8 Best Stocks to Buy According to Billionaire Nicholas J. Pritzker’s Tao Capital

Published August 9, 2021 at 9:44 am EDT Updated September 7, 2026 at 1:31 pm EDT

In this article, we will be discussing 8 best stocks to buy according to billionaire Nicholas J. Pritzker based on his hedge fund’s Q1 portfolio.

Billionaire Nicholas Pritzker is known for his investments in renewable energy, technology and transportation, healthcare, and sustainable food and agriculture. Rather than building a well-diversified portfolio, his hedge fund, Tao Capital, focuses on a limited number of stocks. Tao Capital was an early investor in e-cigarette maker Juul and synthetic DNA developer Twist Biosciences.

After graduating from Lake Forest College in Illinois and earning a law degree from the University of Chicago in 1974, Nicholas Pritzker joined the family firm. Later in 1984, he became the Divisional Vice President of the family firm. Nicholas Pritzker is a cousin of Jay Pritzker, who founded the Hyatt hotel business. Pritzker led Hyatt’s new hotel development initiatives for several years; however, he subsequently sold most of his Hyatt ownership. Billionaire Nicholas Pritzker was vice-chairman of the Hyatt Hotels board of directors until resigning in 2009 to pursue entrepreneurial endeavors.

In the first quarter, the 75-year-old billionaire venture investor added two new positions and cut interests in his top four holdings. As a result, the hedge fund’s 13F portfolio is valued at approximately $346.29 million as of the end of the first quarter of 2021.

As of the end of the first quarter, some notable stock picks of Nicholas J. Pritzker’s portfolio include Twist Bioscience Corporation (NASDAQ: TWST), Uber Technologies, Inc. (NYSE: UBER), and Tesla, Inc. (NASDAQ: TSLA)

A notable company in Nicholas J. Pritzker’s portfolio is Twist Bioscience Corporation, a synthetic biology firm developing and distributing synthetic DNA-based products. On August 6, the company declared earnings for the third quarter of 2021. It reported earnings per share of -$0.82, missing market predictions by $0.07. Nevertheless, the revenue for the first three months of 2021 was over $35 million, up 65.1% YoY, beating the estimates by $2.59 million.

Another notable stock in Nicholas J. Pritzker’s portfolio is Uber Technologies, Inc.. The investor owns a $68.79 million stake in the company. On August 5, Wedbush analyst Ygal Arounian lowered the price target on Uber to $51 from $66 and maintained an “Outperform” rating on the shares. On August 4, Uber Technologies, Inc. released its second-quarter 2021 earnings. It earned $0.58 per share, which was $1.11 above the market forecasts. The revenue was $3.93 billion, up 75.4% YoY, beating the expectations by $170 million.

Based on the latest 13F holdings for the first quarter of 2021, Tao Capital owns 57,500 shares in Tesla, Inc. after cutting its holding in the company by 56% from the previous quarter. On August 3, Piper Sandler analyst Alexander Potter reiterated an “Overweight” rating on Tesla, Inc. with a price target of $1,200. On July 26, Tesla, Inc. reported earnings for the second quarter of 2021. It recorded earnings per share of $1.45, surpassing market expectations by $0.47. In addition, the second quarter of 2021 brought in revenue of $11.96 billion, exceeding the estimates by $560 million.

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With this context in mind, here is our list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. We used Pritzker’s 13F portfolio for the first quarter for this analysis.

Best Stocks to Buy According to Billionaire Nicholas J. Pritzker

8. Denali Therapeutics Inc. (NASDAQ: DNLI)

Pritzker’s Stake Value: $348,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 26

Denali Therapeutics Inc. (NASDAQ: DNLI) is an American biopharmaceutical company, which identifies and develops candidates for neurodegenerative illnesses. It was incorporated in 2013 and ranks eighth on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. Denali shares have gained about 64.66% over the last 12 months.

On August 4, Denali Therapeutics Inc. posted earnings for the second quarter of 2021. It declared earnings per share of -$0.50, missing market predictions by $0.11. In addition, the revenue over the period was $22.94 million, 292.1% YoY, missing the estimates by $4.98 million. On July 26, H.C. Wainwright analyst Andrew Fein raised the price target on Denali Therapeutics Inc. to $105 from $95 and kept a “Buy” rating on the shares.

Tao Capital holds 6,086 shares in Denali Therapeutics Inc., worth over $348 thousand. Eli Casdin’s Casdin Capital is the company’s most significant stakeholder, with 1.61 million shares worth $91.93 million. Like Twist Bioscience Corporation, Uber Technologies, Inc. and, Tesla, Inc., Denali Therapeutics Inc. is a notable stock in Nicholas J. Pritzker Q1 portfolio.

Baron Funds, in its first-quarter 2021 investor letter, mentioned Denali Therapeutics Inc.. Here is what the fund said:

“Denali Therapeutics Inc. is a biotechnology company developing therapies for neurodegeneration, including both targeted drugs and delivery systems for crossing the blood/brain barrier. Shares fell in concert with the broader market rotation from growth to value that resulted in significant weakness in biotechnology stocks. From a fundamentals perspective, Denali reported incrementally positive updates from its Hunter Syndrome program in the quarter, although this development was more impactful in the prior quarter when initial data was released.”

7. Hyatt Hotels Corporation (NYSE: H)

Pritzker’s Stake Value: $5,789,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 1.67%
Number of Hedge Fund Holders: 23

Hyatt Hotels Corporation (NYSE: H) operates as a hospitality company globally. The company was founded in 1957 and stands seventh on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. Hyatt Hotels was able to deliver a 47.62% return in the past 12 months.

On August 3, Hyatt Hotels Corporation posted earnings for the second quarter of 2021. The company declared earnings per share of -$1.15, missing the estimates by $0.30. However, adjusted EBITDA grew to $55 million in the second quarter of 2020, compared to the second quarter of 2019. On June 4, Berenberg analyst Stuart Gordon raised the price target on Hyatt Hotels Corporation to $60 from $55 but maintained a “Sell” rating on the shares.

Tao Capital owns 70,000 shares in Hyatt Hotels Corporation worth over $5 million, representing 1.67% of their portfolio. Out of the hedge funds being tracked by Insider Monkey, Royce & Associates is a leading shareholder in Hyatt, with 87,760 shares worth more than $6 million.

Like Twist Bioscience Corporation, Uber Technologies, Inc. and, Tesla, Inc., Hyatt Hotels Corporation is a notable stock in Nicholas J. Pritzker Q1 portfolio.

6. Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL)

Pritzker’s Stake Value: $6,012,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 1.73%
Number of Hedge Fund Holders: 17

Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) is a clinical-stage biopharmaceutical company. It was incorporated in 2011 and is ranked sixth on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. The company currently has a market capitalization of $1.47 billion.

On August 6, BMO Capital analyst Matthew Luchini upgraded Madrigal Pharmaceuticals, Inc. from “Market Perform” to “Outperform” with a price target of $111. On August 5, Madrigal Pharmaceuticals announced earnings for the second quarter of 2021. It posted earnings per of -$3.72, missing the estimates by $0.14. Madrigal had $323.8 million in cash, cash equivalents, and marketable securities on June 30, 2021, up from $284.1 million on December 31, 2020.

Tao Capital holds 51,396 shares in Madrigal Pharmaceuticals, Inc., worth over $6 million, representing 1.73% of their portfolio. As of the end of the first quarter, 17 hedge funds in Insider Monkey’s database of 866 funds held stakes in Madrigal compared to 15 funds in the quarter earlier. Like Twist Bioscience Corporation, Uber Technologies, Inc. and, Tesla, Inc., Madrigal Pharmaceuticals, Inc. is a notable stock in Nicholas J. Pritzker’s Q1 portfolio.

5. 908 Devices Inc. (NASDAQ: MASS)

Pritzker’s Stake Value: $28,641,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 8.27%
Number of Hedge Fund Holders: 14

908 Devices Inc. (NASDAQ: MASS) manufactures and sells measurement devices for chemical and biochemical analysis. It was incorporated in 2012 and is placed fifth on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. 908 Devices currently has a $937.58 million market capitalization.

On August 4, 908 Devices Inc. made public its earnings for the second quarter of 2021. It posted earnings per share of -$0.27, missing estimates by $0.04. However, the revenue over the period was $8.27 million, beating the estimates by $1.12 million. Earlier in May, Bio-Techne Corporation (NASDAQ: TECH) and 908 Devices (MASS) established a joint agreement to produce a protein characterization extended workflow solution. Protein characterization and CE-SDS and absorbance and native fluorescence icIEF detection save time in development and reduce time to commercialization.

Tao Capital holds 590,519 shares in 908 Devices Inc. worth over $28 million, representing 8.27% of their portfolio. The hedge fund has trimmed stakes in the firm by 18% in the past few months. Like Twist Bioscience Corporation, Uber Technologies, Inc. and Tesla, Inc., 908 Devices Inc. is a notable stock in Nicholas J. Pritzker’s Q1 portfolio.

4. Tesla, Inc. (NASDAQ: TSLA)

Pritzker’s Stake Value: $38,406,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 11.09%
Number of Hedge Fund Holders: 62

Tesla, Inc. develops, manufactures, rents, and sells electric automobiles, as well as energy generation and storage solutions. Tesla, Inc. was founded in 2003 and is placed fourth on the list of 10 best stocks to buy according to billionaire Nicholas J. Pritzker. The stock has offered investors more than 140.62% in returns over the course of the past twelve months.

On July 21, BHP Group (NYSE: BHP) inked an agreement to supply Tesla with nickel from its Nickel West facilities in Western Australia. Nickel is a critical metal used to create electric vehicle batteries.

Tao Capital holds 57,500 shares in Tesla, Inc., worth over $38 million. This represents 11.09% of their portfolio. The hedge fund’s stake in Tesla stock decreased by 56% in the past few months, the latest data reveals.

Baillie Gifford, in its second-quarter 2021 investor letter, mentioned Tesla, Inc.. Here is what the fund said:

“As many countries enjoy a relaxation of Covid restrictions, Mr Market is focussed on short-term beneficiaries of ‘the pleasure after the plague’. There are

interesting parallels with the Roaring 20s here, but to our minds, they extend beyond post-pandemic hedonism. Much of the new wealth created in the 1920s was patchily distributed and accompanied by a pervasive sense that the older generation had let down younger people. In 1920, John F. Carter, an irate 23-year-old wrote “the older generation had certainly pretty well ruined this world before passing it on to us. We have been forced to live in an atmosphere of ‘tomorrow we die,’ and so, naturally, we drank and were merry.”

In the field of energy meanwhile, Tesla has begun a pioneering shift away from using cobalt within its batteries. Its lithium iron phosphate (LFP) technology (already used in flagship energy storage products) could underpin not just the automotive ambitions but also the ramp up of Tesla’s grid-scale energy storage offering which will be key to accelerating the demise of dirty peaker plants.”

3. Uber Technologies, Inc. (NYSE: UBER)

Pritzker’s Stake Value: $68,785,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 19.86%
Number of Hedge Fund Holders: 130

Uber Technologies, Inc. develops and operates unique technological applications. The company was founded in 2009 and stands third on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. The shares of Uber surged 34.59% in the past 12 months.

On July 28, Uber and FTD announced an exclusive agreement to deliver on-demand flowers to Uber and Uber Eats customers across the United States. Uber’s collaboration with FTD is part of the company’s effort to expand its on-demand offerings beyond ride-sharing.

RiverPark Advisors, LLC, in its quarter-four 2020 investor letter, mentioned Uber. Here is what the fund has to say about Uber in its letter:

“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third-quarter results with Delivery Gross Bookings growing 135% year-over-year, which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.

Despite the COVID disruption, UBER remains the undisputed global leader in ride-sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”

2. Ouster, Inc. (NYSE: OUST)

Pritzker’s Stake Value: $95,652,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 27.62%
Number of Hedge Fund Holders: 19

Ouster, Inc. (NYSE: OUST) creates digital lidar sensors for applications in industrial automation, smart infrastructure, robotics, and automobiles. The company was founded in 2015 and ranks second on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. Ouster currently has a $1.6 billion market capitalization.

On June 8, PARIFEX, a leading solution provider in project management for smart cities, struck a deal with Ouster to install Ouster’s OS1 sensors on speed enforcement and data gathering systems across France. With a projected supply need of 500 sensors through 2025, Ouster has agreed to be the exclusive lidar provider for PARIFEX’s ETU Project. On May 5, Barclays analyst Blayne Curtis initiated coverage on Ouster with an “Overweight” rating and price target of $14.

Ouster, Inc. is the latest addition in billionaire Nicholas J. Pritzker’s hedge fund portfolio, as Tao Capital bought 11.25 shares of the company, worth $95.65 million. Hedge funds are loading up on Ouster, as Insider Monkey’s data shows that 19 hedge funds held stakes in the company as of the end of the first quarter of 2021.

1. Twist Bioscience Corporation (NASDAQ: TWST)

Pritzker’s Stake Value: $102,658,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 29.64%
Number of Hedge Fund Holders: 24

Twist Bioscience Corporation is a synthetic biology company that creates and sells synthetic DNA products headquartered in South San Francisco, California. The company was founded in 2013 and is placed first on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker.

On June 29, William Blair analyst Matt Larew initiated a coverage on Twist Bioscience with an “Outperform” rating. On June 14, Twist Bioscience Corporation made public its partnership with Regeneron Genetics Center, a Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) company, to develop a unique next-generation sequencing population genetics genotyping test. The assay intends to help researchers learn more about disease causes, find new medication targets, and speed up drug development.

Tao Capital holds 828,815 shares in Twist Bioscience Corporation, worth over $102 million, representing 29.64% of their portfolio. The hedge fund has trimmed stakes in the firm by 25% in the past few months. At the end of the first quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $1.115 billion in Twist Bioscience, up from 23 the preceding quarter worth $1.39 billion.

Perpetual Limited, in its second-quarter 2021 investor letter, mentioned Twist Bioscience Corporation. Here is what the fund said:

“Twist Bioscience was the second biggest contributor during the quarter and the biggest contributor over the financial year. This was a position we actually exited in the March quarter at $192.50, a price we felt didn’t offer compelling value. We were lucky that Twist got caught up in the broader sell-off of high growth stocks earlier this year, giving us the opportunity to re-enter the position in May and June at an average price of $97.61. Often volatility works in your favour if you’re an active investor with the capability to act on the new opportunities being created by the market every day.

While Twist was the biggest contributor to fund performance over the year, it contributed just 12% of the fund’s return, with 88% of the fund’s return coming from other stocks. This is by design as what we’re aiming to do is build a portfolio containing a large number of high-returning but hopefully uncorrelated ideas. We think this is the best way to build a portfolio that’s both high-returning and resilient.”

You can also take a peek at 10 Best Stocks to Buy According to Billionaire Steve Cohen and 10 Best Dividend Stocks to Buy According to Billionaire Michael Price

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