In this article, we discuss the 10 best tech stocks to buy according to Orkun Kilic’s Berry Street Capital.
Serving as a non-executive director, Orkun Kilic is the founder and Chief Investment Officer of the Berry Street Capital hedge fund. It was founded in 2019. Kilic has a Master’s degree Business Administration from Harvard Business School. Before the incorporation of Berry Street Capital, Orkun Kilic was Paulson Europe LLP’s Managing Partner and Paulson European Opportunities Fund’s Portfolio Manager.
Some of the main sectors Berry Street Capital invests in include Real Estate, Healthcare, Financial Services, Technology, and Basic Materials. The hedge fund’s 13F portfolio has over $1.135 billion in managed securities, as of the second quarter.
Some of the top technology stocks in the investment portfolio of Berry Street Capital at the end of the second quarter of 2021 were Maxim Integrated Products, Inc. (NASDAQ: MXIM), Twitter, Inc. (NYSE: TWTR), and Spotify Technology S.A. (NASDAQ: SPOT), among others discussed in detail below. The top five holdings comprise around 38.79% of the portfolio. The total value of the holdings is up $225.377 million (1.25%) when compared to the first quarter of the year.
Tech Hedge Funds Outperformed the Market
On March 31st, Forbes reported that tech-based hedge funds are dominating the market. The Custom Eurekahedge Tech-Focused Hedge Fund Index has seen a return of 12.22% every year since 2012. In comparison, the returns for value funds, long and short equities funds, and average international hedge funds were 4.72%, 6.24%, and 5.89%, respectively.
Rising Interest Rates Threaten Tech Hedge Funds
Trouble looms as interests are rising, and they are likely to hit tech stocks due to their long-date future cash flows. In 2016, when the Federal Reserve increased the federal funds rate, tech-based stocks only returned 0.4%. This was the only year between 2009 to 2020 in which equites and global hedge funds overperformed in respect to tech-based funds. For the past year, tech-based funds have had a Sharpe ratio of 1.36 versus the equities funds’ 0.69.
Photo by Nicholas Cappello on Unsplash
Our Methodology
With this context in mind, here is our list of the 10 best tech stocks to buy according to Orkun Kilic. Although these stocks were listed according to the investment portfolio of Berry Street Capital at the end of the second quarter of 2021, the basic business fundamentals and analyst ratings for each are discussed alongside other details about the companies to provide potential investors with deeper insight so they can make more informed investment decisions. Data from the 873 hedge funds tracked by Insider Monkey was also used to gauge hedge fund sentiment around each stock.
Why should we pay attention to Berry Street’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Best Tech Stocks to Buy Now According to Orkun Kilic’s Berry Street Capital
10. Baidu, Inc. (NASDAQ: BIDU)
Berry Street Capital’s Stake Value: $4.6 million
Percentage of Berry Street Capital’s 13F Portfolio: 0.4%
Number of Hedge Fund Holders: 59
Launched in 2000 and situated in Beijing, China, Baidu, Inc. (NASDAQ: BIDU) ranks 10th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital. Baidu, Inc. (NASDAQ: BIDU) operates in the Chinese market and caters to internet search segments. Latest filings by Berry Street Capital reveal that the hedge fund owned 22,500 shares in the company at the end of June 2021 that are worth $4.6 million, representing 0.4% of the portfolio. Kilic increased his investment in the communication company by 29% compared to the first quarter of 2021.
On August 20, Erste Group changed its rating on the company from Hold to Sell.
As of the second quarter, 59 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $3.47 billion versus the first quarter’s 89 hedge funds with a stake of $6.57 billion. With a stake of $1 billion, Ken Griffin is the company’s biggest stakeholder.
Like Maxim Integrated Products, Inc. (NASDAQ: MXIM), Twitter, Inc. (NYSE: TWTR), and Spotify Technology S.A. (NASDAQ: SPOT), Baidu, Inc. (NASDAQ: BIDU) is one of the notable stocks gaining hedge funds’ attention in 2021.
9. Twitter, Inc. (NYSE: TWTR)
Berry Street Capital’s Stake Value: $6.89 million
Percentage of Berry Street Capital’s 13F Portfolio: 0.6%
Number of Hedge Fund Holders: 89
Ranking 9th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital, Twitter, Inc. (NYSE: TWTR) connects consumers and businesses, allowing users all over the world to voice their opinions. Twitter, Inc. (NYSE: TWTR) was formed in 2006 and is based in San Francisco, California. Latest filings by Berry Street Capital reveal that the hedge fund owned 100,000 shares in the firm at the end of June 2021 that are worth $6.89 million, representing 0.6% of the portfolio. As of the second quarter, Kilic has expanded investment in the social media platform by 100% compared to the first quarter of 2021.
On September 13th, Goldman Sachs labeled Twitter, Inc. (NYSE: TWTR) with a Sell rating, setting its target price to $60.
As of the second quarter, 89 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $6 billion versus the first quarter’s 107 hedge funds with a stake of $4.53 billion. With a stake of $21.7 billion, Robert W. Koehn is the company’s biggest stakeholder.
In addition to Maxim Integrated Products, Inc. (NASDAQ: MXIM) and Spotify Technology S.A. (NASDAQ: SPOT), hedge funds are paying attention to Twitter, Inc. (NYSE: TWTR) amid the company’s long-term growth potential.
8. Coherent, Inc. (NASDAQ: COHR)
Berry Street Capital’s Stake Value: $14.87 million
Percentage of Berry Street Capital’s 13F Portfolio: 1.3%
Number of Hedge Fund Holders: 43
Inaugurated in 1984 and rooted in San Jose, California, Coherent, Inc. (NASDAQ: COHR) ranks 2nd on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital. Coherent, Inc. (NASDAQ: COHR) revolves around laser-based technologies and solutions products to the commercial, scientific, and industrial research markets. Latest filings by Berry Street Capital reveal that the hedge fund owned 56,250 shares in the firm at the end of June 2021 that are worth $14.87 million, representing 1.3% of the portfolio.
On May 18th, Barclays kept an Equal Weight rating with a price target of $250.With a stock price of $251.97, the price went up by 1.99% in the last 6 months. The second quarter revenue of Coherent, Inc. (NASDAQ: COHR) was $374 million compared to the first quarter’s $326 million.
As of the second quarter, 43 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $1.525 billion versus the first quarter’s 41 hedge funds with a stake of $1.45 billion. With a stake of $381 million, Matthew Halbower is the company’s biggest stakeholder.
Like Maxim Integrated Products, Inc. (NASDAQ: MXIM), Twitter, Inc. (NYSE: TWTR), and Spotify Technology S.A. (NASDAQ: SPOT), Coherent, Inc. (NASDAQ: COHR) is one of the notable stocks gaining hedge funds’ attention in 2021.
7. Cloudera, Inc. (NYSE: CLDR)
Berry Street Capital’s Stake Value: $22.2 million
Percentage of Berry Street Capital’s 13F Portfolio: 1.95%
Number of Hedge Fund Holders: 34
Ranking 7th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital, Cloudera, Inc. (NYSE: CLDR) operates in America, Asia, and Europe. It sells analytics and management based products. Cloudera, Inc. (NYSE: CLDR) was formed in 2008 and is located in Santa Clara, California. Latest filings by Berry Street Capital reveal that the hedge fund owned 1.4 million shares in the firm at the end of June 2021 that are worth $22.2 million, representing 1.95% of the portfolio. Kilic’s first investment in the company began in the second quarter.
On July 9th, JMP Securities changed Cloudera, Inc. (NYSE: CLDR)’s rating from Outperform to Market Perform without setting any target price. With a stock price of $15.92, the price went up by 8.08% in the last 6 months. The second quarter revenue of Cloudera, Inc. (NYSE: CLDR) was $236.1 million compared to the first quarter’s $224.3 million.
As of the second quarter, 34 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $1.377 billion versus the first quarter’s 30 hedge funds with a stake of $865.678 million. With a stake of $830 million, Carl Icahn is the company’s biggest stakeholder.
In addition to Maxim Integrated Products, Inc. (NASDAQ: MXIM), Twitter, Inc. (NYSE: TWTR), and Spotify Technology S.A. (NASDAQ: SPOT), hedge funds are paying attention to Cloudera, Inc. (NYSE: CLDR) amid the company’s long-term growth potential.
6. Proofpoint, Inc. (NASDAQ: PFPT)
Berry Street Capital’s Stake Value: $34.752 million
Percentage of Berry Street Capital’s 13F Portfolio: 3.06%
Number of Hedge Fund Holders: 48
Founded in 2002 and situated in Sunnyvale, California, Proofpoint, Inc. (NASDAQ: PFPT) ranks 6th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital. Proofpoint, Inc. (NASDAQ: PFPT) provides sensitive data defense, protection, archives, and governance to businesses across the globe. Latest filings by Berry Street Capital reveal that the hedge fund owned 200,000 shares in the firm at the end of June 2021 that are worth $34.752 million, representing 3.06% of the portfolio.
On July 30th, JMP lowered Proofpoint, Inc. (NASDAQ: PFPT)’s rating from Outperform to Market Perform, without mentioning a price target. The stock price closed at $175.9 on August 30th. The second quarter revenue of Proofpoint, Inc. (NASDAQ: PFPT) was $308.65 million compared to the first quarter’s $287.83 million.
As of the second quarter, 48 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $2.59 billion in contrast to the first quarter’s 22 hedge funds with a stake of $455.2 million. With a stake of $438 million, Matthew Halbower is the company’s biggest stakeholder.
5. Maxim Integrated Products, Inc. (NASDAQ: MXIM)
Berry Street Capital’s Stake Value: $44.801 million
Percentage of Berry Street Capital’s 13F Portfolio: 3.94%
Number of Hedge Fund Holders: 56
Ranking 5th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital, Maxim Integrated Products, Inc. (NASDAQ: MXIM) operates in America, Asia, and Europe, providing multiple high-frequency process technologies and capabilities for custom builds. Maxim Integrated Products, Inc. (NASDAQ: MXIM) was launched in 1983 and is situated in San Jose, California. Latest filings by Berry Street Capital reveal that the hedge fund owned 425,216 shares in the firm at the end of June 2021 that are worth $44.801 million, representing 3.94% of the portfolio.
On August 19th, Deutsche Bank escalated Maxim Integrated Products, Inc. (NASDAQ: MXIM)’s price target from $104 to $107, with a Buy rating. On August 30th, Analog Devices’ deal to acquire Maxim Integrated Products, Inc. (NASDAQ: MXIM) was reaching its final stretch. The stock price closed at $104.45 on August 26th. The second quarter revenue of Maxim Integrated Products, Inc. (NASDAQ: MXIM) was $720 million compared to the first quarter’s $665 million.
As of the second quarter, 56 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $4.21 billion versus the first quarter’s 55 hedge funds with a stake of $3.24 billion. With a stake of $1.1 billion, Matthew Halbower is the company’s biggest stakeholder.
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4. Slack Technologies, Inc. (WORK) [Owned by Salesforce]
Berry Street Capital’s Stake Value: $55.375 million
Percentage of Berry Street Capital’s 13F Portfolio: 4.87%
Number of Hedge Fund Holders: 61
Launched in 2009 and located in San Francisco, California, Slack Technologies, Inc. ranks 4th on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital. Slack Technologies, Inc. revolves around bringing people together to its business communication platform. Latest filings by Berry Street Capital reveal that the hedge fund owned 1.25 million shares in the firm at the end of June 2021 that are worth $55.375 million, representing 4.87% of the portfolio.
On July 21st, Salesforce reported it had completely acquired Slack Technologies, Inc.
As of the second quarter, 61 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $5.328 billion versus the first quarter’s 60 hedge funds with a stake of $4.262 billion.
3. Nuance Communications, Inc. (NASDAQ: NUAN)
Berry Street Capital’s Stake Value: $61.245 million
Percentage of Berry Street Capital’s 13F Portfolio: 5.39%
Number of Hedge Fund Holders: 72
Ranking 3rd on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital, Nuance Communications, Inc. (NASDAQ: NUAN) specializes in conversational and cognitive artificial intelligence innovations with the aim of making daily life easier. Latest filings by Berry Street Capital reveal that the hedge fund owned 1.125 million shares in the firm at the end of June 2021 that are worth $61.245 million, representing 5.39% of the portfolio.
On May 11th, Morgan Stanley lowered Nuance Communications, Inc. (NASDAQ: NUAN)’s price target from $60 to $56 with a rating of Equal Weight (down from Overweight). With a stock price of $55.21, the price went up by 29.94% in the last 6 months. The second quarter revenue of Nuance Communications, Inc. (NASDAQ: NUAN) was $346.98 million compared to the first quarter’s $345.75 million.
As of the second quarter, 72 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $5.576 billion versus the first quarter’s 57 hedge funds with a stake of $4.13 billion. With a stake of $732 million, Philippe Laffont is the company’s biggest stakeholder.
2. Xilinx, Inc. (NASDAQ: XLNX)
Berry Street Capital’s Stake Value: $77.744 million
Percentage of Berry Street Capital’s 13F Portfolio: 6.84%
Number of Hedge Fund Holders: 59
Inaugurated in 1984 and rooted in San Jose, California, Xilinx, Inc. (NASDAQ: XLNX) ranks 2nd on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital. Xilinx, Inc. (NASDAQ: XLNX) specializes in the designing, developing, and marketing of programmable devices and associated technologies internationally. Latest filings by Berry Street Capital reveal that the hedge fund owned 537,500 shares in the firm at the end of June 2021 that are worth $77.744 million, representing 6.84% of the portfolio.
On August 3rd, Barclays raised Xilinx, Inc. (NASDAQ: XLNX)’s price target from $134 to $165 with an Equal Weight rating. With a stock price of $155.06, the price went up by 30.59% in the last 6 months. The second quarter revenue of Xilinx, Inc. (NASDAQ: XLNX) was $766.54 million compared to the first quarter’s $726.67 million.
As of the second quarter, 59 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $4.16 billion versus the first quarter’s 57 hedge funds with a stake of $3.58 billion. With a stake of $328 million, Israel Englander is the company’s biggest stakeholder.
1. IHS Markit Ltd. (NYSE: INFO)
Berry Street Capital’s Stake Value: $112.66 million
Percentage of Berry Street Capital’s 13F Portfolio: 9.92%
Number of Hedge Fund Holders: 61
Ranking 1st on our list of best tech stocks to buy now according to Orkun Kilic’s Berry Street Capital, IHS Markit Ltd. (NYSE: INFO) offers critical information, analytics, and solutions for various industries and markets internationally. IHS Markit Ltd. (NYSE: INFO) was incorporated in 1959 and is based in London, the United Kingdom. Latest filings by Berry Street Capital reveal that the hedge fund owned 1 million shares in the firm at the end of June 2021 that are worth $112.66 million, representing 9.92% of the portfolio. Kilic has expanded investment in the computing and data authority by 293% compared to the first quarter of 2021.
On July 15th, Deutsche Bank raised IHS Markit Ltd. (NYSE: INFO)’s target price from $123 to $127 with a Buy rating. With a stock price of $120.87, the price went up by 27.81% in the last 6 months. On 2nd August, S&P Global Inc. (NYSE: SPGI) and IHS Markit Ltd. (NYSE: INFO) reported an agreement of selling IHS Markit’s Oil Price Information Services; Coal, Metals and Mining; and PetroChem Wire businesses to News Corp (NWSA) in a cash transaction valued at approximately $1.15B. The second quarter revenue of IHS Markit Ltd. (NYSE: INFO) was $1.18 billion compared to the first quarter’s $1.12 billion.
As of the second quarter, 61 hedge funds out of 873 funds tracked by Insider Monkey held stakes in the company worth $5.9 billion versus the first quarter’s 54 hedge funds with a stake of $4 billion. With a stake of $128 billion, Robert Joseph Caruso is the company’s biggest stakeholder.
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Disclosure: None. 10 Best Tech Stocks to Buy Now According to Orkun Kilic’s Berry Street Capital is originally published on Insider Monkey.
