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Bares Capital’s Top 5 Stock Picks

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In this article, we will take a look at Bares Capital’s top 5 stock picks. To see more such companies, go directly to Bares Capital’s Top 12 Stock Picks.

5. Interactive Brokers Group, Inc. (NASDAQ:IBKR)

Number of Hedge Fund Holders: 45
Bares Capital Management’s Equity Stake: $211.02 Million
2023 share price performance: 15%

Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of Bares Capital Management’s top stock picks in financial services, operating as an automated electronic broker worldwide. Interactive Brokers Group, Inc. (NASDAQ:IBKR) engages in the execution, clearance, and settlement of trades in stocks, options, futures, bonds, foreign exchange, etc.

Interactive Brokers Group, Inc. (NASDAQ:IBKR) was one of the stocks that benefited from solid investor sentiment in 2023, resulting in significant trading activities on stocks, bonds, and mutual funds, among other instruments. The stock was up by 15% last year.

Analyst James Yaro believes the stock is a ‘Strong Buy’ as it is well positioned to benefit from interest rate cuts in 2024.

“However, we see substantial upside to these market-implied earnings,” the analyst wrote. “The company should be able to keep EPS flat, even in a deep downside earnings scenario with 10 rate cuts from 2023-25E (2 more than the market forward curve), as the company offsets rate cuts with strong balance sheet growth and mix shift, and commissions growth,” he added. “Put another way, we see current valuation as offering an attractive entry point, with risk skewed to the upside,” Yaro stated.

As of the end of the fourth quarter of 2023, 45 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Interactive Brokers Group, Inc. (NASDAQ:IBKR). The most significant hedge fund stakeholder of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was William B. Gray’s Orbis Investment Management, which owns a $644.04 million stake in Interactive Brokers Group, Inc. (NASDAQ:IBKR).

Follow Interactive Brokers Group Inc. (NASDAQ:IBKR)

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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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