In this article, we discuss the 10 best stocks under $10 according to billionaire Daniel Och’s OZ Management.
Daniel Och is an American billionaire, investor, and hedge fund manager. He founded Och-Ziff Capital Management in 1994, a publicly traded hedge fund firm with a $100 million investment from the Ziff brothers.
Daniel Och began his career at Goldman Sachs in 1982 in the Risk Arbitrage Department. Later, he was promoted as the Head of Propriety Trading in the Equities Division. In 1994, he founded Och-Ziff Capital Management. Och’s investment strategy revolves around following multi strategies while allocating capital, including merger arbitrage, long/short equity, and corporate credit. Also, his fund is globally diversified due to his global reach managing assets in the U.S., Europe, and Asia. This provides the hedge fund with a benefit to grab opportunities within the changing market conditions.
With these strategies, the firm managed to make over $2 billion in 2012, about half of its total profits that year. The hedge fund’s assets under management reached $50 billion in 2015. However, in 2016, Och-Ziff Capital Management Group paid about $200 million to the SEC to settle civil charges of violating the Foreign Corrupt Practices Act (FCPA). The billionaire paid $2.2 million to settle SEC charges that he caused certain violations along with CFO Joel M. Frank, who also agreed to settle the charges.
This controversy resulted in investors pulling over $6.9 billion out of the hedge fund firm in 2017, with the firm’s assets declining to $32 billion. But, the hedge fund’s steady performance remained intact, as OZ Master Fund returned 4.7% in 2017.
In 2017, the name of the hedge fund was officially changed to OZ Management and in 2019, Och stepped down from his Chairman position. In August 2019, the hedge fund started to be known by the name of Sculptor Capital Management, with Jimmy Levin performing his duties as the hedge fund’s CEO.
As of Q2 2021, OZ Management’s investment is variegated mainly across four sectors: technology, services, healthcare, and financial. Along with this, the hedge fund also invests in utilities, industrial goods, and basic materials. The hedge fund’s 13F portfolio has over $13.7 billion in managed securities, with the portfolio’s value gaining 1.12% in Q2 2021. Some of the notable stocks in Daniel Och’s 13F portfolio include Amazon.com, Inc. (NASDAQ:AMZN), Bank of America Corporation (NYSE:BAC), Alibaba Group Holding Limited (NYSE:BABA), Mastercard Incorporated (NYSE:MA), and Microsoft Corporation (NASDAQ:MSFT).
However, in this article, we lay our focus on the most notable stocks under $10 in Daniel Och’s portfolio.
Our Methodology:
Let’s analyze our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management. We took into account Daniel Och’s 13F portfolio as of Q2 2021.
Daniel Och of OZ Management
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10 Best Stocks Under $10 According to Billionaire Daniel Och’s OZ Management
10. Aurora Cannabis Inc. (NASDAQ:ACB)
OZ Management’s Stake Value: $3,579,000
Percent of OZ Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 9
Share Price as of October 5: $7.04
Aurora Cannabis Inc. (NASDAQ:ACB) is a Canadian licensed cannabis producer, also involved in the production and distribution of cannabis and related products in Canada and around the world. The company ranks tenth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
In Q2 2021, OZ Management increased its stake in Aurora Cannabis Inc. by 5,682%. The hedge fund now owns 395,948 shares in the company, valued at $3.57 million. The company accounts for 0.02% of the hedge fund’s 13F portfolio. In June, BMO Capital upgraded Aurora Cannabis Inc. to ‘Market Perform’, with an $8 price target. Recently, the company has launched a medical CBD oil in Uruguay and is also authorized by Uruguay’s health regulators for refractory epilepsy in children and adolescents. In the past year, Aurora Cannabis Inc. delivered a 52.3% return to shareholders.
As of Q2 2021, 9 hedge funds tracked by Insider Monkey have positions in Aurora Cannabis Inc., compared with 12 in the previous quarter. These stakes are valued at $62.7 million.
Like Amazon.com, Inc., Bank of America Corporation, Alibaba Group Holding Limited, Mastercard Incorporated, and Microsoft Corporation, Aurora Cannabis Inc. is also favored by investors and analysts in 2021.
9. Arcimoto, Inc. (NASDAQ:FUV)
OZ Management’s Stake Value: $3,290,000
Percent of OZ Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 4
Share Price as of October 5: $9.45
Arcimoto, Inc. (NASDAQ:FUV) is an American electric vehicle company that also sells van variations for emergency services and last-mile deliveries. The company ranks ninth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
In Q2 2021, OZ Management did not change its position in Arcimoto, Inc.. The hedge fund holds 191,400 shares in the company, valued at $3.2 million. The company represents 0.02% of the hedge fund’s 13F portfolio. In Q2, Arcimoto, Inc. reported revenue of $0.72 million, up 148.3% from the prior-year quarter. In the quarter, the company manufactured 74 vehicles and delivered 30 vehicles to its consumers.
In September, Alliance Global Partners initiated its coverage on Arcimoto, Inc. with a ‘Buy’ rating and an $18 price target. The firm’s analyst appreciated the company’s alternative battery vehicle, ‘Fun Utility Vehicle’, or FUV. In the past year, Arcimoto, Inc. delivered a 64.3% return to shareholders.
As of Q2 2021, 4 hedge funds tracked by Insider Monkey have positions in Arcimoto, Inc., compared with 5 in the previous quarter. These stakes are valued at $5.1 million.
Like Amazon.com, Inc., Bank of America Corporation, Alibaba Group Holding Limited, Mastercard Incorporated, and Microsoft Corporation, Arcimoto, Inc. is also on investors’ radar in 2021.
8. Canaan Inc. (NASDAQ:CAN)
OZ Management’s Stake Value: $3,230,000
Percent of OZ Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 11
Share Price as of October 5: $6.28
Canaan Inc. (NASDAQ:CAN) is a China-based computer hardware manufacturer. The company is the second-largest manufacturer of bitcoin mining machines. It ranks eighth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
As of Q2 2021, OZ Management holds 396,300 shares in Canaan Inc., valued at over $3.23 million. The company accounts for 0.02% of the hedge fund’s 13F portfolio. In Q2, Canaan Inc. reported a 126.9% growth in sales of total computing power at 5.9M Thash/s, up from 2.6M Thash/s during the same period last year. For Q3, the company expects a sequential increase of 10% to 30% in its total revenues. Canaan Inc. delivered a 232.2% return to shareholders in the past year.
As of Q2 2021, 11 hedge funds tracked by Insider Monkey have positions in Canaan Inc., up from 9 in the previous quarter. These stakes are valued at $48.5 million. Jim Simons’ Renaissance Technologies is the company’s leading shareholder, with shares worth $10.4 million.
Like Amazon.com, Inc., Bank of America Corporation, Alibaba Group Holding Limited, Mastercard Incorporated, and Microsoft Corporation, Canaan Inc. is also one of the notable stocks in Daniel Och’s 13F portfolio.
7. FuelCell Energy, Inc. (NASDAQ:FCEL)
OZ Management’s Stake Value: $3,227,000
Percent of OZ Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 14
Share Price as of October 5: $6.00
FuelCell Energy, Inc. (NASDAQ:FCEL) ranks seventh on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management. It is an American fuel cell company that converts chemical energy from hydrogen-rich fuels into electrical power.
In Q2 2021, OZ Management did not make changes to its activity in FuelCell Energy, Inc.. The hedge fund holds 362,600 shares in the company, worth over $3.22 million. The company represents 0.02% of the hedge fund’s 13F portfolio. In Q2 2021, FuelCell Energy, Inc. reported revenue of $26.8 million, showcasing a 43.3% year-over-year growth and beating the estimates by $6.17 million. FuelCell Energy, Inc. delivered a 217.4% return to shareholders in the past year.
As of Q2 2021, 14 hedge funds tracked by Insider Monkey have positions in FuelCell Energy, Inc., up from 13 in the previous quarter. These stakes are valued at over $105 million.
Like Amazon.com, Inc., Bank of America Corporation, Alibaba Group Holding Limited, Mastercard Incorporated, and Microsoft Corporation, investors and analysts are also paying attention to FuelCell Energy, Inc. amid the company’s long-term growth potential.
6. Talkspace, Inc. (NASDAQ:TALK)
OZ Management’s Stake Value: $3,290,000
Percent of OZ Management’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 26
Share Price as of October 5: $3.93
Talkspace, Inc. (NASDAQ:TALK) is an American online and mobile therapy company where users can have access to licensed therapists. The company ranks sixth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
Talkspace, Inc. is one of the recent acquisitions of OZ Management as the hedge fund started building its position in the company with 400,000 shares in Q2 2021. The shares are valued at over $3.2 million. The company accounts for 0.02% of the hedge fund’s 13F portfolio. In Q2 2021, Talkspace, Inc. reported revenue of $30.9 million, up 73.3% from the prior-year quarter. This August Citigroup initiated its coverage on Talkspace, Inc. with a ‘Buy’ rating and a $7 price target. The firm’s analyst Daniel Grosslight expects the company to play its role effectively in the global mental health crisis.
As of Q2 2021, 26 hedge funds tracked by Insider Monkey have positions in Talkspace, Inc., valued at $174 million.
5. Lordstown Motors Corp. (NASDAQ:RIDE)
OZ Management’s Stake Value: $4,348,000
Percent of OZ Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 12
Share Price as of October 5: $5.85
Lordstown Motors Corp. (NASDAQ:RIDE) is an American electric vehicle automaker. The company designs and manufactures electric vehicles with the main motive to reduce costs. The company ranks fifth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
As of Q2 2021, OZ Management owns 393,100 shares of Lordstown Motors Corp., valued at over $4.3 million. The company accounts for 0.03% of the hedge fund’s 13F portfolio. Recently, Lordstown Motors Corp. announced an agreement with Taiwan-based technology company, Foxconn, to develop an electric vehicle program at Lordstown Motors Plant. The joint collaboration will build the all-electric Endurance pickup truck. For FY21, Lordstown Motors Corp. expects capital expenditure of between $375 million to $400 million. In September, Morgan Stanley reinstated the coverage on Lordstown Motors Corp. with an ‘Equal Weight’ rating and an $8 price target.
As of Q2 2021, 12 hedge funds tracked by Insider Monkey have positions in Lordstown Motors Corp., worth $27.1 million. The number of hedge funds having stakes in the company was the same in the previous quarter.
4. Nano Dimension Ltd. (NASDAQ:NNDM)
OZ Management’s Stake Value: $4,470,000
Percent of OZ Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 11
Share Price as of October 5: $5.38
Nano Dimension Ltd. (NASDAQ:NNDM) ranks fourth on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management. It is an American company that focuses on the development of advanced 3D electronic systems. Along with this, the company also produces nanotechnology-based conductive and dielectric inks.
As of Q2 2021, OZ Management owns 542,500 shares in Nano Dimension Ltd., valued at over $4.47 million. The company accounts for 0.03% of the hedge fund’s 13F portfolio. In Q2 2021, Nano Dimension Ltd. reported revenue of $0.81 million, growing about 179.3% from the prior-year quarter.
On September 7, Nano Dimension Ltd. signed a deal with Germany-based Fraunhofer Institute for Manufacturing Engineering and Automation to develop next generation of 3D printing style. The collaboration will focus on the research and development within the field. In the past year, Nano Dimension Ltd. has delivered a 128.9% return to shareholders.
As of Q2 2021, 11 hedge funds tracked by Insider Monkey have positions in Nano Dimension Ltd., same as in the previous quarter. These stakes are valued at $173.9 million. Catherine Wood’s ARK Capital Management is the company’s leading shareholder with 16.3 million shares.
3. Inovio Pharmaceuticals, Inc. (NASDAQ:INO)
OZ Management’s Stake Value: $6,616,000
Percent of OZ Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 8
Share Price as of October 5: $6.36
Inovio Pharmaceuticals, Inc. (NASDAQ:INO) is an American biotech company that is focused on the development and commercialization of synthetic DNA products. The company’s discoveries mainly treat patients suffering from rare and serious diseases, such as cancer. It ranks third on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
In Q2 2021, OZ Management increased its position in Inovio Pharmaceuticals, Inc. by 133% and now holds 713,700 shares in the company. The total value of these shares is over $6.6 million. The company now accounts for 0.04% of the hedge fund’s 13F portfolio. In Q2 2021, Inovio Pharmaceuticals, Inc. reported revenue of $0.27 million and ended the quarter with cash and cash equivalents of $443.7 million, compared with $411.6 million. This July, Oppenheimer reiterated its ‘Buy’ rating on Inovio Pharmaceuticals, Inc., with a $35 price target.
As of Q2 2021, 8 hedge funds tracked by Insider Monkey have positions in Inovio Pharmaceuticals, Inc., compared with 11 in the previous quarter. The total value of these stakes is $37.4 million.
2. Skillz Inc. (NYSE:SKLZ)
OZ Management’s Stake Value: $9,561,000
Percent of OZ Management’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 20
Share Price as of October 5: $9.00
Skillz Inc. (NYSE:SKLZ) is an online multiplayer video game platform integrated into a number of iOS and Android games. The company ranks second on our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management.
As of Q2 2021, OZ Management holds 440,200 shares in Skillz Inc., worth over $9.5 million. The company represents 0.06% of the hedge fund’s 13F portfolio. In Q2 2021, Skillz Inc. reported revenue of $89.5 million, beating the estimates by $0.7 million and showcasing a 52% year-over-year growth. The company’s gross profit grew by 52% from the previous quarter at $85.1 million. Recently, Skillz Inc. announced the launch of trivia game, Trivia Crack on its platform, which would be available in over 180 countries for 150 million active users. In August, Canaccord Genuity rated Skillz Inc. as a ‘Buy’, while maintaining a $23 price target.
Of the 873 hedge funds tracked by Insider Monkey, 20 hedge funds have positions in Skillz Inc. in Q2 2021, compared with 26 in the previous quarter. These stakes are valued at $1.13 billion. With 24.6 million shares, ARK Investment Management is the company’s leading shareholder.
1. Two Harbors Investment Corp. (NYSE:TWO)
OZ Management’s Stake Value: $17,647,000
Percent of OZ Management’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 30
Share Price as of October 5: $6.42
Two Harbors Investment Corp. (NYSE:TWO) tops our list of the best stocks under $10 according to billionaire Daniel Och’s OZ Management. It is an American real estate investment trust company focused on investing and managing residential mortgage-backed securities and other financial assets.
In Q2 2021, OZ Management increased its stake in Two Harbors Investment Corp. by 58% and now owns over 1.7 million shares in the company, valued at $17.6 million. The company now accounts for 0.12% of the hedge fund’s 13F portfolio.
In Q2 2021, Two Harbors Investment Corp. posted an EPS of $0.19, beating the estimates by $0.01. The company’s book value grew by 9.6% from the previous quarter at $6.42 per common share. In August, Royal Bank of Canada lifted its price target on Two Harbors Investment Corp. to $7.50, while keeping an ‘Outperform’ rating on the shares. Since the beginning of the year, Two Harbors Investment Corp. delivered a 3.88% return to shareholders, while its 12-month returns came in at 21.8%.
As of Q2 2021, 30 hedge funds tracked by Insider Monkey have positions in Two Harbors Investment Corp., compared with 32 in the previous quarter. These stakes are valued at $160.7 million.
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This article is originally published at Insider Monkey.
