Below is the list of 5 growth stocks to buy according to Jay Chen’s Himension Capital. For a comprehensive list and detailed discussion about Jay Chen’s investment philosophy and portfolio management strategies, please see the 10 Growth Stocks to Buy According to Jay Chen’s Himension Capital.
5. Sea Limited (NYSE:SE)
Himension Capital’s Stake Value: $91.1 million
Percentage of Himension Capital’s 13F Portfolio: 8.85%
Number of Hedge Fund Holders: 104
Sea Limited (NYSE:SE) is among the top growth stocks that have extended the share price momentum even in the post-pandemic situation. The company’s share price surged 78% so far this year, driven by its expansion plans along with robust growth in the gaming market. The company is working on plans of raising more than $6 billion for business expansion. Jay Chen’s Himension Capital lifted its existing position in Sea Limited by 61% to 8.85% of the entire portfolio.
In the second quarter investor letter, Tao Value, an investment management firm, stated that Sea continued to execute above expectation. Here is what Tao Value said about Sea Limited:
“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in established ASEAN & LatAm markets and received positive reception from new markets like the US. On the e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now the top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”
4. Teladoc Health, Inc. (NYSE:TDOC)
Himension Capital’s Stake Value: $132.2 million
Percentage of Himension Capital’s 13F Portfolio: 12.84%
Number of Hedge Fund Holders: 43
Jay Chen’s Himension Capital raised its stake in Teladoc Health, Inc. (NYSE:TDOC) by 87% to around 795,000 shares during the second quarter. The shares of the $22 billion virtual healthcare service company have been under pressure over the last couple of months amid short-term headwinds. Nevertheless, disruptive technology investors like Catherine D. Wood’s ARK Investment Management see the dip in share price as a buying opportunity.
The number of bullish hedge fund positions rose by 1 in recent months. Teladoc Health was in 43 hedge funds’ portfolios at the end of the second quarter of 2021 compared to 42 positions in the prior quarter.
3. Shopify Inc. (NYSE:SHOP)
Himension Capital’s Stake Value: $159.3 million
Percentage of Himension Capital’s 13F Portfolio: 15.46%
Number of Hedge Fund Holders: 85
Jay Chen’s firm doubled down its position in Shopify Inc. (NYSE:SHOP) during the second quarter of 2020. His strategy appears to be working once again as shares of the e-commerce platform have extended the upside momentum into 2021, with shares up 25% so far this year amid robust financial numbers. The company’s subscription solutions revenue grew 70% year-over-year in the second quarter while merchant solutions revenue soared 52%. Moreover, the company expects its full-year 2021 adjusted operating income to top the level achieved in 2020.
In the second quarter investor letter, ClearBridge Investments, an investment management firm, mentioned a few stocks including Shopify. Here is what ClearBridge Investments stated:
“Shopify (is one of the) companies that have become go-to platforms for small and medium-size businesses (SMBs) engaged in e-commerce and social media marketing, rebounded strongly in the quarter after being caught in the selloff among high-multiple growth names since Vaccine Monday. These and the portfolio’s other disruptors had thrived through the first part of the pandemic, leading us to trim positions into strength and reallocate cash into more attractively priced evolving opportunities and steady compounders that had been overly punished by lockdowns and a drop in economic activity.”
2. Roblox Corporation (NYSE:RBLX)
Himension Capital’s Stake Value: $168.3 million
Percentage of Himension Capital’s 13F Portfolio: 16.34%
Number of Hedge Fund Holders: 49
Jay Chen’s hedge fund first initiated a position in Roblox Corporation (NYSE:RBLX) on its debut on NASDAQ in the first quarter of 2021 and lifted that position by 460% during the second quarter. The company’s growth strategy is likely to add to investors’ sentiments. The online entertainment platform reported a 127% increase in third-quarter revenue compared to the prior quarter, while free cash flows grew 70% over the same time period.
In the second quarter investor letter, Guardian Fund, an investment management firm, stated that growth opportunities for the Roblox platform are massive.
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
1. DoorDash, Inc. (NYSE:DASH)
Himension Capital’s Stake Value: $204.4 million
Percentage of Himension Capital’s 13F Portfolio: 19.85%
Number of Hedge Fund Holders: 45
DoorDash, Inc. (NYSE:DASH), a logistics platform that connects merchants, consumers, and dashers, is the largest stock holding Jay Chen’s Himension Capital, according to second-quarter filings. Furthermore, it appears that the Singapore-based hedge fund is benefiting from its big bet on DoorDash as shares of the company have rallied 49% so far in 2021.
Of the 873 hedge funds tracked by Insider Monkey DoorDash, Inc. (NYSE:DASH) was in 45 hedge funds’ portfolios at the end of the second quarter of 2021 compared to 38 positions in the prior quarter. Chase Coleman’s Tiger Global Management LLC and Philippe Laffont’s Coatue Management are among the leading shareholders in the company.
You can also take a look at Top Investors’ Stock Portfolio: 10 Mid-cap Stocks To Buy and Mark Cuban Stock Portfolio: 10 Stocks To Consider.
