In this article, we discuss 3 new stock picks of billionaire Stephen Mandel. If you want our detailed analysis of these stocks, go directly to Billionaire Stephen Mandel’s Portfolio: 8 New Stock Picks.
3. Victoria’s Secret & Co. (NYSE:VSCO)
Lone Pine Capital’s Stake Value: $475,763,000
Percentage of Lone Pine Capital’s 13F Portfolio: 1.60%
Number of Hedge Fund Holders: 37
Lone Pine Capital purchased 8.60 million Victoria’s Secret & Co. (NYSE:VSCO) shares as of Q3 2021, worth $475.76 million, representing 1.60% of the fund’s 13F securities. Victoria’s Secret & Co. (NYSE:VSCO) is an American beauty, fashion, and clothing retailer.
On December 29, Victoria’s Secret & Co. (NYSE:VSCO) entered an accelerated share repurchase agreement worth $250 million with Goldman Sachs. The company also highlighted its Q4 outlook, announcing an EPS of $2.35 to $2.65, whereas the consensus EPS came in at $2.63. Victoria’s Secret & Co. (NYSE:VSCO)’s revenue is expected to equal $2.10 billion to $2.163 billion, whereas revenue estimates were $2.14 billion.
BofA analyst Lorraine Hutchinson on December 30 reiterated a Buy rating with an $85 price target on Victoria’s Secret & Co. (NYSE:VSCO) after the company announced an accelerated share repurchase agreement and reaffirmed its Q4 guidance. The analyst thinks that continued strong execution and accelerated capital returns will boost Victoria’s Secret & Co. (NYSE:VSCO)’s shares.
Windacre Partnership is one of the leading Victoria’s Secret & Co. (NYSE:VSCO) shareholders from Q3 2021, with 6.18 million shares worth $341.9 million. Overall, 37 hedge funds were bullish on the stock in the third quarter.
2. Bilibili Inc. (NASDAQ:BILI)
Lone Pine Capital’s Stake Value: $569,908,000
Percentage of Lone Pine Capital’s 13F Portfolio: 1.92%
Number of Hedge Fund Holders: 35
Bilibili Inc. (NASDAQ:BILI), a Chinese video game company, is one of the new stock picks of Lone Pine Capital as of the third quarter of 2021. The hedge fund purchased 8.6 million Bilibili Inc. (NASDAQ:BILI) shares, worth approximately $570 million, representing 1.92% of the total Q3 investments.
On November 19, Bilibili Inc. (NASDAQ:BILI) announced convertible senior notes worth $1400 million, due 2026, bearing an interest rate of 0.5% per year, payable semiannually beginning from June 1, 2022.
In its third quarter earnings report, published on November 17, Bilibili Inc. (NASDAQ:BILI) posted a loss per share of $0.65, beating estimates by $0.01. The Q3 revenue came in at $816.33 million, up 66.04% from the prior-year quarter, outperforming estimates by $11.24 million.
Bernstein analyst Robin Zhu on January 11 downgraded Bilibili Inc. (NASDAQ:BILI) to Market Perform from Outperform with a $45 price target. According to Zhu, Bilibili Inc. (NASDAQ:BILI)’s gross margin targets “hinge on success in inhouse gaming development”, which raises questions about the stock’s near-term valuation and the company’s mid-term profitability.
Jonathan Guo’s Yiheng Capital is one of the largest Bilibili Inc. (NASDAQ:BILI) stakeholders as of Q3, with a $321.3 million position in the company. Overall, 35 hedge funds were long Bilibili Inc. (NASDAQ:BILI) in the third quarter, down from 47 funds in the preceding quarter.
Here is what Tao Value has to say about Bilibili Inc. (NASDAQ:BILI) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We also exited Bilibili (ticker: BILI), given its priced-in valuation in the context of Chinese ADR confidence loss.”
1. Bath & Body Works, Inc. (NASDAQ:BBWI)
Lone Pine Capital’s Stake Value: $1,531,646,000
Percentage of Lone Pine Capital’s 13F Portfolio: 5.16%
Number of Hedge Fund Holders: 56
Bath & Body Works, Inc. (NASDAQ:BBWI) is an Ohio-based retail company selling soaps, lotions, fragrances, and candles. Lone Pine Capital purchased 24.30 million Bath & Body Works, Inc. (NASDAQ:BBWI) shares in the third quarter, worth $1.53 billion, representing 5.16% of the fund’s Q3 investments.
On November 5, Bath & Body Works, Inc. (NASDAQ:BBWI) declared a quarterly per share dividend of $0.15, which was paid on December 3, to shareholders of record on November 19.
Bath & Body Works, Inc. (NASDAQ:BBWI) announced on January 6 its earnings guidance for the fourth quarter. The EPS guidance came in at $2.10 to $2.25, versus a consensus of $2.26.
Deutsche Bank analyst Gabriella Carbone lowered the price target on Bath & Body Works, Inc. (NASDAQ:BBWI) to $85 from $87 and kept a Buy rating on the shares on January 7, since the company reported a “solid” holiday but a “bumpy start to the new year”.
Among the hedge funds tracked by Insider Monkey in the third quarter of 2021, 56 funds were bullish on Bath & Body Works, Inc. (NASDAQ:BBWI), with stakes amounting to $6.5 billion. This is compared to 53 funds holding stakes worth $6.3 billion in Bath & Body Works, Inc. (NASDAQ:BBWI) in the prior quarter.
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