David Greenspan’s Slate Path Capital is Buying These 5 Stocks

In this article, we discuss the top 5 new stocks to invest in according to David Greenspan’s Slate Path Capital. If you want to read our detailed analysis of Greenspan’s history, investment philosophy, and hedge fund performance, go directly to David Greenspan’s Slate Path Capital is Buying Coinbase, Stitch Fix, and More.

5. Coinbase Global, Inc. (NYSE:COIN)

Slate Path Capital’s Stake Value: $44.3 million

Percentage of Slate Path Capital’s 13F Portfolio: 2.47%

Number of Hedge Fund Holders: 49

In Q2 2021, 49 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company totaling $2.96 billion. Catherine D. Wood’s ARK Investment Management is the finance company’s most prized stakeholder, with stakes reaching a high of $1.4 billion.

In the Q2 2021 investor letter, Miller Value Partners mentioned COIN. Here is what the fund said:

“Coinbase (COIN) became a public company in mid-April following their direct listing at a reference price of $250. Coinbase is a cryptocurrency exchange that allows consumers, financial institutions and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. We believe over the long term the company has the potential to be the leading technology platform in the growing cryptocurrency space.

COIN’s 2021 revenues are expected to be 4.5x its 2020 revenues as crypto prices and volumes have exploded. It trades at 30x this year’s earnings, which is quite a steal for a quickly growing company in this market. That’s because the market believes this is peak cycle revenues and earnings, and retail margins will be pressured. That all very well may be true, but we see significant potential for the business over the long term as the nascent industry continues to grow and COIN cements it’s position as the leading platform.”