In this article, we discuss top 10 stock picks of Anand Parekh’s Alyeska Investment Group. If you want to skip our detailed analysis of Parekh’s history, investment philosophy, and hedge fund performance, go directly to the Top 5 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.
Photo by Nick Chong on Unsplash
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. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Ciena Corporation (NYSE:CIEN) 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 (NYSE:CIEN), 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. (NASDAQ:CHKP). 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 (NYSE:FTV), 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. (NASDAQ:AMZN) 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. (NASDAQ:AMZN). 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. (NASDAQ:AMZN), 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. (NASDAQ:AMZN). 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. (NASDAQ:WDAY).
ClearBridge Investments, an investment management firm, released its 1Q21 investor letter and mentioned Workday, Inc. (NASDAQ:WDAY). 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.”
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Disclosure: None. Top 10 stock picks of Anand Parekh’s Alyeska Investment Group is originally published on Insider Monkey.
