In this article, we will take a look at the 10 new stocks in Kamyar Khajavi’s MIK Capital portfolio.
MIK Capital is a hedge fund based out of New York. Founded by Kamyar Khajavi in 2015, the fund has a total portfolio value of $197 million as per the 13F filings for Q2 2021.
The hedge fund’s largest holding as of the second quarter is Thomson Reuters Corporation (NYSE:TRI) with shares worth over $10.8 million, followed by Foot Locker, Inc. (NYSE:FL) with stakes worth $10.7 million.
MIK Capital also owns stakes in big companies such as salesforce.com, inc. (NYSE:CRM), Alphabet Inc. (NASDAQ:GOOG), and Uber Technologies, Inc. (NYSE:UBER).
In this article our focus would be on the new stocks bought by MIK Capital. For this article we picked the stocks in which the fund initiated new positions in the second quarter of 2021.
Why do we care about hedge fund activity? 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.
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10 New Stocks in Kamyar Khajavi’s MIK Capital Portfolio
10. Martin Marietta Materials, Inc. (NYSE:MLM)
MIK Capital’s Stake Value: $5,568,000
Percentage of MIK Capital’s 13F Portfolio: 2.82%
Number of Hedge Fund Holders: 34
Founded in 1993 and headquartered in Raleigh, North Carolina, Martin Marietta Materials, Inc. (NYSE:MLM), an S&P 500 member, is an American building materials supplier. The company operates in over 26 states in the US. Internationally, the company’s services are available in the Caribbean and Canada. Its market cap stands at $22.32 billion as of September 9, 2021.
As per our database in which we track 873 hedge funds, 34 held stakes in Martin Marietta Materials, Inc. (NYSE:MLM), down from 41 in Q1
MIK Capital holds 15,827 shares in Martin Marietta Materials worth $5.5 million, representing 2.82 percent of their portfolio. As of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes in the company in Q2, compared to 41 out of 866 in Q1.
9. The TJX Companies, Inc. (NYSE:TJX)
MIK Capital’s Stake Value: $6,864,000
Percentage of MIK Capital’s 13F Portfolio: 3.48%
Number of Hedge Fund Holders: 56
The TJX Companies, Inc. (NYSE:TJX), formerly known as Zayre Corp., was founded by Bernard Cammarata in 1987. Headquartered in Framingham, Massachusetts, the American off-price department store corporation runs over 4,500 stores in 9 countries. The company sells apparel and home fashion products under four divisions namely Marmaxx, HomeGoods, TJX Canada, and TJX International.
Kamyar Khajavi’s MIK Capital owns over 101.8 million shares in The TJX Companies, Inc. (NYSE:TJX) with a total investment of over $6.8 million which is 3.48% of the fund’s overall portfolio. As of the second quarter of 2021, Insider Monkey tracks 873 hedge funds, and out of these, 56 held stakes in the company, compared to 63 out of 866 in the previous quarter.
In its Q2 investment letter, investment management firm Qualivian Investment Partners mentioned The TJX Companies, Inc. (NYSE:TJX). Here is what the fund said:
“TJX Companies: While it still outperformed the S&P 500, TJX landed in the bottom three as its stock’s tepid performance reflected the broader underperformance of stocks levered to post-COVID reopening. These were muted in the quarter given the resurgence of COVID cases due to the Delta variant. Its actual results, which it reported on August 18th, were outstanding, beating across the board on both top and bottom lines and showing strong operating leverage in the operating profit line. Same store sales were up an impressive 20% overall. We remain very confident in TJX’s moat in that its treasure hunt format is hard to replicate for the likes of Amazon and Walmart.”
While MIK Capital has stakes in salesforce.com, inc. (NYSE:CRM), Alphabet Inc. (NASDAQ:GOOG), and Uber Technologies, Inc. (NYSE:UBER), The TJX Companies, Inc. (NYSE:TJX) is one of the biggest stocks in its portfolio.
8. Deckers Outdoor Corporation (NYSE:DECK)
MIK Capital’s Stake Value: $7,671,000
Percentage of MIK Capital’s 13F Portfolio: 3.89%
Number of Hedge Fund Holders: 44
Headquartered in California, Deckers Outdoor Corporation (NYSE:DECK) is more commonly known as Decker Brands with different fashion lifestyle and performance lifestyle brands in its portfolio. It sells footwear, apparel, and accessories in more than 50 countries. The company employs over 3,200 employees across the world with Dave Powers as the current CEO and President.
MIK Capital held over $19.9 million shares in Deckers Outdoor Corporation (NYSE:DECK), valued at $7.7 million, according to the Q2 13F filings. It represents 3.89% of the fund’s overall portfolio. Out of the hedge funds being tracked by Insider Monkey, 44 hedge funds out of the 873 held stakes in the company, compared to 40 out of 866 in Q1.
Robert Pitts’ Steadfast Capital Management is the biggest stakeholder in Deckers Brands with an investment of $295.8 million as of Q2 filings.
7. Planet Fitness, Inc. (NYSE:PLNT)
MIK Capital’s Stake Value: $8,069,000
Percentage of MIK Capital’s 13F Portfolio: 4.09%
Number of Hedge Fund Holders: 34
Based in Hampton, New Hampshire, Planet Fitness, Inc. (NYSE:PLNT) is an American chain of fitness clubs with franchises located throughout the US as well as other countries including Australia, Mexico, Dominican Republic, Panama, and Canada. According to the company website, Planet Fitness is working in over 2,000 locations. It was founded by Michael Grondahl and Marc Grondahl in 1992 and Chris Rondeau is the current CEO of the company.
As of Q2, MIK Capital held over 107.2 million shares in Planet Fitness, Inc. (NYSE:PLNT) worth over $8 million. Insider Monkey’s Q2 data shows that 34 out of the 873 hedge funds held stakes in the company, down from 40 out of 866 in the preceding quarter. Like Planet Fitness, Inc. (NYSE:PLNT), salesforce.com, inc. (NYSE:CRM) and Alphabet Inc. (NASDAQ:GOOG) are also among MIK Capital’s new stock picks in addition to other names such as Uber Technologies, Inc. (NYSE:UBER).
Karthik Sarma’s SRS Investment Management owns the most shares in Planet Fitness with over 7 billion shares worth over $530 million.
In its Q1 investor letter, investment management fund Wasatch Global Investors mentioned Planet Fitness, Inc. (NYSE:PLNT). Here is what the fund said:
“At the other end of the spectrum, we completely sold our position in Planet Fitness, Inc. (PLNT) even though some speculators would consider the stock to be a reopening play. The company owns and operates a chain of fitness clubs. The stock spiked on optimism that people will return to pre-pandemic levels of exercise at group facilities. But recent earnings for Planet Fitness didn’t impress us, and we decided the stock was too expensive based on our projection for the company’s growth rate.”
6. Mohawk Industries, Inc. (NYSE:MHK)
MIK Capital’s Stake Value: $8,276,000
Percentage of MIK Capital’s 13F Portfolio: 4.2%
Number of Hedge Fund Holders: 44
Founded in 1878, Mohawk Industries, Inc. (NYSE:MHK) is a renowned manufacturer of flooring products and it serves customers worldwide. The company is headquartered in Calhoun, Georgia and it is currently run by CEO Jeffrey Lorberbaum. The company is rightly called the global flooring leader owing to its vast portfolio of products including hard and soft flooring products in addition to luxury and sheet vinyl tiles. The company’s shares first traded publicly on NASDAQ, and it now trades on NYSE.
Kamyar Khajavi’s MIK Capital owns a total of 43,061 shares in Mohawk Industries, Inc. (NYSE:MHK) worth $8.27 million. It is 4.2% of the fund’s overall portfolio as of Q2. As of the second quarter of 2021, 44 hedge funds out of the 873 tracked by Insider Monkey held stakes in the company, compared to 36 in the previous quarter.
Richard S. Pzena’s Pzena Investment Management is the biggest shareholder in Mohawk Industries. The fund owns over 1.6 million shares amounting to $308.8 million.
Like Uber Technologies, Inc. (NYSE:UBER), salesforce.com, inc. (NYSE:CRM), and Alphabet Inc. (NASDAQ:GOOG), Mohawk Industries, Inc. (NYSE:MHK) is also among Kamyar Khajavi’s MIK Capital’s new stock picks.
5. Chipotle Mexican Grill, Inc. (NYSE:CMG)
MIK Capital’s Stake Value: $8,868,000
Percentage of MIK Capital’s 13F Portfolio: 4.5%
Number of Hedge Fund Holders: 35
Chipotle Mexican Grill, Inc. (NYSE:CMG), an American chain of restaurants, was founded by Steve Ells in 1993. Headquartered in Newport Beach, California, Chipotle serves Mexican food at over 2,700 branches spread not only across the US but in Canada, UK, France, and Germany as well. Brian Niccol is the current CEO and Chairman of the company.
In the Q2 2021 investor letter of Pershing Square Holdings, the fund mentioned Chipotle Mexican Grill, Inc. (NYSE: CMG). Here is what the fund said:
“Chipotle’s track record of superb performance has continued in 2021, driven by ongoing strength in digital sales and a recovery of in-store ordering. Digital gains achieved during the pandemic have proven resilient, with digital sales growing 11% in Q2 compared with the prior year, highlighting the limited overlap with in-person occasions. The company has now recovered about 70% of its pre-pandemic in-restaurant sales volumes, with the opportunity to drive these sales meaningfully higher once more schools and workplaces reopen after Labor Day. Near-term performance is accelerating, with management forecasting same-store sales growth from 2019 levels in the low- to mid-20% range in Q3, up from 18% growth last quarter.
In May, Chipotle announced that they would increase hourly wages to a national average of $15 by the end of June, and advertised a path for a new employee to earn an annual income of $100,000 in as little as three and a half years. This resonated extremely well with existing and prospective employees, with staffi ng levels now above 2019 levels following some previously pronounced labor shortages that limited sales. Chipotle increased menu prices by 3.5% and 4.0% to cover the wage increase, and has not seen any customer resistance, demonstrating the signifi cant pricing power enabled by Chipotle’s brand strength and attractive customer value proposition…” (Click here to see the full text)
4. United Rentals, Inc. (NYSE:URI)
MIK Capital’s Stake Value: $8,903,000
Percentage of MIK Capital’s 13F Portfolio: 4.51%
Number of Hedge Fund Holders: 47
Based out of Stamford, Connecticut, United Rentals, Inc. (NYSE:URI) was founded 24 years ago in 1997. It is the largest equipment rentals company, serving almost all of North America as well as 4 European countries with an overall equipment cost of $14.2 billion. United Rentals provides equipment rentals in different specialty fields such as trench safety, power, and HVAC, tool solutions, fluid solutions, onsite services, radio services, drone services as well as sports and entertainment.
In the second quarter ended June 30, MIK Capital owned 27,908 shares worth $8.9 million. This represents 4.51% of the hedge fund’s overall holdings. According to Insider Monkey’s data, the number of hedge funds that held stakes in United Rentals, Inc. (NYSE:URI) increased from 41 out of 866 in Q1 to 47 out of 873 in Q2.
Carillon Tower Advisers talked about United Rentals, Inc. (NYSE: URI) in their Q1 2021 investor letter. Here is what the fund said:
“United Rental is an equipment rental company that primarily services construction and industrial companies, as well as manufacturers, utilities, homeowners, municipalities, and other government entities. The firm performed well in the first quarter as the company is a clear beneficiary of both a strengthening economy as well as a possible infrastructure bill. United Rentals’ business model performed exceptionally well in 2020 as the company generated substantial free cash flow by aggressively scaling back its capital expenditures. In 2021, we believe the company should be able to push its rental rates higher following a year of disciplined fleet management across the entire equipment rental industry. Additionally, the entire rental industry should benefit from tightness throughout the machinery sector as manufacturers struggle to meet demand due to supply chain constraints.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
MIK Capital’s Stake Value: $9,443,000
Percentage of MIK Capital’s 13F Portfolio: 4.79%
Number of Hedge Fund Holders: 271
In the second quarter, MIK Capital owned 2,745 shares in Amazon.com, Inc. (NASDAQ:AMZN), amounting to $9.4 million. Out of the hedge funds listed in Insider Monkey’s database, 271 out of 873 held stakes in the company in Q2, up from 243 out of 866 in the previous quarter.
On October 7, Cowen analyst John Blackledge maintained an Outperform rating on the shares while lowering the firm’s price target from $4,400 to $4,300.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned Amazon.com, Inc. (NASDAQ: AMZN). Here is what the fund said:
“The Strategy’s goal of generating strong risk-adjusted performance while investing in companies that can make a positive impact on society and the environment is often supported by holdings that are companies with significant customer bases, making our engagements with them effective platforms for driving change. This is the case with new holding Amazon.com, the leading retail e-commerce site and provider of web hosting and related cloud services that continues to benefit from the migration of commerce from offline to online. We initiated a position in Amazon based on its strength in several areas, including retail, its Amazon Web Services cloud business and advertising; from a valuation perspective, Amazon has become more attractive as profitability has improved and the stock has gone sideways in an up market.
ClearBridge has been holding interactive engagements with Amazon on several ESG issues for several years, including labor and environmental issues, and we have seen improvements over that time. From a sustainability perspective, Amazon has made meaningful ESG commitments and improved labor practices and it faces fewer regulatory issues than many large tech peers. Labor management remains a key focal point and the company has made increased commitments to its labor force, including in December 2018, when Amazon increased its minimum wage standard to $15 an hour in the U.S., well above the federal minimum wage standard. Amazon is also taking steps toward environmental sustainability that would put it ahead of peers if goals are achieved. In June 2019, Amazon set new targets to be carbon neutral by 2040 and to use 100% renewable energy by 2030…” (Click here to see the full text)
2. Kohl’s Corporation (NYSE:KSS)
MIK Capital’s Stake Value: $9,590,000
Percentage of MIK Capital’s 13F Portfolio: 4.86%
Number of Hedge Fund Holders: 40
Headquartered in Wisconsin, Kohl’s is a renowned departmental store retail chain. Having started as a corner grocery shop back in 1927 by Polish immigrant Maxwell Kohl, it has come a long way. Kohl’s Corporation (NYSE:KSS) now has over 1,100 retail stores spread across 49 states with a huge market cap of $6.91 billion.
As of Q2 2021, MIK Capital held 174,008 shares of the company worth $9.59 million, making up 4.86% of the fund’s overall 13F portfolio. A total of 40 out of 873 hedge funds tracked by Insider Monkey held shares in Kohl’s Corporation (NYSE:KSS) in Q2 as compared to 35 out of 866 in Q1.
Frederick Disanto’s Ancora Advisors is the biggest stakeholder in Kohl’s Corporation with a total investment worth $192.5 million.
1. Thomson Reuters Corporation (NYSE:TRI)
MIK Capital’s Stake Value: $10,838,000
Percentage of MIK Capital’s 13F Portfolio: 5.5%
Number of Hedge Fund Holders: 27
Thomson Reuters Corporation (NYSE:TRI) is a Canadian multinational media giant. In 2008, Reuters Group was acquired by Thomson Corporation following which the company was named Thomson Reuters and operated under a dual-listed company structure.
In the second quarter of 2021, MIK Capital owned 109,120 shares of Thomson Reuters Corporation (NYSE:TRI) worth $10.8 million, representing 5.5% of the fund’s portfolio. As of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in the Thomson Reuters Corporation (NYSE:TRI). In the previous quarter, the number of hedge funds that owned shares in the company stood at 28 out of the total 866.
On October 6, TD Securities analyst Vince Valentini kept the price target for Thomson Reuters Corporation (NYSE:TRI) unchanged at $127.5 (C$160) while upgrading the rating from Hold to Buy.
You can also take a look at 10 Stocks Making Moves on Quarterly Results and 10 Stocks to Buy in 2021 According to Carl Tiedemann’s TIG Advisors.
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Disclosure: None. 10 New Stocks in Kamyar Khajavi’s MIK Capital Portfolio is originally published on Insider Monkey.
