10 Tech Stocks to Invest in Today According to Thomas E. Claugus’ GMT Capital

Published September 16, 2021 at 4:39 pm EDT Updated September 7, 2026 at 1:35 pm EDT

In this article, we discuss the 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital based on Q2 holdings of the fund.

Thomas E. Claugus is the President, CEO, Principal, and Portfolio Manager at the GMT Capital. He is an MBA from the Harvard Business School. Claugus worked at Rohm and Haas Company for 17 years.

GMT Capital operates as an investment management hedge fund. It was founded in 1993 and had a 20-year track record of producing significant absolute returns typically uncorrelated with the broader markets.

Thomas E. Claugus likes to diversify his portfolio. As a result, his hedge fund has stakes in small and large companies with strong fundamentals and future growth potential. Some of these companies include Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and Alibaba Group Holding Limited (NYSE: BABA).

In Alphabet Inc., Thomas E. Claugus owns 24,327 shares. The investment covers an impressive 4.55% of the fund’s portfolio. On September 1, Financial Times reported, Alphabet’s YouTube has achieved 50 million paying customers for its music-streaming services.

Based on the latest 13F holdings for the second quarter of 2021, GMT Capital owns 1,668 shares in Amazon.com, Inc., worth $5.74 million. On September 9, Amazon.com, Inc. announced the launch of its first-ever Amazon-built television sets, with two product lines aimed at the market it has been nurturing for years with its Fire TV device line. On July 30, Cowen analyst John Blackledge lowered the price target on Amazon.com, Inc. to $4,400 from $4,600 and maintained an “Outperform” rating on the shares.

Thomas E. Claugus is bullish on the tech giant Alibaba Group Holding Limited. He increased his stake in the company by 14% in the second quarter of 2021, ending the period with 313,000 shares of the company, worth $70.98 million. On September 6, KGI Securities initiated coverage of Alibaba Group Holding Limited with a “Neutral” rating and gave a price target of HK$205.

Thomas Claugus of GMT Capital

Why should we pay attention to Claugus’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context and industry outlook in mind, let’s start our list of the 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. We picked stocks from the Q2 portfolio of Claugus.

Tech Stocks to Invest in Today According to Thomas E. Claugus’ GMT Capital

10. Castlight Health, Inc. (NYSE: CSLT)

Claugus’ Stake Value: $1,825,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 18

Castlight Health, Inc. (NYSE: CSLT) offers health navigation solutions to businesses and clients in the education, manufacturing, retail, government, and technology sectors. It was founded in 2008 and is placed tenth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Castlight Health, Inc. shares have gained about 52.94% over the last 12 months.

On August 3, Castlight Health, Inc. announced earnings for the second quarter of 2021. It posted earnings per share of $0.01, beating the market predictions by $0.02. In addition, revenue over the period was $35.6 million, surpassing the estimates by $1.04 million.

The hedge fund managed by Thomas E. Claugus owns 693,867 shares in Castlight Health, Inc., worth $1.83 million, representing 0.13% of their portfolio. David Atterbury’s Whetstone Capital Advisors is the leading shareholder of Castlight Health, Inc., with 5.29 million shares worth $13.91 million.

In addition to Alphabet Inc., Amazon.com, Inc., and Alibaba Group Holding Limited, analysts are paying attention to Castlight Health, Inc. amid the company’s long-term growth potential.

9. Gaotu Techedu Inc. (NYSE: GOTU)

Claugus’ Stake Value: $2,628,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 0.19%
Number of Hedge Fund Holders: 11

Gaotu Techedu Inc. (NYSE: GOTU) is a technology-driven education firm that provides online K-12 after-school tutoring services. The company was previously known as GSX Techedu Inc. and switched its name to Gaotu Techedu Inc. in June 2021. The company was founded in 2014, and it stands ninth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Gaotu Techedu Inc. presently has a market capitalization of $674.75 million.

In the second quarter of 2021, Thomas E. Claugus’ GMT Capital owned 177,900 shares in Gaotu Techedu Inc., worth $2.63 million. The investment covers 0.19% of the fund’s portfolio. Gaotu Techedu Inc. saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions reduced to 11 in the second quarter of 2021 compared to 30 positions in the previous quarter.

8. Electronic Arts Inc. (NASDAQ: EA)

Claugus’ Stake Value: $3,354,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 0.25%
Number of Hedge Fund Holders: 56

Electronic Arts Inc. (NASDAQ: EA) is placed eighth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Shares of Electronic Arts Inc. surged 15.02% in the past 12 months.

On August 20, Electronic Arts Inc. launched Madden NFL 22, the newest installment in its cash-cow NFL videogame series. On August 5, Wedbush analyst Michael Pachter raised the price target on Electronic Arts Inc. to $194 from $175 and kept an “Outperform” rating on the shares.

GMT Capital holds 23,320 shares in Electronic Arts Inc., worth $3.35 million, representing 0.25% of their portfolio. Electronic Arts Inc. saw an increase in hedge fund sentiment recently. The number of hedge fund positions increased to 56 in the second quarter of 2021 compared to 44 positions in the previous quarter.

In addition to Alphabet Inc., Amazon.com, Inc., and Alibaba Group Holding Limited, Electronic Arts Inc. is a notable stock in GMT’s portfolio.

Artisan Partners, in its first-quarter 2021 investor letter, mentioned Electronic Arts Inc. (NASDAQ: EA). Here is what the fund said:

“Video game publisher Electronic Arts (EA) has recently experienced muted performance relative to peers. The company is expanding its moat as COVID-19 pulled forward gamer engagement in 2020 and early 2021. While we expect current growth rates will slow, the long-term value of the company’s user community has increased. EA’s net cash balance sheet and industry leadership fit well with our philosophy and process, and while the recently acquired Codemasters and GLUU Mobile will draw down cash, the balance sheet remains strong and the deals further EA’s mobile growth strategy. We believe our stake in EA represents how we can think opportunistically to build an eclectic, idiosyncratic portfolio to deliver value over the long term.”

7. Canaan Inc. (NASDAQ: CAN)

Claugus’ Stake Value: $4,845,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 11

Canaan Inc. (NASDAQ: CAN) develops, designs, and sells integrated circuit (IC) final system products, principally in the People’s Republic of China, by combining IC devices for bitcoin mining and associated components. It was founded in 2013 and stands seventh on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. His bet on Canaan Inc. is also paying off. Shares of the company surged 327.41% over the last 12 months.

On August 31, Canaan Inc. received a purchase order for 20,000 Bitcoin mining equipment from Genesis Digital Assets Limited. On August 12, Canaan Inc.’s latest generation ASIC bitcoin miners were bought by Mawson Infrastructure Group, Inc. (OTC: MIGID), adding over 1.5EH to Mawson’s current operations.

The hedge fund chaired by Thomas E. Claugus owns 594,484 shares in Canaan Inc., worth over $4.85 million, representing 0.36% of their investment portfolio. Canaan Inc. is the latest addition to Thomas E. Claugus’ hedge fund portfolio. According to our database, the number of Canaan Inc. long hedge funds positions increased in the second quarter of 2021. There were 11 hedge funds that hold a position in Canaan Inc. compared to 9 funds in the first quarter of 2021.

In addition to Alphabet Inc., Amazon.com, Inc., and Alibaba Group Holding Limited, analysts are paying attention to Canaan Inc. amid the company’s long-term growth potential.

6. Eastman Kodak Company (NYSE: KODK)

Claugus’ Stake Value: $6,648,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 0.49%
Number of Hedge Fund Holders: 13

Eastman Kodak Company (NYSE: KODK) is a worldwide technology firm that specializes in commercial printing, packaging, publishing, manufacturing, and entertainment. It was founded in 1880 and is placed sixth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Shares of Eastman Kodak Company are up 7.69% in the past 12 months.

On August 10, Eastman Kodak Company declared earnings for the second quarter of 2021. It posted a net income of $16 million compared to the net income of $6 million for the first quarter of 2021. Revenue over the period was $291 million, versus the revenue of $265 million for the first quarter of 2021.

GMT Capital holds 799,000 shares in Eastman Kodak Company, worth $6.65 million, representing 0.49% of their portfolio. The hedge fund has increased its stake in Eastman Kodak Company by 238% in the second quarter of 2021. Southeastern Asset Management is a leading stakeholder in Eastman Kodak Company, with 2.53 million shares worth $21.09 million.

Longleaf Partners, in their fourth-quarter 2020 investor letter, mentioned Eastman Kodak Company (NYSE: KODK). Here is what the fund said:

“Eastman Kodak (79%, 11.21%; 3%, 0.37%), the global technology company focused on chemicals and print, was by far the largest contributor for the year. Despite the damage from COVID disruptions to its sales pipeline, the company maintained breakeven EBITDA (earnings before interest, tax, depreciation and amortization) and positive FCF in the last quarter with excellent cost control. Revenues improved sequentially with a gradual rebound. CEO Jim Continenza has done incredible work this year to improve the product offerings and return the business towards sustainable profitability. The stock price was extremely volatile this summer in the wake of July’s announcement of a potential $765 million US government loan to produce ingredients for a variety of generic drugs. While this government deal may have subsequently gone away, the physical assets, chemistry know-how, history of making ingredients and national need are still in place. Kodak’s Licensing business continues to quietly hum along, producing huge margins. As discussed in more detail in our 3Q letter here, we exited our small common stock position the day the deal was announced and then worked with the company to convert our convertible bonds to common shares over the course of the next several days, which we subsequently sold to take advantage of the price appreciation and reduce an outsized position. The conversion price on the bonds was $3.10, and the average realized exit price of those common shares was (roughly) $11. Today the company has very little net debt and untapped revolver capacity. The Fund’s remaining exposure is from preferred shares, which represented 10% of the portfolio as of year-end, and Kodak possesses the balance sheet strength to pay them off immediately.”

5. IAC/InterActiveCorp (NASDAQ: IAC)

Claugus’ Stake Value: $27,057,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 2.01%
Number of Hedge Fund Holders: 50

IAC/InterActiveCorp (NASDAQ: IAC) is an international media and internet company. It was founded in 1995 and is placed fifth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. IAC/InterActiveCorp shares have offered investors more than 62.91% in returns over the course of the past 12 months.

On August 24 Citi analyst Nicholas Jones lowered the price target on IAC/InterActiveCorp to $175 from $185 and kept a “Buy” rating on the shares. The analyst attributes the target reduction to comp group multiple contractions and weaker Angi Inc. (NASDAQ: ANGI) expectations. On August 4, IAC/InterActiveCorp posted earnings for the second quarter of 2021. It reported earnings per share of $2.02 where the consensus estimate was -$0.34. Revenue over the period was $829.5 million, up 14.2% YoY, in line with the previous.

Thomas E. Claugus’ GMT Capital owns 175,500 shares of IAC/InterActiveCorp, worth $27.06 million. The company is a latest addition to Thomas E. Claugus’ portfolio. Hedge fund sentiment decreased for IAC/InterActiveCorp in the second quarter of 2021. Insider Monkey’s data shows that 50 hedge funds held stakes in the company in the second quarter of 2021, down from 63 funds a quarter earlier.

Alphyn Capital Management, in its fourth-quarter 2020 investor letter, mentioned IAC/InterActiveCorp. Here is what the fund said:

“On November 22nd, IAC announced it would look into spinning out Vimeo, its Software-As-A-Service video creation company, on the back of strong revenue growth and robust investor interest. To quote from the IAC shareholder letter “We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue. We don’t normally think in terms of revenue multiples, but we found real appetite among investors who do – we had more interest in Vimeo than the number of shares we were willing to let Vimeo sell.” In other words, IAC will exploit current valuations while the market is willing to pay for it. This has so far been a good example of our defensive approach towards investing software companies from the cover of an undervalued holding company run by intelligent capital allocators.”

4. VMware, Inc. (NYSE: VMW)

Claugus’ Stake Value: $52,737,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 28

VMware, Inc. (NYSE: VMW) delivers software in the areas of hybrid and multi-cloud, contemporary apps, networking, security, and digital workspaces. The company was founded in 1998 and ranks fourth on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. VMware, Inc. currently has a market capitalization of $59.18 billion.

On September 3, VMware, Inc. announced earnings for the second quarter of 2021. It declared earnings of $1.75, beating the market predictions by $0.11. On September 2, Citi analyst Tyler Radke raised the price target on VMware, Inc. to $190 from $178 and maintained a “Buy” rating on the shares.

Thomas E. Claugus’ GMT Capital currently holds 329,670 shares of VMware, Inc., worth $52.74 million. However, the hedge fund has reduced its stake in the firm by 12% in the second quarter of 2021. Overall, hedge funds are loading up on VMware, Inc., as 28 out of 873 funds tracked by Insider Monkey held stakes in the company in the second quarter of 2021, compared to 25 funds a quarter earlier. Two Sigma Advisors is the most significant stakeholder in the company, with 1.26 million shares worth over $201.21 million.

3. Alphabet Inc. (NASDAQ: GOOG)

Claugus’ Stake Value: $60,971,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 4.55%
Number of Hedge Fund Holders: 155

Alphabet Inc. is placed third on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Shares of Alphabet Inc. surged 86.65% in the past 12 months.

On July 28, Wedbush analyst Michael Pachter raised the price target on Alphabet Inc. from $3,127 to $3,424 and maintained an “Outperform” rating on the shares.

The hedge fund managed by Thomas E. Claugus owns 24,327 shares in Alphabet Inc., worth over $60.97 million, representing 4.55% of their portfolio. GMT Capital has decreased its stake in the firm by 4% in the second quarter of 2021. Alphabet Inc. saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions decreased to 155 in the second quarter of 2021, compared to 159 positions in the previous quarter.

Qualivian Investment Partners, in its second-quarter 2021 investor letter, mentioned Alphabet Inc.. Here is what the fund said:

“The opportunity in online advertising remains very attractive for Alphabet’s subsidiary Google. In the recent June quarter, Google’s ad sales grew 69%. Alphabet’s subsidiary YouTube’s ad revenue soared 84%, to $7 billion, in the second quarter, putting the business on par with Netflix, which reported quarterly revenue of $7.3 billion. Netflix is expected to grow sales by 19%, to $29.7 billion this year, while YouTube’s ad revenue is forecast to rise 45%, to $28.7 billion.

Alphabet slashed operating losses for the Google Cloud by more than half, as the business continues to scale, growing at 50%+ clips. Furthermore, the company continues to have potentially new growth options via its investments in autonomous driving (Waymo) and various healthcare businesses such as Verily and Calico.”

2. Alibaba Group Holding Limited (NYSE: BABA)

Claugus’ Stake Value: $70,982,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 5.29%
Number of Hedge Fund Holders: 146

Alibaba Group Holding Limited ranks second on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Alibaba Group Holding Limited currently has a market capitalization of $468.18 billion.

On August 17, the South China Morning Post announced that Alibaba launched a new portion of its Alibaba Auction area for NFTs transacted on a blockchain sponsored by the Sichuan province government.

GMT Capital holds 313,000 shares in Alibaba Group Holding Limited, worth $70.98 million, representing 5.29% of their investment portfolio. The hedge fund has increased its stake in Alibaba Group Holding Limited by 14% in the second quarter of 2021. There were 146 hedge funds in our database that held stakes in Alibaba Group Holding Limited in the second quarter of 2021, compared to 135 funds in the previous quarter.

Tweedy, Browne Company LLC, in its second-quarter 2021 investor letter, mentioned Alibaba Group Holding Limited. Here is what the fund said:

“A position that we established around year-end, and have added to across three of our Funds during the quarter, is Alibaba, the Chinese internet giant. Our pricing opportunity in these shares is in part related to increased regulatory scrutiny of the internet sector by the Chinese government which we continue to monitor closely.

Alibaba is the largest e-commerce company in China, with over 50% market share in terms of gross merchandise value. We first purchased Alibaba for the Funds around calendar year-end. Its core consumer marketplace businesses consist of Taobao (China’s largest consumer-to-consumer online shopping destination) and Tmall (China’s largest third-party platform for brands and retailers). Additionally, Alibaba operates the dominant cloud platform in China (AliCloud), international e-commerce operations (Lazada, etc.), and digital media services, and has several strategic investments, including a 33% stake in Ant Financial…” (Click here to see the full text)

1. Baidu, Inc. (NASDAQ: BIDU)

Claugus’ Stake Value: $78,344,000
Percentage of Thomas E. Claugus’ 13F Portfolio: 5.84%
Number of Hedge Fund Holders: 59

Baidu, Inc. (NASDAQ: BIDU) primarily serves the Chinese market with internet search services. It was incorporated in 2000 and stands first on the list of 10 tech stocks to invest in today according to Thomas E. Claugus’ GMT Capital. Baidu, Inc. shares have offered investors returns exceeding 36.05% over the course of the past 12 months.

On August 19, Baidu, Inc. announced that it launched an underwritten offering in which it publicly offered $1 billion common stock shares. The issue includes $300 million in 1.625% notes due 2027 and $700 million in 2.375% notes due 2031. Net proceeds of $0.99 billion are expected to be utilized for general company operations, debt reduction, and to fund existing Eligible Projects.

GMT Capital owns 384,227 shares of Baidu, Inc., worth $78.34 million. This represented 5.84% of the investment portfolio of GMT Capital. There were 59 hedge funds in our database that held stakes in Baidu, Inc. in the second quarter of 2021, compared to 89 funds in the previous quarter.

Longleaf Partners Fund, in its first-quarter 2021 investor letter, mentioned Baidu, Inc.. Here is what the fund said:

“Baidu (3%, 0.70%), the dominant artificial intelligence (AI) company in China, was another top contributor for the quarter. Baidu reported fourth-quarter results ahead of the market’s expectation. The advertising business saw a gradual recovery compared to the first half of the year. A key area of outperformance was the non-advertising revenue, which grew 52%y year-over-year (YoY) and now comprises 18% of Baidu Core. The total addressable market value of Baidu’s non-advertising business (ex-autonomous driving) is 10x the size of online advertising, and the expected compound annual growth rate (CAGR) to 2025 for non-advertising is three times faster than that of online marketing. The recent YY Live acquisition should help to further boost the non-advertising mix. Baidu’s cloud business grew 67% YoY in the quarter with an annualized run rate of US$2 billion. Baidu also made progress in Apollo, the company’s autonomous driving platform. Apollo has been granted the first driverless testing permit and received the first qualifications for commercialized autonomous driving operations in China. Baidu has set up an EV joint venture with automotive maker Geely, which could accelerate Apollo’s adoption in the industry. In March, Baidu completed a secondary listing in Hong Kong, hedging any potential risks from a forced delisting in the US. The significant investment and market leadership in Chinese autonomous vehicles and AI are material underappreciated sources of value for the company. Baidu issued 10-year bonds at 2.375% last October, which implies a cash flow multiple of 42x. Baidu currently trades at 21x earnings, but excluding cash, listed securities, and investments, and assigning zero value for their loss-making Cloud and A.I. businesses, Baidu trades at 13.4x free cash flow (FCF), equivalent to a FCF yield of 7.5%. In December, the company upsized its buyback program from $3 billion to $4.5 billion to take advantage of its severe undervaluation.

In one of the more dramatic price moves we have seen this year, Baidu’s share price spiked by 57% in the first seven weeks through late-February, after adding 71% in 2020. Taking advantage of this February strength, we cut the Baidu position in half. However, towards the end of the quarter, Baidu’s price plummeted as a result of forced liquidation sale of Archegos Capital Management’s substantial holdings in Baidu by their lenders. On March 26th, banks liquidated their margin collateral in Baidu stock through a series of block trade transactions. A massive $23.7 billion and $12 billion worth of Baidu traded on March 26th and 29th. This huge margin call is completely unrelated to Baidu’s fundamentals and our investment thesis.”

You can also take a peek at 10 Best Tech Stocks To Buy Now According To Billionaire Laffont and 10 Best Tech Stocks to Buy According to Billionaire Julian Robertson