In this article, we discuss 10 stocks to buy according to Himanshu Gulati’s Antara Capital.
Himanshu Gulati, a hedge fund manager who received funding from Blackstone Group LP, founded Antara Capital in 2018. Before starting his fund, he spent three years at Man GLG as the head of U.S. Distressed Credit and Special Situations. He formerly worked for Richard Perry’s hedge fund, Perry Capital, which closed down in 2016. Himanshu Gulati is Antara Capital’s managing partner and chief investment officer.
Antara Capital, a hedge fund established in New York, specializes in event-driven investments with a concentration on distressed credit and special circumstance stocks. The hedge fund aims to expose investors to the complete SPAC investing lifecycle. PIPEs, pre-IPO units, and public trading in front-end SPACs, as well as warrant arbitrage strategies are frequent investments. Last year, Antara Capital saw its flagship fund climb 59% as technology loan bets paid off. In addition, Antara saw its returns increase by the end of 2020. In November and December of 2020, the hedge fund grew around 17% and 12%, respectively.
In Q4 2021, Himanshu Gulati’s Antara Capital opened new positions in 119 stocks, slashed stakes in 8 equities, and sold out of 63 stocks. As of Q4 2021, the hedge fund’s 13F portfolio was valued at more than $2.02 billion, up from $1.31 billion the previous quarter, with a 43.62% concentration of top 10 holdings.
Some of the mid-cap stocks owned by Himanshu Gulati’s fund include Hertz Global Holdings, Inc. (NASDAQ:HTZ), Altice USA, Inc. (NYSE:ATUS), and NCR Corporation (NYSE:NCR).
Antara Capital added Hertz Global Holdings, Inc. (NASDAQ:HTZ) to its portfolio in the fourth quarter by buying 3.19 million shares. On February 24, Deutsche Bank analyst Chris Woronka raised his price target on Hertz Global Holdings, Inc. (NASDAQ:HTZ) to $36 from $34 and reiterated a Buy rating on the shares.
Photo by Nicholas Cappello on Unsplash
Another stock that was added to the fourth quarter portfolio was Altice USA, Inc. (NYSE:ATUS), with Himanshu Gulati purchasing 520,000 shares. Analyst Nick Lyall of Societe Generale lowered Altice USA, Inc. (NYSE:ATUS) from Buy to Hold with a $12 price target on February 23. In a research note, the analyst told investors that competition had slowed growth, prompting management to speed up the fiber roll-out.
NCR Corporation (NYSE:NCR) is also a new arrival in Himanshu Gulati’s portfolio, as his hedge fund bought about 120,000 shares of the company, worth $4.82 million. On March 8, NCR Corporation (NYSE:NCR) announced the acquisition of Spoke Technologies Limited’s fintech intellectual property for Open Banking.
Our Methodology
Let’s start our list of 10 stocks to buy according to Himanshu Gulati’s Antara Capital. We used Gulati’s 13F portfolio for Q4 2021 for this analysis.
Stocks to Buy According to Himanshu Gulati’s Antara Capital
10. Athena Technology Acquisition Corp. II (NYSE:ATEK.U)
Antara Capital Stake Value: $15,952,000
Percentage of Antara Capital’s 13F Portfolio: 0.78%
Number of Hedge Fund Holders: N/A
Athena Technology Acquisition Corp. II (NYSE:ATEK.U) plans to combine one or more firms by a merger, asset acquisition, capital stock exchange, stock purchase, reorganization, or similar business combinations. The firm specializes in locating companies in the fintech, enterprise, deep tech, and health-tech sectors. Athena Technology Acquisition Corp. II (NYSE:ATEK.U) is based in New York, and was founded in 2021.
Athena Technology Acquisition Corp. II (NYSE:ATEK.U) went public in December 2021, managing to raise close to $250 million from the initial offering. Antara Capital owned more than 1.60 million shares in Athena Technology Acquisition Corp. II (NYSE:ATEK.U) that are valued at over $15.95 million, representing 0.78% of the portfolio of the hedge fund.
Athena Technology Acquisition Corp. II (NYSE:ATEK.U), like Hertz Global Holdings, Inc. (NASDAQ:HTZ), Altice USA, Inc. (NYSE:ATUS), and NCR Corporation (NYSE:NCR), is one of the stocks gaining the attention of Himanshu Gulati.
9. Swiftmerge Acquisition Corp. (NASDAQ:IVCP)
Antara Capital Stake Value: $19,701,000
Percentage of Antara Capital’s 13F Portfolio: 0.97%
Number of Hedge Fund Holders: N/A
Swiftmerge Acquisition Corp. (NASDAQ:IVCP) is a corporation that specializes in acquisitions. Swiftmerge Acquisition Corp. (NASDAQ:IVCP) plans to explore possibilities with disruptive consumer companies using technology and the internet to change how people engage with the market.
In December 2021, Swiftmerge Acquisition Corp. (NASDAQ:IVCP) went public, generating about $200 million in the first offering. In the fourth quarter of 2021, Antara Capital owned more than 1.98 million shares in Swiftmerge Acquisition Corp. (NASDAQ:IVCP), worth $19.70 million. This represented 0.97% of the investment portfolio of Antara Capital.
8. Austerlitz Acquisition Corporation I (NYSE:AUS)
Antara Capital Stake Value: $20,739,000
Percentage of Antara Capital’s 13F Portfolio: 1.02%
Number of Hedge Fund Holders: N/A
Austerlitz Acquisition Corporation I (NYSE:AUS) was formed to complete a merger, stock exchange, asset purchase, restructuring, or other similar business combinations with one or more entities. Austerlitz Acquisition Corporation I (NYSE:AUS) concentrates on selecting a target firm in the financial technology, information, and business services sectors. The CEO of Austerlitz Acquisition Corporation I (NYSE:AUS) is Richard N Massey.
Himanshu Gulati added to his holdings in Austerlitz Acquisition Corporation I (NYSE:AUS) in the fourth quarter, boosting his stake by 511%. Antara Capital owns 2.14 million shares of Austerlitz Acquisition Corporation I (NYSE:AUS), worth $20.74 million. Citadel Investment Group, with approximately 5.61 million shares worth $54.43 million, is the largest shareholder of Austerlitz Acquisition Corporation I (NYSE:AUS) as of Q4.
7. Fintech Acquisition Corp. V (NASDAQ:FTCV)
Antara Capital Stake Value: $22,609,000
Percentage of Antara Capital’s 13F Portfolio: 1.11%
Number of Hedge Fund Holders: N/A
Fintech Acquisition Corp. V (NASDAQ:FTCV) operates as a blank check company. The company wants to combine, reorganize, exchange capital stock, acquire assets, buy shares, or complete similar transactions with one or more companies. Fintech Acquisition Corp. V (NASDAQ:FTCV) is a small-cap stock with a market value of $337.422 million. In December 2020, Fintech Acquisition Corp. V (NASDAQ:FTCV) received $250 million in its first public offering, and it is now traded on the NASDAQ under the ticker “FTCV.”
In the fourth quarter, Himanshu Gulati increased his stake in Fintech Acquisition Corp. V (NASDAQ:FTCV) by 204%, and his position in the company is now worth about $22.61 million. Luxor Capital Group is Fintech Acquisition Corp. V (NASDAQ:FTCV)’s largest shareholder, with shares worth $38.55 million.
6. CBL & Associates Properties, Inc. (NYSE:CBL)
Antara Capital Stake Value: $29,018,000
Percentage of Antara Capital’s 13F Portfolio: 1.43%
Number of Hedge Fund Holders: 11
CBL & Associates Properties, Inc. (NYSE:CBL) is a real estate investment trust based in the United States that predominantly invests in retail malls in the Southeast and Midwest. Antara Capital added CBL & Associates Properties, Inc. (NYSE:CBL) to its portfolio in the fourth quarter by buying 930,068 shares.
EVgo, Inc. (NASDAQ:EVGO) and CBL & Associates Properties, Inc. (NYSE:CBL) announced a collaboration on January 27 to provide EVgo fast charging to several retail sites, including Kansas’ first EVgo station.
By the end of the fourth quarter, Insider Monkey found CBL & Associates Properties, Inc. (NYSE:CBL) to be a part of 11 hedge fund portfolios. The total stakes that these funds had in the company are worth $296.11 million. Of the 11 hedge funds, Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors had the most significant position in the company, with 4.40 million shares worth $137.17 million.
In addition to Hertz Global Holdings, Inc. (NASDAQ:HTZ), Altice USA, Inc. (NYSE:ATUS), and NCR Corporation (NYSE:NCR), CBL & Associates Properties, Inc. (NYSE:CBL) is a notable stock from Himanshu Gulati’s Q4 portfolio.
5. Austerlitz Acquisition Corporation II (NYSE:ASZ)
Antara Capital Stake Value: $29,826,000
Percentage of Antara Capital’s 13F Portfolio: 1.47%
Number of Hedge Fund Holders: N/A
Austerlitz Acquisition Corporation II (NYSE:ASZ) is a blank check company. It focuses on purchasing companies in the financial technology and business services industries. Austerlitz Acquisition Corporation II (NYSE:ASZ), Bill Foley’s sixth blank check company, raised $1.2 billion in February 2021 by selling 120 million units for $10 each.
Antara Capital holds more than 3.07 million shares in Austerlitz Acquisition Corporation II (NYSE:ASZ), worth $29.83 million. This represents 1.47% of its Q4 portfolio. The hedge fund’s stake in Austerlitz Acquisition Corporation II (NYSE:ASZ) increased by 2969% in the fourth quarter of 2021. The fund first bought a stake in Austerlitz Acquisition Corporation II (NYSE:ASZ) in the second quarter of 2021. Glazer Capital is Austerlitz Acquisition Corporation II (NYSE:ASZ)’s most significant stakeholder, with 7.84 million shares worth $76.18 million.
4. International Game Technology PLC (NYSE:IGT)
Antara Capital Stake Value: $42,365,000
Percentage of Antara Capital’s 13F Portfolio: 2.09%
Number of Hedge Fund Holders: 35
Electronic gaming equipment, software, and network systems are designed, manufactured, and marketed by International Game Technology PLC (NYSE:IGT). Susquehanna analyst Joseph Stauff boosted his price objective on International Game Technology PLC (NYSE:IGT) from $11 to $24 on March 8 and maintained a Neutral rating on the stock.
According to Insider Monkey’s database, 35 hedge funds had a stake in International Game Technology PLC (NYSE:IGT) as of Q4 2021. The total value of the holdings was $ 575.13 million.
International Game Technology PLC (NYSE:IGT) is a new arrival in Himanshu Gulati’s portfolio, as his hedge fund bought about 1.47 million shares of the company, worth $42.37 million. 140 Summer Partners is the leading shareholder of International Game Technology PLC (NYSE:IGT), with a stake worth over $73.90 million.
Mittleman Brothers Investment Management, an investment management firm, in its fourth-quarter 2021 investor letter, mentioned International Game Technology PLC (NYSE:IGT). Here is what the fund said:
“For the third consecutive quarter, International Game Technology was among the top three contributors to portfolio results. The company reinstated a cash dividend and announced its first ever share buyback program in Q4. While both initiatives are modest in amount they are a good start given how cheap the shares remain at 7.7x EBITDA and 11x FCF. IGT’s lottery business proved its resilience through the pandemic and continues to see strong growth. The slot machine business has also stabilised and sports gambling provides a tailwind of a large secular growth story that is underappreciated with IGT. Their “PlaySports” technology is the backbone of 50 U.S. sports betting operations in 17 states, including the retail and mobile sportsbook for Resort World Las Vegas, and they are behind the scenes on many other high profile operators. MIM increased its estimate of IGT’s fair value to $39 during Q4 from $38 per share in Q3 (previously $29), which applies the same targeted EV/EBITDA multiple of 9x on estimate of 2022 EBITDA at $1.6B, and market cap. to FCF multiple of 14x estimated $550M in FCF for 2022, but with slightly lower net debt.
MIM believes its estimate is conservative as IGT’s closest peer, Scientific Games’ (SGMS) lottery business was recently sold to Brookfield Asset Management for 12x EBITDA ($6B / $500M EBITDA), and does not appear to be a better business than IGT’s lottery business (which is 80% of IGT’s overall EBITDA). https:// www.gamingintelligence.com/finance/manda/146780-scientificgames-to-sell-lottery-business-to-brookfield-business-partners/. Applying the same 12x multiple to IGT’s lottery EBITDA would boost the value of IGT’s stock to about $55 per share, well above MIM’s $39 target and the $29 year-end price.”
3. VICI Properties Inc. (NYSE:VICI)
Antara Capital Stake Value: $43,660,000
Percentage of Antara Capital’s 13F Portfolio: 2.15%
Number of Hedge Fund Holders: 37
VICI Properties Inc. (NYSE:VICI) is a casino, hospitality, and entertainment real estate investment trust that owns, buys, and develops properties. Following a limitation period, Citi analyst Smedes Rose initiated coverage of VICI Properties Inc. (NYSE:VICI) with a Buy rating and a $32 price target on February 7.
VICI Properties Inc. (NYSE:VICI) recently saw a decrease in hedge fund sentiment. Long hedge fund positions fell to 37 at the end of the fourth quarter, down from 47 at the end of the previous quarter.
Antara Capital strengthened its position in VICI Properties Inc. (NYSE:VICI) by buying 500,000 additional shares. This makes their stake in VICI Properties Inc. (NYSE:VICI) total 1.45 million shares worth $43.66 million.
2. Innoviz Technologies Ltd. (NASDAQ:INVZ)
Antara Capital Stake Value: $52,607,000
Percentage of Antara Capital’s 13F Portfolio: 2.59%
Number of Hedge Fund Holders: 22
Innoviz Technologies Ltd. (NASDAQ:INVZ) is a maker of high-performance solid-state LiDAR sensors and perception software for autonomous cars in mass manufacturing. Innoviz Technologies Ltd. (NASDAQ:INVZ) announced on March 8 that their LiDAR sensors would run on the BlackBerry Limited (NYSE:BB) QNX Automotive Operating System.
Antara Capital owned more than 6.77 million shares of Innoviz Technologies Ltd. (NASDAQ:INVZ), valued at over $52.61 million, representing 2.59% of the hedge fund’s Q4 portfolio. The hedge fund cut its stake in the firm by 4% compared to the third quarter of 2021. Antara Capital is the leading shareholder of Innoviz Technologies Ltd. (NASDAQ:INVZ).
The number of hedge funds tracked by Insider Monkey having stakes in Innoviz Technologies Ltd. (NASDAQ:INVZ) grew to 22 in Q4, up from 13 in the preceding quarter. These hedge funds hold a consolidated value of $116.90 million, up from $76.31 million.
1. Hertz Global Holdings, Inc. (NASDAQ:HTZ)
Antara Capital Stake Value: $148,339,000
Percentage of Antara Capital’s 13F Portfolio: 7.32%
Number of Hedge Fund Holders: 55
Hertz Global Holdings, Inc. (NASDAQ:HTZ) is a vehicle rental company that operates in the United States. On November 9, 2021, Hertz Global Holdings, Inc. (NASDAQ:HTZ) shares began trading on the Nasdaq Global Select Market under the symbol HTZ. Since emerging from bankruptcy in 2021, Hertz has been traded on the over-the-counter (OTC) markets as HTZZ.
On February 24, Deutsche Bank analyst Chris Woronka boosted his price objective on Hertz Global Holdings, Inc. (NASDAQ:HTZ) from $34 to $36 while maintaining a Buy rating on the stock. Hertz Global Holdings, Inc. (NASDAQ:HTZ) is one of the latest acquisitions of Antara Capital in Q4 2021. The hedge fund held shares worth over $148.34 million in the company, representing 7.32% of its 13F portfolio.
Overall, in the fourth quarter, 55 hedge funds monitored by Insider Monkey were bullish on Hertz Global Holdings, Inc. (NASDAQ:HTZ). The stakes held by these funds are valued at $7.10 billion. Tom Wagner and Ara Cohen’s Knighthead Capital is Hertz Global Holdings, Inc. (NASDAQ:HTZ)’s most significant stakeholder, with 181.46 million shares worth $4.53 billion.
You can also take a peek at 10 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital and 9 Stocks to Buy Now According to Munir Javeri’s 3G Sahana Capital Management
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Disclosure: None. 10 Stocks to Buy According to Himanshu Gulati’s Antara Capital is originally published on Insider Monkey.
