In this article, we will be discussing the 10 stocks to buy according to Jay Genzer’s Thames Capital Management.
A veteran in the world of investments and finance, Jay Genzer is the founder, chief investment officer and portfolio manager of the New York-based investment firm, Thames Capital Management. Having earned his B.S in Computer Engineering from Syracuse University, Genzer began his more than 23 year long career in investments and market analysis as a senior engagement manager at McKinsey & Company in 1989. In 1994, he joined Cantillon Capital and Lazard Asset Management, serving as portfolio manager for both till 2009. After some years managing his private family office, investing in public and private companies, Jay Genzer founded Thames Capital Management in 2016, specializing in absolute-return long/short equity strategies.
Thames Capital Management manages more than $426.4 million in its investment portfolio, as of the end of the second quarter. Some of the most notable stocks present in the investment portfolio of Thames Capital Management at the end of the second quarter of 2021 include Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Visa, Inc. (NYSE:V) and Amazon.com, Inc. (NASDAQ:AMZN), among others discussed in detail below.
Our Methodology
With this background in mind, let us now look towards the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management. We made use of Thames Capital Management’s 13F portfolio for the second quarter for this analysis.
Why should we pay attention to Jay Genzer’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.
Best Stocks To Buy According To Jay Genzer’s Thames Capital Management
10. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Thames Capital Management’s Stake Value: $11.7 million
Percentage of Thames Capital Management’s 13F Portfolio: 2.74%
Number of Hedge Fund Holders: 63
Headquartered in California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is multinational company involved in the manufacture of semiconductors and other components for consumer electronics. The company ranks tenth on our list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management.
On September 23, Piper Sandler analyst Harsh Kumar raised his price target on Advanced Micro Devices, Inc. to $120 from $110, and reiterated an Overweight rating on the shares of the company.
By the end of the second quarter of 2021, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Advanced Micro Devices, Inc. worth roughly $4.6 billion. This is compared to 62 hedge funds in the previous quarter with a total stake value of approximately $3.7 billion. Thames Capital Management currently holds 124,629 shares in the company, worth more than $11.7 million and accounting for 2.74% of the investment firm’s portfolio.
9. Ross Stores, Inc. (NASDAQ:ROST)
Thames Capital Management’s Stake Value: $12.1 million
Percentage of Thames Capital Management’s 13F Portfolio: 2.84%
Number of Hedge Fund Holders: 51
Based in California, Ross Stores, Inc. (NASDAQ:ROST) is a discount store company that manages off-price retail apparel and home accessories stores. It ranks ninth on our list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management.
As of Q2 2021, Jay Genzer’s hedge fund holds 97,717 shares in Ross Stores, Inc.. These shares are valued at $12.1 million. Of the 873 elite funds tracked by Insider Monkey, 51 held stakes in the company by the end of June, up from 48 in the previous quarter.
On October 14, Loop Capital analyst Laura Champine downgraded Ross Stores, Inc. to Hold from Buy, with a price target of $105, down from $140, on account of rising inflation.
8. Carrier Global Corporation (NYSE:CARR)
Thames Capital Management’s Stake Value: $12.6 million
Percentage of Thames Capital Management’s 13F Portfolio: 2.96%
Number of Hedge Fund Holders: 46
Carrier Global Corporation (NYSE:CARR) comes in at eighth on our list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management. Based in Florida, the company operates as a home appliances corporation, offers heating, air-conditioning, and refrigeration solutions.
On October 7, Wells Fargo analyst Joseph O’Dea initiated coverage of Carrier Global Corporation with an Equal Weight rating and $51 price target. The analyst notes that the company’s risk/reward framework is balanced.
At the end of the second quarter of 2021, 46 hedge funds held stakes in Carrier Global Corporation, worth roughly $1.85 billion. Jay Genzer’s Thames Capital Management, as of Q2, held 260,221 shares in the company, amounting to more than $12.6 million in worth and representing 2.96% of the fund’s total portfolio value.
Similar to Microsoft Corporation, Apple Inc., Visa, Inc. and Amazon.com, Inc., Carrier Global Corporation is a stock that hedge funds are interested in.
7. Amazon.com, Inc. (NASDAQ:AMZN)
Thames Capital Management’s Stake Value: $14.16 million
Percentage of Thames Capital Management’s 13F Portfolio: 3.32%
Number of Hedge Fund Holders:
Multinational e-commerce giant Amazon.com, Inc. comes in at seventh on our list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management.
There were 271 hedge funds in the database of Insider Monkey that held stakes in Amazon.com, Inc. worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion. Thames Capital Management held 4,117 shares in the company by the end of the quarter, amounting to approximately $14.16 million in worth.
On October 21, Baird analyst Colin Sebastian maintained an Outperform rating, alongside a $4,000 price target on Amazon.com, Inc. shares.
Madison Funds, in its Q3 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund had to say:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and aboveaverage growth.”
6. Thermo Fisher Scientific Inc. (NYSE:TMO)
Thames Capital Management’s Stake Value: $14.6 million
Percentage of Thames Capital Management’s 13F Portfolio: 3.42%
Number of Hedge Fund Holders: 87
Thermo Fisher Scientific Inc. (NYSE:TMO) is placed sixth on the list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management. The Massachusetts-based company is a provider of scientific instruments and software services.
As of the end of the second quarter, 87 hedge funds tracked by Insider Monkey reported owning stakes in Thermo Fisher Scientific Inc.. The total worth of these stakes is $7.39 billion.
On September 23, Goldman Sachs analyst Matthew Sykes upgraded Thermo Fisher Scientific Inc. stock to Conviction Buy from Buy, raising the price target to $690 from $600.
In its Q2 2021 investor letter, ClearBridge Investments mentioned Thermo Fisher Scientific Inc.. Here is what they said:
“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”
5. Vertiv Holdings Co. (NYSE:VRT)
Thames Capital Management’s Stake Value: $15.6 million
Percentage of Thames Capital Management’s 13F Portfolio: 3.66%
Number of Hedge Fund Holders: 36
Vertiv Holdings Co. (NYSE:VRT) is an Ohio-based company that offers key digital infrastructure technology and life cycle services for data centers and communication networks.
On September 13, JPMorgan analyst Stephen Tusa lowered Vertiv Holdings Co. stock to Neutral from Overweight rating with an unchanged price target of $25, mentioning estimate cuts and relative valuation for the downgrade.
The data collected by Insider Monkey shows that Jay Genzer’s Thames Capital Management held 572,606 shares of Vertiv Holding Co in the second quarter of 2021, worth $158.8 million.
At the end of the second quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $904.3 million in Vertiv Holdings Co, down from 39 the preceding quarter worth $997.2 million.
Baron Funds, in its Q2 investor letter, mentioned Vertiv Holdings Co.. Here is what the fund said:
“Vertiv Holdings, LLC is a leading manufacturer of critical digital infrastructure technology for data centers, communication networks, and commercial and industrial environments. Vertiv reported organic sales growth of 19.5% in the last quarter, well above expectations. Orders were up 21% and backlog 31%, which are good indicators of long-term demand for its products. Margins also were much higher than projected leading to a large earnings beat, and we think there is opportunity for continued margin expansion. The company’s balance sheet is much improved, and it has an active acquisitions funnel. We believe that the company will continue to grow nicely and believe its stock still offers great promise, as it is inexpensive on an absolute basis and low relative to its peers
4. Visa Inc. (NYSE:V)
Thames Capital Management’s Stake Value: $16.3 million
Percentage of Thames Capital Management’s 13F Portfolio: 3.82%
Number of Hedge Fund Holders: 162
Visa Inc. is a multinational financial services company that enables the electronic transfer of funds throughout the world. Based in California, the company ranks fourth on our list of the 10 best stocks to buy according to Jay Genzer’s Thames Capital Management.
At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27.6 billion in Visa Inc., down from 164 in the previous quarter with stakes worth $26.5 billion.
According to our database, Thames Capital Management holds 69,782 shares of Visa Inc.. These shares are valued at $16.3 million and account for 3.82% of the investment firm’s 13F portfolio.
On August 17, JPMorgan analyst Tien-tsin Huang raised the firm’s price target on Visa Inc.to $267 from $249, and kept an Overweight rating on the shares.
In its Q1 2021 investor letter, ClearBridge Investments declared selling off companies that were not as profitable in order to make room to add Visa Inc. to their portfolio. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
3. Mastercard Incorporated (NYSE:MA)
Thames Capital Management’s Stake Value: $17.96 million
Percentage of Thames Capital Management’s 13F Portfolio: 4.21%
Number of Hedge Fund Holders: 156
At the end of the second quarter of 2021, 156 hedge funds in the database of Insider Monkey held stakes worth $17.10 billion in Mastercard Incorporated (NYSE:MA), up from 154 the preceding quarter worth $17.09 billion. By the end of Q2, Jay Genzer held 49,200 shares in the company, worth more than $17.96 million, accounting for 4.21% of the fund’s total portfolio value.
In the Q2 2021 investor letter of Qualivian Investment Partners, the fund mentioned Mastercard Incorporated. Here is what the fund said:
“Mastercard: Q2 revenue and EPS beat consensus estimates by 3.7% and 12% respectively. Operating margins also beat consensus by +240 bps. Gross domestic volume growth of +38.3% (+32.8% in constant currency) was buttressed by continued e-commerce strength and better in-store performance, while purchase volumes grew 41.8% (35.5% in constant currency). Cross border performance was strong, but durability remains uncertain given uncertainty arising from the Delta variant and its impact on travel and tourism. We believe Mastercard has a robust runway for growth given further travel recovery, new/existing partnerships, traction in digital payments, and ongoing economic recovery.”
2. Apple Inc. (NASDAQ:AAPL)
Thames Capital Management’s Stake Value: $24.9 million
Percentage of Thames Capital Management’s 13F Portfolio: 5.86%
Number of Hedge Fund Holders: 138
Apple Inc. is placed second on our list of the 10 best stocks to invest in according to Jay Genzer’s Thames Capital Management. The California-based company operates as a technology firm with a large stake in the consumer electronics business.
On October 8, Morgan Stanley analyst Katy Huberty maintained an Overweight rating and $168 price target on Apple Inc. shares.
By the end of the second quarter of 2021, Jay Genzer held 182,512 shares in Apple Inc., worth more than $24.9 million. These shares represented 5.86% of his hedge fund’s portfolio value. According to our database, 138 hedge funds were long in Apple Inc. in the second quarter of 2021, compared to 127 funds in the preceding quarter.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
1. Microsoft Corporation (NASDAQ:MSFT)
Thames Capital Management’s Stake Value: $25.19 million
Percentage of Thames Capital Management’s 13F Portfolio: 5.9%
Number of Hedge Fund Holders: 238
On September 17, Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft Corporation to $366 from $303, and kept a Buy rating on the shares.
By the end of the second quarter of 2021, 238 hedge funds out of the 873 tracked by Insider Monkey held stakes in Microsoft Corporation, worth roughly $62.46 billion, compared to 251 hedge funds in the previous quarter, with stakes worth approximately $58.9 billion.
Thames Capital Management reported owning 93,009 shares in the technology giant, amounting to approximately $25.19 million in worth and representing 5.9% of the fund’s investment portfolio.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
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originally published on Insider Monkey.
