In this article, we discuss the Vinit Bodas’ Deccan Value Investors’ top 5 stock picks. If you want to see our detailed analysis of these stocks, go directly to Vinit Bodas’ Deccan Value Investors’ Top Stock Picks: Facebook, Herbalife and More.
5. TransDigm Group Incorporated (NYSE:TDG)
Bodas’ Stake Value: $282,051,000
Percentage of Vinit Bodas’ 13F Portfolio: 11.11%
Number of Hedge Fund Holders: 57
TransDigm Group Incorporated (NYSE: TDG) designs, produces, and supplies aircraft components in the United States and internationally. The company was founded in 1993 and is headquartered in Cleveland, Ohio.
This September, Goldman Sachs analyst Noah Poponak reinstated coverage of TransDigm with a Buy rating and $732 price target.
According to the latest 13F holdings, Vinit Bodas owns $253 million worth of shares in TransDigm Group Incorporated (NYSE: TDG) through Deccan Value Investors. The approximately 436,000 shares represent 11.11% of Mr. Bodas’ investment portfolio.
Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap Composite” second quarter 2021 investor letter, in which the firm mentioned TransDigm Group Incorporated (NYSE: TDG). Here’s what they had to say:
“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”
4. Microsoft Corporation (NASDAQ:MSFT)
Bodas’ Stake Value: $337,243,000
Percentage of Vinit Bodas’ 13F Portfolio: 13.29%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ: MSFT) is an American multinational technology corporation that produces computer software, consumer electronics, personal computers, and related services. The company operates through 5 segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Microsoft Corporation (NASDAQ: MSFT) was founded in 1975 and is headquartered in Redmond, Washington.
Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft Corporation (NASDAQ: MSFT) to $366 from $303 and reiterated a Buy rating on the shares, as he expects the strong performance of cloud-based services to drive “another quarter of record results.”
Microsoft Corporation (NASDAQ: MSFT) is among the top five of the investment portfolio of Deccan Value Investors. Mr. Bodas owns over 1.2 million shares in the company, which are worth $337.2 million and cover 13.29% of his investment portfolio.
3. Alphabet Inc. (NASDAQ:GOOG)
Bodas’ Stake Value: $342,689,000
Percentage of Vinit Bodas’ 13F Portfolio: 13.51%
Number of Hedge Fund Holders: 190
Alphabet Inc. (NASDAQ: GOOG) provides online advertising services in the United States, Europe, the Middle East, Africa, Asia-Pacific, Canada, and Latin America. The company offers performance and brand advertising services. It operates through Google Services, Google Cloud, and Other Bets segments. Alphabet Inc. (NASDAQ: GOOG) was founded in 1998 and is headquartered in Mountain View, California.
Last month, Jefferies analyst Brent Thill raised his price target on Alphabet Inc. (NASDAQ: GOOG) to $3,325 from $3,150 and reiterated a Buy rating on the shares as he rolled forward his estimates.
Mr. Bodas owns $342.6 million in shares of Alphabet Inc. (NASDAQ: GOOG), which cover 13.51% of his 13F portfolio.
Qualivian Investment Partners, an investment management firm, published its second-quarter 2021 investor letter, in which it mentioned Alphabet Inc. (NASDAQ: GOOG). Here’s what the firm had to say:
“The opportunity in online advertising remains very attractive for Alphabet’s subsidiary Google. In the recent June quarter, Google’s ad sales grew 69%. Alphabet’s subsidiary YouTube’s ad revenue soared 84%, to $7 billion, in the second quarter, putting the business on par with Netflix, which reported quarterly revenue of $7.3 billion. Netflix is expected to grow sales by 19%, to $29.7 billion this year, while YouTube’s ad revenue is forecast to rise 45%, to $28.7 billion.
Alphabet slashed operating losses for the Google Cloud by more than half, as the business continues to scale, growing at 50%+ clips. Furthermore, the company continues to have potentially new growth options via its investments in autonomous driving (Waymo) and various healthcare businesses such as Verily and Calico.”
2. salesforce.com, inc. (NYSE:CRM)
Bodas’ Stake Value: $343,077,000
Percentage of Vinit Bodas’ 13F Portfolio: 13.52%
Number of Hedge Fund Holders: 108
salesforce.com, inc. (NYSE: CRM) develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. Additionally, the company offers various solutions for financial services, healthcare, and life sciences, manufacturing, consumer goods, government, and philanthropy.
By the end of the second quarter of 2021, 108 hedge funds out of the 873 tracked by Insider Monkey held stakes in salesforce.com, inc. (NYSE: CRM) worth approximately $11.7 billion. This is compared to 91 hedge funds in the previous quarter with a total stake value of roughly $8.83 billion.
ClearBridge Investments, an investment management firm, published its “Sustainability Leaders Strategy” first quarter 2021 investor letter, in which the firm mentioned salesforce.com, inc. (NYSE: CRM). Here’s what they had to say:
“We added to our software-as-a-service (SaaS) exposure with the initiation of SaaS leader salesforce.com, which develops software for customer relationship management (we added Workday, which enterprise resource planning applications, last quarter). Saleforce.com is well-positioned in the most attractive end markets in software and will benefit from secular drivers such as remote work and the digital transformation. Salesforce.com is a sustainability leader as well, with a commitment to carbon-neutral cloud, toward which it has set a goal of 100% renewable energy for global operations by fiscal year 2022. The company has a strong focus on equality, in terms of equal rights, pay, education and opportunity. As a data company it has been leading on workforce disclosures and seeks to have 50% of its U.S. workforce made up of underrepresented groups by 2024.”
1. Otis Worldwide Corporation (NYSE:OTIS)
Bodas’ Stake Value: $382,021,000
Percentage of Vinit Bodas’ 13F Portfolio: 15.06%
Number of Hedge Fund Holders: 45
Otis Worldwide Corporation (NYSE: OTIS) manufactures, installs, and services elevators and escalators in the United States, China, and internationally. The company operates through two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation (NYSE: OTIS) was founded in 1853 and is headquartered in Farmington, Connecticut.
This July, Credit Suisse analyst John Walsh raised his price target on Otis Worldwide Corporation (NYSE: OTIS) to $91 from $84 and reiterated a Neutral rating on the shares.
By the end of the second quarter of 2021, 45 hedge funds out of the 873 tracked by Insider Monkey held stakes in Otis Worldwide Corporation (NYSE: OTIS) worth approximately $2.4 billion. This is compared to 52 hedge funds in the previous quarter with a total stake value of roughly $2.75 billion.
See also 15 Best Stocks to Invest in Today According to David Abrams and 10 Best Stocks to Buy According to Ric Dillon’s Diamond Hill Capital.
