3. Futu Holdings Limited (NASDAQ:FUTU)
Number of Hedge Fund Holders: 14
1-Month Share Price Gain as of November 30: 78.50%
Futu Holdings Limited (NASDAQ:FUTU) operates an online brokerage and wealth management platform in Hong Kong and internationally. On November 21, Futu Holdings Limited (NASDAQ:FUTU) reported a Q3 GAAP EPADS of $0.68, beating analysts’ estimates by $0.07. The revenue climbed 11.5% year-over-year to $247.9 million, outperforming Wall Street forecasts by $19.75 million. Total number of paying clients increased 23.8% year-over-year to 1,444,955 as of September 30 and non-GAAP adjusted net income increased 24.8% year-over-year to $102.7 million. Futu Holdings Limited (NASDAQ:FUTU) is one of the best-performing growth stocks to monitor.
On October 24, investment advisory DBS Bank initiated coverage of Futu Holdings Limited (NASDAQ:FUTU) with a Buy rating and a $55 price target.
Among the hedge funds tracked by Insider Monkey, 14 funds reported owning stakes worth $113.3 million in Futu Holdings Limited (NASDAQ:FUTU) at the end of Q3 2022, compared to 9 funds in the prior quarter worth $153.2 million. Israel Englander’s Millennium Management is the leading position holder in the company, with 1.3 million shares valued at $49 million.
Here is what Tao Value has to say about Futu Holdings Limited (NASDAQ:FUTU) in their Q1 2021 investor letter:
“Futu is a new “Opportunistic” position. It is an HK based online brokerage & wealth management platform with deep roots in technology. Futu sits in the confluence of 3 strong favorable forces of Meteorology, Topography & Commander, yet was underpriced at the time of our entry. In terms of Meteorology, there is a huge addressable market of Chinese domestic middle to upper classes’ wealth being deployed to overseas assets allocation in the next decade. Additionally, the incumbents being disrupted are extremely weak in their digital transformation. On Topography, Futu’s user-centric product design built an intuitive front end and great user experience, while the digital native development framework built a solid & reliable back end (including a self-developed order routing & execution system for the HK market). This is a rare combination compared to both offline incumbents (who lack flashy front end & UX) & other new online disrupters (who lack solid infrastructure). On Commander factor, founder CEO Li Hua was a Tencent engineer in its early days with deep knowledge in product design and development. Li is said to be a fanatic product manager, to this day still at the front-line, alpha testing any new features. Based on analyses of these factors, I think Futu could compound its revenue at a very high rate with very high certainty and with strong operating leverage, putting our entry price very attractive compared to earning power in 3-5 years. Yet just as we finished building a small position, the price started to take off and more than tripled in a month. When such price action happens, it is obvious that Mr. Market has turned very euphoric to this name. I decided to trim but kept a reasonable position given its growth certainty.”
