In this article, we discuss 5 stocks to invest in according to Joshua Kushner’s Thrive Capital. If you want to read our detailed analysis of Kushner’s history, investment philosophy, and hedge fund performance, go directly to 9 Stocks to Invest In According to Joshua Kushner’s Thrive Capital.
5. Compass, Inc. (NYSE:COMP)
Thrive Capital Stake Value: $66,261,000
Percentage of Thrive Capital’s 13F Portfolio: 6.22%
Number of Hedge Fund Holders: 28
Compass, Inc. (NYSE:COMP) is a registered real estate broker in the United States that uses real estate technology to sell its properties on the internet. Thrive Capital began building its position in Compass, Inc. (NYSE:COMP) in the second quarter of 2021. In the fourth quarter of 2021, the hedge fund held over 7.29 million shares of the company, valued at $66.26 million.
On February 17, Needham analyst Mayank Tandon cut his price objective on Compass, Inc. (NYSE:COMP) to $13 from $18, highlighting weaker real-estate tech stock multiples, but maintained a Buy rating on the stock.
At the end of the fourth quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $499.52 million in Compass, Inc. (NYSE:COMP), up from 25 in the preceding quarter valued at $708.38 million.
In its third quarter 2021 investor letter, Artisan Partners mentioned Compass, Inc. (NYSE:COMP). Here is what the fund said:
“We added several new GardenSM positions in Q3 including Compass. Compass is a real estate brokerage firm which provides its agents with a proprietary, end-to-end cloud-based platform. The company helps address the needs of buying and selling homes from client prospecting to closing, which includes customer relationship management, AI-driven prospecting, marketing (digital, social, email, video, print, signage, lead generation), market analysis and collaboration tools. The platform also uses machine learning, artificial intelligence and other advanced data analytics strategies to draw insights across the platform, allowing agents to be more efficient and informed in their selling efforts. We believe this technology advantage is key to the company continuing to disrupt and capture real estate commission market share. We have been impressed with the company’s ability to capture 4% market share since it was founded in 2012 (vs. Redfin, founded in 2002, holding a 1% market share). The company’s profit cycle can also be boosted by adding on additional services such as title insurance referral and escrow services, real estate marketing, home renovation referrals, home insurance and home warranty referrals—all of which we believe have a significantly larger addressable market than commissions (~7X).”
