion.
Here is what ClearBridge Investments has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
3. MongoDB, Inc. (NASDAQ:MDB)
Andar Capital’s Stake Value: $10,845,000
Percentage of Andar Capital’s 13F Portfolio: 8.65%
Number of Hedge Fund Holders: 44
Wen Han Li’s Andar Capital, as of the third quarter, owns a $10.84 million stake in MongoDB, Inc. (NASDAQ:MDB), which accounts for 8.65% of the firm’s Q3 portfolio.
At the end of the second quarter of 2021, 44 hedge funds out of the 873 elite funds tracked by Insider Monkey were long MongoDB, Inc. (NASDAQ:MDB), down from 46 in the preceding quarter. The overall stake value as of Q2 totaled $1.69 billion. Alex Sacerdote’s Whale Rock Capital Management is the largest MongoDB, Inc. (NASDAQ:MDB) stakeholder, with 1.26 million shares worth $596.5 million.
On November 16, Credit Suisse analyst Phil Winslow initiated coverage of MongoDB, Inc. (NASDAQ:MDB) with an Outperform rating and a $700 price target. He stated that the market for MongoDB is rapidly expanding and the company is expected to experience significant growth.
2. Palantir Technologies Inc. (NYSE:PLTR)
Andar Capital’s Stake Value: $11,419,000
Percentage of Andar Capital’s 13F Portfolio: 9.10%
Number of Hedge Fund Holders: 26
Palantir Technologies Inc. (NYSE:PLTR), a data analytics software company, is one of Wen Han Li’s top stock picks as of September this year, with his investment firm holding an $11.4 million stake in the company. Palantir Technologies Inc. (NYSE:PLTR) accounts for 9.10% of Andar Capital’s Q3 13F portfolio.
The database of Insider Monkey indicates that 26 hedge funds held stakes in Palantir Technologies Inc. (NYSE:PLTR) as of June this year, with Ken Griffin’s Citadel Investment Group being one of the leading Palantir Technologies Inc. (NYSE:PLTR) stakeholders, holding a $145.7 million position in the company.
Palantir Technologies Inc. (NYSE:PLTR) on November 9 posted its Q3 results. EPS in the period totaled $0.04, in line with analysts’ expectations. The $392.15 million revenue was up 35.52% from the prior-year quarter, beating estimates by $5.86 million. Credit Suisse analyst Phil Winslow initiated coverage of Palantir Technologies Inc. (NYSE:PLTR) with a Neutral rating and a $25 price target on November 16.
Here is what Guardian Fund has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q2 2021 investor letter:
“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines at record speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.
Government institutions have to partner with enterprises such as Palantir to become digital native. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters.
The news section of Palantir’s website gives insight into where new business is coming from. The main opportunity is in enterprise software and the faster onboarding time and increased self-service of clients is a positive sign. We believe Palantir is becoming one of the more important global software companies.
In addition, Palantir has quietly become a significant investor, investing well over USD 200 million in eight companies. Therefore, it is following the lead of companies like Tencent, Alphabet, and Shopify in establishing valuable investment portfolios.”
1. Bill.com Holdings, Inc. (NYSE:BILL)
Andar Capital’s Stake Value: $16,551,000
Percentage of Andar Capital’s 13F Portfolio: 13.20%
Number of Hedge Fund Holders: 53
Bill.com Holdings, Inc. (NYSE:BILL) is a software company offering on-demand solutions that automate financial processes for small and mid-cap businesses. Bill.com Holdings, Inc. (NYSE:BILL) is the largest holding in Andar Capital’s Q3 portfolio, with the investment firm owning 62,000 shares in Bill.com Holdings, Inc. (NYSE:BILL), worth $16.5 million, representing 13.2% of the stock portfolio.
Bill.com Holdings, Inc. (NYSE:BILL) posted its Q3 results on November 4. EPS in the quarter totaled -$0.15, exceeding estimates by $0.06. The revenue equaled $116.4 million, up 151.91% year-over-year, beating estimates by $11.32 million.
On November 5, Canaccord analyst Joseph Vafi raised the price target on Bill.com Holdings, Inc. (NYSE:BILL) to $366 from $284 and kept a Buy rating on the stock, stating that the company is benefiting from significant organic growth.
One of the leading stakeholders in the company is Gabriel Plotkin’s Melvin Capital Management, with 2.6 million shares worth $694 million. As of Q2 2021, 53 hedge funds in the database of Insider Monkey held stakes valued at $2.76 billion in Bill.com Holdings, Inc. (NYSE:BILL). This is compared to 51 funds in the preceding quarter, with a total stake value of $2.41 billion.
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