In this article, we will take a look at the Top 8 Stock Picks of Colin Moran’s Abdiel Capital.
Colin Moran is the co-founder and Managing Partner of Abdiel Capital Advisors, a hedge fund based in New York with $4.6 billion of regulatory assets under management, as of December 31, 2021. Colin Moran B.A. in History and Economics from Duke University, an M.St. in Modern History from Oxford University and a J.D. from Stanford Law School. Moran started his career in the realm of finance as an investment banking associate at Goldman Sachs where he spent less than 2 years and moved on to Chieftain Capital as a Partner. He stuck to that position for more than 6 years and later started Abdiel Capital with Geoffrey Gentile in 2006.
Abdiel Capital generally invests in shares of publicly traded companies that are likely to gain market share over the long term. It typically holds a small number of stocks in its portfolio with the top ten picks comprising more than 75% of the invested capital. The hedge fund prefers businesses with recurring revenues and managed by people with a major portion of their net worth invested in the stock.
As of Q2 2022, Colin Moran’s Abdiel Capital’s 13F portfolio is valued at $1.5 billion. During the second quarter, the hedge fund added 1 new position to the portfolio and increased exposure to the 7 existing positions in the portfolio. The portfolio was concentrated across only two sectors – Information Technology, and consumer cyclicals, with sector weightage of 73.31% and 26.69%, respectively.
Methodology
We took the top 8 leading companies out of Colin Moran’s Abdiel Capital’s 13F portfolio at the end of Q2 2022 and ranked them from #8 to #1 based on the portfolio weight of each company. We have also provided the number of hedge funds holding shares of these stocks from our database covering 895 leading hedge funds.
Top 8 Stock Picks of Colin Moran’s Abdiel Capital
8. Samsara Inc. (NYSE:IOT)
Abdiel Capital’s Stake Value: $36,557,000
Percentage of Abdiel Capital’s 13F Portfolio: 2.46%
Number of Hedge Fund Holders: 17
Samsara Inc. (NYSE:IOT) operates the Connected Operations Cloud which allows businesses to harness IoT (Internet of Things) data to develop actionable business insights and improve their operations. It operates in North America and Europe and serves tens of thousands of customers across various industries.
The shares of Samsara Inc. started trading on the NYSE after its IPO in December 2021 where it sold a total of 38.5 million shares for a share price of $23.0 per share to raise net proceeds of $847 million. Its share price has since taken a massive dip and closed at $12.07 on September 30, 48% below the IPO price.
As of Q2 2022, Colin Moran’s Abdiel Capital holds 3,272,751 shares of Samsara Inc., accounting for 2.46% of the 13F portfolio of the hedge fund. Unlike other stocks in the portfolio, Samsara Inc. was a new addition to the portfolio in Q2 2022.
In August, Samsara Inc. released the financial results for the quarter ended July 30, 2022. Its revenue increased by 52% y-o-y to $154 million, while its net loss increased by 105% y-o-y to $64 million, for the three months.
On September 22, MoffettNathanson analyst Sterling Auty initiated coverage of Samsara Inc. shares with a ‘Buy’ rating and a price target of $40.
As of Q2 2022, 17 of the 895 hedge funds tracked by Insider Monkey owned shares of Samsara Inc., valued at $216 million. Tiger Global Management LLC was the largest hedge fund shareholder of the company with ownership of 4.6 million shares valued at $52 million.
Like Floor & Decor Holdings, Inc., Global-E Online Ltd. (NASDAQ:GLBE), and Appian Corporation (NASDAQ:APPN), Samsara Inc. is part of Colin Moran’s Abdiel Capital’s Q2 portfolio.
7. Affirm Holdings, Inc. (NASDAQ:AFRM)
Abdiel Capital’s Stake Value: $38,536,000
Percentage of Abdiel Capital’s 13F Portfolio: 2.59%
Number of Hedge Fund Holders: 27
San Francisco, California-based Affirm Holdings, Inc. (NASDAQ:AFRM) is a buy now, pay later (BNPL) financial services provider enabling customers to pay in biweekly or monthly installments. It boasts more than 235,000 merchants and 14 million active customers on its platform, as of June 30, 2022.
Colin Moran’s Abdiel Capital owns 2,133,792 shares of Affirm Holdings, Inc., accounting for 2.59% of its 13F portfolio, as of Q2 2022. The hedge fund increased its stake by 27% in Q2 2022, as compared to the previous quarter.
In August, Affirm Holdings, Inc. released its financial results for the quarter ended June 30, 2022. Its net revenues increased by 39% y-o-y to $364 million, while its net loss increased by 51% y-o-y to $186 million, for the three months. The normalized EPS was recorded at -$0.65 for the quarter, beating the consensus by $0.08.
On September 22, Mizuho analyst Dan Dolev reaffirmed his faith in Affirm Holdings, Inc. shares as the analyst feels the BNPL platform’s 30-day delinquency trends are “promising”. Dolev maintains a ‘Buy’ rating with a $42 price target for the shares.
As of Q2 2022, 27 hedge funds tracked by Insider Monkey held shares of Affirm Holdings, Inc., worth $117 million. Ken Griffin’s Citadel Investment Group was the largest shareholder in the company.
6. Cricut, Inc. (NASDAQ:CRCT)
Abdiel Capital’s Stake Value: $89,327,000
Percentage of Abdiel Capital’s 13F Portfolio: 6.01%
Number of Hedge Fund Holders: 9
South Jordan, Utah-based Cricut, Inc. (NASDAQ:CRCT) is a creative technology company that offers cutting plotters or computer-controlled cutting machines designed for home crafters. Its smart cutting machines, combined with its design software, allow users to create high-quality DIY projects.
Colin Moran’s Abdiel Capital owns 14,548,434 shares of Cricut, Inc., accounting for 6.01% of its 13F portfolio. The hedge fund increased its stake by 6% in Q2 2022, as compared to the previous quarter.
In August, Cricut, Inc. reported its earnings for the quarter ended June 30, 2022. Its revenue declined by 45% y-o-y to $184 million, while net income shrunk by 72% y-o-y to $14 million. It recorded an EPS of $0.06, missing the consensus by $0.03.
As of Q2 2022, Cricut, Inc. is not a popular stock pick among the 895 hedge funds tracked by Insider Monkey as only 9 of these hedge funds held its shares, valued at $93 million.
5. Shopify Inc. (NYSE:SHOP)
Abdiel Capital’s Stake Value: $134,187,000
Percentage of Abdiel Capital’s 13F Portfolio: 9.04%
Number of Hedge Fund Holders:
Shopify Inc. (NYSE:SHOP) is a leading provider of internet infrastructure for commerce, offering trusted tools to start, grow, market, and manage a retail business of any size. Shopify Inc. platform and services are used by millions of businesses across 175 countries, including notable names such as Gymshark, Heinz, Tupperware, FTD, Netflix, FIGS, and others.
Colin Moran’s Abdiel Capital doubled down on its investment in Shopify Inc. shares and increased its stake by a whopping 1915% during Q2 2022 compared to the previous quarter, bringing the number of shares owned by the hedge fund to 4,295,360 with a portfolio weight of 9.04%.
In July, Shopify Inc. reported its earnings for the quarter ended June 30, 2022. Its revenue increased by 16% y-o-y to $1.3 billion, while it reported a net loss of $1.2 billion, for the three months. It recorded an EPS of -$0.03, missing the analyst consensus by $0.06.
On August 11, Atlantic Equities analyst Kunaal Malde upgraded Shopify Inc. to ‘Overweight’ from ‘Neutral’ with a $46 price target. The analyst believes that Shopify Inc. is “a market leader in product innovation and a high-quality market share gainer”.
As of Q2 2022, Shopify Inc. is the most sought-after Canadian stock among the 895 hedge funds tracked by Insider Monkey, as 60 of these hedge funds held its shares, valued at $3.3 billion. Ken Griffin’s Citadel Investment Group was the largest shareholder in the company.
4. Bill.com Holdings, Inc. (NYSE:BILL)
Abdiel Capital’s Stake Value: $218,568,000
Percentage of Abdiel Capital’s 13F Portfolio: 14.72%
Number of Hedge Fund Holders: 46
Bill.com Holdings, Inc. (NYSE:BILL) is a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and medium businesses (SMBs). Its platform allows users to manage end-to-end financial workflows and to process payments.
Colin Moran’s Abdiel Capital’s holds 1,988,067 shares of Bill.com Holdings, Inc., accounting for 14.72% of its 13F portfolio, as of Q2 2022. The hedge fund increased its stake by 158% during the latest quarter, as compared to the previous one.
In August, Bill.com Holdings, Inc. released its financial results for the quarter ended June 30, 2022. Its total revenue increased by 156% y-o-y to $200 million, while it reported a net loss of $85 million for the three months. The normalized EPS was recorded at -$0.03 for the quarter, beating the consensus by $0.11.
On September 30, Susquehanna analyst James Friedman lowered the price target on Bill.com Holdings, Inc. shares to $120 from $140 but maintained a ‘Positive’ rating on the shares. The analyst believes that the company is “likely to benefit” from the under-penetration of B2B payments automation.
Bill.com Holdings, Inc. is the second most popular stock among hedge funds on our list of Top 8 Stock Picks of Colin Moran’s Abdiel Capital. As of Q2 2022, 46 of the 895 hedge funds tracked by Insider Monkey held its shares with a total value of $1.0 billion. Ken Griffin’s Citadel Investment Group was its largest hedge fund shareholder after Abdiel Capital, with ownership of 1.6 million shares valued at $171 million.
Like Floor & Decor Holdings, Inc., Global-E Online Ltd., and Appian Corporation, Bill.com Holdings, Inc. is part of Colin Moran’s Abdiel Capital’s Q2 portfolio.
3. Floor & Decor Holdings, Inc. (NYSE:FND)
Abdiel Capital’s Stake Value: $273,787,000
Percentage of Abdiel Capital’s 13F Portfolio: 18.44%
Number of Hedge Fund Holders: 29
Floor & Decor Holdings, Inc. is a differentiated, high-growth, multi-channel specialty retailer of hard surface flooring and related accessories. It operates 174 large warehouse-format stores and 5 design studios across 34 states in the United States, offering tile, wood, laminate, vinyl, and natural stone flooring.
As of Q2 2022, Colin Moran’s Abdiel Capital holds 4,348,584 shares of Floor & Decor Holdings, Inc., accounting for 18.44% of the hedge fund’s 13F portfolio. The hedge fund increased its stake by 2% in Q2 2022, as compared to the previous quarter.
In August, Floor & Decor Holdings, Inc. released the financial results for the quarter ended June 30, 2022. Its net revenue increased by 27% y-o-y to $1.1 billion, while its net income shrunk by 1% y-o-y to $82 million, for the three months. It reported a normalized EPS of $0.76 for the quarter, beating the consensus by $0.03.
As of Q2 2022, 29 of the 895 hedge funds tracked by Insider Monkey held Floor & Decor Holdings, Inc. shares, valued at a combined total of $901 million. Its largest hedge fund shareholder was Warren Buffett’s Berkshire Hathaway holding 4.8 million shares valued at $301 million.
2. Global-E Online Ltd. (NASDAQ:GLBE)
Abdiel Capital’s Stake Value: $298,857,000
Percentage of Abdiel Capital’s 13F Portfolio: 20.13%
Number of Hedge Fund Holders: 17
Petah-Tikvah, Israel-based Global-E Online Ltd. is a leading technology platform to enable global, direct-to-consumer cross-border e-commerce growth. Its e-commerce solutions combine localization capabilities, business intelligence models, and streamlined international logistics, enabling online retailers to expand their brand worldwide.
Global-E Online Ltd. is ranked #2 on the list of Top 8 Stock Picks of Colin Moran’s Abdiel Capital based on its portfolio weight of 20.13%, as of Q2 2022. The hedge fund holds 14,816,911 shares of Global-E Online Ltd., 49% more than the number of shares held at the end of the previous quarter.
In August, Global-E Online Ltd. released the financial results for Q2 2022. Its total revenue increased by 52% y-o-y to $87 million, while it generated a net loss of $49 million, for three months ended June 30, 2022. It reported a normalized EPS of $0.07 for the quarter, beating the consensus by $0.06.
Following the earnings release, Morgan Stanley analyst James Faucette raised the price target on Global-E Online Ltd. shares from $51 from $34 and maintained an ‘Overweight’ rating for the shares.
As of Q2 2022, 17 of the 895 hedge funds tracked by Insider Monkey held Global-E Online Ltd. shares valued at a combined total of $509 million. Andreas Halvorsen’s Viking Global was its largest hedge fund shareholder after Abdiel Capital, with ownership of 3 million shares valued at $61 million.
1. Appian Corporation (NASDAQ:APPN)
Abdiel Capital’s Stake Value: $394,420,000
Percentage of Abdiel Capital’s 13F Portfolio: 26.57%
Number of Hedge Fund Holders: 18
Appian Corporation provides a low-code automation platform that accelerates the creation of high-impact business applications. Its platform allows organizations to discover, design, and automate enterprise-grade workflows and custom applications with little or no coding.
Colin Moran’s Abdiel Capital owns 8,328,118 shares of Appian Corporation, accounting for 26.57% of its 13F portfolio. The hedge fund increased its stake by 40% in Q2 2022, as compared to the previous quarter.
In August, Appian Corporation released its financial results for the quarter ended June 30, 2022. Its total revenues increased by 33% y-o-y to $110 million, while its net loss surged by 108% y-o-y to $49 million, for the three months. It reported a normalized EPS of -$0.46 for the quarter, missing the consensus by $0.12.
On September 12, KeyBanc analyst Thomas Blakey initiated coverage of Appian Corporation with an ‘Overweight’ rating and a $60 price target. The analyst sees “strong engagement and process mining synergies allowing Appian to sustain 30% growth in its Cloud subscriptions.”
As of Q2 2022, Appian Corporation shares were held by 18 of the 895 hedge funds tracked by Insider Monkey, with a total value of $463 million. StackLine Partners was its largest hedge fund shareholder after Abdiel Capital, with ownership of 0.5 million shares valued at $25 million.
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This article is originally published at Insider Monkey.
