5 Stocks To Invest In According To Jamie Zimmerman’s Litespeed Capital

3. ADT Inc. (NYSE:ADT)

Litespeed Capital Management’s Stake Value: $9.01 million

Percentage of Litespeed Capital Management’s 13F Portfolio: 10.03%

Number of Hedge Fund Holders: 18

ADT Inc. (NYSE:ADT) is a home security and automation services provider located in the United States. The company serves all kinds of customers and allows them to address environmental control hazards, such as fire suppression. It also allows customers to control their home security and automation systems through personal computing gadgets such as laptops and smartphones.

Litespeed Capital owned 1.12 million ADT Inc. (NYSE:ADT) shares during Q3 2021. These were worth $9 million and represented 10% of its investment portfolio. Insider Monkey’s 867 hedge fund survey for the same time period revealed that 18 had also held a stake in the automation and security company.

ADT Inc. (NYSE:ADT)’s largest shareholder is John W. Rogers’s Ariel Investments which owns 24 million shares worth $196 million.

Investment firm Ariel Investments mentioned ADT Inc. (NYSE:ADT) in its second-quarter 2021 investor letter, outlining that:

“During the quarter, we initiated a position in ADT, Inc. (ADT) in Ariel Fund and Ariel Appreciation Fund. Buying the same position across both strategies is rare but shows our enthusiasm for the name. Here, we have a 140-year old company that has been in and out of public ownership and as a result, everyone has looked right past it. In our view, ADT’s brand and national presence in the security industry is unmatched, resulting in leading market share, a high recurring revenue base and attractive free cash flow generation. While some are concerned do-it-yourself competition will erode the installation and technology-driven moat around the business, we believe the company is well-positioned to benefit from the secular growth of smart home adoption along with strategic partnerships with companies including Google.”