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Hedge Fund Manager Charles Paquelet’s Top 10 Tech Stock Picks

In this article, we will take a detailed look at the Hedge Fund Manager Charles Paquelet’s Top 10 Tech Stock Picks. For a quick overview of such stocks, read our article Hedge Fund Manager Charles Paquelet’s Top 5 Tech Stock Picks.

Charles Paquelet is an American hedge fund manager who founded Skylands Capital in 2004. Paquelet came to limelight during his tenure at Strong Capital Management, Inc. which he joined in 1989. Paquelet has a Bachelor of Science degree from Case Western Reserve University’s Weatherhead School of Business and also has a Master of Business Administration program with a specialization in finance. In August 1996, Charles Paquelet was named co-manager of the fund Strong Discovery. The Strong fund was going through losses when Paquelet was tasked with this responsibility. A few months earlier the fund had started cutting its exposure to US stocks based on its bearish outlook for the economy. But when its thesis proved wrong, the fund scrambled to buy small-cap stocks, which later plunged, leaving the fund’s returns deeply in the red. A 1997 report by the New York Times talked in detail about the Strong fund’s strategy to mitigate losses and the arrival of Paquelet at the helm. The report gives some idea of Paquelet’s strategy at that time to make a comeback:

”Our investment approach is built on kicking tires and building relationships with management,” Paquelet said according to the NYTimes report.

In 2000, Richard Strong, the founder of Strong Capital Management, started giving up control of the fund to Charles Paquelet. In 2004, Strong Financial Corp. sold one of its portfolios to Charles Paquelet who established a new investment firm called Skylands Capital. The fund had $661 million under managed securities as of the end of the third quarter of 2023. You will see some of the top names like Apple Inc (NASDAQ:AAPL), Alphabet Inc Class C (NASDAQ:GOOG) and Visa Inc (NYSE:V) in the fund’s portfolio as well as spot under-the-radar small-cap names which could explode in the future.

Charles Paquelet’s Investment Philosophy

Skylands Capital’s investing philosophy revolves around the idea of economic cycles. The fund believes the human mind thinks linearly and has a tendency to “extrapolate” recent trends, while economies, markets and companies usually go through cycles which are defined by interest rates, commodity prices, regulatory changes, taxes, competitive behavior and many other factors. Skylands Capital believes this disparity between the reality of financial markets and the thinking process of the human mind could create long-term investing opportunities for investors who “can anticipate change before it is obvious.”

Value or Growth?

Charles Paquelet does not believe in adhering just to value or growth. Instead his fund looks to invest in growing companies trading at attractive valuations.

“It is a false choice to invest in either growth or value. The optimal investment is a structurally advantaged growing business that can be purchased at a value price. There are two sides to investing – what you get and what you pay. Both are important,” the fund’s website says.

Methodology

For this article we scanned Skylands Capital’s Q3’2023 portfolio and picked its top ten technology stock picks. Why do we pay attention to what hedge funds are doing? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).

10. Electronic Arts Inc (NASDAQ:EA)

Skylands Capital’s Stake Value: $1,318,380

Skylands Capital bought a new stake in entertainment and games company Electronic Arts Inc (NASDAQ:EA) in the third quarter of 2023. The hedge fund’s stake in Electronic Arts Inc (NASDAQ:EA) was valued at $1.3 million as of the end of September 2023.

In December, Jefferies said it believes the gaming industry will see a slowdown in 2024 as gamers become more selective and prudent with their purchases. Jefferies said at the time that even though Electronic Arts Inc (NASDAQ:EA) was expected to post 2025 guidance below expectations, its upcoming games like Battlefield, Sims, Skate and new Star Wars titles will “re-accelerate topline and drive margin expansion.”

As of the end of the third quarter of 2023, 43 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Electronic Arts Inc (NASDAQ:EA).

9. Vontier Corp (NYSE:VNT)

Skylands Capital’s Stake Value: $1,406,860

Industrial technology company Vontier Corp (NYSE:VNT) ranks ninth in our list of hedge fund manager Charles Paquelet’s top tech stock picks. Skylands Capital owns a $1.41 million stake in Vontier Corp (NYSE:VNT). Over the past one year the stock has gained about 50% in value.

Insider Monkey’s database of 910 funds shows that 23 hedge funds had stakes in Vontier Corp (NYSE:VNT). The most notable hedge fund stakeholder of Vontier Corp (NYSE:VNT) during this period was Chuck Royce’s Royce & Associates which owns a $49 million stake in Vontier Corp (NYSE:VNT).

Like Vontier, hedge funds are also investing in Apple Inc (NASDAQ:AAPL), Alphabet Inc Class C (NASDAQ:GOOG) and Visa Inc (NYSE:V).

8. Iridium Communications Inc (NASDAQ:IRDM)

Skylands Capital’s Stake Value: $2,433,715

Satellite technology company Iridium Communications Inc (NASDAQ:IRDM) ranks eighth in our list of hedge fund manager Charles Paquelet’s top tech stock picks. Skylands Capital, as of the end of the third quarter of 2023, owns a $2.4 million stake in Iridium Communications Inc (NASDAQ:IRDM). Iridium Communications Inc (NASDAQ:IRDM) is a new stock pick of the hedge fund.

In November, Iridium Communications Inc (NASDAQ:IRDM) CEO Matthew J Desch bought 28,000 shares of Iridium Communications Inc (NASDAQ:IRDM) at $37.01 per share.

Baron Growth Fund made the following comment about Iridium Communications Inc. (NASDAQ:IRDM) in its Q3 2023 investor letter:

“Iridium Communications Inc. (NASDAQ:IRDM) is a leading mobile voice and data communications services vendor offering global coverage via satellite. Shares fell on second quarter earnings, growth modestly slower than expected. Investors were also concerned by a potential slowdown in Iridium’s voice and data segment following several years during which the segment benefited from price increases and competition displacements. We attribute the earnings miss to a one-time write off of a spare satellite. This will not impact the company’s long-term prospects. We also remain excited about the potential benefit from Iridium’s recent partnership with Qualcomm to allow satellite connectivity on its new Snapdragon chips. While Iridium has suggested the realization of the direct-to-device opportunity might take longer than some investors had hoped, we believe the collaboration will yield substantial revenue for the company over time. We also remain excited about the company’s capital allocation program, which should benefit shareholders in the years ahead.”

7. Amazon.com Inc (NASDAQ:AMZN)

Skylands Capital’s Stake Value: $2,612,316

Amazon.com Inc (NASDAQ:AMZN) is one of the top tech stock picks of hedge fund manager Charles Paquelet since his hedge fund Skylands Capital has a $2.6 million stake in the ecommerce retailer which is also a part of the Magnificent Seven group of stocks that have gained a lot amid the AI boom.

UBS recently published a list of quality stocks it believes could outperform in 2024. Amazon.com Inc (NASDAQ:AMZN) was part of the list. UBS said in its note that these Buy-rated stocks are in “30% top for quality, have positive earnings momentum, are not crowded — have a crowding data score better than 0.1 — and have reasonable value without overly high beta.”

Amazon.com Inc (NASDAQ:AMZN) is also among the most popular technology stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the third quarter of 2023, 286 hedge funds had stakes in Amazon.com Inc (NASDAQ:AMZN).

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.”

6. SS&C Technologies Holdings Inc (NASDAQ:SSNC)

Skylands Capital’s Stake Value: $4,148,033

SaaS company SS&C Technologies Holdings Inc (NASDAQ:SSNC) ranks sixth in our list of the best tech stocks to buy according to Charles Paquelet. Skylands Capital had a $4.1 million stake in SS&C Technologies Holdings Inc (NASDAQ:SSNC) as of the end of the third quarter of 2023.

Earlier this month, Citi published its Thematic Equity Strategy report in which it named its top picks in major themes. SS&C was its top stock pick in the fintech theme.

As of the end of the third quarter of 2023, 43 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in SS&C Technologies Holdings Inc (NASDAQ:SSNC). The biggest stakeholder of SS&C Technologies Holdings Inc (NASDAQ:SSNC) during this period was Richard S. Pzena’s Pzena Investment Management which owns a $748 million stake in SS&C Technologies Holdings Inc (NASDAQ:SSNC).

In addition to SSNC, Skylands Capital is also invested in Apple Inc (NASDAQ:AAPL), Alphabet Inc Class C (NASDAQ:GOOG) and Visa Inc (NYSE:V).

Diamond Hill Long-Short Fund made the following comment about SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q3 2023 investor letter:

“Our bottom contributors in Q3 were all from our long book, including HCA Healthcare and SS&C Technologies Holdings, Inc. (NASDAQ:SSNC). SS&C Technologies, a provider of software and services to investment firms, brokerages and other financial institutions, has faced slower organic growth in recent quarters as its business units have produced inconsistent results. Further, rising costs have crimped margins — issues we believe will eventually stabilize but which we are monitoring closely. However, we believe the market is overly pessimistic about the company’s ability to improve its organic growth rate and its margins and are maintaining our position.”

Click to continue reading and see Hedge Fund Manager Charles Paquelet’s Top 5 Tech Stock Picks.

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Disclosure. None. Hedge Fund Manager Charles Paquelet’s Top 10 Tech Stock Picks was initially published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

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Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

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