5 Stocks Billionaire Tiger Cub Rob Citrone is Buying

4. Enphase Energy, Inc. (NASDAQ:ENPH)

Value of Discovery Capital Management‘s 13F Position: $10.4 million

Number of Hedge Fund Shareholders: 57

Enphase Energy, Inc. (NASDAQ:ENPH) hit an all-time high in terms of its ownership among hedge funds during Q1, with the home energy supplier being found in the 13F portfolios of 57 money managers. One of them was Rob Citrone’s Discovery, which bought 51,500 shares of ENPH to take a new stake in the company.

Shares of Enphase Energy, Inc. (NASDAQ:ENPH), which sells micro inverter systems to the solar industry, have been on a ridiculous tear since the end of 2018, gaining 3,933%, which has pushed the company’s P/E ratio to a sizzling 168x. Enphase has grown its revenue more than four-fold during that period, to $1.38 billion in 2021, while its gross income has surged more than five-fold to $554 million and EBITDA 15-fold to $247 million. The company also appears to have a regulatory step up on some other industry players, as new safety and compliance standards in Australia have prompted more solar installers to switch to Enphase products.

In its Q1 2022 investor letter, asset management firm Clearbridge Investments discussed some of the challenges that Enphase Energy, Inc. (NASDAQ:ENPH) has faced in the near-term, even as the company has solidified its long-term value. Here is what the fund said:

“Enphase Energy, Inc. (NASDAQ:ENPH) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation and supply chain challenges as their long-term value was reaffirmed.”