The 5 Stocks That Account for 78.95% of Varenne Capital’s 13F Portfolio

2. Dollar General Corporation (NYSE:DG)

Value of Varenne Capital Partners‘ 13F Position: $105 million

Number of Hedge Fund Shareholders: 53

Varenne trimmed its Dollar General Corporation (NYSE:DG) position by 9% during Q2, reducing its share count to 429,480. The fund’s 13F exposure to the stock nonetheless jumped to 29.23% from 21.14%, as DG had a strong Q2 relative to most other companies, gaining 10%. Hedge fund ownership of Dollar General rose by 20% during Q1.

Dollar General Corporation (NYSE:DG) is the perfect portfolio complement to a discretionary stock like Nike, as the discount consumables retailer typically excels during lean economic periods. Dollar General had a 31-year streak of positive same-store sales growth snapped in 2021 due to frenetic buying of certain products during the early days of the pandemic in 2020. The company expects to return to positive comps in 2022.

Gordon Haskett analyst Chuck Grom recently upgraded Dollar General Corporation (NYSE:DG) to ‘Buy’ from ‘Hold’. He has a $280 price target on the stock.