In this article, we discuss the top 10 stock picks of Wen Han Li’s Andar Capital.
Wen Han Li is the portfolio manager of Andar Capital, which is an investment management firm from Hong Kong. At Andar Capital, Li manages a portfolio of 13F securities valued at $125.3 million as of September this year, with a top ten holdings concentration of 83.25%. The largest holding in Li’s Q3 portfolio is Bill.com Holdings, Inc. (NYSE:BILL), which represents 13.20% of the total investments.
At the end of the third quarter, almost 80% of Li’s 13F portfolio was dominated by information technology stocks, which shows the hedge fund’s immense interest in the tech sector. Andar Capital also has investments in the finance and healthcare sectors. In Q3 2021, Andar Capital’s top buys were MongoDB, Inc. (NASDAQ:MDB), Coupa Software Incorporated (NASDAQ:COUP), and BlackLine, Inc. (NASDAQ:BL). Whereas, the firm reduced holdings in Teradata Corporation (NYSE:TDC), ServiceNow, Inc. (NYSE:NOW), Baidu, Inc. (NASDAQ:BIDU), and Twilio Inc. (NYSE:TWLO).
Andar Capital’s most notable stocks from its Q3 portfolio included Atlassian Corporation Plc (NASDAQ:TEAM), Illumina, Inc. (NASDAQ:ILMN), MongoDB, Inc. (NASDAQ:MDB), and Bill.com Holdings, Inc. (NYSE:BILL), among others discussed in detail ahead.
Our Methodology
With this context in mind, let’s take a look at the top 10 stock picks of Wen Han Li’s Andar Capital. We used Li’s Q3 portfolio to select these stocks, ranking them according to Li’s stake value in each holding.
We also mentioned important metrics like the Q3 earnings, analyst ratings, and the hedge fund sentiment around each stock, so that readers can have a better understanding of each company.
Photo by Joshua Mayo on Unsplash
Top Stock Picks of Wen Han Li’s Andar Capital
10. Twilio Inc. (NYSE:TWLO)
Andar Capital’s Stake Value: $5,105,000
Percentage of Andar Capital’s 13F Portfolio: 4.07%
Number of Hedge Fund Holders:98
Twilio Inc. (NYSE:TWLO), an on-demand communications platform utilized by software developers, is one of the top stock picks of Wen Han Li as of Q3, with his investment firm owning 16,000 shares worth $5.1 million in Twilio Inc. (NYSE:TWLO), representing 4.07% of Andar Capital’s total investments.
Cathie Wood’s ARK Investment Management purchased almost 400,000 shares in Twilio Inc. (NYSE:TWLO) recently, making her total Twilio Inc. (NYSE:TWLO) shares amount to 3.24 million. Wood’s stake in the company is worth over $1 billion, making her firm the leading stakeholder of Twilio Inc. (NYSE:TWLO) as per Insider Monkey’s records. Overall, 98 hedge funds were long Twilio Inc. (NYSE:TWLO) at the end of June this year, with a total stake value of $7.89 billion.
Twilio Inc. (NYSE:TWLO) posted its Q3 results on October 27, with EPS for the quarter being $0.01, beating estimates by $0.15. Revenue for the period equaled $740.18 million, up 65.23% year-over-year, beating estimates by $56.08 million.
Wells Fargo analyst Michael Turrin on October 28 lowered the price target on Twilio Inc. (NYSE:TWLO) to $450 from $525, and kept an Overweight rating on the stock following a conservative Q3 earnings result.
In addition to Atlassian Corporation Plc (NASDAQ:TEAM), Illumina, Inc. (NASDAQ:ILMN), MongoDB, Inc. (NASDAQ:MDB), and Bill.com Holdings, Inc. (NYSE:BILL), Twilio Inc. (NYSE:TWLO) is a notable stock in Wen Han Li’s Q3 portfolio.
Here is what Lakehouse Capital has to say about Twilio Inc. (NYSE:TWLO) in its Q2 2021 investor letter:
“The Fund held 20 positions as of the end of June and exited four during the year (including) Twilio. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”
9. Atlassian Corporation Plc (NASDAQ:TEAM)
Andar Capital’s Stake Value: $6,654,000
Percentage of Andar Capital’s 13F Portfolio: 5.30%
Number of Hedge Fund Holders: 64
Atlassian Corporation Plc (NASDAQ:TEAM) is an Australian software company that was founded in 2002, and is known for its software solutions including Jira, Confluence, Atlassian Marketplace, and Bamboo, among others. Wen Han Li’s Andar Capital, as of the third quarter, holds a $6.65 million stake in Atlassian Corporation Plc (NASDAQ:TEAM), which accounts for 5.3% of the firm’s Q3 investment portfolio.
At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey reported owning stakes in Atlassian Corporation Plc (NASDAQ:TEAM), down from 67 funds in the previous quarter. The total value of these stakes is over $4.1 billion. Jim Simons’ Renaissance Technologies is the leading Atlassian Corporation Plc (NASDAQ:TEAM) stakeholder, with 3.17 million shares valued at $1.24 billion.
Atlassian Corporation Plc (NASDAQ:TEAM), on October 28, posted its Q3 results. EPS in the period totaled $0.46, beating estimates by $0.06. The revenue was up 33.63% from the prior-year quarter, coming in at $614.02 million, topping estimates by $28.28 million.
BMO Capital analyst Keith Bachman on October 29 raised the price target on Atlassian Corporation Plc (NASDAQ:TEAM) to $515 from $345 but kept a Market Perform rating on the stock after the Q3 earnings beat. He also stated that Atlassian Corporation Plc (NASDAQ:TEAM) transitioned well into cloud services, which met the needs of users and the expectations of investors.
Here is what Tao Value has to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its Q3 2021 investor letter:
“Atlassian (TEAM) delivered a “ripper”(quoting management from earnings call) quarter, adding a record 23K new customers last quarter, which is more than the total new customers of full year 2020. The cloud revenue also shows growth acceleration. This is surprisingly impressive, given that TEAM is believed to pull future demand forward to last quarter (i.e. the market expects de-acceleration after such an effect) by ending their on-premise offerings in February 2021. As a result, the stock price jumped up 20+% on the earnings day. TEAM has increased 20-fold from our initial purchase and is now growing into our 3rd largest position.”
8. 10x Genomics, Inc. (NASDAQ:TXG)
Andar Capital’s Stake Value: $6,697,000
Percentage of Andar Capital’s 13F Portfolio: 5.34%
Number of Hedge Fund Holders: 28
10x Genomics, Inc. (NASDAQ:TXG) is a California-based biotech company that is involved in the design and manufacture of gene sequencing technology which is frequently utilized by scientists for research and development. Andar Capital owns 46,000 shares in 10x Genomics, Inc. (NASDAQ:TXG), worth $6.6 million, representing 5.34% of the firm’s Q3 portfolio.
10x Genomics, Inc. (NASDAQ:TXG) posted its Q3 earnings on November 3. EPS in the quarter came in at -$0.15, beating estimates by $0.05. Revenue for the period totaled $125.30 million, up 74.47% year-over-year, exceeding estimates by $2.48 million.
The largest 10x Genomics, Inc. (NASDAQ:TXG) stakeholder according to Insider Monkey’s database, which tracks 873 elite hedge funds, is Joel Ramin’s 12 West Capital Management, holding a $279.8 million stake in the company. Overall, 28 hedge funds were long 10x Genomics, Inc. (NASDAQ:TXG) at the end of June this year.
7. BlackLine, Inc. (NASDAQ:BL)
Andar Capital’s Stake Value: $7,084,000
Percentage of Andar Capital’s 13F Portfolio: 5.65%
Number of Hedge Fund Holders: 20
BlackLine, Inc. (NASDAQ:BL), an on-demand financial software company, is a top stock in Andar Capital’s Q3 portfolio, with the firm owning a $7 million stake in BlackLine, Inc. (NASDAQ:BL) that represents 5.65% of its total investments.
Greg Poole’s Echo Street Capital Management is the leading stakeholder in BlackLine, Inc. (NASDAQ:BL), with 718,996 shares worth $84.8 million. At the end of June, Insider Monkey’s database suggested that a total of 20 hedge funds were bullish on BlackLine, Inc. (NASDAQ:BL), with a stake value of $266 million.
On November 4, the Q3 EPS for BlackLine, Inc. (NASDAQ:BL) came in at $0.24, exceeding estimates by $0.13. Revenue for the quarter was $109.4 million, up 20.85% from the previous-year quarter.
Oppenheimer analyst Ray McDonough raised the price target on BlackLine, Inc. (NASDAQ:BL) to $140 from $130 on November 5, keeping an Outperform rating on the shares following the solid Q3 earnings results. He also stated that demand for the company’s software exceeded pre-pandemic levels.
Here is what Polen U.S. Small Company Growth Fund has to say about BlackLine, Inc. (NASDAQ:BL) in its Q1 2021 investor letter:
“Blackline provides software that helps companies more accurately meet financial deadlines by automating accounting and reporting processes. Demand for their products trended upward, steadily and sustainably, during the latter half of 2020 as potential customers put more focus and investment dollars behind digital transformation. The company is seeing an increasing trend of large deals (new and expansion), progress in up-sells and cross sells with existing customers, and a large pipeline of transformational deals for 2021. We believe that the company’s willingness and ability to invest in new talent, product innovation, and automation have made its product offerings more attractive and well-positioned to take advantage of a global economic recovery.”
6. Varonis Systems, Inc. (NASDAQ:VRNS)
Andar Capital’s Stake Value: $7,241,000
Percentage of Andar Capital’s 13F Portfolio: 5.77%
Number of Hedge Fund Holders: 24
Varonis Systems, Inc. (NASDAQ:VRNS) offers a cybersecurity platform to customers that protects on-premises and cloud-based data. Andar Capital, as of September this year, owns 119,000 shares in Varonis Systems, Inc. (NASDAQ:VRNS), worth $7.24 million, representing 5.77% of the firm’s Q3 portfolio.
Varonis Systems, Inc. (NASDAQ:VRNS) posted Q3 earnings on November 1. The EPS totaled $0.05, beating estimates by $0.03. Revenue for the third quarter equaled $100.35 million, up 30.75% year-over-year, outperforming estimates by $2.9 million.
At the end of June 2021, 24 hedge funds in the database of Insider Monkey were bullish on Varonis Systems, Inc. (NASDAQ:VRNS), with stakes worth $335.7 million. This is compared to 32 funds in the preceding quarter, with a total stake value of $381.9 million. The leading Varonis Systems, Inc. (NASDAQ:VRNS) stakeholder is David Goel and Paul Ferri’s Matrix Capital Management, with a $75.9 million stake in the company.
In addition to Atlassian Corporation Plc (NASDAQ:TEAM), Illumina, Inc. (NASDAQ:ILMN), MongoDB, Inc. (NASDAQ:MDB), and Bill.com Holdings, Inc. (NYSE:BILL), Varonis Systems, Inc. (NASDAQ:VRNS) is a notable stock in Wen Han Li’s Q3 portfolio.
5. Illumina, Inc. (NASDAQ:ILMN)
Andar Capital’s Stake Value: $8,112,000
Percentage of Andar Capital’s 13F Portfolio: 6.47%
Number of Hedge Fund Holders: 51
Illumina, Inc. (NASDAQ:ILMN) is an American biotechnology company that is engaged in the development of products and services that allow the analysis of genetic variation and biological function. Illumina, Inc. (NASDAQ:ILMN) is the pioneer of the revolutionary technology that made human genome sequencing an affordable process, cutting down the cost of the procedure from $1 million to $1,000.
The biggest Illumina, Inc. (NASDAQ:ILMN) stakeholder is GuardCap Asset Management, which holds over 1.31 million shares in the company, worth $534 million. Overall, 51 hedge funds in Insider Monkey’s database of 873 elite funds were bullish on Illumina, Inc. (NASDAQ:ILMN), with a total stake value of $1.97 billion.
Baird analyst Catherine Ramsey Schulte, on November 8, lowered the price target on Illumina, Inc. (NASDAQ:ILMN) to $437 from $493 and kept a Neutral rating on the stock. She stated that demand for genomics initiatives was higher, but the company is likely to face tougher comps in 2022.
Illumina, Inc. (NASDAQ:ILMN) posted its Q3 results on November 4. EPS in the quarter came in at $1.45, outperforming estimated EPS by $0.23. The $1.11 billion revenue was up 39.55% from the prior-year quarter, exceeding estimates by $63.05 million.
Here is what Polen Capital has to say about Illumina, Inc. (NASDAQ:ILMN) in its Q3 2021 investor letter:
“Illumina shares underperformed on news that the company closed its acquisition of GRAIL despite regulatory reviews in the U.S. and EU that are still pending. We believe there is no precedent for applicable courts to use as a basis for validly concluding this acquisition violates antitrust law. Also, we think U.S. regulators were unnecessarily delaying their regulatory reviews in hopes of deterring Illumina and GRAIL from moving forward. Grail is still a pre-revenue business, and we believe it will be highly dilutive to Illumina’s earnings in the short term. Still, we expect Illumina’s core business to strengthen as a result of this acquisition. We also expect earnings accretion from GRAIL in the intermediate-term as its liquid biopsy test appears to be effective for early cancer detection across 50 of the most lethal cancers (most of which there are no tests for today).”
4. Coupa Software Incorporated (NASDAQ:COUP)
Andar Capital’s Stake Value: $10,082,000
Percentage of Andar Capital’s 13F Portfolio: 8.04%
Number of Hedge Fund Holders: 54
Coupa Software Incorporated (NASDAQ:COUP) offers a business spend management platform to companies that gives them autonomy over the resources and finances spent within their organization. In addition to that, the company offers products related to procurement, invoicing, sourcing, contract management, catalog management, and expense management. On November 16, Susquehanna analyst John Coffey initiated coverage of Coupa Software Incorporated (NASDAQ:COUP) with a Positive rating and a $35 price target.
As of Q3 2021, Andar Capital owns 46,000 shares in Coupa Software Incorporated (NASDAQ:COUP), valued at over $10 million, representing 8.04% of the firm’s stock portfolio.
The biggest Coupa Software Incorporated (NASDAQ:COUP) stakeholder as per Insider Monkey’s records is Stephen Mandel’s Lone Pine Capital, with 4.56 million shares worth over $1 billion. Overall, 54 hedge funds reported owning stakes in Coupa Software Incorporated (NASDAQ:COUP) at the end of June, valued at over $4.69 billion.
Here is what ClearBridge Investments has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
3. MongoDB, Inc. (NASDAQ:MDB)
Andar Capital’s Stake Value: $10,845,000
Percentage of Andar Capital’s 13F Portfolio: 8.65%
Number of Hedge Fund Holders: 44
Wen Han Li’s Andar Capital, as of the third quarter, owns a $10.84 million stake in MongoDB, Inc. (NASDAQ:MDB), which accounts for 8.65% of the firm’s Q3 portfolio.
At the end of the second quarter of 2021, 44 hedge funds out of the 873 elite funds tracked by Insider Monkey were long MongoDB, Inc. (NASDAQ:MDB), down from 46 in the preceding quarter. The overall stake value as of Q2 totaled $1.69 billion. Alex Sacerdote’s Whale Rock Capital Management is the largest MongoDB, Inc. (NASDAQ:MDB) stakeholder, with 1.26 million shares worth $596.5 million.
On November 16, Credit Suisse analyst Phil Winslow initiated coverage of MongoDB, Inc. (NASDAQ:MDB) with an Outperform rating and a $700 price target. He stated that the market for MongoDB is rapidly expanding and the company is expected to experience significant growth.
2. Palantir Technologies Inc. (NYSE:PLTR)
Andar Capital’s Stake Value: $11,419,000
Percentage of Andar Capital’s 13F Portfolio: 9.10%
Number of Hedge Fund Holders: 26
Palantir Technologies Inc. (NYSE:PLTR), a data analytics software company, is one of Wen Han Li’s top stock picks as of September this year, with his investment firm holding an $11.4 million stake in the company. Palantir Technologies Inc. (NYSE:PLTR) accounts for 9.10% of Andar Capital’s Q3 13F portfolio.
The database of Insider Monkey indicates that 26 hedge funds held stakes in Palantir Technologies Inc. (NYSE:PLTR) as of June this year, with Ken Griffin’s Citadel Investment Group being one of the leading Palantir Technologies Inc. (NYSE:PLTR) stakeholders, holding a $145.7 million position in the company.
Palantir Technologies Inc. (NYSE:PLTR) on November 9 posted its Q3 results. EPS in the period totaled $0.04, in line with analysts’ expectations. The $392.15 million revenue was up 35.52% from the prior-year quarter, beating estimates by $5.86 million. Credit Suisse analyst Phil Winslow initiated coverage of Palantir Technologies Inc. (NYSE:PLTR) with a Neutral rating and a $25 price target on November 16.
Here is what Guardian Fund has to say about Palantir Technologies Inc. (NYSE:PLTR) in its Q2 2021 investor letter:
“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines at record speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.
Government institutions have to partner with enterprises such as Palantir to become digital native. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters.
The news section of Palantir’s website gives insight into where new business is coming from. The main opportunity is in enterprise software and the faster onboarding time and increased self-service of clients is a positive sign. We believe Palantir is becoming one of the more important global software companies.
In addition, Palantir has quietly become a significant investor, investing well over USD 200 million in eight companies. Therefore, it is following the lead of companies like Tencent, Alphabet, and Shopify in establishing valuable investment portfolios.”
1. Bill.com Holdings, Inc. (NYSE:BILL)
Andar Capital’s Stake Value: $16,551,000
Percentage of Andar Capital’s 13F Portfolio: 13.20%
Number of Hedge Fund Holders: 53
Bill.com Holdings, Inc. (NYSE:BILL) is a software company offering on-demand solutions that automate financial processes for small and mid-cap businesses. Bill.com Holdings, Inc. (NYSE:BILL) is the largest holding in Andar Capital’s Q3 portfolio, with the investment firm owning 62,000 shares in Bill.com Holdings, Inc. (NYSE:BILL), worth $16.5 million, representing 13.2% of the stock portfolio.
Bill.com Holdings, Inc. (NYSE:BILL) posted its Q3 results on November 4. EPS in the quarter totaled -$0.15, exceeding estimates by $0.06. The revenue equaled $116.4 million, up 151.91% year-over-year, beating estimates by $11.32 million.
On November 5, Canaccord analyst Joseph Vafi raised the price target on Bill.com Holdings, Inc. (NYSE:BILL) to $366 from $284 and kept a Buy rating on the stock, stating that the company is benefiting from significant organic growth.
One of the leading stakeholders in the company is Gabriel Plotkin’s Melvin Capital Management, with 2.6 million shares worth $694 million. As of Q2 2021, 53 hedge funds in the database of Insider Monkey held stakes valued at $2.76 billion in Bill.com Holdings, Inc. (NYSE:BILL). This is compared to 51 funds in the preceding quarter, with a total stake value of $2.41 billion.
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Disclosure: None. Top 10 Stock Picks of Wen Han Li’s Andar Capital is originally published on Insider Monkey.
