In this article, we discuss top 10 stock picks of Anand Parekh’s Alyeska Investment Group.
Anand Parekh is a Chicago-based hedge fund manager. In 2008, he founded Alyeska Investment Group. This hedge fund manager believes in market neutral strategy, taking both long and short positions. Before founding Alyeska Investment Group, Anand Parekh used to work at Deutsche Bank until 2002. Later on, he moved on to join Citadel Investment Group to become global head of equities.
As of the third quarter of 2021, the hedge fund’s 13F portfolio has $7.9 billion in managed securities. Some of the top stocks in the portfolio of Alyeska Investment Group at the end of the third quarter of 2021 were Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), among others. The total value of the holdings was up by 0.93% when compared to the second quarter of 2021.
Our Methodology
With this context in mind, here is our list of top 10 stock picks of Anand Parekh’s Alyeska Investment Group. The stocks were picked from Alyeska Investment Group’s 13F portfolio for the third quarter of 2021.
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Top 10 Stock Picks of Anand Parekh’s Alyeska Investment Group
10. Ciena Corporation (NYSE:CIEN)
Alyeska Investment Group’s Stake Value: $81.2 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.02%
No. of Hedge Fund Holders: 28
Ciena Corporation (NYSE:CIEN) is a network strategy and technology company. The company serves a range of industries including communication services providers, cable operators, government, and large enterprises worldwide.
Alyeska Investment Group’s recent 13F filings reveal that the hedge fund owned 1.58 million shares in the firm at the end of the 3Q of 2021 worth $81.2 million, representing 1.02% of the portfolio.
In 4Q of fiscal 2021, the company reported adjusted EPS (non-GAAP) of $0.85, meeting the consensus estimate of $0.85. Bank of America increased its price target on the stock from $70.00 to $83.00 and rated the stock as a “buy” in a report on 10th December.
Like Alphabet Inc., Microsoft Corporation, and Amazon.com, Inc., Ciena Corporation is one of the top stock picks of Alyeska Investment Group.
At the end of the third quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $387.06 million in Ciena Corporation, down from 29 in the preceding quarter worth $356.02 million.
9. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Alyeska Investment Group’s Stake Value: $81.7 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.03%
No. of Hedge Fund Holders: 30
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is engaged in providing cyber security solutions to governments and corporate enterprises. The company’s solutions help in protecting customers from 5th generation cyber-attacks. The company offers the most comprehensive and intuitive one-point of the control security system.
As of the third quarter, 30 hedge funds out of the 867 funds tracked by Insider Monkey held stakes in the company.
Harding Loevner, an investment management firm, released its first-quarter 2021 investor letter and mentioned Check Point Software Technologies Ltd.. Here is what the fund said:
“Another software holding, Israeli security firm Check Point, saw its shares fall after announcing that investments to fund its future growth will reduce margins this year.”
8. Fortive Corporation (NYSE:FTV)
Alyeska Investment Group’s Stake Value: $81.75 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.03%
No. of Hedge Fund Holders: 32
Fortive Corporation (NYSE:FTV) is a diversified industrial technology firm and it has a broad portfolio of mission-critical products and services. The company serves end markets, like manufacturing, utilities, medical, and electronics.
Vertical Research has recently downgraded its rating from a “Buy” to “Hold”, with the price target of $82.00.
The company represents 1.03% of the total investment portfolio of Alyeska Investment Group at the end of the third quarter of 2021. At the end of the third quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $2.13 billion in Fortive Corporation, up from 31 in the preceding quarter worth $2.23 billion.
7. Amazon.com, Inc. (NASDAQ:AMZN)
Alyeska Investment Group’s Stake Value: $94.08 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.19%
No. of Hedge Fund Holders: 242
Amazon.com, Inc. is a leading online retailer and is one of the highest-grossing e-commerce aggregators. The company was incorporated in 1994 in the state of Washington and it was reincorporated in 1996 in the state of Delaware.
The company represents 1.19% of the total investment portfolio of Alyeska Investment Group at the end of the third quarter of 2021. At the end of the third quarter of 2021, 242 hedge funds in the database of Insider Monkey held stakes worth $42.5 billion in Amazon.com, Inc.. In the preceding quarter, 271 hedge funds held stakes worth $60.49 billion.
An analyst at Monness Crespi Hardt, Brian White, reiterated a “Buy” rating on Amazon.com, Inc., with a price target of $4,500. Mr. White expects that AWS should help drive the company’s growth moving forward.
Davis Funds, an investment management firm, released its 3Q21 investor letter and mentioned Amazon.com, Inc.. Here is what the fund has to say:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
6. Workday, Inc. (NASDAQ:WDAY)
Alyeska Investment Group’s Stake Value: $98.8 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.25%
No. of Hedge Fund Holders: 72
Founded in 2005, Workday, Inc. (NASDAQ:WDAY) is a software company that is engaged in offering human capital management, financial management, and business planning solutions. The company is known for being a cloud-only software provider and has its headquarters in Pleasanton, California.
At the end of the third quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $6.38 billion in Workday, Inc..
ClearBridge Investments, an investment management firm, released its 1Q21 investor letter and mentioned Workday, Inc.. Here is what the fund said:
“In addition to the new issue market, we have been tactically adding growth exposure. We took advantage of the selloff in disruptors that comprise a large portion of the portfolio to initiate a position in enterprise software maker Workday.”
5. Veeva Systems Inc. (NYSE:VEEV)
Alyeska Investment Group’s Stake Value: $104.1 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.31%
No. of Hedge Fund Holders: 44
Founded in 2007, Veeva Systems Inc. (NYSE:VEEV) is a leading provider of cloud-based software solutions. The company caters to regulated industries including consumer goods, chemical, cosmetics, and life sciences. The company has its headquarters in the San Francisco Bay Area, with offices across North America, Europe, Asia, and Latin America.
At the end of the third quarter of 2021, 44 funds out of the 867 tracked by Insider Monkey had stakes in Veeva Systems Inc.. The company represents 1.31% of the total investment portfolio of the hedge fund at the end of the third quarter of 2021.
Citi Group lowered its price target on Veeva Systems Inc. to $349 from $356 and maintained its “Buy” rating.
4. Microsoft Corporation (NASDAQ:MSFT)
Alyeska Investment Group’s Stake Value: $105.3 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.33%
No. of Hedge Fund Holders: 250
Microsoft Corporation is a technology company and its platforms and tools help in driving small business productivity, large business competitiveness, and public-sector efficiency. The company is engaged in developing and supporting software, services, devices, and solutions.
Alyeska Investment Group owns 373,516 shares in Microsoft Corporation, amounting to $105.3 million. The company makes up 1.33% of the hedge fund’s 13F portfolio. At the end of third quarter of 2021, 250 hedge funds in the database of Insider Monkey held stakes worth $65.8 billion.
Jefferies Financial Group raised its price target on Microsoft Corporation from $375.00 to $400.00 and has given a “Buy” rating on the stock.
ClearBridge Investments, an investment management firm, published its 3Q21 investor letter and mentioned Microsoft Corporation. Here is what the fund has to say about the company:
“The Strategy modestly outperformed the benchmark; consistent with our fundamental approach that seeks balanced exposure to industries and the growth and value spectrum, performance was driven by companies from diverse sectors. Microsoft, which develops software including the Windows family of products, the Microsoft Office system and the Azure cloud platform, and is a leader in data protection and customer privacy as well as human rights and diversity, contributed strongly as earnings maintained positive sentiment. Microsoft is seeing a number of businesses reach a new, higher level of engagement, adoption and momentum.”
3. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Alyeska Investment Group’s Stake Value: $136.4 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.72%
No. of Hedge Fund Holders: 53
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is engaged in developing, publishing, and marketing interactive entertainment for consumers around the globe. The company develops and publishes products mainly through Rockstar Games, 2K, Private Division, and T2 Mobile Games.
Insider Monkey’s data shows that 53 hedge funds held stakes at the end of the third quarter worth $1.19 billion. At the end of second quarter, 55 hedge funds held stakes in the company.
Andrew Uerkwitz of Jefferies has given a “Buy” rating on the stock and gave a price target of $231.
Jefferies Group, an investment management firm, released its third-quarter 2021 investor letter and mentioned Take-Two Interactive Software, Inc.. Here is what the fund said:
“TakeTwo – TTWO (Buy, $231): TakeTwo’s IP Grand Theft Auto, Red Dead Redemption, and NBA2K are already on the road toward a “Metaverse”. They lack a true economy and many of the attributes needed today to be a Metaverse, but they have high social engagement, brand crossovers, and the start of an economy that makes sense. In our initiation we wrote about Red Dead Online potential – the ability to take on economic roles is already in the game (moonshiner, bounty hunter, trader, naturalist, & collector). Expanding into a bigger economy, cross branding, and expanding the roles/player base would both increase engagement & monetization, but also move it deeper into the Metaverse. NBA2K’s The City is even further along with many virtual stores of phyiscal brands from Jordan, Nike, Reebok, Gatorade, and many others already in the game. Even Jake from State Farm makes an appearance. This mode is built on social interaction and self-expression. Leveraging brands from the majors to smaller indie labels has been ongoing for the nearly a decade. An example of technology being a limiting factor – on current consoles TheCity is far more robust in capabilities, experiences, and number of players vs. older generations. In fact on older generations, the irony isn’t lost on us. The mode is called TheNeighborhood.”
2. Alphabet Inc. (NASDAQ:GOOG)
Alyeska Investment Group’s Stake Value: $143.4 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 1.81%
No. of Hedge Fund Holders: 156
Ranked second on our list of top 10 stock picks of Anand Parekh’s Alyeska Investment Group is Alphabet Inc., which is a collection of businesses.
At the end of the third quarter of 2021, 156 hedge funds in the database of Insider Monkey held stakes worth $34.9 billion in Alphabet Inc.. At the end of the third quarter of 2021, the company represents 1.81% of the total investment portfolio of the hedge fund.
Oppenheimer increased its price target on Alphabet Inc. from $3,000.00 to $3,500.00. It gave an “Outperform” rating on the stock.
Saturna Capital, an investment management firm, released its 3Q21 investor letter and mentioned Alphabet Inc.. Here is what the fund said:
“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”
1. Palo Alto Networks, Inc. (NASDAQ:PANW)
Alyeska Investment Group’s Stake Value: $167.2 million
Percentage of Alyeska Investment Group’s 13F Portfolio: 2.11%
No. of Hedge Fund Holders: 73
Palo Alto Networks, Inc. (NASDAQ:PANW) is the global cybersecurity leader and is engaged in selling security appliances, subscriptions, and support to enterprises and government entities.
It is ranked first on our list of top 10 stock picks of Anand Parekh’s Alyeska Investment Group. The hedge fund managed by Anand Parekh owns 349,212 shares in Palo Alto Networks, Inc. worth $167.2 million, making up 2.11% of their third quarter portfolio. Insider Monkey’s data shows that 73 hedge funds held stakes at the end of the third quarter worth $5.89 billion. At the end of the second quarter, 69 hedge funds held stakes in the company.
UBS Group increased its price target on Palo Alto Networks, Inc. from $530.00 to $535.00 and gave the stock a “Neutral” rating.
You can also take a peek at 15 Best Security Stocks to Buy Now and 10 Best Vanguard Stocks to Buy Now.
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This article is originally published at Insider Monkey.
