Top 10 Stock Picks of Joshua Kushner’s Thrive Capital

Published on September 6, 2022 at 10:46 am by Ramon Emmiel Jasmin in Hedge Funds, News

In this article, we discuss the top 10 stock picks of Joshua Kushner’s Thrive Capital.

Joshua Kushner, an American billionaire businessman and investor, founded Thrive Capital in 2009. Thrive Capital is a venture capital business that invests in firms in the field of software, internet, and technology-enabled sectors, with a Q1 portfolio worth about $1.68 billion. Since its founding, Thrive Capital has raised from institutional investors, including Princeton University, Wellcome Trust, and Hall Capital.

New exits from Thrive Capital’s portfolio have been successful. Lemonade, Inc. (NYSE:LMND), an insurance technology company, and Affirm Holdings, Inc. (NASDAQ:AFRM), a financial startup, both went public recently. Thrive Capital also started investing in Opendoor Technologies Inc. (NASDAQ:OPEN) and Compass, Inc. (NYSE:COMP), two businesses that specialize in real estate technology. In September 2020, Thrive Capital led the $185 million Series D round of Airtable, a collaborative cloud software platform. The Series D round valued Airtable at $2.5 billion. Thrive Capital also played a significant role as an investor in the 2017 Series C round of Robinhood Financial (NASDAQ:HOOD).

In February 2022, with almost $3 billion in funding commitments, Thrive Capital completed its eighth fund, with $500 million of that amount set aside for investments in early-stage start-up firms and the remaining $2.5 billion reserved for later-stage businesses. As per 13F filings for the first quarter of 2022, Thrive Capital holds a total of 11 stocks including, Oscar Health Inc. (NYSE:OSCR), Robinhood Markets, Inc. (NASDAQ:HOOD), and Roblox Corporation (NYSE:RBLX).

Photo by Chris Liverani on Unsplash

Our Methodology

The top 10 stock picks of Thrive Capital were chosen from its Q1 2022 portfolio. The stake value of each stock in the hedge fund is used to determine the order of the list.

10. Blend Labs Inc. (NYSE:BLND)

Thrive Capital’s Stake Value: $663,000

Percentage of Thrive Capital’s 13F Portfolio: 0.06%

Number of Hedge Fund Holders: 20

Blend Labs, Inc. (NYSE:BLND) is a cloud-based software platform provider in the United States for financial services firms. It has two business segments: Blend Platform and Title365. White-label products include mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts. Piper Sandler analyst Arvind Ramnani on July 18 reduced the firm’s price target on Blend Labs, Inc. (NYSE:BLND) to $2.50 from $3.50 and maintained a Neutral rating on the stock.

At the end of the first quarter, Insider Monkey’s data show that 20 hedge funds were bullish on Blend Labs, Inc. (NYSE:BLND), up from 16 funds in the last quarter. As of late June, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC is the leading position holder in the company, with 19.7 million shares worth about $112 million.

In addition to Oscar Health, Inc. (NYSE:OSCR), Robinhood Markets, Inc. (NASDAQ:HOOD), and Roblox Corporation (NYSE:RBLX), elite hedge funds are pouring into Blend Labs, Inc. (NYSE:BLND).

9. Roblox Corporation (NYSE:RBLX)

Thrive Capital’s Stake Value: $879,000

Percentage of Thrive Capital’s 13F Portfolio: 0.08%

Number of Hedge Fund Holders: 40

Roblox Corporation (NYSE:RBLX) is a company that creates and runs an online entertainment platform.

Needham analyst Bernie McTernan raised the firm’s price target on Roblox Corporation (NYSE:RBLX) to $45 from $40 on July 14 and maintained a Buy rating on the stock. The analyst cites conversations he had with 17 of the company’s developers, all of whom expressed optimism about Roblox’s monetization environment, advertising opportunities, and UGC marketplace.

According to Insider Monkey’s data, 40 hedge funds were bullish on Roblox Corporation (NYSE:RBLX) at the end of Q1 2022, down from 61 funds in the earlier quarter. Catherine Wood’s ARK Investment Management is the leading shareholder of the company, with 7.4 million shares worth $221 million.

8. Silvergate Capital Corporation (NYSE:SI)

Thrive Capital’s Stake Value: $1,966,000

Percentage of Thrive Capital’s 13F Portfolio: 0.18%

Number of Hedge Fund Holders: 35

Silvergate Capital Corporation (NYSE:SI) serves as a bank holding company for Silvergate Bank, which offers banking products and services to corporate and individual customers in the United States. Deposit products accepted by the company include interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit. Thrive Capital added Silvergate Capital Corporation (NYSE:SI) to its portfolio in the first quarter of 2022 by purchasing 13,056 shares, worth $1.9 million.

Wells Fargo analyst Jared Shaw on July 20 raised the firm’s price target on Silvergate Capital Corporation (NYSE:SI) to $115 from $100 and maintained an Overweight rating on the stock.

Among the hedge funds tracked by Insider Monkey, 35 funds reported long positions in Silvergate Capital Corporation (NYSE:SI) at the end of Q1 2022, down from 37 funds in the preceding quarter. Catherine Wood’s ARK Investment Management held the biggest stake in the company, with 443,211 shares worth $34.7 million.

7. Hims & Hers Health Inc. (NYSE:HIMS)

Thrive Capital’s Stake Value: $17,070,000

Percentage of Thrive Capital’s 13F Portfolio: 1.59%

Number of Hedge Fund Holders: 21

Hims & Hers Health, Inc. (NYSE:HIMS) runs a multi-specialty telehealth platform that connects patients with licensed healthcare providers. Customers can purchase a variety of health and wellness products and services directly from the company via its websites and mobile application. It also offers recurring prescription medication and ongoing care from healthcare providers, as well as over-the-counter drug and device products, cosmetics, and supplement products, with a primary focus on wellness, sexual health and wellness, skincare, and hair care.

On May 26, Piper Sandler analyst Sean Wieland reduced the firm’s price target on Hims & Hers Health, Inc. (NYSE:HIMS) to $6 from $8 and maintained an Overweight rating on the stock. Wieland tells investors in a research note that the company “continues to deliver phenomenal growth,” but it also has a cash-pay direct-to-consumer business that is dependent on digital marketing and the health of the US consumer. The analyst claims that because of high churn and short-term subscription commitments, past performance is not a guarantee of future results.

According to Insider Monkey’s database, 21 hedge funds were bullish on Hims & Hers Health, Inc. (NYSE:HIMS) at the end of March 2022, down from 22 funds in the previous quarter.

6. Compass Inc. (NYSE:COMP)

Thrive Capital’s Stake Value: $57,295,000

Percentage of Thrive Capital’s 13F Portfolio: 5.36%

Number of Hedge Fund Holders: 28

Compass, Inc. (NYSE:COMP) offers real estate brokerage services in the United States. It operates a cloud-based platform that offers an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality, as well as brokerage and related services in the real estate industry. The company provides mobile apps that allow agents to manage their business from anywhere, as well as designs consumer-grade interfaces and automated workflows for agent-client interactions.

Equities research analysts at Oppenheimer on June 15 reduced Compass, Inc.’s (NYSE:COMP) target price from $9.00 to $8.00. The company currently rates the stock as “Outperform.”

Among the hedge funds tracked by Insider Monkey, 28 funds reported long positions in Compass, Inc. (NYSE:COMP) at the end of Q1 2022. By the end of June, Rob Citrone’s Discovery Capital Management held the biggest stake in the company, with 19.7 million shares worth $155.3 million.

Like Oscar Health Inc. (NYSE:OSCR), Robinhood Markets, Inc. (NASDAQ:HOOD), and Roblox Corporation (NYSE:RBLX), the smart money is focusing into Compass, Inc. (NYSE:COMP).

5. Vimeo Inc. (NASDAQ:VMEO)

Thrive Capital’s Stake Value: $69,532,000

Percentage of Thrive Capital’s 13F Portfolio: 6.5%

Number of Hedge Fund Holders: 24

Vimeo, Inc. (NASDAQ:VMEO) and its subsidiaries offer video software solutions around the world. The video tools are delivered via a software-as-a-service model, allowing users to create, collaborate, and communicate with video on a single platform. It also provides over-the-top (OTT) streaming and monetization services, as well as AI-powered video creation and editing tools, as well as interactive and shoppable video tools. Thrive Capital added Vimeo Inc. (NASDAQ:VMEO) to its Q1 portfolio by acquiring 5.8 million shares worth $69.5 million, representing 6.5% of the total holdings.

According to Insider Monkey’s data, 24 hedge funds were long Vimeo Inc. (NASDAQ:VMEO) in Q1 2022, down from 34 funds in the last quarter. Mason Hawkins’ Southeastern Asset Management is the largest stakeholder of the company as of June 29, with 11.29 million shares worth $134.2 million.

4. Carvana Co. (NYSE:CVNA)

Thrive Capital’s Stake Value: $96,949,000

Percentage of Thrive Capital’s 13F Portfolio: 9.07%

Number of Hedge Fund Holders: 48

Carvana Co. (NYSE:CVNA) runs an e-commerce platform in the United States for buying and selling used cars. Customers can use their desktop or mobile devices to research and identify vehicles, inspect them using the company’s 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up. Carvana Co. (NYSE:CVNA) is a new arrival in Thrive Capital’s Q1 portfolio with 812,713 shares, worth $96.9 million.

Among the hedge funds tracked by Insider Monkey, 48 funds were long Carvana Co. (NYSE:CVNA) at the end of Q1 2022, with combined stakes worth $3.4 billion.

3. Nu Holdings Ltd. (NYSE:NU)

Thrive Capital’s Stake Value: $172,410,000

Percentage of Thrive Capital’s 13F Portfolio: 16.14%

Number of Hedge Fund Holders: 17

Nu Holdings Ltd. (NYSE:NU) operates primarily in Brazil, Mexico, and Colombia as a digital financial services platform and technology company.

Securities filings for Q1 2022 reveal that Thrive Capital added Nu Holdings Ltd. (NYSE:NU) to its portfolio by purchasing 22.3 million shares worth $172.4 million, representing 16.14% of the total 13F holdings.

Soomit Datta of New Street Research on July 6 reduced the firm’s price target on Nu Holdings Ltd. (NYSE:NU) to $7 from $9 and maintained a Neutral rating on the stock. According to the analyst, the tougher cycle will “likely catch up with the digital banks/wallets in Brazil” more in Q2 following a “generally stronger” than expected Q1 for both Nu Holdings and MercadoLibre (MELI).

Among the hedge funds tracked by Insider Monkey, 17 funds were bullish on Nu Holdings Ltd. (NYSE:NU) at the end of Q1 2022, with combined stakes worth $2.8 billion. Catherine Wood’s ARK Investment Management is the leading position holder in the company, with 4.8 million shares valued at around $18.6 million.

2. Robinhood Markets, Inc. (NASDAQ:HOOD)

Thrive Capital’s Stake Value: $275,752,000

Percentage of Thrive Capital’s 13F Portfolio: 25.81%

Number of Hedge Fund Holders: 19

Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform based in the United States. The platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. Thrive Capital added Robinhood Markets, Inc. (NASDAQ:HOOD) to its Q1 portfolio by buying 20.4 million shares worth $275.7 million, representing 25.81% of the total holdings.

According to Insider Monkey’s data, 19 hedge funds were long Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of March 2022, down from 24 funds in the preceding quarter. Catherine Wood’s ARK Investment Management is the leading stakeholder of the company, with roughly 33.5 million shares worth $337.5 million.

1. Oscar Health Inc. (NYSE:OSCR)

Thrive Capital’s Stake Value: $375,014,000

Percentage of Thrive Capital’s 13F Portfolio: 35.1%

Number of Hedge Fund Holders: 29

Oscar Health, Inc. (NYSE:OSCR) sells and services health insurance in the United States. Individual & Family, Small Group, and Medicare Advantage plans are available, as well as +Oscar, a technology-driven platform designed to assist providers and payor clients in engaging with members and patients. Thrive Capital purchased 37.6 million shares of Oscar Health, Inc. (NYSE:OSCR) in Q1 2022, worth about $375 million, representing 35.1% of the total 13F portfolio.

Among the hedge funds tracked by Insider Monkey, 29 funds were bullish on Oscar Health, Inc. (NYSE:OSCR) at the end of March 2022, up from 19 funds in the prior quarter.

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