5 Best New Stocks To Buy According to Hedge Funds

In this article, we will discuss the 5 best new stocks to buy according to hedge funds. If you want to read our detailed analysis of these companies, go directly to the 11 Best New Stocks To Buy According to Hedge Funds.

5.  SoFi Technologies, Inc. (NASDAQ:SOFI)

Number of Hedge Fund Holders: 39

Price as of October 20, 2021: $21.05

SoFi Technologies, Inc. (NASDAQ:SOFI) is a digital financial services company with over two million members and more than $50 billion in funded loans.

Since becoming public in December 2020, the stock price of the San Francisco-based firm has more than doubled. Betsy Graseck at Morgan Stanley has given SoFi Technologies Inc. (NASDAQ:SOFI) an Overweight rating and a target price of $25. Furthermore, Jim Cramer at CNBC also recommended the stock as a way to get exposure into “nouveau banks.”

According to Insider Monkey’s database, 39 hedge funds hold a cumulative stake of $1.78 billion in the company as of June 30, 2021, which is equivalent to 11% of SoFi’s market value. Silver Lake Partners is the leading shareholder with a stake of over $738 million in SoFi Technologies Inc. (NASDAQ:SOFI).

Miller Value Partners discussed its stance on SoFi Technologies Inc. (NASDAQ:SOFI) in its Q2 2021 investor letter. Here’s what the firm said:

“We entered SoFi Technologies Inc. (SOFI) on a private investment and public equity (PIPE) deal earlier this year, and it closed in the quarter. SoFi is a “fin-tech” company offering borrowing, saving, spending and investing offerings. The company has no brick and mortar locations allowing them certain efficiencies. SoFi reinvests savings back into the business by providing customers with higher interest rates on deposits and lower loan rates. It uses data to improve loss ratios and reduce risk.

SoFi is led by Anthony Noto who we’ve known for many years. Most recently he served as Twitter’s CFO and worked at Goldman Sachs prior to that. He’s a thoughtful executive that understands how to drive business value. Overtime, they think they can continue to gain market share from traditional players in the space. We think there’s significant potential in SoFi.”