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John Hurley’s Cavalry Asset Management’s Top Stock Picks

In this article, we discuss top 10 stock picks of John Hurley’s Cavalry Asset Management. If you want to skip our detailed analysis of Hurley’s investment philosophy and portfolio construction, go directly to the Top 5 Stock Picks of John Hurley’s Cavalry Asset Management.

John Hurley established the California-based hedge fund Cavalry Asset Management which has about $2 billion in assets under management. In 1986, Mr. Hurley received a bachelor’s degree from Princeton University. He joined Fidelity Management and Research as a portfolio manager and analyst in 1993 after receiving his MBA from the GSB. He joined Bowman Capital Management in 1997 and rose to the position of managing partner before founding Cavalry Asset Management in 2002.

Cavalry Asset Management is a hedge fund manager that mainly focuses on technology. Over the last ten years, the U.S. economy has been dominated by the technology sector, which also supported the stock market during the worst coronavirus epidemic. A challenging environment for stocks resulted from the Russian invasion of Ukraine, rising oil costs, inflation not seen in 40 years, and rising interest rates. High-interest rates on loans have significantly contributed to the downfall of the IT industry since they swiftly devalue the growing revenues that analysts predict will continue to rise for years to come. Top-tier Silicon Valley businesses are already trading at fire sale prices due to the tech-heavy Nasdaq 100’s nearly 33% fall in 2022.

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However, John Hurley’s Cavalry Asset Management employs a variety of investment strategies. Its assets may include long/short, or derivative positions in the US and non-US publicly traded common stocks, preferred stocks, private or restricted securities, options, stock warrants and rights, swaps, other derivative instruments, debt instruments, commodities, and ETFs. As of Q2 2022, Cavalry Asset Management holds a 13F portfolio valued at $1.07 billion, down from $1.31 billion in the preceding quarter. Some of the hedge fund’s prominent holdings in the second quarter included Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Uber Technologies, Inc. (NYSE:UBER), and QUALCOMM Incorporated (NASDAQ:QCOM).

Our Methodology

With this context and industry outlook in mind, let’s start our list of the top 10 stock picks of John Hurley’s Cavalry Asset Management. We selected these stocks from the Q2 portfolio of Hurley’s hedge fund. During the second quarter of 2022, Insider Monkey studied a vast database of 895 elite hedge funds to determine the popularity of each firm among hedge funds.

Top Stock Picks of John Hurley’s Cavalry Asset Management

10. Netflix, Inc. (NASDAQ:NFLX)

Cavalry Asset Management’s Stake Value: $41,858,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 3.9%

Number of Hedge Fund Holders: 95

Netflix, Inc. (NASDAQ:NFLX) provides entertainment services with 223 million paying subscribers in more than 190 nations that enjoy TV shows, documentaries, feature films, and mobile games in various genres and languages. On October 31, Netflix acquired Spry Fox, a small independent game development firm. As a result, the streaming behemoth now has six in-house gaming studios.

On October 26, Pivotal Research analyst Jeffrey Wlodarczak upgraded Netflix, Inc. (NASDAQ:NFLX) from ‘Sell’ to ‘Buy’ with a “Street High” price objective of $375, up from $200. Cavalry Asset Management acquired a new position in Netflix, Inc. (NASDAQ:NFLX) during the second quarter of 2022, owning 239,367 shares worth $41.86 million.

Among the hedge funds being tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management is a notable shareholder of Netflix, Inc. (NASDAQ:NFLX) in the third quarter of 2022, with a $1.31 billion stake in the company.

In the second quarter, fund managers decreased their holdings in Netflix, Inc. (NASDAQ:NFLX). Insider Monkey’s data shows that 95 hedge funds held stakes in the company at the end of the second quarter, down from 109 funds a quarter earlier.

Along with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Uber Technologies, Inc. (NYSE:UBER), and QUALCOMM Incorporated (NASDAQ:QCOM), Netflix, Inc. (NASDAQ:NFLX) is one of the stocks that Cavalry Asset Management is monitoring.

Here is what Polen Capital has to say about Netflix, Inc. (NASDAQ:NFLX) in its Q3 2022 investor letter:

“We have spent months analyzing Netflix, Inc. (NASDAQ:NFLX)’s ability to monetize shared passwords, as there are over 100 million households that use, but do not pay for, Netflix. We believe Netflix has outlined reasonable plans for cracking down on password sharing and now expect the company to be able to monetize roughly 30% of that user base in the short term, which has the potential to add billions of dollars to annual free cash flow. In addition, we have analyzed the opportunity for an advertising-supported subscription model, and Netflix has also made meaningful progress in this area by partnering with Microsoft and attracting new digital advertising talent. .…” (Click here to read the full text)

9. Snowflake Inc. (NYSE:SNOW)

Cavalry Asset Management’s Stake Value: $44,889,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 4.19%

Number of Hedge Fund Holders: 65

Snowflake Inc. (NYSE:SNOW) is a company that sells data analytics and management software that runs on cloud computing platforms. At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $5.12 billion in Snowflake Inc. (NYSE:SNOW), down from 81 in the preceding quarter worth $9.74 billion.

On October 20, Piper Sandler analyst Brent Bracelin maintained an ‘Overweight’ rating on the shares of Snowflake Inc. (NYSE:SNOW) while lowering his price objective from $220 to $218. The analyst listed several variables that might prevent the expected increase in billings, revenue, and free cash flow through 2023, including prolonged sales cycles, a change in customers’ payment schedules, larger currency headwinds, and budgetary constraints that could trigger a recession in 2023.

In the second quarter of 2022, Cavalry Asset Management held 322,806 shares of Snowflake Inc. (NYSE:SNOW) worth over $44.89 million, representing 4.19% of the firm’s total portfolio. The hedge fund increased its stake in Snowflake Inc. (NYSE:SNOW) by 103% in the second quarter of 2022. As of September 30, Bailard Inc owned 13,646 shares of Snowflake Inc. (NYSE:SNOW) and is the company’s prominent shareholder.

8. Trip.com Group Limited (NASDAQ:TCOM)

Cavalry Asset Management’s Stake Value: $48,850,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 4.56%

Number of Hedge Fund Holders: 34

Trip.com Group Limited (NASDAQ:TCOM), a Chinese company that conducts business globally online, provides services including hotel booking, ticketing for transportation, packaged tours, and corporate trip management.

On October 28, Barclays analyst Jiong Shao reiterated an ‘Overweight’ rating on the shares while reducing his price objective on Trip.com Group Limited (NASDAQ:TCOM) to $30 from $35. By the end of 2022, the analyst revised the forecasts and 12-month price projections for all the Chinese tech and internet firms that were surveyed.

34 hedge funds were long Trip.com Group Limited (NASDAQ:TCOM) at the end of the second quarter, up from 32 in the preceding quarter. The total value of Q2 hedge fund holdings stood at $1.58 billion. Richard S. Pzena’s Pzena Investment Management, with 9.78 million shares worth $268.37 million, is the most significant stakeholder of Trip.com Group Limited (NASDAQ:TCOM) as of the second quarter of 2022.

Cavalry Asset Management first invested in Trip.com Group Limited (NASDAQ:TCOM) in the second quarter of 2021. However, the hedge fund cut its stake in Trip.com Group Limited (NASDAQ:TCOM) by 10% in the second quarter of 2022. John Hurley’s Cavalry Asset Management still holds 1.78 million shares of TCOM, worth more than $48.85 million.

Artisan Partners, an asset management firm, mentioned Trip.com Group Limited (NASDAQ:TCOM) in its Q2 2022 investor letter. Here is what the fund said:

“Trip.com Group Limited (NASDAQ:TCOM) is China’s leading online travel agent or OTA. Prior to the pandemic, Trip.com was a profitable business with a large competitive advantage built around its position in both inbound and outbound international travel. That advantage was based on considerable investment in support centers, a large sales force outside of China focused on hotel supply agreements, partnerships with Chinese language tour providers, and other services to support the Chinese traveler. Trip.com was a healthy and growing business—the number of Chinese outbound tourists grew to 155 million (larger than the population of Japan) in 2019 from just 57 million in 2010. As it did with so many travel entities, the pandemic upended the business, and Chinese outbound tourists in 2021 fell to just under 26 million, devastating the company’s profits and the share price, which fell from the high 30s to the low 20s.

Generally speaking, OTAs are great businesses. Effectively, these companies take a commission for booking travel for providers. In addition, an OTAs app attracts advertising revenue from airlines, hotels, and other tourist destinations. Trip.com’s appeal is enhanced by a management team thoughtful enough to operate with significant net cash on the balance sheet.”

7. Zoom Video Communications, Inc. (NASDAQ:ZM)

Cavalry Asset Management’s Stake Value: $50,968,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 4.75%

Number of Hedge Fund Holders: 44

Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology business based in the United States. With about 10.89 million shares valued at $801.49 million, ARK Investment Management is a notable shareholder of Zoom Video Communications, Inc. (NASDAQ:ZM) in the third quarter of 2022. 44 hedge funds in our database held stakes in Zoom Video Communications, Inc. (NASDAQ:ZM)’s at the end of the second quarter, compared to 43 funds in the first quarter.

On October 11, Zoom Video Communications, Inc. (NASDAQ:ZM) was downgraded from ‘Overweight’ to ‘Equal Weight’ by Morgan Stanley analyst Meta Marshall with a revised price objective of $90, down from $130. According to Marshall, who cautioned investors in a research note that the overhang on the company is likely to linger over the next six months, Zoom’s online business may not recover until early next year.

According to its 13F filing for the second quarter of 2022, Cavalry Asset Management held 472,054 shares of Zoom Video Communications, Inc. (NASDAQ:ZM), amounting to $50.97 million, representing 4.75% of the fund’s 13F portfolio. In addition, the hedge fund increased its stake in the company by 8% during Q2.

Horos Asset Management mentioned Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2022 investor letter. Here is what the fund said:

 “What about the other asset class that has attracted the most attention from the investment community in recent times? Here we can distinguish three major groups. First, those companies without earnings that had convinced investors of their great future growth prospects, pushing up their valuations to irrational levels. A clear example of this, which we mentioned almost two years ago (see here) is Zoom Video Communications (“Zoom”), whose market cap exceeded that of companies such as IBM or came close to that of Cisco Systems. Well, from the time we wrote about this odd situation until today, Zoom shares have collapsed nearly 80%.

Therefore, if interest rates rise (or are expected to rise), company valuations are negatively impacted. This is especially true for those businesses that generate little cash today and the market expects them to generate a lot of cash in the future. Hence the severe losses in companies that promised a lot of cash generation in the future (such as Zoom).”

6. Booking Holdings Inc. (NASDAQ:BKNG)

Cavalry Asset Management’s Stake Value: $54,250,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 5.06%

Number of Hedge Fund Holders: 93

Booking Holdings Inc. (NASDAQ:BKNG) offers online travel and associated services to customers and local partners in more than 220 countries and territories. Natixis Global Asset Management’s Harris Associates is the leading shareholder of Booking Holdings Inc. (NASDAQ:BKNG), with 616,383 shares worth approximately $1.08 billion as of June 30.

Booking Holdings Inc. (NASDAQ:BKNG) is a significant stock in Cavalry Asset Management’s portfolio, along with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Uber Technologies, Inc. (NYSE:UBER), and QUALCOMM Incorporated (NASDAQ:QCOM). John Hurley’s Cavalry Asset Management increased its hold in Booking Holdings Inc. (NASDAQ:BKNG) by 21% in the second quarter, ending the period with 31,018 shares of the company.

On October 28, Truist analyst Naved Khan retained a ‘Buy’ rating on Booking Holdings Inc. (NASDAQ:BKNG) while decreasing his price objective from $2,600 to $2,500. The analyst stated in a research note to investors that the group’s Q3 earnings should be solid given the high demand, traffic trends, and comments from Alphabet Inc. (NASDAQ:GOOGL) and Meta Platforms, Inc. (NASDAQ:META) on the growth in Travel ad spend.

According to Insider Monkey’s second-quarter database, 93 hedge funds placed long bets on Booking Holdings Inc. (NASDAQ:BKNG), compared to 99 funds in the earlier quarter. As a result, the total stakes owned in the second quarter amounted to $5.45 billion, down from $7.59 billion in the first quarter of 2022.

In its Q3 2022 investor letter, RiverPark Funds mentioned Booking Holdings Inc. (NASDAQ:BKNG). Here is what the firm had to say:

“We also bought back a small position in Booking Holdings during the quarter. Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high margin business model (40% EBITDA margin for 2019 and 28% for 2021) that requires limited capital expenditures, typically less than 3% of revenue, producing $4.5 billion free cash flow for 2019 and $2.5 billion for 2021 (due to the vast COVID disruption). The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations. Like all travel companies, Booking was hit hard by the pandemic, but with its high international exposure, we expect the company’s recovery to be equally strong as travel returns.”

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Disclosure: None. Top 10 Stock Picks of John Hurley’s Cavalry Asset Management is originally 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.

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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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