This article discusses the top 3 stock picks of billionaire Jorge Paulo Lemann’s 3G Capital at the end of June 2022. If you want to learn more about Mr. Lemann, how he founded 3G capital with two of his long-time partners and the fund’s other top stock picks, please go to 5 Best Stocks to Buy According to ‘Warren Buffett of Brazil’.
3. Bill.com Holdings, Inc. (NYSE:BILL)
3G Capital’s Stake Value: $13,743,000
Percentage of 3G Capital’s 13F Portfolio: 22.74%
Number of Hedge Fund Holders: 46
Payments, billing and invoice management SaaS provider Bill.com Holdings, Inc. (NYSE:BILL) remained 3G Capital’s third most loved stock at the end of Q2 despite the fund cutting down its holdings in the company by 44% to 125,000 shares during that period. The popularity of Bill.com Holdings, Inc. (NYSE:BILL) among smart money investors has followed the same trajectory as its stock price over the past few quarters. From 66 hedge funds among the funds we track disclosing a stake in the company at the end of Q3 2021, the number dropped to just 46 at the end of the second quarter this year.
Bill.com Holdings, Inc.’s (NYSE:BILL) stock jumped more than 10% on August 19 on the back of the company reporting better than expected quarterly numbers a day earlier after the markets closed for trading. However, they have given up those gains since then and currently trade down by 35% year-to-date. For its fiscal year 2022 fourth quarter, Bill.com Holdings, Inc. (NYSE:BILL) announced non-GAAP earnings per share loss of $0.03 on revenue of $200.22 million, beating analysts’ expectations handily by $0.11 and $17.12 million, respectively. For its fiscal year 2023, the company now expects revenue to be in the $955.5-$973.5 million range, whereas the consensus among analysts was revenue of $879.5 million.
2. TaskUs, Inc. (NASDAQ:TASK)
3G Capital’s Stake Value: $14,331,000
Percentage of 3G Capital’s 13F Portfolio: 23.71%
Number of Hedge Fund Holders: 15
TaskUs, Inc. (NASDAQ:TASK) got dethroned from its top spot in 3G Capital’s 13F portfolio in Q2 as the fund cut its stake in the company by half during that period. Founded in 2008, TaskUs, Inc. (NASDAQ:TASK) is an outsourcing company that handles content moderation for leading digital players like Facebook, DoorDash and many more. It filed for an IPO and started trading on the NASDAQ in the second quarter of 2021, the same quarter in which 3G Capital disclosed a stake in the company for the first time. Since then, the fund increased its stake in TaskUs, Inc. (NASDAQ:TASK) every quarter, but the consistent underperformance of the latter’s stock could be why 3G Capital stopped averaging down and cut its losses in Q2.
On August 10, analysts at The Goldman Sachs Group downgraded TaskUs, Inc.’s (NASDAQ:TASK) stock to ‘Neutral’ from ‘Buy’ and also reduced their price target on it to $24 from $26, which still represents a potential upside of over 60% from the stock’s last closing price.
1. Alphabet Inc. (NASDAQ:GOOG)
3G Capital’s Stake Value: $15,255,000
Percentage of 3G Capital’s 13F Portfolio: 25.24%
Number of Hedge Fund Holders Class A shares: 191
Number of Hedge Fund Holders Class C shares: 153
Alphabet Inc. (NASDAQ:GOOG) was the only company in which 3G Capital initiated a stake during the second quarter and also ended up becoming the fund’s top stock pick at the end of that period. Shares of the search and advertising giant have depreciated close to 25% this year, but most analysts believe this decline has made them even more lucrative as the company’s business model and consistent humongous cash flow generation ability remains unmatched in the industry.
Alphabet Inc. (NASDAQ:GOOG) has seen a slew of departures over the past couple of weeks. On August 29, Variety reported that Robert Kyncl, a veteran executive and currently the chief business officer at YouTube, would be leaving the company after more than 12 years of service early next year. Then on August 30, Endpoint News revealed that the chief marketing officer at Alphabet Inc.’s (NASDAQ:GOOG) Verily life sciences unit, Andreas “Drew” Panayiotou, is leaving the company. Mr. Panayiotou will be joining Pfizer Inc. (NYSE:PFE) as biopharma global chief marketing officer, a newly created position, on September 19.
You can also look at Billionaire Carl Icahn’s Latest Portfolio: Top 10 Stock Picks and 10 Best Stocks to Buy According to Billionaire Mario Gabelli
