In this article, we will discuss billionaire Jeffrey Talpins’ top 10 stocks picks based on Q2 holdings of the fund.
Element Capital Management, a New York-based hedge fund, was founded by Jeffrey Talpins, who also serves as its Chief Investment Officer. Talpins worked at Goldman Sachs in the Mortgage-Backed Securities Department before going to Citigroup’s Fixed Income Options as the head trader, where he was credited for developing the business.
When many hedge funds struggled in 2016, returning an average of 2.3%, Element Capital returned 19.4%. Element Capital Management gained 23% in 2015, a year in which the typical macro-oriented fund lost 1.2%. The fund had a solid year in 2017, returning 5.46%, giving it an average return of 15.61% from 2015 to 2017. It was ranked 23rd on Barron’s 2018 list of the top 100 hedge funds. In addition, Element Capital generated 17.3% returns in 2018, 12% returns in 2019, and 18.8% returns in 2020. The hedge fund’s 13F portfolio is valued at approximately $632.57 million as of the end of the second quarter of 2021.
As of the end of the second quarter, some notable stock picks of Jeffrey Talpins’ portfolio include Mastercard Incorporated (NYSE: MA), DoorDash, Inc. (NYSE: DASH), and Airbnb, Inc. (NASDAQ: ABNB).
Mastercard Incorporated is a new arrival on Jeffrey Talpins’ portfolio, as his hedge fund bought about 200,000 shares of the company, worth $73.02 million. On July 29, Mastercard Incorporated posted earnings for the second quarter of 2021. It reported earnings per share of $1.95, beating market predictions by $0.20. In addition, the revenue for the second quarter of 2021 was $4.5 billion, up 36.4% YoY, beating the estimates by $130 million.
Another notable stock in Jeffrey Talpins’ portfolio is DoorDash, Inc.. The investor owns 20,054 shares in the company. DoorDash, Inc. is a new arrival in the fund’s portfolio. On August 13, Susquehanna analyst Shyam Patil raised the price target on DoorDash, Inc. to $220 from $175 and kept a “Positive” rating on the shares. On August 20, DoorDash, Inc. CFO Prabir Adarkar sold 62,000 shares of the company while COO Christopher Payne sold 14,000 shares.
Based on the latest 13F holdings for the second quarter of 2021, Element Capital Management owns 38,897 shares in Airbnb, Inc.. On August 12, Airbnb, Inc. posted earnings results for the second quarter of 2021. The earnings per share was -$0.11, beating market predictions by $0.32. In addition, the revenue over the period was $1.34 billion, beating the estimates by $70 million. On August 13, HSBC analyst Raymond Liu raised the price target on Airbnb, Inc. to $219 from $210 and kept a “Buy” rating on the shares.
Jeffrey Talpins of Element Capital
Why pay attention to Jeffrey Talpins’ stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this background in mind, let’s start our list of billionaire Jeffrey Talpins’ top 10 stocks picks.
Billionaire Jeffrey Talpins’ Top 10 Stocks Picks
10. Vy Global Growth (NYSE: VYGG)
Talpins’ Stake Value: $19,900,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 35
Vy Global Growth (NYSE: VYGG) is a blank check company. It combines one or more enterprises in the financial, technological, and business services sectors through merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar corporate combinations. The company was incorporated in 2020 and is placed tenth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. Vy Global Growth has a market capitalization of $623 million.
Jeffrey Talpins’ Element Capital Management currently holds 2 million shares of Vy Global Growth that amount to $19.90 million. The company occupies 3.14% of Element Capital Management’s total portfolio. Vy Global Growth saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 35 at the end of the second quarter of 2021, compared to 36 hedge funds in the previous quarter.
Just like Mastercard Incorporated, DoorDash, Inc. and Airbnb, Inc., Vy Global Growth is one of the best stocks according to billionaire Jeffrey Talpins.
9. Revolution Healthcare Acquisition Corp. (NASDAQ: REVH)
Talpins’ Stake Value: $20,060,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.17%
Number of Hedge Fund Holders: N/A
Revolution Healthcare Acquisition Corp. (NASDAQ: REVH) purchases assets and businesses through merger, stock exchange, stock purchase, reorganization, or similar corporate combination. The company was incorporated in 2021 and ranks ninth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks.
On August 9, Revolution Healthcare Acquisition Corp. posted earnings results for the second quarter of 2021. The company declared net income per share of $7.00 versus $2.59 posted a year ago.
The hedge fund managed by Jeffrey Talpins owns 2 million shares in Revolution Healthcare Acquisition Corp. worth over $20 million, representing 3.17% of their portfolio.
Just like Mastercard Incorporated, DoorDash, Inc. and Airbnb, Inc., Revolution Healthcare Acquisition Corp. is one of the best stocks according to billionaire Jeffrey Talpins.
8. IHS Markit Ltd. (NYSE: INFO)
Talpins’ Stake Value: $20,268,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.2%
Number of Hedge Fund Holders: 61
IHS Markit Ltd. (NYSE: INFO) is a global provider of crucial information, analytics, and solutions for many businesses and markets. The company was founded in 1959 and is placed eighth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. IHS Markit Ltd. currently has a $47.65 billion market capitalization. It delivered a 44.46% return in the past 12 months.
On August 2, S&P Global Inc. and IHS Markit Ltd. agreed to sell the Oil Price Information Service (OPIS) and related assets to News Corporation (NASDAQ: NWS) for $1.15 billion in cash, with an estimated tax benefit of $180 million. On July 15, Deutsche Bank analyst Sameer Kalucha raised the price target on IHS Markit Ltd. to $127 from $123 and kept a “Buy” rating on the shares.
The stock is a new arrival on Jeffrey Talpins’ portfolio, as his hedge fund bought about 179,902 shares of IHS Markit Ltd., worth $20.27 million. IHS occupies 3.2% of Element Capital Management’s total portfolio. The biggest stakeholder of the company is Arrowstreet Capital, with 2.99 million shares, worth $337.01 million.
Just like Mastercard Incorporated, DoorDash, Inc. and Airbnb, Inc., IHS Markit Ltd. is one of the best stocks according to billionaire Jeffrey Talpins.
Artisan Partners, in its first-quarter 2021 investor letter, mentioned IHS Markit Ltd.. Here is what the fund said:
“We ended our campaign in IHS Markit. IHS Markit is a global provider of information services to the financial services, automotive and energy sectors. Since beginning our investment campaign in 2009, we have been attracted to the company’s position relative to the meaningful secular tailwind driving demand for data and analytics to help guide business decisions. The company announced in Q4 it is merging with S&P Global, one of the largest credit ratings agencies globally and a provider of benchmarks, data and analytics to the global capital and commodities markets. We believe the combination provides a good level of cost and revenue synergies which will help drive profit growth, and S&P Global has a solid track record of acquiring and integrating new businesses. However, we exited our position as the combined entity will be well beyond our mid-cap market cap mandate.”
7. TPG Pace Tech Opportunities Corp. (NYSE: PACE)
Talpins’ Stake Value: $21,846,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.45%
Number of Hedge Fund Holders: 31
TPG Pace Tech Opportunities Corp (NYSE: PACE) is a special purpose acquisition company founded by TPG to acquire one or more firms through merger, equity purchase, or other similar business combination. It was incorporated in 2019 and is placed seventh on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. TPG Pace Tech Opportunities Corp. currently has a $559.12 million market capitalization.
On May 26, NRDY Northland analyst Greg Gibas initiated coverage on TPG Pace Tech Opportunities Corp. with an “Outperform” rating and gave a $15 price target.
Element Capital Management holds more than 2.20 million shares in TPG Pace Tech Opportunities Corp. worth over $21 million, representing 3.45% of their portfolio.
Just like Mastercard Incorporated, DoorDash, Inc., and Airbnb, Inc., TPG Pace Tech Opportunities Corp. is one of the best stocks according to billionaire Jeffrey Talpins.
6. Progyny, Inc. (NASDAQ: PGNY)
Talpins’ Stake Value: $23,600,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 3.73%
Number of Hedge Fund Holders: 39
Progyny, Inc. (NASDAQ: PGNY) is a benefits management firm concentrating on fertility and family planning benefits for employers in the United States. It was incorporated in 2008 and is ranked sixth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks.
On August 12, Barclays analyst Sarah James initiated coverage of Progyny, Inc. with an “Overweight” rating and gave a $64 price target. On August 5, Progyny, Inc. posted earnings results for the second quarter of 2021. The earnings per share was $0.19, beating market predictions by $0.12.
Element Capital Management added Progyny, Inc. to its portfolio in the second quarter of 2021 by buying 400,000 shares. In addition, hedge funds are loading up on Progyny, Inc., as Insider Monkey’s data shows that 39 hedge funds held stakes in the company as of the end of the second quarter of 2021, compared to 26 funds at the end of the fourth quarter of 2020.
Just like Mastercard Incorporated, DoorDash, Inc. and Airbnb, Inc., Progyny, Inc. is one of the best stocks according to billionaire Jeffrey Talpins.
Alger, in its second-quarter 2021 investor letter, mentioned Progyny, Inc.. Here is what the fund said:
“Progyny, Inc. was among the top contributors to performance. Progyny is a leading benefits management company specializing in fertility and family building solutions. It addresses a significant, underserved niche market with unique benefit plan designs, coordinated clinical delivery and a network of carefully selected providers that, in our view, culminates in superior clinical outcomes, significant cost savings and other benefits to constituents. The prevalence of infertility is high, affecting one in eight couples in the U.S., according to the Centers for Disease Control and Prevention. The market for fertility treatments grew at a 10.5% compound annual growth rate (CAGR) from 2013 to 2017.
Progyny reported strong results during the quarter. Revenue grew 51% year over year, ahead of Wall Street estimates by $400,000. Revenue for Progyny’s Fertility Benefit area grew more than 50% while its Pharmacy Benefit revenue grew more than 54%. Earnings before interest, taxes, depreciation and amortization (EBITDA) were also strong, exceeding estimates by $2.5 million. Still early in the selling season, Progyny is seeing a normal pace of sales commitments, and it anticipates that the majority of client decisions may occur in the late summer and early fall for implementations next year.”
5. HDFC Bank Limited (NYSE: HDB)
Talpins’ Stake Value: $32,637,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 5.15%
Number of Hedge Fund Holders: 39
HDFC Bank Limited (NYSE: HDB) is a banking and financial services provider in India, Bahrain, Hong Kong, and Dubai. It was incorporated in 1994 and is placed fifth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. HDFC Bank Limited currently has a $113.63 billion market capitalization and was able to deliver a 64.11% return in the past 12 months.
The hedge fund chaired by Jeffrey Talpins holds 446,347 shares in HDFC Bank Limited worth over $32 million, representing 5.15% of their portfolio. On June 28, HDFC Bank Limited and its subsidiary bought a 7.4% stake in Virtuoso Infotech for an undisclosed sum. Virtuoso Infotech specializes in product engineering and provides unique software solutions to businesses in a variety of industries. Element Capital Management added this stock to its portfolio in the second quarter of 2021. Aubrey Capital Management is a leading shareholder in HDFC Bank Limited, with 68,424 shares worth more than $5 billion.
Baillie Gifford, in its second-quarter 2021 investor letter, mentioned HDFC Bank Limited. Here is what the fund said:
“HDFC is India’s leading residential mortgage provider. It is the low-cost provider of mortgages, a significant advantage and competitive strength in a commodity industry. The company has been a beneficiary of rising Indian income levels and improving housing affordability for the expanding middle class. Greater financial inclusion has allowed mortgage provision to extend to a larger portion of India’s population and HDFC is well positioned to benefit from this growth. The company also has an excellent long-term credit record with a focus on profitable growth and has shown good capital allocation over many years. We think the company can grow profitably for many years to come and have invested following the opening of the Indian market.”
4. XPO Logistics, Inc. (NYSE: XPO)
Talpins’ Stake Value: $34,497,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 5.45%
Number of Hedge Fund Holders: 57
XPO Logistics, Inc. (NYSE: XPO) provides supply chain solutions globally. It was founded in 2000 and is placed fourth on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. XPO Logistics, Inc. shares have offered investors more than 86% in returns over the course of the past 12 months.
On August 12, Morgan Stanley analyst Ravi Shanker initiated coverage of XPO Logistics, Inc. with an “Equal Weight” rating and gave a $75 price target. On July 28, XPO Logistics, Inc. posted earnings for the second quarter of 2021. The company declared earnings per share of $1.86, beating the estimates by $0.17.
Element Capital Management holds 246,599 shares in XPO Logistics, Inc., worth over $34 million. This represents 5.45% of their portfolio. The hedge fund added this stock to its portfolio in the second quarter of 2021. Lyrical Asset Management is a leading shareholder in XPO Logistics, Inc., with 2.80 million shares worth more than $392 million.
Adestella Investment Management, in its fourth-quarter 2020 investor letter, mentioned XPO Logistics, Inc.. Here is what the fund said:
“XPO Logistics (XPO) – the XPO thesis was very simple, but it proved very successful. As the stock irrationally sold off in the spring and made only a tepid recovery in the following months, we were able to buy into a well-operated business with plenty of growth drivers at a compelling price. Sentiment surrounding the company improved thanks to a strong earnings, the resumption of asset sale plans that had been shelved in the spring, and the announcement of a spinoff to unlock the SOTP value. As the stock approached our estimate of a $115 fair value, we exited with more than a clean double from our cost basis.”
3. MongoDB, Inc. (NASDAQ: MDB)
Talpins’ Stake Value: $36,152,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 5.71%
Number of Hedge Fund Holders: 44
MongoDB, Inc. (NASDAQ: MDB) is a global provider of a general-purpose database platform. The company was founded in 1939 and stands third on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. The shares of MongoDB, Inc. surged 89.72% in the past 12 months.
On July 14, Canaccord analyst David Hynes raised the price target on MongoDB, Inc. to $395 from $375 and kept a Buy rating on the shares. On June 2, MongoDB, Inc. reported earnings for the first quarter of 2021. It recorded earnings per share of -$0.15, surpassing market expectations by $0.21. In addition, the first three months of 2021 posted more than $181.6 million in revenue, up 39.3% YoY, beating the predictions by $11.64 million.
The hedge fund chaired by Jeffrey Talpins added this stock to its portfolio in the second quarter of 2021 by buying 100,000 shares worth over $36 million. There were 44 hedge funds in our database that held stakes in MongoDB, Inc. at the end of the second quarter, compared to 46 funds in the second quarter of 2021.
2. L3Harris Technologies, Inc. (NYSE: LHX)
Talpins’ Stake Value: $70,362,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 11.12%
Number of Hedge Fund Holders: 42
L3Harris Technologies, Inc. (NYSE: LHX), specializing in aerospace and defense technology, provides mission-critical solutions to government and commercial customers worldwide. The company was founded in 1895 and ranks second on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. L3Harris Technologies, Inc. currently has a $46.18 billion market capitalization and was able to deliver a 25.88% return in the past 12 months.
On August 11, Morgan Stanley downgraded L3Harris Technologies, Inc. to “Equal Weight” from “Overweight,” maintaining a $238 price target. According to analysts, the stock has become the most expensive among the military sector’s pure plays. On August 4, The US Navy awarded L3Harris Technologies a $393 million contract to deploy the Undersea Warfare Training Range phases II and III.
L3Harris Technologies, Inc. is a new arrival on Jeffrey Talpins portfolio, as his hedge fund bought 325,525 shares worth over $70 million, representing close to 11.12% of their portfolio. In addition, hedge funds are loading up on L3Harris Technologies, Inc., as Insider Monkey’s data shows that 42 hedge funds held stakes in the company as of the end of the second quarter of 2021, up from 41 funds a quarter earlier.
Artisan Partners Limited Partnership, in its fourth-quarter 2020 investor letter, mentioned L3Harris Technologies, Inc.. Here is what the fund said:
“We also exited our position in L3Harris Technologies. L3Harris’ recent quarterly results showed some pandemic-related impact on the company’s business, though relative to other industrials stocks, the effect has been quite modest, and it is achieving ahead-of-schedule synergies from its recent merger. However, concerns about ballooning federal deficits and potential associated defense-budget cuts have been a headwind. We share these concerns, and with the company’s market cap above the mid-cap range, we concluded our campaign to fund newer profit cycle opportunities.”
1. Mastercard Incorporated (NYSE: MA)
Talpins’ Stake Value: $73,018,000
Percentage of Jeffrey Talpins’ 13F Portfolio: 11.54%
Number of Hedge Fund Holders: 156
Mastercard Incorporated, a technology business, provides transaction processing and other payment-related products and services. The company was founded in 1966 and is placed first on the list of billionaire Jeffrey Talpins’ top 10 stocks picks. Mastercard Incorporated shares have returned 11.00% to investors over the course of the past 12 months.
On August 2, Mizuho analyst Dan Dolev raised the price target on Mastercard Incorporated to $450 from $435 and kept a “Buy” rating on the shares. On July 27, Mastercard Incorporated announced the introduction of its new Start Path program, a global startup engagement program designed to help fast-growing digital assets, blockchain, and cryptocurrency businesses.
Jeffrey Talpins’ Element Capital Management holds 200,000 shares in Mastercard Incorporated, worth over $73 million, representing 11.54% of their portfolio. At the end of the second quarter of 2021, 156 hedge funds in the database of Insider Monkey held stakes worth $17.10 billion in Mastercard Incorporated, up from 154 the preceding quarter worth $17.09 billion.
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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This article is originally published at Insider Monkey.
