In this article, we will be taking a look at the 10 Best Tech Stocks to Buy According to Peter Algert’s Algert Global.
Peter Algert, Ph.D., cofounded Algert Global, LLC (formerly known as Algert Coldiron Investors, LLC) in 2002 and currently works as the Chief Investment Officer and Chief Executive Officer of the investment firm. Prior to starting his own firm, Peter Algert worked as Managing Director at Barclays Global Investors, where he served as the Global Head of Research focusing on stock selection strategies. He received his B.A. in Economics from the University of California, Santa Cruz, and his Ph.D. from UC Berkeley’s Haas School of Business.
Algert Global is an investment firm primarily focused on managing global absolute return and active long-only strategies for both institutional and private investors. Based in San Francisco, the investment firm believes in the investment philosophy that there are inefficiencies in global equity markets that result from the behavioral biases of human market participants and are best exploited by a quantitative and repeatable investment process.
Algert Global focuses on three kinds of market inefficiencies: Relative value – markets mis-estimate growth rates; Quality – markets inefficiently forecast the sustainability of earnings; and Catalyst – markets often react irrationally to new information. It had $2.6 billion in discretionary assets under management, as of December 31, 2022.
In addition to having its own funds and clients, Algert Global serves as a sub-adviser to the North Square Dynamic Small Cap Fund which commenced trading in November 2008. Since its inception, the fund has generated a return of 12.29%, compared to the Russell 2000 return of 10.32% for the same period, as of June 30, 2022.
Given the recent market volatility with the Federal Reserve raising interest rates and the increasing potential for an economic slowdown, stock market prices could decline. With many tech companies being growth companies that aren’t profitable or are barely profitable, their shares could decline more than the market especially if their fundamentals don’t meet expectations.
Nevertheless, there’s also opportunity for investors that invest wisely.
Methodology
For this list, we picked the top 10 tech stocks from Algert Global’s latest 13F holdings for Q2 2022. The stocks have been ranked based on the weightage of each company in Algert Global’ 13 Portfolio.
10 Best Tech Stocks to Buy According to Peter Algert’s Algert Global
10. Cirrus Logic, Inc. (NASDAQ:CRUS)
Algert Global’s Stake Value: $3,763,000
Percentage of Algert Global’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 24
Cirrus Logic, Inc. (NASDAQ:CRUS) is a leading supplier of low-power, high-precision mixed-signal processing solutions for mobile and consumer applications. Its product portfolio includes boosted amplifiers, smart codecs, camera controllers, haptic driver and sensing solutions, power conversion and control ICs, and fast-charging ICs.
Algert Global increased its stake in Cirrus Logic, Inc. (NASDAQ:CRUS) by 43% in Q2 2022, to 51,872 shares. The stock accounts for 0.28% of the 13F portfolio of the hedge fund, making the stock number 10 on our list of 10 best tech stocks to buy according to Peter Algert’s Algert Global.
In August, Cirrus Logic, Inc. (NASDAQ:CRUS) released the financial results for the quarter ended June 25, 2022. It recorded record growth in the quarter with 42% y-o-y revenue increase bringing net sales to $394 million, and 131% y-o-y growth in net income bringing the amount to $40 million. The strong performance in the quarter resulted in a normalized EPS of $1.12 for the quarter, overshooting the consensus by $0.29.
Following the strong financial performance in the latest quarter, analysts at Cowen and Needham raised their price targets for Cirrus Logic, Inc. (NASDAQ:CRUS) to $100 from $90, and $97 from $85, respectively.
As of Q2 2022, 24 of the 895 hedge funds tracked by Insider Monkey were long Cirrus Logic, Inc. (NASDAQ:CRUS), owning shares valued at $300 million. Citadel Investment Group was the largest shareholder on record with ownership of 723,667 shares valued at $52 million.
Alongside Avnet, Inc. (NYSE:AVT), Pure Storage, Inc. (NYSE:PSTG), and Apple Inc. (NASDAQ:AAPL), Cirrus Logic, Inc. (NASDAQ:CRUS) is also one of Peter Algert’s Algert Global’s top tech holdings in Q2 2022 according to 13F filings.
9. Manhattan Associates, Inc. (NASDAQ:MANH)
Algert Global’s Stake Value: $4,224,000
Percentage of Algert Global’s 13F Portfolio: 0.31%
Number of Hedge Fund Holders: 25
Atlanta, Georgia-based Manhattan Associates, Inc. (NASDAQ:MANH) develops, sells, deploys, services and maintains software solutions designed to manage supply chains, inventory and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations.
Peter Algert’s Algert Global owns 36,856 shares of Manhattan Associates, Inc. (NASDAQ:MANH), accounting for a 0.31% weightage in the hedge fund’s 13F portfolio. Algert Global’s stake shrunk by 22% in Q2 2022, as compared to the previous quarter.
In July, Manhattan Associates, Inc. (NASDAQ:MANH) released its financial results for Q2 2022. Its revenue increased by 16% y-o-y to $192 million, while net income increased by 1% y-o-y to $31 million, for the three months ended June 30, 2022. It reported a normalized EPS of $0.69 for the quarter, surpassing analyst consensus by $0.15.
As of Q2 2022, 25 of the 895 hedge funds tracked by Insider Monkey were long Manhattan Associates, Inc. (NASDAQ:MANH) shares, for a total value of $364 million. RGM Capital was the largest shareholder with ownership of 982,528 shares valued at $113 million.
8. Microsoft Corporation (NASDAQ:MSFT)
Algert Global’s Stake Value: $6,170,000
Percentage of Algert Global’s 13F Portfolio: 0.31%
Number of Hedge Fund Holders: 258
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation (NASDAQ:MSFT) boasts over 1.4 billion monthly active devices running its flagship operating system, Windows 10 or 11.
Earlier this year, Microsoft agreed to acquire Activision Blizzard, Inc. (NASDAQ:ATVI) in an all-cash transaction valued at $68.7 billion. The proposed acquisition, if completed, is expected to accelerate growth in Microsoft’s Gaming business across mobile, PC, console, and cloud. It could also help Microsoft Corporation (NASDAQ:MSFT) gain market share in the future metaverse market.
Algert Global owns 16,264 shares of Microsoft Corporation (NASDAQ:MSFT), accounting for 0.31% of its 13F portfolio. The hedge fund increased its stake by 7% in Q2 2022, as compared to the previous quarter.
In July, Microsoft Corporation (NASDAQ:MSFT) reported its earnings for the quarter ended June 30, 2022. Its revenue increased by 12% y-o-y to $51.9 billion, while net income increased by 2% y-o-y to $16.7 billion. It recorded a normalized EPS of $2.23, missing consensus by $0.06.
As of Q2 2022, Microsoft Corporation (NASDAQ:MSFT) is the most sought-after stock among the 895 hedge funds tracked by Insider Monkey as 258 of these hedge funds held shares in the software giant, valued at $56 billion. Fisher Asset Management was the largest shareholder in the company owning 28.7 million shares valued at $7.4 billion.
7. Dropbox, Inc. (NASDAQ:DBX)
Algert Global’s Stake Value: $4,647,000
Percentage of Algert Global’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 32
Dropbox, Inc. (NASDAQ:DBX) provides a cloud-based storage and collaboration platform where individuals and teams can create content, access it from anywhere, and share it with other collaborators. Dropbox, Inc. (NASDAQ:DBX) boasts more than 700 million users on its platform hailing from 180 countries across the world, including 17.37 million paying users.
Algert Global has increased its stake in Dropbox, Inc. (NASDAQ:DBX) by 144% in the first half of 2022, bringing the number of shares owned by the hedge fund to 221,381 and the portfolio weight to 0.34%, as of Q2 2022.
In August, Dropbox, Inc. (NASDAQ:DBX), released the financial results for its quarter ended June 30, 2022. Its revenue increased by 8% y-o-y to $573 million, while its net income declined by 29% y-o-y to $62 million, for the quarter. It reported a normalized EPS of $0.38 for the quarter, beating the consensus by $0.01.
Earlier in September, BofA analyst Michael Funk initiated coverage of Dropbox, Inc. (NASDAQ:DBX) with a target price of $34 per share and a ‘Buy’ rating. The analyst believes that Dropbox exhibits “strong free cash flow generation and potential for incremental returns to shareholders”.
As of Q2 2022, 32 of the hedge funds tracked by Insider Monkey held shares of Dropbox, Inc. (NASDAQ:DBX), valued at $751 million. Its largest shareholder was Renaissance Technologies with ownership of 9.6 million shares valued at $201 million.
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
Algert Global’s Stake Value: $4,689,000
Percentage of Algert Global’s 13F Portfolio: 0.35%
Number of Hedge Fund Holders: 25
San Jose, California-based Super Micro Computer, Inc. (NASDAQ:SMCI) is a leading provider of high-performance, high-efficiency server and storage technology and green computing solutions for various markets including enterprise data centers, cloud computing, artificial intelligence, 5G and edge computing.
Algert Global has more than doubled its stake in Super Micro Computer, Inc. (NASDAQ:SMCI) since the beginning of this year, bringing the number of shares owned by the hedge fund to 116,208 shares from 52,044 shares, as of Q2 2022. The computing solutions provider accounts for 0.35% of Algert Global’s 13F portfolio, ranking it number 6 on our list of 10 best tech stocks to buy according to Peter Algert’s Algert Global.
In August, Super Micro Computer, Inc. (NASDAQ:SMCI) reported the financial results for the quarter ended June 30, 2022. Its revenue increased by 53% y-o-y to $1.6 billion, while it generated a net income of $141 million, for the quarter. It reported a normalized EPS of $2.62 for the quarter, beating the consensus by $0.27.
Based on the strong quarterly financial performance, Susquehanna analyst Mehdi Hosseini raised the firm’s price target on Super Micro Computer, Inc. (NASDAQ:SMCI) shares to $88 from $70 and maintained a ‘Positive’ rating on the shares.
According to the Insider Monkey data on 895 leading hedge funds, 25 hedge funds were long Super Micro Computer, Inc. (NASDAQ:SMCI) shares as of Q2 2022, with the total shares held by hedge funds valued at $279 million. Hawk Ridge Management was the largest shareholder on record with ownership of 1.5 million shares valued at $59 million.
Much like Super Micro Computer, Inc. (NASDAQ:SMCI), Avnet, Inc. (NYSE:AVT), Pure Storage, Inc. (NYSE:PSTG), and Apple Inc. (NASDAQ:AAPL) are also tech stocks held by Peter Algert’s Algert Global.
5. Fabrinet (NYSE:FN)
Algert Global’s Stake Value: $5,211,000
Percentage of Algert Global’s 13F Portfolio: 0.39%
Number of Hedge Fund Holders: 19
Fabrinet (NYSE:FN) is an advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services provider with a focus on complex products such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. Its manufacturing facilities are located in Thailand, China, United Kingdom, UK, Israel, and Cayman Islands.
Algert Global owns 64,253 shares of Fabrinet (NYSE:FN), making up 0.39% of the investment manger’s 13F portfolio. Its stake increased by 56% in Q2 2022, compared to the previous quarter.
In August, Fabrinet (NYSE:FN) released its financial results for the three months ended June 24, 2022. Its revenue increased by 15% y-o-y to $588 million, while its net income increased by 33% y-o-y to $56 million, for the quarter. It reported a normalized EPS of $1.68 for the quarter, beating the consensus by $0.14.
Following the earnings release, Needham analyst Alex Henderson raised the firm’s price target on Fabrinet (NYSE:FN) shares to $135 from $130 and maintained a ‘Buy’ rating on the shares.
As of Q2 2022, 19 hedge funds held shares in Fabrinet (NYSE:FN), valued at $178 million. Alyeska Investment Group was the largest shareholder on record with ownership of 458,039 shares valued at $37 million.
4. CommVault Systems, Inc. (NASDAQ:CVLT)
Algert Global’s Stake Value: $5,793,000
Percentage of Algert Global’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 17
New Jersey-based CommVault Systems, Inc. (NASDAQ:CVLT) is a data protection and information management solutions provider to mid-level and enterprise-level organizations across the globe. Its offerings are classified as data protection, data insights, and data storage solutions allowing customers to use all of their data anywhere and anytime.
Algert Global has increased its stake in CommVault Systems, Inc. (NASDAQ:CVLT) by a whopping 974% in the first half of 2022, from a measly 8,575 shares to 92,092 shares, as of Q2 2022. The stock accounts for 0.43% of the 13F portfolio of the hedge fund.
In July, CommVault Systems, Inc. (NASDAQ:CVLT) released the financial results for the quarter ended June 30, 2022. Its revenue increased by 8% y-o-y to $198 million, while its net income shrunk by 75% y-o-y to $3.5 million, for the quarter. CommVault Systems, Inc. (NASDAQ:CVLT) recorded a normalized EPS of $0.64 for the quarter, beating the consensus by $0.01.
As of Q2 2022, 17 of the 895 hedge funds tracked by Insider Monkey were long CommVault Systems, Inc. (NASDAQ:CVLT), owning shares valued at $439 million. Starboard Value LP was the largest shareholder on record with ownership of 3.8 million shares valued at $239 million.
3. Avnet, Inc. (NYSE:AVT)
Algert Global’s Stake Value: $6,366,000
Percentage of Algert Global’s 13F Portfolio: 0.47%
Number of Hedge Fund Holders: 27
Avnet, Inc. (NYSE:AVT) is a global electronic components distributor based in Phoenix, Arizona, with extensive design, product, marketing and supply chain expertise for customers and suppliers at every stage of the product lifecycle.
Peter Algert’s Algert Global owns 148,456 shares of Avnet, Inc. (NYSE:AVT), accounting for a 0.47% weightage in the hedge fund’s 13F portfolio. Algert Global’s stake increased by 22% in Q2 2022, as compared to the previous quarter.
In August, Avnet, Inc. (NYSE:AVT) released its financial results for the quarter ended July 2, 2022. Its revenue increased by 22% y-o-y to $6.4 billion, while net income increased by 189% y-o-y to $247 million, for the quarter. Normalized EPS for the quarter was recorded at $2.07, beating the consensus by $0.08. The company also announced a quarterly cash dividend of $0.29 per share.
Following the earnings release, JPMorgan analyst Joseph Cardoso initiated coverage of Avnet, Inc. (NYSE:AVT) with a price target of $46 per share and an ‘Underweight’ rating.
As of Q2 2022, 27 of the 895 hedge funds tracked by Insider Monkey were long Avnet, Inc. (NYSE:AVT) shares, for a total value of $766 million. Pzena Investment Management was the largest shareholder with ownership of 10.7 million shares valued at $461 million.
2. Pure Storage, Inc. (NYSE:PSTG)
Algert Global’s Stake Value: $6,475,000
Percentage of Algert Global’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 33
Pure Storage, Inc. (NYSE:PSTG) is a technology company focused on providing data storage technologies, products, and services. Its portfolio of products and services support structured and unstructured data, across any data workloads in hybrid and public cloud environments, and test and development, analytics, disaster recovery (DR), and backup and recovery.
Algert Global owns 251,854 shares of Pure Storage, Inc. (NYSE:PSTG), making up 0.48% of the hedge fund’s 13F Portfolio. Its stake shrunk by 5% in Q2 2022, compared to the previous quarter, and increased by 151% since the beginning of this year.
In the last week of August, Pure Storage, Inc. (NYSE:PSTG), released the financial results for its quarter ended August 7, 2022. It delivered a strong quarterly financial performance with 30% y-o-y revenue increase to $647 million, and a net income of $11 million, for the quarter. It reported a normalized EPS of $0.32, beating the consensus by $0.10.
Following the earnings release, several analysts raised their price targets on Pure Storage, Inc. (NYSE:PSTG), including Morgan Stanley analyst raising target from $33 to $35, Barclays raising target from $39 to $42, and Northland analyst from $44 to $47.
As of Q2 2022, 33 of the hedge funds tracked by Insider Monkey held shares of Pure Storage, Inc. (NYSE:PSTG), valued at $961 million. Its largest shareholder was Two Sigma Advisors with ownership of 5.2 million shares valued at $134 million.
1. Apple Inc. (NASDAQ:AAPL)
Algert Global’s Stake Value: $6,542,000
Percentage of Algert Global’s 13F Portfolio: 0.49%
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on the designing, manufacturing, and marketing of smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.
Apple Inc. (NASDAQ:AAPL) also ranks as #1 in the list of both 5 and 10 best tech stocks to buy according to Peter Algert’s Algert Global.
Major products of Apple Inc. (NASDAQ:AAPL) include the iPhone, Mac PCs, iPad, and accessories while service offerings include Apple Care, Cloud Services, Digital Content and Payment services. iPhone sales accounted for more than half of its revenue in the last fiscal year. The company launched iPhone 14 in the first week of September which could result in a surge in the company’s revenue.
Algert Global owns 47,847 shares of Apple Inc. (NASDAQ:AAPL), making up 0.49% of the investment manger’s 13F portfolio. Its stake decreased by 5% in Q2 2022, compared to the previous quarter.
In July, Apple Inc. (NASDAQ:AAPL) released its financial results for the quarter ended June 25, 2022. Its net sales increased by 2% y-o-y to $83 billion, while its net income declined by 11% y-o-y to $19.4 billion, for the three months. It reported a normalized EPS of $1.20 for the quarter, beating the consensus by $0.04. Apple Inc. (NASDAQ:AAPL) declared a regular cash dividend of $0.23 per share for the quarter.
Apple Inc. (NASDAQ:AAPL) is among the stocks most widely held by hedge funds according to Insider Monkey data on 895 hedge funds. As of Q2 2022, 128 hedge funds held shares in Apple Inc. (NASDAQ:AAPL), valued at $143 billion. Warren Buffet’s Berkshire Hathaway was the largest shareholder on record with ownership of 895 million shares valued at $122 billion.
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Disclosure: None. 10 Best Tech Stocks to Buy According to Peter Algert’s Algert Global is originally published on Insider Monkey.
