Billionaire Daniel Sundheim’s Top 5 Stock Picks

3. Carvana Co. (NYSE:CVNA)

Online automotive retailer Carvana Co. (NYSE: CVNA) is among the biggest beneficiaries of staying at home policies. Its shares rallied almost 160% in the last twelve months, thanks to robust growth in revenues.

Billionaire Daniel Sundheim also seeks to take advantage of Carvana’s share price bull-run. The firm initiated a position in an online automotive retailer during the second quarter of 2020 and increased its stake by 379% in the September quarter.

Other hedge funds are also bullish on Carvana. It was in 53 hedge funds’ portfolios at the end of September, down slightly from the all-time high for this statistics of 57.  

Steel City Capital, which returned 13.1% net of fees for the second quarter of 2020, highlighting few stocks including Carvana in an investors letter. Here is what Steel City Capital said:

“I believe market expectations for Carvana (CVNA) are disconnected from what the company is likely to deliver, particularly as it relates to the next several quarters. One of the company’s key value propositions – purchasing a car from the comfort of your home with no direct human interaction – is tailor-made for a world of social distancing. After bottoming at $22.16, shares have risen 6.4x to their current level of $141. The market is expecting more from CVNA today than it did at the beginning of the year.”