In this article, we will discuss the 5 stocks to buy according to Bluegrass Capital Partners. If you want to read our detailed analysis of the fund’s history, investment philosophy, and hedge fund performance, go directly to the 10 Stocks to Buy According to Bluegrass Capital Partners.
5. Black Knight, Inc. (NYSE:BKI)
Bluegrass Capital Partners’ Stake Value: $12,867,000
Percentage of Bluegrass Capital Partners’ 13F Portfolio: 7.31%
Number of Hedge Fund Holders: 33
Black Knight, Inc. (NYSE:BKI) provides integrated software, data, and analytics solutions.
On September 30, Raymond James analyst Patrick O’Shaughnessy upgraded Black Knight, Inc. (NYSE:BKI) to “Outperform” from “Market Perform” and gave a price target of $83.
There were 33 hedge funds in our database that held stakes in Black Knight, Inc. (NYSE:BKI) at the end of the second quarter of 2021, compared to 40 funds in the previous quarter.
4. Microsoft Corporation (NASDAQ:MSFT)
Bluegrass Capital Partners’ Stake Value: $13,816,000
Percentage of Bluegrass Capital Partners’ 13F Portfolio: 7.85%
Number of Hedge Fund Holders: 238
On September 17, Tigress Financial analyst Ivan Feinseth initiated coverage of Microsoft Corporation (NASDAQ:MSFT) and increased his price target to $366 from $303 and kept a “Buy” rating on the shares.
Out of the hedge funds being tracked by Insider Monkey, Ivy Lane Capital is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 86,000 shares worth more than $23.30 billion. Bluegrass Capital Partners owns 51,000 shares in the tech company worth over $13.82 million, representing close to 7.85% of its portfolio.
In its second-quarter 2021 investor letter, Baron Opportunity Fund mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”
3. TransDigm Group Incorporated (NYSE:TDG)
Bluegrass Capital Partners’ Stake Value: $14,240,000
Percentage of Bluegrass Capital Partners’ 13F Portfolio: 8.09%
Number of Hedge Fund Holders: 57
TransDigm Group Incorporated (NYSE:TDG) designs, manufactures, and markets airplane components. It ranks third on the list of 10 stocks to buy according to Bluegrass Capital Partners.
On September 13, Morgan Stanley analyst Kristine Liwag initiated coverage of TransDigm Group Incorporated (NYSE:TDG), rating the stock as “Buy,” with a price target of $762.
Bluegrass Capital Partners holds 22,000 shares in TransDigm Group Incorporated (NYSE:TDG) worth over $14.24 million, representing 8.09% of its investment portfolio. The hedge fund has increased its stake in TransDigm Group by 5% in the second quarter.
In its second-quarter 2021 investor letter, Vulcan Value Partners, an investment management firm, mentioned TransDigm Group Incorporated (NYSE:TDG). Here is what the fund said:
“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”
2. Mastercard Incorporated (NYSE:MA)
Bluegrass Capital Partners’ Stake Value: $14,604,000
Percentage of Bluegrass Capital Partners’ 13F Portfolio: 8.3%
Number of Hedge Fund Holders: 156
Based on Bluegrass Capital Partners’ SEC 13F filings at the end of the second quarter, it currently owns 40,000 shares of Mastercard Incorporated (NYSE:MA) worth $14.60 million, accounting for 8.3% of the hedge fund’s total portfolio. Moreover, hedge funds are loading up on Mastercard Incorporated (NYSE:MA), as Insider Monkey’s data shows that 156 hedge funds held a stake in the company in the second quarter of 2021, compared to 151 funds in the preceding quarter.
Qualivian Investment Partners, its second-quarter 2021 investor letter, mentioned Mastercard Incorporated (NYSE:MA). Here is what Qualivian Investment Partners has to say about Mastercard Incorporated:
“Mastercard: Q2 revenue and EPS beat consensus estimates by 3.7% and 12% respectively. Operating margins also beat consensus by +240 bps. Gross domestic volume growth of +38.3% (+32.8% in constant currency) was buttressed by continued e-commerce strength and better in-store performance, while purchase volumes grew 41.8% (35.5% in constant currency). Cross border performance was strong, but durability remains uncertain given uncertainty arising from the Delta variant and its impact on travel and tourism. We believe Mastercard has a robust runway for growth given further travel recovery, new/existing partnerships, traction in digital payments, and ongoing economic recovery.”
1. NeoGames S.A. (NASDAQ:NGMS)
Bluegrass Capital Partners’ Stake Value: $17,519,000
Percentage of Bluegrass Capital Partners’ 13F Portfolio: 9.96%
Number of Hedge Fund Holders: 11
NeoGames S.A. (NASDAQ:NGMS) is a global provider of iLottery technology solutions. It is placed first on the list of 10 stocks to buy according to Bluegrass Capital Partners.
In the second quarter, NeoGames S.A.’s (NASDAQ:NGMS) earnings per share was $0.10, below the estimates by $0.02. Network NGR over the period was $187 million, compared to $112 million for the second quarter of 2020, signifying an increase of 67.2% year-over-year.
Richard Driehaus’ Driehaus Capital is the leading shareholder of NeoGames S.A. (NASDAQ:NGMS) with 365,310 shares worth $22.46 million. Bluegrass Capital Partners owns more than 285,000 shares in NeoGames S.A. (NASDAQ:NGMS) worth $17.52 million, representing 9.96% of its portfolio. At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $63.23 million in NeoGames S.A. (NASDAQ:NGMS), up from 9 the preceding quarter worth $52.95 million.
You can also take a peek at Top 10 Stocks to Buy Today According to Stephen Perkins’ Toronado Partners and 10 Best Stocks to Invest In According to Philip Timon’s Owls Nest Partners
