In this article, we will discuss the 5 stocks to buy according to Cyrus De Weck’s Portsea Asset Management. If you want to read our detailed analysis of Weck’s history, investment philosophy, and hedge fund performance, go directly to the 9 Stocks to Buy According to Cyrus De Weck’s Portsea Asset Management.
5. Yandex N.V. (NASDAQ:YNDX)
Portsea Asset Management Stake Value: $17,370,000
Percentage of Portsea Asset Management’s 13F Portfolio: 9.53%
Number of Hedge Fund Holders: 31
Yandex N.V. (NASDAQ:YNDX), the Russian internet behemoth, declared in August that it would buy Uber’s interests in their joint food tech, delivery, and self-driving firms for $1 billion, as well as increase its stake in their ride-hailing joint venture.
Yandex N.V. (NASDAQ:YNDX) is the latest addition in Cyrus De Weck’s hedge fund portfolio, as Portsea Asset Management bought 245,515 shares worth $17.37 million.
In its second-quarter 2021 investor letter, Polen Capital Management mentioned Yandex N.V. (NASDAQ:YNDX). Here is what the fund said:
“From a country perspective, weak performance from Russian companies Yandex drove relative performance lower. Yandex is the leading internet search platform in Russia and was the top detractor from both absolute and relative performance this quarter. This underperformance came about despite solid results in 2020 which showed Yandex’s total e-commerce gross merchandise value grew three-fold in 2020 to over ₽56 billion RUB. Specifically, in the fourth quarter of 2020, Yandex saw year-on-year growth of 127%.
In our view, Yandex is one of the highest quality businesses in our investment universe. It has built a defensible competitive moat around its core search business, reinvesting its cash flows in new growth areas to remain relevant in a fast-changing global internet landscape.
We think Yandex benefits from an innovative and forward-thinking management team, which is shaping the development of Russian internet.
With solid execution, Yandex has the potential to transform into an ecosystem which the company’s Chief Technology Officer describes as the “Silicon Valley of Russia.” Yandex remains a topfive holding in the Portfolio.”
4. Payoneer Global Inc. (NASDAQ:PAYO)
Portsea Asset Management Stake Value: $20,527,000
Percentage of Portsea Asset Management’s 13F Portfolio: 11.26%
Number of Hedge Fund Holders: 40
Payoneer Global Inc. (NASDAQ:PAYO) is a global payment and commerce platform that offers international payments and other services via APIs, as well as web, mobile, and machine learning infrastructure. In the second quarter of 2021, Portsea Asset Management purchased around 1.98 million Payoneer Global Inc. (NASDAQ:PAYO) shares for $20.53 million, making it a fresh addition to its portfolio.
In October, Payoneer Global Inc. (NASDAQ:PAYO) and Coupang, Inc. (NYSE:CPNG) launched a new partnership to make it easier for international vendors to expand and sell in South Korea.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Payoneer Global Inc. (NASDAQ:PAYO) with 7.89 million shares worth more than $81.86 million.
3. Repay Holdings Corporation (NASDAQ:RPAY)
Portsea Asset Management Stake Value: $32,521,000
Percentage of Portsea Asset Management’s 13F Portfolio: 17.84%
Number of Hedge Fund Holders: 17
Veem partnered with Repay Holdings Corporation (NASDAQ:RPAY), which provides integrated payment processing solutions. The partnership would enable the firm to tap into a larger portion of the vast global B2B payments industry, which is now valued at over $125 trillion and is expected to expand to $200 trillion over the next decade.
In the second quarter of 2021, Repay Holdings Corporation’s (NASDAQ:RPAY) earnings per share came in at $0.34, comfortably beating the estimates by $0.20.
As of Q2 2021, 17 hedge funds have positions in Repay Holdings Corporation (NASDAQ:RPAY), compared with 15 in the previous quarter. ROAM Global Management is the leading shareholder of the company with 198,356 shares worth $4.77 billion.
2. Eventbrite, Inc. (NYSE:EB)
Portsea Asset Management Stake Value: $35,175,000
Percentage of Portsea Asset Management’s 13F Portfolio: 19.3%
Number of Hedge Fund Holders: 25
Eventbrite, Inc. (NYSE:EB) recently reported earnings for the third quarter, posting earnings per share of -$0.22, beating market predictions by $0.12. The revenue over the period was $46.31 million, up 451.3% year-on-year. Eventbrite is a self-service ticketing and experience technology platform that caters to event organizers in the United States and throughout the world. The company’s paid ticket volume has increased by 57% since the first quarter of 2021, owing to a return of in-person events.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $298.64 million in Eventbrite, Inc. (NYSE:EB), up from 24 in the previous quarter worth $351.56 million. The hedge fund managed by Cyrus De Weck owns more than 1.85 million shares in Eventbrite, Inc. (NYSE:EB), worth $35.18 million, representing close to 19.3% of their portfolio. In addition, Portsea Asset Management has increased its stake in the firm by 14% in the second quarter of 2021.
Artisan Partners, in its second-quarter 2021 investor letter, mentioned Eventbrite, Inc. (NYSE:EB). Here is what the fund said:
“Eventbrite is the largest software and ticketing platform helping event creators plan, promote and produce live events in small-and-mid markets. The company generates revenue by charging a per-ticket fee on paid tickets and has a strong foothold in the small-and-mid markets—nearly 20X the size of the next largest competitor. We believe Eventbrite is well-positioned to benefit from a sharp increase in demand for live events amid the broader re-opening of the US economy—a dynamic it has already witnessed in Australia with live events bouncing back to approximately 90% of 2019 levels. We expect this to be amplified by significant cost cuts made during the pandemic (>30% of 2019 revenue) remaining in place. Longer term, we believe Eventbrite should benefit from the secular trend toward consumer experiences, an industry growing over 8% per year prior to the pandemic.”
1. Starz Acquisition Llc (NASDAQ:STRZA)
Portsea Asset Management Stake Value: $38,936,000
Percentage of Portsea Asset Management’s 13F Portfolio: 21.37%
Number of Hedge Fund Holders: 18
Starz Acquisition Llc (NASDAQ:STRZA) is a media and entertainment firm based in Colorado. Starz was purchased by Lions Gate Entertainment Corp. (NYSE:LGF-A) for $4.4 billion in cash and shares. The merger aimed to boost its content development skills, strengthen its position as a leader in premium scripted television, and expand its global distribution presence.
Legendary investor and billionaire Warren Buffett’s Berkshire Hathaway is the biggest stakeholder in Starz Acquisition Llc (NASDAQ:STRZA) out of the 873 hedge funds tracked by Insider Monkey as of the end of the second quarter. The Oracle of Omaha owns 43.21 million shares of the company, worth over $2 billion.
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