In this article, we discuss 5 tech stocks to buy according to billionaire James Dinan. If you want to read our detailed analysis of the billionaire’s hedge fund, go directly to read the 10 Tech Stocks to Buy According to Billionaire James Dinan.
5. Cadence Design Systems, Inc (NASDAQ:CDNS)
York Capital Management’s Stake Value: $24,936,000
Percent of York Capital Management’s 13F Portfolio: 2.79%
Number of Hedge Fund Holders: 33
Cadence Design Systems, Inc (NASDAQ:CDNS) stands fifth on our list of the best tech stocks to buy according to billionaire James Dinan. It is an American technology company that provides software, hardware, and IP for electronic design.
Cadence Design Systems, Inc (NASDAQ:CDNS) is one of the recent acquisitions of York Capital as the hedge fund started building its position in the company in Q2 with 182,251 shares, valued at $24.9 million. The company accounts for 2.79% of the fund’s 13F portfolio. In July, Baird lifted its price target on Cadence Design Systems, Inc (NASDAQ:CDNS) to $168, while keeping an ‘Outperform’ rating on the shares.
In Q2 2021, Cadence Design Systems, Inc (NASDAQ:CDNS) posted an EPS of $0.86, beating the estimates by $0.10. The company reported revenue of $728.2 million, showcasing a 14.1% growth from the prior-year quarter. In the past year, Cadence Design Systems, Inc (NASDAQ:CDNS) delivered a 36.8% return to shareholders, while the stock gained 8.3% in 2021.
As of Q2 2021, 33 hedge funds tracked by Insider Monkey have positions in Cadence Design Systems, Inc (NASDAQ:CDNS), valued at over $1.62 billion. The number of hedge funds having stakes in the company stood at 30 in the previous quarter, with a total value of $1.49 billion.
4. Synopsys, Inc. (NASDAQ:SNPS)
York Capital Management’s Stake Value: $25,827,000
Percent of York Capital Management’s 13F Portfolio: 2.89%
Number of Hedge Fund Holders: 41
Synopsys, Inc. (NASDAQ:SNPS) is an American technology company that provides software products and services. The company specializes in electronic design automation (EDA) which is used to test integrated circuits. It ranks fourth on our list of the best tech stocks to buy according to billionaire James Dinan.
York Capital started building its position in Synopsys, Inc. (NASDAQ:SNPS) in Q2 2021 with 93,648 shares, valued at over $25.8 million. The company represents 2.89% of the hedge fund’s 13F portfolio. In August, KeyBanc lifted its price target on Synopsys, Inc. (NASDAQ:SNPS) to $347, while keeping an ‘Overweight’ rating on the shares. The firm’s analyst appreciated the company’s Q3 earnings beat as it raised the long-term growth framework to double-digit annual growth. In Q3 2021, Synopsys, Inc. (NASDAQ:SNPS) posted an EPS of $1.81, beating the estimates by $0.03. The company’s revenue for the quarter stood at $1.06 billion, up 9.9% from the prior-year quarter. In the past year, Synopsys, Inc. (NASDAQ:SNPS) has delivered a 33.2% return to shareholders.
As of Q2 2021, 41 hedge funds tracked by Insider Monkey have positions in Synopsys, Inc. (NASDAQ:SNPS), compared with 34 in the previous quarter. The total value of these stakes is over $2.05 billion. Alkeon Capital Management is the company’s leading shareholder with shares worth $746.7 million.
3. 21Vianet Group, Inc. (NASDAQ:VNET)
York Capital Management’s Stake Value: $28,806,000
Percent of York Capital Management’s 13F Portfolio: 3.23%
Number of Hedge Fund Holders: 23
21Vianet Group, Inc. (NASDAQ:VNET) is a carrier-neutral internet data center provider in China which provides services in hosting, managed network services, and cloud computing infrastructure. The company ranks third on our list of the best tech stocks to buy according to billionaire James Dinan.
As of Q2 2021, York Capital Management holds over 1.25 million shares in 21Vianet Group, Inc. (NASDAQ:VNET), worth $28.8 million. The company represents 3.23% of the hedge fund’s 13F portfolio as the fund increased its position in the company by 33% in Q2. In the second quarter of 2021, 21Vianet Group, Inc. (NASDAQ:VNET) reported revenue of $231.9 million, showcasing a 43.2% growth from the prior-year quarter. In August, JPMorgan initiated its coverage on 21Vianet Group, Inc. (NASDAQ:VNET) with an ‘Overweight’ rating and a $27 price target. The firm’s analyst appreciated the company’s positive transition in the past few quarters.
As of Q2 2021, 23 hedge funds tracked by Insider Monkey have positions in 21Vianet Group, Inc. (NASDAQ:VNET), valued at $264.5 million. The number of hedge funds having stakes in the company stood at 30 in the previous quarter.
2. JOYY Inc. (NASDAQ:YY)
York Capital Management’s Stake Value: $37,942,000
Percent of York Capital Management’s 13F Portfolio: 4.25%
Number of Hedge Fund Holders: 24
JOYY Inc. (NASDAQ:YY) is a Singaporean technology company that provides internet-related services to its consumers. The company also offers a video-based social media platform for social networking. It ranks second on our list of the best tech stocks to buy according to billionaire James Dinan.
York Capital Management increased its stake by 36% in JOYY Inc. (NASDAQ:YY) in Q2 2021. The hedge fund now owns 575,147 shares in the company, valued at over $37.9 million. JOYY Inc. (NASDAQ:YY) represents 4.25% of the fund’s 13F portfolio. In Q2 2021, the company posted an EPS of -$0.01, beating the estimates by $0.12. JOYY Inc. (NASDAQ:YY) reported revenue for the quarter at $661.7 million, up 39.7% from the prior-year quarter. This July, China Renaissance initiated its coverage on JOYY Inc. (NASDAQ:YY) with a ‘Buy’ rating and a $125 price target.
As of Q2 2021, 24 hedge funds tracked by Insider Monkey have positions in JOYY Inc. (NASDAQ:YY), compared with 20 in the previous quarter. These stakes are valued at over $340 million. Citadel Investment Group is the company’s leading shareholder with shares worth $100.2 million.
Tao Value mentioned JOYY Inc. (NASDAQ:YY) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“We exited YY after 3.5 years near all-time high. The annualized return (13~%) yet is below expectation, especially compared to founder CEO David Xueling Li’s net worth (mainly in YY shares) ballooning from $1.1B in 2018 to $2.3B in 2021. On value realization, I think YY did a good job, acquiring Bigo, spinning off then selling Huya & selling YY Live to Baidu. But as a minority shareholder, we were treated unfairly. E.g. the Bigo deal (for buying shares from executives including Li) was done by YY stock when the price was severely depressed, causing significant dilution for our ownership. We learned our lessons and will evaluate more rigorously in management’s partnership mindset in the future.”
1. Baidu, Inc. (NASDAQ:BIDU)
York Capital Management’s Stake Value: $57,143,000
Percent of York Capital Management’s 13F Portfolio: 6.4%
Number of Hedge Fund Holders: 59
Baidu, Inc. (NASDAQ:BIDU) tops our list of the best tech stocks to buy according to billionaire James Dinan. It is a Chinese multinational technology company that focuses on internet-related services and AI.
As of Q2 2021, York Capital Management holds 280.251 shares in Baidu, Inc. (NASDAQ:BIDU), valued at over $57.1 million. The company accounts for 6.4% of the hedge fund’s 13F portfolio as the hedge fund increased its stake in the company by 72% in the second quarter. In Q2 2021, Baidu, Inc. (NASDAQ:BIDU) posted an EPS of $2.39, beating the consensus by $0.33. The company’s revenue presented a 20% year-over-year growth at $4.8 billion. In August BofA rated Baidu, Inc. (NASDAQ:BIDU) as a ‘Buy’ with a $286 price target.
Of the 873 hedge funds tracked by Insider Monkey, 59 hedge funds have positions in Baidu, Inc. (NASDAQ:BIDU) in Q2 2021, compared with 89 in the previous quarter. These stakes are valued at over $3.4 billion.
Horos Asset Management mentioned Baidu, Inc. (NASDAQ:BIDU) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“We have also fully exited our stake in Baidu, following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.
The Chinese technology platform company Baidu has also been held in the portfolios managed by Alejandro, Miguel and myself for several years. During this period, we have seen very high volatility in its share price, which we have taken advantage of to make significant rebalancing moves in our position (in fact, we even sold our entire position once, when we thought the stock’s upside potential was exhausted). After several years of instability, market sentiment turned very positive, putting an end to the historical advertising problems in the healthcare sector, the divestments in O2O (Online-to-Offline) businesses that continued to weigh on the company’s margins, the IPO of part of the iQiyi streaming business (which hid Baidu’s underlying cash generation capacity) and the tough competition from other industry giants such as Tencent and Alibaba, as well as the entry of new players with disruptive business models (ByteDance). At the same time, the company’s recent commitment to electric vehicles contributed even more to this change of narrative. Baidu’s share price rose almost fourfold from the March 2020 lows to all-time highs and reached a valuation where the margin of safety, in our view, was too narrow.”
You can also take a look at Billionaire David Abrams’ Top Stock Picks and Billionaire Daniel Sundheim’s Top 10 Picks
