10 Stocks to Invest In Now According to Viraj Mehta’s Arctis Global

Published May 5, 2022 at 3:25 pm EDT Updated August 19, 2026 at 7:51 am EDT

In this article, we discuss 10 stocks to invest in now according to Viraj Mehta’s Arctis Global.

Viraj Mehta founded Arctis Global in 2020. It oversees a portfolio valued at $267.01 million as per the 13F filings from the fourth quarter of 2021. Viraj Mehta’s Arctis Global portfolio focuses on information technology and finance. With a top ten holdings concentration of 91.08%, the largest security in Mehta’s Q4 portfolio is Alliance Data Systems Corporation (NYSE:ADS), representing 19.03% of Arctis Global’s total investments.

Viraj Mehta completed his Bachelor’s degree in computer science from the University of Mumbai in 2008. Viraj Mehta owns and controls the Puerto Rico-based hedge fund, Arctis Global. The hedge fund is an equity long/short advisor that uses a bottom-up, research-intensive securities analysis approach to reach its investing goal.

10 Stocks to Invest In Now According to Viraj Mehta's Arctis Global

Source:Pixabay

Our Methodology

With this background in mind, let’s start our list of 10 stocks to invest in now according to Viraj Mehta’s Arctis Global. We picked these stocks from the Q4 portfolio of Mehta’s hedge fund.

10. First BanCorp. (NYSE:FBP)

Arctis Global’s Stake Value: $11,445,000

Percentage of Arctis Global’s 13F Portfolio: 4.28%

Number of Hedge Fund Holders: 25

First BanCorp. (NYSE:FBP) is a banking holding company that offers personal, commercial, and corporate banking services. First BanCorp.’s segments include Commercial and Corporate Banking, Consumer (Retail) Banking, Mortgage Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. On April 12, Keefe Bruyette analyst Kelly Motta assigned an Outperform rating to First BanCorp. along with a price objective of $17.50.

On April 28, First BanCorp. published earnings for the first quarter of 2022, announcing earnings per share of $0.41, beating estimates by $0.08. The $225.69 million revenue for the period was up 6.6% year-over-year, exceeding estimates by $12.14 million.

Insider Monkey’s fourth quarter database suggests that 25 hedge funds were bullish on First BanCorp., down from 26 funds in the prior quarter. The total stakes owned in Q4 2021 amounted to more than $152.39 million. Peter Rathjens, Bruce Clarke And John Campbell’s Arrowstreet Capital is a notable stakeholder of First BanCorp., with 4.14 million shares worth $56.99 million.

First BanCorp. is a noteworthy stock getting the attention of investors, like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V).

9. HyreCar Inc. (NASDAQ:HYRE)

Arctis Global’s Stake Value: $12,576,000

Percentage of Arctis Global’s 13F Portfolio: 4.7%

Number of Hedge Fund Holders: 12

HyreCar Inc. (NASDAQ:HYRE) operates a peer-to-peer car-sharing marketplace. Viraj Mehta is also bullish on HyreCar Inc., as of the end of the fourth quarter of 2021. The fund increased its holding in HyreCar Inc. by 29% in the fourth quarter, ending the period with over 2.67 million shares of the company.

After HyreCar Inc. reported Q4 revenue and volume that were affected by macro-related economic challenges, supply chain disruptions, lower car inventories, and persisting COVID impacts, Northland analyst Mike Grondahl trimmed his price target on HyreCar Inc. to $7 from $18 and maintained an Outperform rating on the shares on March 16. HyreCar Inc. posted earnings for the fourth quarter of 2021 on March 15, reporting a revenue of $35.72 million, up over 41% year-on-year and missing estimates by $0.54 million.

HyreCar Inc. was in 12 hedge funds portfolios at the end of the fourth quarter of 2021. There were 15 hedge funds in our database with HyreCar Inc. at the end of the previous quarter.

8. StoneCo Ltd. (NASDAQ:STNE)

Arctis Global’s Stake Value: $16,418,000

Percentage of Arctis Global’s 13F Portfolio: 6.14%

Number of Hedge Fund Holders: 35

StoneCo Ltd. (NASDAQ:STNE) is a company that specializes in financial technology. StoneCo Ltd. provides a cloud-based technology platform, electronic payments, and point-of-sale process automation. StoneCo Ltd. was assigned an Overweight rating by Cantor Fitzgerald analyst Josh Siegler and a price target of $15 on April 8.

At the end of Q4 2021, 35 hedge funds owned a stake in StoneCo Ltd., down from 37 in the preceding quarter. Tybourne Capital Management, with approximately 3.86 million shares worth $45.13 million, is the largest shareholder of StoneCo Ltd. as of Q1 of 2022.

StoneCo Ltd. was Arctis Global’s new acquisition in Q4 2021. The fund bought 973,785 shares of StoneCo Ltd., valued at $16.42 million, representing 6.14% of its portfolio.

Here is what ClearBridge Investments has to say about StoneCo Ltd. in its fourth quarter 2021 investor letter:

“We also sold and trimmed several names in the emerging market and emerging growth areas, to manage risk and pursue growth companies with a better long-term risk/reward. These included Brazilian payments provider StoneCo. Having expected a rebound in their performance post a profit warning earlier in the year, rising interest rates in Brazil and investments in newly acquired companies increased operating costs and depressed earnings.”

7. OFG Bancorp (NYSE:OFG)

Arctis Global’s Stake Value: $17,006,000

Percentage of Arctis Global’s 13F Portfolio: 6.36%

Number of Hedge Fund Holders: 15

OFG Bancorp (NYSE:OFG) is a holding corporation interested in banking and financial services. The three segments through which it operates are banking, wealth management, and treasury. By the end of the fourth quarter of 2021, Insider Monkey identified 15 hedge funds with stakes in OFG Bancorp. The total value of these stakes was over $54.93 million.

On April 27, OFG Bancorp declared a quarterly dividend of $0.15 per share, in line with the previous. The forward yield was 2.27%. OFG Bancorp posted earnings for the first fiscal quarter on April 21 as well, reporting a revenue of $136.4 million, up 6.8% year-on-year.

On April 12, Keefe Bruyette analyst Kelly Motta maintained an Outperform rating on OFG Bancorp, and a price objective of $35. Viraj Mehta’s Arctis Global held 640,269 shares of OFG Bancorp in Q4 2021, worth over $17 million, representing 6.36% of the total 13F securities. The hedge fund trimmed its stake in OFG Bancorp by 28% in the fourth quarter of 2021.

Arctis Global is the leading stakeholder of the company. Next on the list is Israel Englander’s Millennium Management which owns 625,302 shares of OFG Bancorp, worth over $16.61 million.

6. Rekor Systems, Inc. (NASDAQ:REKR)

Arctis Global’s Stake Value: $20,274,000

Percentage of Arctis Global’s 13F Portfolio: 7.59%

Number of Hedge Fund Holders: 5

On April 1, Lake Street analyst Jaeson Schmidt lowered his price target on Rekor Systems (NASDAQ:REKR) to $6 from $11 and reiterated a Buy rating on the shares. Schmidt expected that Rekor Systems would remain in the display zone for several years until a better picture of the new model gained momentum and that the at-the-market offering scheduled for February would likely establish a share limit.

Rekor Systems, Inc. is a holding company that, via its subsidiaries, provides real-time highway, customer, and public safety information solutions. Arctis Global also strengthened its position in Rekor Systems, Inc. by buying 772,423 additional shares.

Rekor Systems, Inc. has featured on Viraj Mehta’s portfolio since the first quarter of 2021. As of the end of the fourth quarter, 5 hedge funds in Insider Monkey’s database held stakes in Rekor Systems, Inc., a decrease compared to 8 funds in the preceding quarter.

Besides Apple Inc. (NASDAQ:AAPL), Microsoft Corporation, and Visa Inc. (NYSE:V), Rekor Systems, Inc. is a notable stock currently gaining investors’ attention.

Evermore Global Advisors, an investment management firm, in its second-quarter 2021 investor letter, mentioned Rekor Systems, Inc.. Here is what the fund said:

“Rekor Systems Inc. (REKR US). In February 2021, the Fund participated in a primary offering of shares in Rekor, a US-based technology company focused on vehicle identification systems sold to government entities. Shares proceeded to nearly double in short order, and we sold the position in mid-April for a sizable gain. When markets hand you a gift, sometimes it’s best to ring the cash register.”

5. Popular, Inc. (NASDAQ:BPOP)

Arctis Global’s Stake Value: $21,394,000
Percentage of Arctis Global’s 13F Portfolio: 8.01%
Number of Hedge Fund Holders: 35

Popular, Inc. (NASDAQ:BPOP) is a holding corporation. The company is in the banking and financial services business. Popular, Inc. reported financial results for Q1 2022 on April 26, posting earnings per share of $2.69, beating estimates by $0.39. The $649 million revenue grew 2.6% year-over-year, beating analysts’ predictions by roughly $1.84 million.

Hedge funds are loading up on Popular, Inc., as Insider Monkey’s data shows that 35 hedge funds held stake in the company as of the end of the fourth quarter, compared to 33 funds at the end of the preceding quarter. Bernard Horn’s Polaris Capital Management is a significant shareholder of Popular, Inc., with 3.35 million shares worth $274.59 million.

In the fourth quarter, Arctis Global cut its stake in Popular, Inc. by 153,745 shares, reducing its total stake size by 38%. However, the hedge fund held 260,772 shares of Popular, Inc., worth more than $21.39 million. On April 12, Keefe Bruyette analyst Kelly Motta reiterated an Outperform rating on Popular, Inc. and a price target of $115.

4. BGC Partners, Inc. (NASDAQ:BGCP)

Arctis Global’s Stake Value: $27,701,000
Percentage of Arctis Global’s 13F Portfolio: 10.37%
Number of Hedge Fund Holders: 26

BGC Partners, Inc. (NASDAQ:BGCP) works in the financial markets, providing brokerage services. Fixed income, foreign currency, stocks, insurance, energy, commodities, and futures are among the products offered by the business, which also offers integrated voice, hybrid, and completely computerized brokerage.

BGC Partners, Inc., on May 2, posted earnings for the first quarter of 2022. The reported EPS came in at $0.21, in line with estimates. Revenue over the period came in at $506.5 million, below estimates by $10.79 million. BGC Partners, Inc. also issued a $0.01 per share quarterly dividend, in line with previous.

In the fourth quarter, Arctis Global sold 6.87 million shares of BGC Partners, Inc., reducing its remaining stake by about 54%. At the end of the quarter, the hedge fund held more than 5.96 million shares of BGC Partners, Inc., worth about $27.70 million.

An Outperform rating was assigned to BGC Partners, Inc. and a $7 price objective by Credit Suisse analyst Gautam Sawant on February 15. According to Insider Monkey’s Q4 data, 26 hedge funds were long BGC Partners, Inc., compared to 23 funds in the previous quarter.

3. MoneyGram International, Inc. (NASDAQ:MGI)

Arctis Global’s Stake Value: $29,222,000
Percentage of Arctis Global’s 13F Portfolio: 10.94%
Number of Hedge Fund Holders: 24

MoneyGram International, Inc. (NASDAQ:MGI) is a global financial services provider specializing in international money transfers, bill payment services, and money orders. In the fourth quarter of 2021, 24 hedge funds were bullish on MoneyGram International, Inc., up from 23 funds in the third quarter.

Northland analyst Mike Grondahl downgraded MoneyGram International, Inc. from Outperform to Market Perform on March 22 and lowered his price objective of $11 from $12.25. MoneyGram International, Inc. announced a formal agreement on February 15 under which Madison Dearborn Partners-affiliated funds will purchase all outstanding shares for $11 per share in an all-cash transaction scheduled to complete in Q4.

Viraj Mehta’s Arctis Global is a prominent shareholder of MoneyGram International, Inc. in Q4 2021, with 3.70 million shares worth $29.22 million. The fund first bought a stake in MoneyGram International, Inc. in the second quarter of 2021.

2. Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI)

Arctis Global’s Stake Value: $36,325,000
Percentage of Arctis Global’s 13F Portfolio: 13.6%
Number of Hedge Fund Holders: 17

Fortress Transportation and Infrastructure Investors LLC (NASDAQ:FTAI) is in the business of buying, selling, and managing transportation and transportation-related infrastructure and equipment. At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $268.24 million in Fortress Transportation and Infrastructure Investors LLC, the same as in the previous quarter worth $141.59 million.

Fortress Transportation and Infrastructure Investors LLC issued a quarterly dividend of $0.33 per share on April 28, in line with the previous. The firm posted earnings for the first fiscal quarter on April 28, reporting a revenue of $137.84 million, up 78.7% year-on-year. For the Russia/Ukraine war, Fortress Transportation and Infrastructure Investors LLC wrote down $195 million in impairments, bad debt, and lost income, which it intends to recoup in full via insurance revenues, asset sales gains, and outstanding repayments.

Arctis Global held 1.26 million shares of Fortress Transportation and Infrastructure Investors LLC, worth $36.33 million, representing 13.6% of its portfolio. The hedge fund has increased its stake in Fortress Transportation by a whopping 843% in the fourth quarter of 2021.

1. Alliance Data Systems Corporation (NYSE:ADS)

Arctis Global’s Stake Value: $50,829,000
Percentage of Arctis Global’s 13F Portfolio: 19.03%
Number of Hedge Fund Holders: 35

Alliance Data Systems Corporation is a company that specializes in data-driven marketing solutions. Alliance Data Systems Corporation stated on March 23 that it would be renamed Bread Financial Holdings, Inc. (NYSE:BFH), a tech-forward financial services firm.

Alliance Data Systems Corporation was downgraded from Overweight to Equal Weight by Morgan Stanley analyst Jeffrey Adelson on March 28, and a price objective of $67, down from $104.

In its Q4 2021 investor letter, Tao Value mentioned Alliance Data Systems Corporation. Here is what the fund said:

“ADS, on the other hand, was a classic failed roll-up by a promotional wall street veteran CEO, optically looks very cheap. I was also lured by its seemingly drastic decision making in share-buybacks, which in retrospective, were merely clumsy “imitation” of the great capital allocator CEOs that investors loved to study.”

You can also take a peek at 10 Stock Picks of Rishi Bajaj’s Altai Capital and 10 Stocks to Sell Now According to Michael Zimmerman’s Prentice Capital Management

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