Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 5 Stock Picks

In this article, we discuss the top 5 stock picks of billionaire Daniel Sundheim’s D1 Capital Partners. If you want to see more top holdings of the hedge fund, check out Billionaire Daniel Sundheim’s D1 Capital Portfolio: Top 10 Stock Picks. 

5. Warby Parker Inc. (NYSE:WRBY)

D1 Capital’s Stake Value: $505,257,000

Percentage of D1 Capital’s 13F Portfolio: 5.94%

Number of Hedge Fund Holders: 18

Warby Parker Inc. (NYSE:WRBY) is a New York-based company that sells eyeglasses, sunglasses, and contact lenses, as well as related accessories. On June 27, Loop Capital analyst Anthony Chukumba lowered the price target on Warby Parker Inc. (NYSE:WRBY) to $15 from $18 and maintained a Hold rating on the shares. The analyst cited soaring inflation and shaken consumer confidence while slashing his FY22 revenue outlook to $625.8 million from $639.3 million.

Daniel Sundheim’s D1 Capital Partners boosted its Warby Parker Inc. (NYSE:WRBY) stake by 12% in Q1 2022, holding about 15 million shares worth $505.25 million, representing 5.94% of the total securities. 

According to Insider Monkey’s data, 18 hedge funds were long Warby Parker Inc. (NYSE:WRBY) at the conclusion of the first quarter of 2022, up from 15 funds in the preceding quarter. Henry Ellenbogen’s Durable Capital Partners is a significant shareholder of the company, with 14.80 million shares worth $500.6 million. 

Here is what Polen U.S. Small Company Growth Fund has to say about Warby Parker Inc. (NYSE:WRBY) in its Q4 2021 investor letter:

“Warby Parker is a New York-based direct to-consumer eyewear retailer with a unique, vertically integrated business model that significantly reduces cost and customer friction. In an industry that has historically relied on price increases ahead of inflation to supplement volume growth, many incumbents have been left with bloated cost structures and channel conflicts that interfere with digitizing their businesses. Warby Parker was launched to take advantage of this opportunity and has been rewarded with rapid growth since its founding in 2010, while still being in the very early stages of penetrating the multi-billion dollar prescription eyewear market. We expect the company to build intrinsic value, with robust growth for the foreseeable future as it continues to gain market share.”