In this article, we discuss the top 5 stocks to buy according to billionaire James Dinan. If you want our detailed analysis of Dinan’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stocks To Buy According To Billionaire James Dinan.
5. Sea Limited (NYSE:SE)
York Capital Management’s Stake Value: $32,103,000
Percentage of York Capital Management’s 13F Portfolio: 3.38%
Number of Hedge Fund Holders: 117
Sea Limited (NYSE:SE), a provider of digital entertainment, e-commerce, and digital financial services, is one of the top stocks to buy according to billionaire James Dinan, who elevated his position in the company by 26% and holds a $32.1 million stake in Sea Limited (NYSE:SE) as of Q3 2021.
On January 4, Sea Limited (NYSE:SE) was among top losers in a broadly lower tech market, falling 11.4% after Tencent Holdings (OTC:TCEHY) moved to sell $3 billion worth of the stock. Tencent Holdings (OTC:TCEHY) had looked to unload 14.5 million shares in a price range of $208-$212 each, and ended up selling to Morgan Stanley (NYSE:MS) at $208 per share. Although Sea Limited (NYSE:SE) took a hit, investors are processing that the news may not be what the headlines suggest, and Tencent may just be looking to free up some cash to focus on its own new business areas, or this sell off may be in response to China’s antitrust regulations and tech crackdown.
Citi analyst Alicia Yap on January 31 views the 43% year-to-date selloff in shares of Sea Limited (NYSE:SE) as overdone and believes investors wanted to wait for the Q4 print and 2022 guidance “before feeling comfortable to step in”. The analyst expects that Sea Limited (NYSE:SE) management will work on user engagement and step up new game release effort, and consequently reiterated a Buy rating on the shares with a $386 price target.
Sea Limited (NYSE:SE) caught the interest of smart investors in Q3 2021. According to Insider Monkey’s Q3 data, 117 funds were bullish on Sea Limited (NYSE:SE), up from 104 funds in the preceding quarter. Chase Coleman’s Tiger Global Management held the largest stake in Sea Limited (NYSE:SE) in the third quarter of 2021, with 10.4 million shares worth $3.3 billion.
Here is what ClearBridge Large Cap Growth Strategy has to say about Sea Limited (NYSE:SE) in its Q3 2021 investor letter:
“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”
4. New Frontier Health Corporation (NYSE:NFH)
York Capital Management’s Stake Value: $53,775,000
Percentage of York Capital Management’s 13F Portfolio: 5.67%
Number of Hedge Fund Holders: 16
New Frontier Health Corporation (NYSE:NFH) is a private healthcare provider based in Beijing, China. Its platform consists of a network of seven private hospitals and affiliated outpatient clinics, serving customers in eight metropolitan Chinese cities.
James Dinan, as of Q3 2021, elevated his position in New Frontier Health Corporation (NYSE:NFH) by 106%, holding 4.7 million shares worth $53.7 million. The stock accounts for 5.67% of the third quarter 13F portfolio at James Dinan’s York Capital Management.
On January 11, New Frontier Health Corporation (NYSE:NFH) reported that it had received a notice from the New York Stock Exchange of a possible delisting since New Frontier Health Corporation (NYSE:NFH) did not timely publish its financial results for the half year ended June 30, 2021. New Frontier Health Corporation (NYSE:NFH) stated that it had not timely filed the financial results since it has focused its resources on its previously announced going private transaction, which is expected to close during the first quarter of 2022. If consummated, the privatization would result in New Frontier Health Corporation (NYSE:NFH) becoming a privately held company and its ordinary shares and warrants would no longer be listed on the NYSE.
According to Insider Monkey’s Q3 data, 16 hedge funds were bullish on New Frontier Health Corporation (NYSE:NFH), with stakes totaling $403.70 million. Vivo Capital held the largest stake in New Frontier Health Corporation (NYSE:NFH) as of Q3 2021, holding 14.30 million shares worth $160.5 million.
3. GDS Holdings Limited (NASDAQ:GDS)
York Capital Management’s Stake Value: $99,696,000
Percentage of York Capital Management’s 13F Portfolio: 10.52%
Number of Hedge Fund Holders: 24
GDS Holdings Limited (NASDAQ:GDS) is a Shanghai-based company that operates data centers and provides colocation, managed hosting, managed cloud services, and consulting services to the cloud, internet, and banking industries.
York Capital Management boosted its position in GDS Holdings Limited (NASDAQ:GDS) by 244% in the third quarter of 2021, holding 1.76 million shares worth $99.6 million. The stock represents 10.52% of the total Q3 13F portfolio at York Capital Management.
On January 31, RBC Capital analyst Jonathan Atkin lowered the price target on GDS Holdings Limited (NASDAQ:GDS) to $65 from $80, turning more cautious on the name due to regulatory uncertainties in both China and the United States. The analyst stated that these uncertainties could impact the stock’s performance and lend themselves to heightening price volatility. He still kept an Outperform rating on GDS Holdings Limited (NASDAQ:GDS), citing its attractive multiples relative to its peers, along with its “robust and varied demand”.
In the third quarter of 2021, 24 hedge funds in the database of Insider Monkey were long GDS Holdings Limited (NASDAQ:GDS), down from 38 funds in the preceding quarter. 12 West Capital Management held the largest stake in the company as of Q3, with 8.1 million shares worth $463.5 million.
Here is what Baron Asset Fund has to say about GDS Holdings Limited (NASDAQ:GDS) in its Q3 2021 investor letter:
“GDS Holdings Limited is a leading data center operator focused on Tier 1 Chinese cities. Its shares fell in concert with a widespread sell-off in Chinese technology-related companies. This occurred in response to tightening regulations against businesses that may not be perceived as aligned with the Chinese government’s goals. Given the uncertainty about future governmental actions, we exited our position.”
2. Enovix Corporation (NASDAQ:ENVX)
York Capital Management’s Stake Value: $139,802,000
Percentage of York Capital Management’s 13F Portfolio: 14.75%
Number of Hedge Fund Holders: 23
Enovix Corporation (NASDAQ:ENVX), which is a California-based manufacturer of lithium-ion batteries, is one of the top stocks to buy according to billionaire James Dinan. Dinan, via York Capital Management, holds a $139.8 million position in Enovix Corporation (NASDAQ:ENVX), which accounts for 14.75% of his total Q3 investments.
On January 11, Piper Sandler analyst Greg Tuttle lowered the price target on Enovix Corporation (NASDAQ:ENVX) to $35 from $39 and kept an Overweight rating on the shares.
In Q3 2021, 23 hedge funds tracked by Insider Monkey were bullish on Enovix Corporation (NASDAQ:ENVX), holding stakes equaling $661.8 million. Park West Asset Management is the largest stakeholder of Enovix Corporation (NASDAQ:ENVX) as of the close of the third quarter of 2021, with 12.7 million shares worth $228.7 million.
1. NextDecade Corporation (NASDAQ:NEXT)
York Capital Management’s Stake Value: $148,885,000
Percentage of York Capital Management’s 13F Portfolio: 15.71%
Number of Hedge Fund Holders: 12
NextDecade Corporation (NASDAQ:NEXT) is a liquified natural gas development company based in Houston, Texas. The company is actively working on the Rio Grande LNG project in the Port of Brownsville, and brings innovative solutions to the global LNG market.
James Dinan acquired NextDecade Corporation (NASDAQ:NEXT) in the third quarter of 2017, buying 53.1 million shares valued at $275.8 million. He elevated and reduced his stake in NextDecade Corporation (NASDAQ:NEXT) over the years, and as of Q3 2021, holds a $148.8 million position in the company. The stock represents 15.71% of billionaire James Dinan’s third quarter investments.
According to the Q3 database of Insider Monkey, 12 hedge funds were long NextDecade Corporation (NASDAQ:NEXT), with stakes equaling $223.3 million. Valinor Management LLC is a notable shareholder of the company, owning 14.7 million shares worth approximately $41 million.
You can also take a look at 10 Stocks to Invest in Today According to Robert Richards’ Heathbridge Capital and Billionaire Stephen Mandel’s Portfolio: 8 New Stock Picks.
