In this article, we will take a look at the top 9 stocks in Dev Kantesaria’s portfolio. You can skip our detailed analysis of Kantesaria’s history, investment philosophy, and hedge fund performance, and go directly to Dev Kantesaria’s Stock Portfolio: Top 5 Stocks.
Hedge fund manager Dev Kantesaria is the portfolio manager and managing partner at the Pennsylvania-based investment management firm, Valley Forge Capital Management, one of the notable equity hedge funds in the mid-Atlantic region, that makes use of a long-biased equity strategy, employing a bottom-up fundamental approach to find high-quality businesses with strong organic growth, predictable earnings and capital efficiency. Holding a B.S degree from Massachusetts Institute of Technology, and his M.D from Harvard Medical School, Kantesaria began his career in investment banking, finance and asset management as a senior associate at McKinsey & Company. After two years at the firm, he joined TL Ventures as a principal till 2006. He later served as a general partner at Devon Park Bioventures, before establishing Valley Forge Capital Management in July of 2007.
Analyzing companies over a multi-year timeframe, Dev Kantesaria focuses on long-term business prospects and fundamentals, rather than current earnings when investing. His Valley Forge Capital Management oversees over $2.57 billion in its investment portfolio as of the second quarter of 2021.
Mastercard Incorporation (NYSE:MA), Amazon.com, Inc. (NASDAQ:AMZN), Visa, Inc. (NYSE:V) and Adobe, Inc. (NASDAQ:ADBE) are some of the most notable stocks in Valley Forge Capital Management’s investment portfolio at the end of the second quarter of 2021.
Our Methodology
Let us now examine the top 9 stocks in Dev Kantesaria’s portfolio. For this article, we analyzed the top stocks from Valley Forge Capital Management’s 13F portfolio as of the end of the second quarter.
Dev Kantesaria’s Stock Portfolio: Top 9 Stocks
9. Autodesk, Inc. (NASDAQ:ADSK)
Valley Forge Capital Management’s Stake Value: $74 million
Percentage of Valley Forge Capital Management’s 13F Portfolio: 2.87%
Number of Hedge Fund Holders: 64
California-based Autodesk, Inc. (NASDAQ:ADSK) starts off our list of the top 9 stocks in Dev Kantesaria’s portfolio. It operates as a technology company that markets 3D design, engineering, and entertainment software and services.
Based on our database, Valley Forge Capital Management holds 253,608 shares in Autodesk, Inc. (NASDAQ:ADSK) worth more than $74 million as of Q2. At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in Autodesk, Inc. (NASDAQ:ADSK), down from 66 the preceding quarter worth $3 billion.
On October 14, Piper Sandler analyst Weston Twigg initiated coverage of Autodesk, Inc. (NASDAQ:ADSK) with an Overweight rating and $338 price target.
Polen Capital, in its Q3 2021 investor letter, mentioned Autodesk, Inc. (NASDAQ:ADSK) and discussed its stance on the firm. Here is what the fund said:
“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”
8. Intuit Inc. (NASDAQ:INTU)
Valley Forge Capital Management’s Stake Value: $105.49 million
Percentage of Valley Forge Capital Management’s 13F Portfolio: 4.09%
Number of Hedge Fund Holders: 66
Intuit Inc. (NASDAQ:INTU) is a California-based company that focuses on financial software, serving both individual customers and enterprises. Some of the company’s flagship products include tax preparation software TurboTax and business accounting app QuickBooks.
Dev Kantesaria’s Valley Forge Capital Management currently owns 215,221 shares of Intuit Inc. (NASDAQ:INTU), worth over $105.49 million and representing 4.09% of the fund’s investment portfolio. Of the 873 elite funds being tracked by Insider Monkey, 66 reported owning stakes in Intuit Inc. (NASDAQ:INTU) at the end of the second quarter of 2021.
On September 14, Evercore ISI analyst Kirk Materne kept an Outperform rating alongside a $600 price target on the shares of Intuit Inc. (NASDAQ:INTU).
Cooper Investors, in its Q3 2021 investor letter, mentioned Intuit Inc. (NASDAQ:INTU). Here is what the fund said:
“The other meaningful deal during the quarter was Intuit’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.
Management have executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”
7. Adobe Inc. (NASDAQ:ADBE)
Valley Forge Capital Management’s Stake Value: $113.7 million
Percentage of Valley Forge Capital Management’s 13F Portfolio: 4.41%
Number of Hedge Fund Holders: 89
Originally known as Adobe Systems Incorporated, Adobe Inc. (NASDAQ:ADBE) is a multinational computer software company that engages in the provision of digital media and marketing solutions.
At the end of the second quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $13.1 billion in Adobe Inc. (NASDAQ:ADBE) down from 107 in the preceding quarter worth $12.1 billion. According to the second quarter securities filings, Valley Forge Capital Management holds 194,189 shares in the company, amounting to more than $113.7 million, representing 4.41% of the investment firm’s portfolio value.
On September 22, JPMorgan analyst Sterling Auty raised the firm’s price target on Adobe Inc. (NASDAQ:ADBE) to $680 from $660, and kept an Overweight rating on the shares of the company.
In its second-quarter 2021 investor letter, Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE). Here is what the fund said:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
6. Visa Inc. (NYSE:V)
Valley Forge Capital Management’s Stake Value: $237.39 million
Percentage of Valley Forge Capital Management’s 13F Portfolio: 9.22%
Number of Hedge Fund Holders: 162
Visa Inc. (NYSE:V) is a California-based multinational financial services corporation that manages and facilitates the electronic transfer of funds across more than 200 countries.
As of June 2021, Dev Kantesaria holds over 1 million shares in Visa Inc. (NYSE:V), amounting to more than $237.39 million in worth and representing 9.22% of his hedge fund’s portfolio value.
By the end of the second quarter, 162 hedge funds tracked by Insider Monkey reported owning stakes in Visa Inc. (NYSE:V). The total worth of these stakes is $27.6 billion. This is compared to 164 funds that had stakes in the company in the previous quarter, with a total worth of $26.5 billion.
On October 28, Morgan Stanley analyst James Faucette reiterated an Overweight rating on shares of Visa Inc. (NYSE:V), alongside a $280 price target.
Polen Capital, in its Q3 2021 investor letter, mentioned Visa Inc. (NYSE:V) and discussed its stance on the firm. Here is what the fund had to say:
“Visa Inc. faced pressure as some believe these “old payment infrastructure” businesses will be disrupted by newer fintech companies using blockchain, buy now, pay later (BNPL), or other innovations to provide better/cheaper payment services. However, we believe that some of these technologies have meaningful limitations which could benefit existing payment networks. For example, BNPL transactions are often funded with cards and turn a one-time transaction into many smaller ones with more transaction fees for Visa. Just like with regulation, we continually monitor for competition and technological disruption. As of now, we do not see a significant risk in the foreseeable future to this company.”
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Disclosure. None. Dev Kantesaria’s Stock Portfolio: Top 9 Stocks is originally published on Insider Monkey.
