In this article, we will discuss the 5 top stocks to buy according to Rob Koehn’s Ivy Lane Capital. If you want to read our detailed analysis of Rob Koehn’s history, investment strategy, and hedge fund performance, go directly to see Top Stocks to Buy Today According to Rob Koehn’s Ivy Lane Capital.
5. BlackRock, Inc. (NYSE: BLK)
Value: $18,811,000
Percentage of Ivy Lane’s 13F Portfolio: 13.3%
Number of Hedge Fund Holders: 47
BlackRock, Inc. (NYSE: BLK) is a multinational investment management company based in New York City, U.S. The company provides investment management services to institutions and investors and also manages funds. BlackRock, Inc. (NYSE: BLK) has over 70 offices in 30 different locations.
In Q2, Ivy Lane holds 21,500 shares in BlackRock, Inc. (NYSE: BLK), worth $18.8 million. The company represents 13.3% of the hedge fund’s 13F portfolio. In the second quarter, Ivy Lane did not change its position in the company. In Q2 2021, BlackRock, Inc. (NYSE: BLK) posted an EPS of $10.03, beating the estimates by $0.63. The company also reported revenue of $4.8 billion, up from $3.6 billion during the same period last year. BlackRock, Inc. (NYSE: BLK) also declared a quarterly dividend of $4.13 per share. In July, Argus lifted its price target on BlackRock, Inc. (NYSE: BLK) to $975, with a ‘Buy’ rating on the shares.
BlackRock, Inc. (NYSE: BLK) has delivered a 58.6% return in the past year. As of Q2 2021, 47 hedge funds have positions in the company, compared with 42 in the previous quarter. The stakes are valued at $1.28 billion.
Baron Funds released its Q1 2021 investor letter and mentioned BlackRock, Inc. (NYSE: BLK) in it. Here is what the asset management firm has to say:
“During the quarter, we initiated a position in BlackRock Inc., the world’s largest investment manager with $9 trillion in assets under management. BlackRock offers an array of products across equities, fixed income, alternatives, and cash management to institutional and retail investors worldwide. About one-quarter of BlackRock’s assets under management is actively managed, and the rest is in passive index funds and iShares-branded ETFs. The company offers technology services including the investment and risk management platform, Aladdin, as well as other advisory services and solutions. Over the five years ending December 31, 2020, assets under management and earnings per share grew at compound annual growth rates
of 13% and 12%, respectively.We believe BlackRock is well positioned for continued growth given its diverse product offering, global distribution, brand recognition, and capable management team. With most of its assets in index funds and ETFs, BlackRock is a prime beneficiary of the ongoing shift to passive investing. The company also benefits from increasing demand for sustainable investment strategies and “barbell” strategies that use a combination of low-cost index funds, active and illiquid alternatives products. BlackRock fits squarely within our Tech-Enabled Financials theme given its longstanding commitment to innovation and proprietary technology platform, Aladdin, which serves as the investment and risk management system for both BlackRock and a growing number of institutional investors around the world. We expect BlackRock’s earnings per share will continue to grow at a doubledigit annual rate over a market cycle through a combination of mid-single-digit growth in assets under management from net inflows, market appreciation, low to mid-teens revenue growth in technology services, modest margin expansion, and share repurchases.”
4. Avalara, Inc. (NYSE: AVLR)
Value: $19,577,000
Percentage of Ivy Lane’s 13F Portfolio: 13.84%
Number of Hedge Fund Holders: 29
Avalara, Inc. (NYSE: AVLR) is an American software company providing services in automated tax compliance. The company delivers solutions for global transaction taxes, such as VAT, excise, GST, etc. Avalara, Inc. (NYSE: AVLR) has over 30,000 customers in 95 countries.
Ivy Lane Capital holds 121,000 shares in Avalara, Inc. (NYSE: AVLR), worth over $19.5 million in the second quarter of 2021. The hedge fund bought 18,000 shares in the company in Q2, which now accounts for 13.84% of the fund’s 13F portfolio. In Q2, Avalara, Inc. (NYSE: AVLR) posted an EPS of $0.02, beating the consensus by $0.12. The company’s revenue of $169.1 million beat the estimates by $14.8 million. In August, Raymond James appreciated the company’s Q2 earnings beat and growth in customers. Recently, the firm lifted its price target on Avalara, Inc. (NYSE: AVLR) to $220, with an ‘Outperform’ rating on the shares. The stock delivered a 37.3% return in the past year.
As of Q2 2021, 29 hedge funds have positions in Avalara, Inc. (NYSE: AVLR), worth $1.03 billion.
Alger released its Q1 2021 investor letter and mentioned Avalara, Inc. (NYSE: AVLR) in it. Here is what the firm has to say:
“Avalara Inc. was among the top detractors from performance. Avalara is leading provider of cloud-based solutions and services that enable companies to automate the complex and onerous burden of statutory transactional tax compliance. Avalara’s solutions include an advanced database of broad and up-to-date tax content with technology for executing compliance processes including tax determination, tax document management and returns preparation and filing, which enable businesses of all sizes to automate transaction tax compliance, process transactions in real time, produce accurate tax records, and reduce errors and audit exposure. Today, Avalara has 14,890 core customers. Avalara underperformed in the first quarter as part of a broader sector rotation away from high-growth software stocks. After material outperformance in 2020, the correction in Avalara’s stock price is due to increasing interest rates negatively impacting growth-focused companies like Avalara. Business fundamentals for Avalara have remained strong, with the company seeing an elevated demand pipeline and early signs of business momentum in the enterprise segment. We view increased digitization as a result of the Covid-19 pandemic as a long-term tailwind for Avalara’s software business.”
3. Twitter, Inc. (NYSE: TWTR)
Value: $21,675,000
Percentage of Ivy Lane’s 13F Portfolio: 15.33%
Number of Hedge Fund Holders: 89
Twitter, Inc. (NYSE: TWTR) is the third-largest holding of Robert Koehn’s Ivy Lane Capital. It is an American social networking company with the main purpose to connect people around the world. Recently, Twitter, Inc. (NYSE: TWTR) launched ‘Shop Module’, a new e-commerce feature that will allow other brands and businesses to showcase their products to Twitter’s users.
Ivy Lane Capital did not change its position in Twitter, Inc. (NYSE: TWTR) in the second quarter. The hedge fund owns 315,000 shares in the company, worth $21.6 million. Twitter, Inc. (NYSE: TWTR) accounts for 15.33% of the fund’s 13F portfolio. In Q2 2021, the company reported a growth in average monetizable daily active users (mDAU) to 206 million, compared with 186 million in the prior-year quarter. The EPS of $0.20 beat the market consensus by $0.13. After strong quarterly results, KeyBanc raised its price target on Twitter, Inc. (NYSE: TWTR) to $81 which implies a 15% upside. The stock gained 56.2% in the past year and 17.6% year-to-date.
As of Q2 2021, 89 hedge funds tracked by Insider Monkey have positions in Twitter, Inc. (NYSE: TWTR), worth over $6.03 billion.
ClearBridge Investments published its Q2 2021 investor letter and mentioned Twitter, Inc. (NYSE: TWTR) in it. Here is what the firm has to say:
“Not every portfolio company will neatly fit into one of these four growth segments and some may move from one to another over time. Social media platform Twitter could be considered an improving growth story due to the initiatives put in place to grow and better monetize its user base. With the global return of live events and sports causing a rebound in advertising, combined with other new services beginning to thrive, this is a company with the fundamentals to be categorized as a disruptor.”
2. Microsoft Corporation (NASDAQ: MSFT)
Value: $23,297,000
Percentage of Ivy Lane’s 13F Portfolio: 16.47%
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ: MSFT) is an American technology company that produces computer software, consumer electronics, smart devices, and also offers IT-related services. The company enables digital transformation for the cloud era.
In Q2, Ivy Lane did not change its position in Microsoft Corporation (NASDAQ: MSFT) and holds 86,000 shares in the company, worth $23.3 million. The company represents 16.47% of the hedge fund’s 13F portfolio. UBS included Microsoft Corporation (NASDAQ: MSFT) in its list of ‘overweight stocks’, with an overweight measure of 0.21% in the UBS metric. Recently, the firm lifted its price target on Microsoft Corporation (NASDAQ: MSFT) to $350, with a ‘Buy’ rating on the shares. In Q2 2021, the company reported a 21% year-over-year growth in revenue at $46.2 billion.
Of the 873 hedge funds tracked by Insider Monkey, 238 funds have positions in Microsoft Corporation (NASDAQ: MSFT) in the second quarter of 2021, worth over $62.4 billion.
Alger, an investment management firm, recently released its Q2 2021 investor letter and mentioned Microsoft Corporation (NASDAQ: MSFT) in it. Here is what the firm has to say:
“Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the past quarter.
This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well positioned to capture market share.”
1. Alphabet Inc. (NASDAQ: GOOG)
Value: $24,311,000
Percentage of Ivy Lane’s 13F Portfolio: 17.19%
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ: GOOG) is an American multinational company and became the holding company of Google and other Google subsidiaries in 2015. The company offers services in web-based research, software applications, and maps.
In Q2, Robert Koehn’s Ivy Lane Capital holds 9,700 shares in Alphabet Inc. (NASDAQ: GOOG), worth $24.3 million. During the quarter, the hedge fund did not change its activity in the company. Alphabet Inc. (NASDAQ: GOOG) represents 17.19% of the fund’s 13F portfolio. In Q2 2021, Alphabet Inc. (NASDAQ: GOOG) generated $61.2 billion in revenue, compared with $38.2 billion during the same period last year. In August, JPMorgan lifted its price target on Alphabet Inc. (NASDAQ: GOOG) to $3,250 and implied a 19% further upside. UBS also ranked the stock as a ‘Buy’ after strong quarterly results.
As of Q2 2021, 155 hedge funds tracked by Insider Monkey have positions in Alphabet Inc. (NASDAQ: GOOG), worth over $33.7 billion.
Alger recently published its Q2 2021 investor letter and mentioned Alphabet Inc. (NASDAQ: GOOG) in it. Here is what the firm has to say:
“Alphabet Inc. was among the top contributors to performance. Alphabet’s Google is a leading search engine, which has allowed the company to become a beneficiary of the shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is also a leader in implementing artificial intelligence and developing autonomous vehicles and owns the highly trafficked YouTube service. Alphabet contributed to performance due to a strong quarterly report that was highlighted by a meaningful acceleration in advertising revenues reflecting a robust, broad-based demand environment with notable strength in retail and improvement in travel-related businesses. Profitability was also better than expected as the revenue growth exceeded the rate at which costs for staffing, office expenses, travel and entertainment increased.”
You can also take a look at 10 Best Stocks To Buy According To Billionaire Larry Robbins and 10 Best Stocks To Buy Now According To Quant Billionaires
