In this article, we will discuss the Top 10 Stocks to Buy According to Lakehouse Capital.
Founded in 2016, Lakehouse Capital is a boutique investment management firm that is based in Sydney, Australia. It is a growth equity manager that provides 2 funds, the Lakehouse Small Companies Fund and the Lakehouse Global Growth Fund. The investment firm takes a long-term, high-conviction approach with a core focus on seeking asymmetric outcomes. Furthermore, it opines that highly successful investments tend to share some common attributes.
Investment Approach of Lakehouse Capital
Donny Buchanan, CFA, featured on The Australian Investors Podcast, wherein he highlighted that only a small majority of companies tend to create the majority of returns in the indexes. While the S&P 500 Index managed to deliver good returns last year, 72% of the companies in the index underperformed the index return, added Buchanan. Notably, between January 5, 2024 – December 27, 2024, the S&P 500 delivered a return of ~27.1%. Lakehouse Capital tends to seek asymmetric opportunities with numerous ways to win and only a few ways to lose. The company is focused on compounding its investors’ wealth over the long term.
Amidst these views, let us now have a look at the Top 10 Stocks to Buy According to Lakehouse Capital.
A close up of a portfolio of a variety of investment grade corporate bonds.
Our Methodology
To list the Top 10 Stocks to Buy According to Lakehouse Capital, we selected the top 10 stocks in Lakehouse Capital’s portfolio as of its Q1 2025 13F filing. We settled on the hedge fund’s 10 biggest holdings. Finally, we ranked the stocks in ascending order based on the value of Lakehouse Capital’s equity stakes. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Meta Platforms, Inc. (NASDAQ:META)
Lakehouse Capital’s Equity Stake: $7.12 Million
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Top 10 Stocks to Buy According to Lakehouse Capital. On July 3, Needham upgraded the company’s stock to “Hold” from “Underperform” with no price target, as reported by The Fly. The firm had maintained its cautious stance, highlighting strategic concerns and structural cost pressures. The channel checks have been driving the upside to the estimates, while the firm also highlighted Meta Platforms, Inc. (NASDAQ:META)’s strong labor productivity metrics. Furthermore, it noted the company’s globally scaled, software-only model, benefiting from closed-loop attribution for advertisers.
Despite the upgrade, Needham warned that the company’s strategy diffusion wastes capital and adds risks. There are concerns related to the persistent margin and FCF pressures, with Meta Platforms, Inc. (NASDAQ:META)’s stock-based compensation per full-time employee (SBC/FTE) being the highest among peers. The company’s headcount was 76,834 as of March 31, 2025, reflecting a rise of 11% YoY. For Q1 2025, the company stated that Ad impressions delivered throughout the Family of Apps rose 5% YoY, while average price per ad increased 10% YoY.
Macquarie Asset Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“The largest individual detractors from performance relative to the benchmark were not owning Meta Platforms, Inc. (NASDAQ:META), not owning Eli Lilly & Co., and our position in Electronic Arts Inc. Meta stock was slightly negative to end the quarter but relative to the benchmark and other communication services stock performed well. Having a zero weight relative to the large benchmark allocation hurt. We continue to follow this company closely and while we have become incrementally more constructive, we still have lingering concerns about the business model and worry the cyclical weakness in advertising spend could create further pressure.”
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