Dorsal Capital Partners Sees a 13% Boost in 2023: Its Top 5 Stock Picks

In this article, we discuss Dorsal Capital Partners sees a 13% boost in 2023: its top 5 stock picks. If you want to read about some more stocks in Dorsal Capital Partners’ portfolio, go directly to Dorsal Capital Partners Sees a 13% Boost in 2023: Its Top 15 Stock Picks.

5. Restaurant Brands International Inc. (NYSE:QSR)

Dorsal Capital Management’s Equity Stake: $173.21 Million
Number of Hedge Fund Holders: 29

Restaurant Brands International Inc. (NYSE:QSR) is one of Dorsal Capital Management’s top stock picks that provides immediate exposure to burgers, coffee doughnuts, fried chicken, and chicken sandwiches.

Dorsal Capital Management increased its stakes in Restaurant Brands International Inc. (NYSE:QSR) by 45% in Q3 to $173.21 million, strengthening its exposure to be the world’s fifth largest operator of fast food restaurants. According to Insider Monkey’s database data, 29 hedge funds held positions in Restaurant Brands International Inc. (NYSE:QSR) in the third quarter of 2023, compared to 26 in the preceding quarter.

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4. US Foods Holding Corp. (NYSE:USFD)

Dorsal Capital Management Equity Stake: $194.53 Million
Number of Hedge Fund Holders: 48

US Foods Holding Corp. (NYSE:USFD) is one of the consumer defensive plays that propelled Dorsal Capital Management to a 13% gain in 2023. US Foods Holding Corp. (NYSE:USFD), which engages in marketing, sales, and distribution of fresh, frozen, and dry food, was up by 32% last year, benefiting from solid consumer spending power.

Dorsal Capital Management increased its stakes in US Foods Holding Corp. (NYSE:USFD) by 8% to $194.53 million, accounting for 9.81% of the portfolio. On the other hand, 48 out of the 910 hedge funds part of Insider Monkey’s database had bought US Foods Holding Corp. (NYSE:USFD) shares as of the end of Q3 2023. Scott Ferguson’s Sachem Head Capital was one of the prominent investors via its $751.64 million stake.

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3. Microsoft Corporation (NASDAQ:MSFT)

Dorsal Capital Management’s Equity Stake: $287.33 Million
Number of Hedge Fund Holders: 306

Microsoft Corporation (NASDAQ:MSFT) is a software and infrastructure giant that diversifies Dorsal Capital Management in the technology sector. Best known for its office software suite, the company offers exposure to the burgeoning cloud computing sector through Microsoft Azure. Microsoft Corporation (NASDAQ:MSFT) has also strengthened its gaming unit spearheaded by the Xbox console by acquiring Activision Blizzard.

Microsoft Corporation (NASDAQ:MSFT) was up by about 45% in 2023 and one of the drivers behind dorsal Capital management’s 13% gain. The stock’s impressive performance stems from its push for opportunities around artificial intelligence through OpenAI.

The hedge fund increased its stakes in Microsoft Corporation (NASDAQ:MSFT) by 66% to $287.33 million. 306 out of the 910 hedge funds in Insider Monkey’s database had bought Microsoft Corporation (NASDAQ:MSFT) shares as of the end of Q3 2023.

Fisher Asset Management was a notable investor of Microsoft Corporation (NASDAQ:MSFT) via its $9.57 billion investment.

Madison Investments mentioned Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter. Here is what the fund said:

“Microsoft Corporation’s (NASDAQ:MSFT) sustainable scorecard was updated with an unchanged rating of Above Average. The company’s board has an official Environmental, Social, and Public Policy Committee in addition to the traditional Audit, Compensation, and Governance committees. For ten years, Microsoft has publicly released data measuring the diversity of its workforce. With the prominence of Artificial Intelligence (AI), the company has launched a 5-point blueprint for governing AI to address public policy and regulation. Environmentally, Microsoft has multiple programs to be carbon negative by 2030. The company has signed Purchase Power Agreements for carbon-free energy totaling 13.5 Gigawatts.”

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2. Amazon.com Inc (NASDAQ:AMZN)

Dorsal Capital Management’s Equity Stake: $289.20 Million
Number of Hedge Fund Holders: 286

Amazon.com, Inc. (NASDAQ:AMZN) is a buzzing consumer cyclical investment play that strengthens Dorsal Capital Management’s portfolio in the internet retail sector. Amazon.com, Inc. (NASDAQ:AMZN) also offers compute storage databases and analytics through its cloud computing unit. It also manufactures and sells electronic devices, including Fire tablets, Kindle, and Echo speakers.

Amazon.com, Inc. (NASDAQ:AMZN) gained 79% in 2023, benefiting from solid consumer spending on its e-commerce platform. It also emerged as one of the top picks for gaining exposure to artificial intelligence frenzy.

286 out of the 910 hedge funds part of Insider Monkey’s database had bought Amazon.com Inc. (NASDAQ:AMZN) shares as of the end of Q3 2023. In Q4 2023, Ken Fisher’s Fisher Asset Management was a prominent investor courtesy of its $6.42 billion investment.

Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”

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1. Meta Platforms, Inc. (NASDAQ:META)

Dorsal Capital Management’s Equity Stake: $307.72 Million
Number of Hedge Fund Holders: 234

Meta Platforms, Inc. (NASDAQ:META) is a communication services company that offers apps that allow people to connect with friends and family. Meta Platforms, Inc. (NASDAQ:META)’s fortunes and sentiments improved significantly in 2023 as it tweaked its business to focus more on its flagship apps for advertising. A restructuring drive that resulted in massive layoffs helped strengthen the stocks’ sentiments on Wall Street. Consequently, Meta Platforms, Inc. (NASDAQ:META) ended the year by more than 180%, contributing immensely to Dorsal Capital Management’s 13% gain.

Dorsal Capital Management benefited from the massive rally, first buying stakes in Meta Platforms, Inc. (NASDAQ:META) in Q1 2023. The company ended the third quarter with stakes worth $307.72 million, accounting for 10.51% of the portfolio.

As of the end of the third quarter of 2023, 234 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Meta Platforms Inc (NASDAQ:META). The biggest stakeholder of Meta Platforms Inc (NASDAQ:META) was Ken Fisher’s Fisher Asset Management, which owns a $1.93 billion stake in Meta Platforms Inc (NASDAQ:META).

First Pacific Advisors stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) saw a welcome recovery in engagement and revenue year-to-date following a tough 2022. The company has continued to offer new solutions that allow advertisers to target customers effectively and efficiently via one of the world’s leading digital platforms. Moreover, operating profits are rising due to an organization-wide focus on improving productivity and accelerating the time to market for new products. However, overall profitability continues to be weighed down by losses in the Reality Labs segment. But, there is positive optionality that Meta will emerge from the AI arms race as one of the leading players in the industry.

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