In this article, we will be taking a look at the Top 6 Stock Picks of Dennis Hong’s ShawSpring Partners. To skip our detailed analysis of Dennis Hong’s profile, investment strategy, and 13F holdings, you can go directly to see the Top 3 Stock Picks of Dennis Hong’s ShawSpring Partners.
ShawSpring Partners LLC is an investment management company founded in 2014 by Dennis Hong. The firm follows a long-term investment approach with the objective of generating high absolute returns. It had $1.6 billion in assets under management, as of December 31, 2021.
Dennis Hong is the managing partner and founder of ShawSpring Partners. Dennis Hong’s investment career started as a Financial Analyst at the Yale University Investments Office after graduating from Yale with a B.A. in 2005. Following this stint, Dennis Hong worked as an Associate at Matrix Capital for two years after which he moved on to Altimeter Capital as a Principal. Later, he went to Harvard University and completed one year of MBA Program, leaving it halfway through to form ShawSpring Partners.
ShawSpring Partners follows an investment policy focused on three business types: scaled aggregators such as marketplaces, vertically integrated and capital-intensive businesses, and cognitive referents (category kings). Its portfolio generally comprises of 5-10 high-growth businesses across technology, internet, and consumer sectors.
Dennis Hong’s ShawSpring Partners’ past and present 13F portfolios have contained some of the leading companies across their industries such as Snowflake Inc. (NYSE:SNOW), Match Group Inc (NASDAQ:MTCH), Block, Inc (NYSE:SQ), and others.
Photo by Nicholas Cappello on Unsplash
Methodology
We have picked the top 6 stocks from ShawSpring Partners’ latest 13F holdings as of June 30, 2022. The stocks have been ranked based on the value of Dennis Hong’s stake in each company.
6. Blend Labs Inc. (NYSE:BLND)
ShawSpring Partners’ Stake Value: $20,140,000
Percentage of ShawSpring Partners’ 13F Portfolio: 3.56%
Number of Hedge Fund Holders: 12
Based in San Francisco, California, Blend Labs Inc. (NYSE:BLND) provides a cloud-based software platform for financial providers that facilitates banking experiences across consumer banking products, and mortgage products, among others. It boasts more than 350 customers including banks, fintech, and credit unions such as Wells Fargo, U.S. Bank, M&T Bank, SWBC, Navy Federal Credit Union, and more. Its platform was used for processing of $4.9 billion in loan application volumes per day in 2021.
Blend Labs Inc. (NYSE:BLND) was added to ShawSpring Partners’ 13F portfolio in Q1 2022. The investment was increased by 14% in Q2 2022, compared to the previous quarter, bringing ShawSpring Partners’ ownership to 8,534,033 shares, accounting for 3.56% of the hedge fund’s 13F portfolio.
Canaccord analyst Joseph Vafi lowered the price target on Blend Labs to $4 from $5, while maintaining a ‘Hold’ rating on the shares.
According to the Insider Monkey data covering nearly 900 hedge funds, 12 hedge funds were long Blend Labs Inc. (NYSE:BLND) as of Q2 2022, holding shares with total value of $83 million. Its largest shareholder was Tiger Global Management LLC with ownership of 14 million shares valued at $33 million.
5. Snowflake Inc. (NYSE:SNOW)
ShawSpring Partners’ Stake Value: $34,765,000
Percentage of ShawSpring Partners’ 13F Portfolio: 6.15%
Number of Hedge Fund Holders: 65
Snowflake Inc. (NYSE:SNOW) is a leading cloud platform provider allowing customers to use its Data Cloud platform to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Customers use its platform to execute workloads including applications, collaboration, cybersecurity, data engineering, data lake, data science, data warehousing, and unistore. It boasts 6,800 customers including notable names such as Airbnb, AT&T, Adobe, DoorDash, Dropbox, Electronic Arts, BlackRock, and Instacart, among others.
Snowflake Inc. (NYSE:SNOW) was a new addition to ShawSpring Partners’ 13F portfolio in Q2 2022. The cloud software company accounted for 6.15% of the 13F portfolio with 250,000 shares owned by the hedge fund.
Following the earnings release, analysts at Truist and Loop Capital raised price targets on Snowflake Inc. (NYSE:SNOW) shares while maintaining a ‘Buy’ rating for the stock. Loop Capital is targeting a $210 share price while Truist has a $225 price target on Snowflake Inc. (NYSE:SNOW) shares.
As of Q2 2022, 65 of the 895 hedge funds tracked by Insider Monkey were long Snowflake Inc. (NYSE:SNOW), holding shares valued at $5.1 billion. Altimeter Capital Management was the hedge fund with largest shareholding in Snowflake Inc. (NYSE:SNOW), owning 17,001,796 shares valued at $2.4 billion.
4. Hilton Worldwide Holdings Inc. (NYSE:HLT)
ShawSpring Partners’ Stake Value: $60,604,000
Percentage of ShawSpring Partners’ 13F Portfolio: 10.73%
Number of Hedge Fund Holders: 60
Hilton Worldwide Holdings Inc. (NYSE:HLT) is a leading global hospitality company with a history dating back to 1919. Its portfolio comprises 18 world-class brands comprising 7,000 properties and 1.1 million rooms, in 122 countries and territories. The company also boasts 139 million members on its guest loyalty program, Hilton Honors.
Like Snowflake Inc. (NYSE:SNOW), Hilton Worldwide Holdings Inc. (NYSE:HLT) was a new addition to the 13F portfolio of Dennis Hong’s ShawSpring Partners. The hedge fund holds 543,825 shares of Hilton Worldwide Holdings Inc. (NYSE:HLT), representing 10.73% of its 13F Portfolio.
Hilton Worldwide Holdings Inc. (NYSE:HLT) witnessed a significant recovery in its financial performance in Q2 2022, compared to the Covid19 pandemic era. Its total revenue increased by 68% y-o-y to $2.2 billion, while its net income surged by 187% y-o-y to $367 million, for three months ended June 30, 2022.
Following the earnings release, Baird analyst Michael Bellisario raised the price target on Hilton Worldwide Holdings Inc. (NYSE:HLT) shares to $156 from $154 and maintained an ‘Outperform’ rating on its shares.
Hilton Worldwide Holdings Inc. (NYSE:HLT) also witnessed an increase in bullish sentiment from hedge funds in Q2 2022. The number of hedge funds invested in the company increased from 52 in the previous quarter to 60 hedge funds, according to the data gathered by Insider Monkey. These funds held shares valued at $3.7 billion. Its largest shareholder was Pershing Square with ownership of 9,908,602 shares valued at $1.1 billion.
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Disclosure: None. Top 6 Stock Picks of Dennis Hong’s ShawSpring Partners is originally published on Insider Monkey.
