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8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital

In this article, we discuss 8 stocks to buy according to Alexander Captain’s Cat Rock Capital. If you want to skip our detailed analysis of Captain’s investment philosophy and performance, go directly to 4 Stocks to Buy According to Alexander Captain’s Cat Rock Capital

In the first quarter of 2015, Alexander Captain established the Connecticut-based hedge fund Cat Rock Capital. Captain has a Master of Arts in Statistics from the Harvard Graduate School of Arts and Sciences and a Bachelor of Arts in Economics from Harvard College. He worked at Chase Coleman’s Tiger Global and Blackstone before launching Cat Rock Capital. He is the founder and managing partner at the Cat Rock Capital.

Cat Rock Capital uses in-depth fundamental analysis and targeted value investing in providing returns for investors over the long term in high-quality, publicly traded firms. It often keeps investments for several years, borrows little to nothing, and has 10 to 15 core holdings. Cat Rock Capital’s investment strategy emphasizes on reliability, firm, people, and pricing.

The fund’s Q2 2022 portfolio was worth $469.92 million, and some renowned names in Cat Rock Capital’s include TransDigm Group Incorporated (NYSE:TDG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). The hedge fund primarily invests in the information technology, industrials, and communication sectors, focusing on small and big companies with solid fundamentals and potential for future growth.

Our Methodology

Let’s start our list of 8 stocks to buy according to Alexander Captain’s Cat Rock Capital. These equities were chosen from Cat Rock Capital’s Q2 portfolio. The Q2 2022 database of Insider Monkey, which contains data on approximately 900 hedge funds, was utilised to ascertain the sentiment of the hedge funds towards these equities.

Stocks to Buy According to Alexander Captain’s Cat Rock Capital

8. DocuSign, Inc. (NASDAQ:DOCU)

Cat Rock Capital’s Stake Value: $16,411,000

Percentage of Cat Rock Capital’s 13F Portfolio: 3.49%

Number of Hedge Fund Holders: 37

DocuSign, Inc. (NASDAQ:DOCU) provides cloud-based electronic signing solutions. DocuSign, Inc. (NASDAQ:DOCU) was upgraded by Wedbush analyst Daniel Ives on October 12 from ‘Underperform’ to ‘Neutral’ with a $55 price target. According to the analyst, CLM deal execution has generally steadied, with numbers currently within reach for 2023–2024. DocuSign, Inc. (NASDAQ:DOCU) launched CLM Essentials in April to streamline contracts for expanding businesses.

At the end of Q2 2022, 37 hedge funds tracked by Insider Monkey owned stakes in DocuSign, Inc. (NASDAQ:DOCU), down from 45 a quarter earlier. The collective value of these stakes is over $1.01 billion. With nearly 5.22 million shares, Fisher Asset Management is DocuSign, Inc. (NASDAQ:DOCU)’s leading stakeholder as of Q2 2022.

Cat Rock Capital increased its stake in DocuSign, Inc. (NASDAQ:DOCU) during the second quarter of 2022 by around 30%. The fund now owns over 286,000 shares of DocuSign, Inc. (NASDAQ:DOCU), worth close to $16.41 million, representing 3.49% of the portfolio.

In addition to TransDigm Group Incorporated (NYSE:TDG), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META), Alexander Captain’s Cat Rock Capital is bullish on DocuSign, Inc. (NASDAQ:DOCU).

Rowan Street Capital, an investment management company, mentioned DocuSign, Inc. (NASDAQ:DOCU) in its Q3 2022 investor letter. Here is what the fund said:

“In the case of DocuSign, Inc. (NASDAQ:DOCU), the “Management” part no longer satisfies our requirements in order to remain in our investment portfolio. In the past 6-9 months, the company has had a huge turnover in both employees and upper management. In June of 2021, the board decided to get rid of Dan Springer, who had been a CEO of DocuSign since 2017 and took the company public in 2018. We found this decision strange as we thought that he actually did a great job growing the company over the past 5 years (revenues grew almost 5x from $519 million in 2017 to an estimated $2.4 billion this year).…” (Click here to read the full text)

7. eXp World Holdings, Inc. (NASDAQ:EXPI)

Cat Rock Capital’s Stake Value: $32,462,000

Percentage of Cat Rock Capital’s 13F Portfolio: 6.9%

Number of Hedge Fund Holders: 19

eXp World Holdings, Inc. (NASDAQ:EXPI) owns and runs a technology platform that enables businesses to run remotely, as well as a cloud-based real estate brokerage. eXp Realty has more than 85,000 agents globally, a 30% increase from the 65,286 agents it had at the start of October 2021. eXp World Holdings, Inc. (NASDAQ:EXPI) is the parent company of eXp Realty.

In light of eXp World Holdings, Inc. (NASDAQ:EXPI)’s Q2 earnings deficit, DA Davidson analyst Tom White on August 4 maintained a ‘Buy’ rating on shares of eXp World Holdings while decreasing his price objective from $28 to $22. In addition, according to Insider Monkey’s data, 19 hedge funds were bullish on eXp World Holdings, Inc. (NASDAQ:EXPI) at the end of Q2 2022, compared to 18 funds in the prior quarter.

Alexander Captain’s Cat Rock Capital is the leading position holder in eXp World Holdings, Inc. (NASDAQ:EXPI). The hedge fund first bought a stake in eXp World Holdings, Inc. (NASDAQ:EXPI) in the fourth quarter of 2021. In Q2 2022, the hedge fund increased its position in eXp World Holdings, Inc. (NASDAQ:EXPI) by 8% to 2.76 million shares, accounting for 6.9% of the overall portfolio.

Here is what East 72 has to say about eXp World Holdings, Inc. (NASDAQ:EXPI) in its Q1 2022 investor letter:

“Investors don’t like listed real estate brokers – at all. There are three significant US listed residential real estate brokers or franchisors (which includes) eXp World Holdings (EXPI: market capitalisation US$3.03billion less $108m in cash) with 72,000 agents connected via the eXp World and Virbela platforms; EXPI earned ~$41million in operating profit in 2021, after $144million in stock based compensation!”

6. Liberty Broadband Corporation (NASDAQ:LBRDA-C)

Cat Rock Capital’s Stake Value: $36,753,000

Percentage of Cat Rock Capital’s 13F Portfolio: 7.82%

Number of Hedge Fund Holders: 27

Liberty Broadband Corporation (NASDAQ:LBRDA-C) provides telecommunications services in the United States. Both household users and small to medium-sized businesses can access cable services using the company’s infrastructure of fibre, hybrid fibre, and coaxial connections.

In Q2 2022, Cat Rock Capital decreased its position in Liberty Broadband Corporation (NASDAQ:LBRDA-C) by 70%, holding a total of 317,820 shares worth over $36.75 million. The company represented 7.82% of the fund’s total 13F portfolio. Eagle Capital Management is the leading Liberty Broadband Corporation (NASDAQ:LBRDA-C) stakeholder, with a $960.27 million stake in the company.

According to Insider Monkey’s data, 27 hedge funds held stakes worth $543.50 million in Liberty Broadband Corporation (NASDAQ:LBRDA-C) at the end of June 2022, compared to 26 funds in the prior quarter worth $606.16 million.

Here is what Longleaf Partners Fund had to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q1 2022 investor letter:

“Liberty Broadband – A new position in 4Q 2021, holding company Liberty Broadband also suffered from a widening of a market-imposed holdco discount in an uncertain quarter. Liberty’s stakes in Charter and Alaskan cable company GCI also faced near-term concerns over slowing industry broadband additions, but these businesses have over a decade of pricing power history and are well positioned to weather an inflationary environment. We have a high degree of respect for our partners in John Malone and Greg Maffei, who are focused on growing value per share and are actively repurchasing discounted shares to help close the price-to-value gap.”

5. TransDigm Group Incorporated (NYSE:TDG)

Cat Rock Capital’s Stake Value: $43,644,000

Percentage of Cat Rock Capital’s 13F Portfolio: 9.28%

Number of Hedge Fund Holders: 66

TransDigm Group Incorporated (NYSE:TDG) is a designer, producer, and supplier of engineered aviation components for use in operational, commercial, and military aircraft. Sharlyn C. Heslam’s Stockbridge Partners is the leading position holder in TransDigm Group Incorporated (NYSE:TDG), with 1.60 million shares worth $859.93 million.

On October 11, Credit Suisse analyst Scott Deuschle initiated coverage of TransDigm Group Incorporated (NYSE:TDG), assigning an ‘Outperform’ rating and a $661 price target. The expert asserted that TransDigm Group Incorporated (NYSE:TDG)’s over-earning is not an issue and that there is still time for the commercial aerospace revival.

TransDigm Group Incorporated (NYSE:TDG) is a notable position in Alexander Captain’s Cat Rock Capital portfolio, alongside Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META). Shares of TransDigm Group Incorporated (NYSE:TDG) rallied 7.11% last month, resulting in a $30.96 billion market capitalization. According to Insider Monkey’s data, 66 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG) at the end of Q2 2022, compared to 64 funds in the preceding quarter.

The hedge fund of Alexander Captain entered the second quarter of 2022 with 81,323 shares of TransDigm Group Incorporated (NYSE:TDG) in its portfolio worth around $43.64 million. The company has featured on Captain’s portfolio since the fourth quarter of 2015.

In its Q2 2022 investor letter, Vulcan Value Partners mentioned TransDigm Group Incorporated (NYSE:TDG) and explained its insights for the company. Here is what the fund said:

“TransDigm Group Inc. is an aerospace manufacturing firm that provides highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales of sole-sourced products. The company produces high levels of free cash flow and has an effective, shareholder-oriented management team who are good capital allocators. Despite the company’s strong results during the quarter and solid outlook, its stock price declined.”

Click to continue reading and see 4 Stocks to Buy According to Alexander Captain’s Cat Rock Capital.

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Disclosure: None. 8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

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