10 Stocks to Invest In According to Stephen White’s SW Investment

Published September 13, 2021 at 9:48 am EDT Updated August 19, 2026 at 5:19 am EDT

In this article, we will discuss 10 stocks to invest in according to Stephen White’s SW Investment based on Q2 holdings of the fund.

SW Investment Management was founded by Stephen White in 2016. White completed his MBA from the University of Chicago Graduate School of Business. White spent four years as a portfolio manager at RMB Capital. He was the managing partner of Castle Union LLC for three years before establishing SW Investment Management.

Some notable holdings of Stephen White’s SW Investment as of the end of the second quarter include Amazon.com, Inc. (NASDAQ: AMZN) and Cloudflare, Inc. (NYSE: NET).

In Amazon.com, Inc., Stephen White’s SW Investment owns 12,000 shares. JPMorgan analyst Doug Anmuth recently added Amazon (AMZN) in his “Best Ideas in 2021” list. He has an Overweight rating for the ecommerce giant.

Stephen White’s SW Investment also has a stake in Cloudflare, Inc.. The hedge fund owns 550,000 shares of the company, worth $58.21 million. On August 11, Cloudflare, Inc. announced that it issued 0% senior unsecured notes due August 15, 2026, whose principal amount is $1.125 billion. Initial buyers were offered the option to acquire an additional $168.75 million worth of notes. Cloudflare plans to spend around $75 million of the net proceeds to cover the cost of the capped call transactions, with the rest going to general business purposes. On August 8, Argus analyst Joseph Bonner raised the price target on Cloudflare, Inc. to $140 from $125 and kept a “Buy” rating on the shares.

Photo by Nicholas Cappello on Unsplash

Why should we pay attention to White’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 124 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 more than 115 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.

With this context in mind, here is our list of stocks to invest in according to Stephen White’s SW Investment. We used White’s 13F portfolio for the second quarter for this analysis.

Stocks to Invest In According to Stephen White’s SW Investment

10. Stitch Fix, Inc. (NASDAQ: SFIX)

White’s Stake Value: $370,000
Percentage of Stephen White’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 35

Stitch Fix, Inc. (NASDAQ: SFIX) provides clothes, shoes, and accessories through its website and mobile app. It was founded in 2011 and is placed tenth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. The company stock has offered investors more than 59.09% in returns over the course of the past 12 months.

On June 8, Canaccord analyst Maria Ripps raised the price target on Stitch Fix, Inc. to $76 from $68 and kept a “Buy” rating on the shares.

SW Investment holds 15,000 Call options in Stitch Fix, Inc., worth $370,000. This represents 0.14% of their portfolio. D E Shaw is a leading shareholder in Stitch Fix, Inc., with 2.66 million shares worth more than $160 million.

Just like Amazon.com, Inc., Cloudflare, Inc., and Sun Communities, Inc. (NYSE: SUI), Stitch Fix, Inc. is one of the best stocks according to Stephen White’s SW Investment.

In its second-quarter 2021 investor letter RGA Investment Advisors LLC, mentioned Stitch Fix, Inc.. Here is what the fund said:

“We purchased a new position–Stitch Fix–which is attacking this problem of abundance and the friction of shopping digitally head on with curation and personalization.

Your Own Personal Clothing Store

Stitch Fix is incredibly interesting. Founded by Katrina Lake in 2011, Stitch Fix turned apparel shopping into a delightfully personalized, subscription-based platform. The company collects numerous data points when onboarding a customer from the generics and quirks of each individual’s size and shape to tastes in designers, colors and styles. This empowers the company’s stylists to curate a “fix” with five clothing items on a periodic cadence (monthly, quarterly, semi-annually, etc.) of the customer’s choosing. A box arrives with its contents formerly unseen by the customer, with the constant being each item is already a known fit based on the size and shape of the customer’s body type and the trove of data Stitch Fix has on other “look alikes” across their customer base. Of the 5 items, a customer can keep all or none, but they must pay $20 irrespective of whether they keep anything. After reviewing the items, a customer can keep all items (for which they would get a 25% keep five discount) or return some items and checkout online to pay full price.…” (Click here to see the full text)

9. NI Holdings, Inc. (NASDAQ: NODK)

White’s Stake Value: $1,470,000
Percentage of Stephen White’s 13F Portfolio: 0.56%
Number of Hedge Fund Holders: 7

NI Holdings, Inc. (NASDAQ: NODK) underwrites property and liability insurance products. The company was founded in 1946 and stands ninth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. NI Holdings, Inc. currently has a $411.02 million market capitalization.

On August 4, NI Holdings, Inc. released earnings for the second quarter of 2021. It reported net loss of $2.644 million (-$0.12 per share), compared to a net income of $18.733 million ($0.86 per share) in the prior-year quarter.

The hedge fund chaired by Stephen White holds 77,376 shares in NI Holdings, Inc., worth $1.47 million. Michael Price’s MFP Investors is the most significant shareholder in NI Holdings, Inc., with 528,791 shares worth more than $10 million.

Just like Amazon.com, Inc., Cloudflare, Inc., and Sun Communities, Inc., NI Holdings, Inc. is one of the best stocks according to Stephen White’s SW Investment.

8. Sun Communities, Inc. (NYSE: SUI)

White’s Stake Value: $13,712,000
Percentage of Stephen White’s 13F Portfolio: 5.24%
Number of Hedge Fund Holders: 30

Sun Communities, Inc. invests in manufactured housing communities, RV resorts, and marinas. The company was founded in 1975 and ranks eighth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Sun Communities, Inc. currently has a $22.86 billion market capitalization, and was able to deliver a 36.52% return in the past 12 months.

On July 26, Sun Communities, Inc. announced earnings for the second quarter of 2021. The company declared funds from operations (FFO) of $1.80, beating the estimates by $0.19. In addition, the revenue over the period was $603.86 million, up 99.1% YoY, beating the predictions by $152.39 million. On June 3, Michael Goldsmith initiated coverage on Sun Communities, Inc. with a “Buy” rating and gave a $190 price target.

SW Investment holds 80,000 shares in Sun Communities, Inc., worth over $13 million, representing 5.24% of its portfolio. Sun Communities, Inc. saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 30 at the end of the second quarter compared to 35 positions in the previous quarter.

7. Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC)

White’s Stake Value: $14,688,000
Percentage of Stephen White’s 13F Portfolio: 5.61%
Number of Hedge Fund Holders: 29

Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) produces tools and equipment for assembling semiconductors. The company was founded in 1951 and is placed seventh on the list of 10 stocks to invest in according to Stephen White’s SW Investment.

On August 6, Craig-Hallum analyst Christian Schwab raised the price target on Kulicke and Soffa Industries, Inc. to $88 from $64 and kept a “Buy” rating on the shares. On August 4, Kulicke and Soffa Industries, Inc. announced its earnings for the second quarter of 2021. Kulicke and Soffa Industries, Inc. posted earnings per share of $1.87, beating the estimates by $0.51. Furthermore, the revenue over the period was $424.3 million, up 182.1% YoY, surpassing the forecast by $24.36 million.

Stephen White’s SW Investment currently holds 240,000 shares of Kulicke and Soffa Industries, Inc. that amounts to $14.69 million. Kulicke occupies 5.61% of SW Investment’s total portfolio. Royce & Associates is a leading shareholder in Kulicke and Soffa Industries, Inc., with 2.80 million shares worth more than $171 million.

Just like Amazon.com, Inc., Cloudflare, Inc., and Sun Communities, Inc., Kulicke and Soffa Industries, Inc. is one of the best stocks according to Stephen White’s SW Investment.

6. The AES Corporation (NYSE: AES)

White’s Stake Value: $19,552,000
Percentage of Stephen White’s 13F Portfolio: 7.47%
Number of Hedge Fund Holders: 39

The AES Corporation (NYSE: AES) is a utility firm with a diverse portfolio. It was incorporated in 1981 and is ranked sixth on the list of 10 stocks to invest in according to Stephen White’s SW Investment.

On August 6, Wolfe Research analyst Steve Fleishman upgraded The AES Corporation to “Outperform” from “Peer Perform” with a $29 price target. On August 5, The AES Corporation posted earnings results for the second quarter of 2021. The earnings per share was $0.31, missing the estimates by $0.13. In addition, the revenue over the period was $2.7 billion, up 21.6% YoY, surpassing the predictions by $180 million.

The hedge fund managed by Stephen White holds 750,000 shares in The AES Corporation, worth over $19 million, representing 7.47% of their portfolio. In the second quarter of 2021, 39 hedge funds in Insider Monkey’s database of 873 funds held stakes in The AES Corporation compared to 51 funds in the quarter earlier.

Just like Amazon.com, Inc., Cloudflare, Inc., and Sun Communities, Inc., The AES Corporation is one of the best stocks according to Stephen White’s SW Investment.

5. Ubiquiti Inc. (NYSE: UI)

White’s Stake Value: $31,219,000
Percentage of Stephen White’s 13F Portfolio: 11.94%
Number of Hedge Fund Holders: 23

Ubiquiti Inc. (NYSE: UI) is a networking technology company that caters to service providers, businesses, and consumers. It was incorporated in 2003 and is placed fifth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Ubiquiti Inc. currently has a $19.31 billion market capitalization and was able to deliver a 63.64% return in the past 12 months.

On May 7, Ubiquiti Inc. released earnings for the third quarter of 2021. The earnings per share came in at $2.30, beating analysts’ expectations by $0.13. Furthermore, revenue for the period was $467.2 million, up 38.5% year over year and $60.07 million higher than expected. Ubiquiti Inc. also declared a quarterly dividend of $0.40 per share, in line with the previous.

The hedge fund chaired by Stephen White holds 100,000 shares in Ubiquiti Inc. worth over $31 million, representing 11.94% of their portfolio. In addition, the hedge fund has increased stake in the firm by 3% in the second quarter of 2021. Ubiquiti Inc. is also getting the attention of the smart money, as 23 hedge funds tracked by Insider Monkey reported owning stakes in the company in the second quarter, up from 19 funds a quarter earlier.

4. The Joint Corp. (NASDAQ: JYNT)

White’s Stake Value: $33,568,000
Percentage of Stephen White’s 13F Portfolio: 12.84%
Number of Hedge Fund Holders: 22

The Joint Corp. (NASDAQ: JYNT) develops, owns, operates, supports, and manages chiropractic clinics. It was founded in 2010 and is placed fourth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. The Joint Corp. shares have offered investors more than 370.74% in returns over the course of the past 12 months.

On August 9, DA Davidson analyst Linda Bolton Weiser raised the price target on The Joint Corp. to $128 from $65 and maintained a “Buy” rating on the shares. On August 5, the company posted earnings for the second quarter of 2021. The company declared earnings per share of $0.18, beating the estimates by $0.12. In addition, the revenue over the period was $20.2 million, up 60.4% YoY, surpassing the expectations by $2.36 million.

SW Investment holds 400,000 shares in The Joint Corp., worth over $33 million. This represents 12.84% of their portfolio. The latest data reveals that the hedge fund’s stake in The Joint Corp. stock decreased by 55% in the second quarter. There were 22 hedge funds in our database that held stakes in The Joint Corp. in the second quarter, compared to 21 funds in the quarter earlier.

1 Main Capital, in its fourth-quarter 2021 investor letter, mentioned The Joint Corp.. Here is what the fund said:

“The Joint (JYNT) is a rapidly growing franchisor (~90% of locations) and owner (~10% of locations) of nearly 600 chiropractic clinics across the U.S. that operate on a private-pay, cash-based model. The company was founded over 20 years ago, with the vision of improving the quality of life for its customers through routine chiropractic care that is convenient, affordable, and patient-centric.…” (Click here to see the full text)

3. Amazon.com, Inc. (NASDAQ: AMZN)

White’s Stake Value: $41,281,000
Percentage of Stephen White’s 13F Portfolio: 15.79%
Number of Hedge Fund Holders: 271

Amazon.com, Inc. sells consumer goods and subscriptions online. The company was founded in 1994 and stands third on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Amazon.com, Inc. currently has a market capitalization of $1.64 trillion.

The hedge fund chaired by Stephen White holds 12,000 shares in Amazon.com, Inc., worth over $41 million. SW Investment’s stake in Amazon shares increased by 300% in the second quarter of 2021. Hedge funds are loading up on Amazon.com, Inc., as Insider Monkey’s data shows that 271 hedge funds held stakes in the company in the second quarter of 2021, compared to 243 funds a quarter earlier.

Argosy Investors, in its second-quarter 2021 investor letter, mentioned Amazon.com, Inc.. Here is what the fund has to say about Amazon in its letter:

“So how are our largest holdings affected in a world of higher wage inflation? As a general rule, I will evaluate current and potential future holdings on their capital intensivity and their ability to raise prices. Amazon is now (a part of) our top 5 largest equity holdings. Amazon is a more complex story. Their AWS business is largely a similar story to Facebook. Their first-party retail business is very asset-and labor-intensive given their extensive warehousing footprint. I think Amazon would have more pricing power than any other player, and despite being one of the largest employers in the US, bricks-and-mortar retail is likely still more asset- and labor-intensive than Amazon’s ecommerce footprint. With all that said, overall Amazon’s first-party business would be adversely impacted by inflation, but the combination of Amazon’s AWS and advertising business should provide fairly robust inflation protection.”

2. Amkor Technology, Inc. (NASDAQ: AMKR)

White’s Stake Value: $47,340,000
Percentage of Stephen White’s 13F Portfolio: 18.1%
Number of Hedge Fund Holders: 19

Amkor Technology, Inc. (NASDAQ: AMKR) is a semiconductor packaging and testing outsourcing company. The company was founded in 1968 and ranks second on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Amkor Technology, Inc. currently has a $6.02 billion market capitalization and was able to deliver an 84.26% return in the past 12 months.

On July 26, Amkor Technology, Inc. reported earnings for the second quarter of 2021. It announced revenue of $1.41 billion, up 20.5% YoY. The company also declared a quarterly dividend of $0.04 per share, in line with the previous.

The hedge fund managed by Stephen White owns 2 million shares in Amkor Technology, Inc., worth over $47 million, representing close to 18.1% of their portfolio, making it the biggest stakeholder of the company. Amkor Technology, Inc. saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 19 in the second quarter compared to 20 positions in the previous quarter.

1. Cloudflare, Inc. (NYSE: NET)

White’s Stake Value: $58,212,000
Percentage of Stephen White’s 13F Portfolio: 22.26%
Number of Hedge Fund Holders: 43

Cloudflare, Inc. is a cloud platform that provides a variety of network services to companies worldwide. The company was founded in 2009 and is placed first on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Cloudflare, Inc. shares have returned 201.30% to investors over the course of the past 12 months.

On August 5, Cloudflare, Inc. posted earnings for the second quarter of 2021. It reported earnings per share of -$0.02, beating market predictions by $0.02. In addition, the revenue for the second quarter was over $152.4 million, up 52.8% YoY, beating the analysts’ expectations by $6.3 million.

Stephen White’s SW Investment holds 550,000 shares in Cloudflare, Inc., worth over $58 million, representing 22.26% of their portfolio. In the second quarter of 2021, 43 hedge funds in the database of Insider Monkey held stakes worth $862.58 million in Cloudflare, Inc., down from 45 the preceding quarter worth $792.47 million.

Alger, in its second-quarter 2021 investor letter, mentioned Cloudflare, Inc.. Here is what the fund said:

“Cloudflare provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic with over 17% of global internet requests going through Cloudflare. The company’s serverless network design allows this global network to be a key component layer as new developments for edge computing, 5G and the Internet of Things increase the importance of secure, reliable edge networks.…” (Click here to see the full text).

You can also take a peek at 10 Best Stocks to Buy According to Steven Baughman’s Divisar Capital and 8 Best Stocks to Buy According to Billionaire Nicholas J. Pritzker.