In this article, we discuss the top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management.
Daniel Patrick Gibson, the founder, and chief investment officer at Sylebra Capital Management, manages a portfolio worth over $4.44 billion. In his past, he occupied the position of an associate at Calera Capital, principal at UBS AG New York, and a partner at Coatue Management LLC. The portfolio grew by 1.10% in the third quarter of 2021. He manages capital on behalf of sophisticated institutions. These include renowned sovereign wealth funds, pension funds, pre-eminent endowments and charitable foundations helping causes like education, the arts and culture, and healthcare. His investment strategies are focused on mid-sized technology, media, and telecommunications (TMT) companies globally.
Some of the notable stocks in Sylebra Capital Management’s Q3 2021 portfolio included Chegg, Inc. (NYSE:CHGG), Advanced Micro Devices, Inc. (NASDAQ:AMD), and DocuSign, Inc. (NASDAQ:DOCU), among others.
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Our Methodology
With this context in mind, here are some of the top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management. The stocks were picked from Sylebra Capital Management’s 13F portfolio for the third quarter of 2021.
10. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Sylebra Capital Management’s Stake Value: $131.9 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 2.96%
No. of Hedge Fund Holders: 19
Lattice Semiconductor Corporation (NASDAQ:LSCC) is engaged in the business of developing semiconductor technology. The company reaches its customers with the help of consumer, communications, and industrial markets.
Sylebra Capital Management held 2.04 million shares in Lattice Semiconductor Corporation (NASDAQ:LSCC) in Q3, worth $131.9 million. As of Q3 2021, 19 hedge funds in Insider Monkey’s database reported owning stakes in Lattice Semiconductor Corporation (NASDAQ:LSCC), down from 24 in the previous quarter. The company represents 2.96% of the total investment portfolio of Sylebra Capital Management at the end of the third quarter of 2021.
Like Chegg Inc. (NYSE:CHGG), DocuSign Inc. (NASDAQ:DOCU) and Advanced Micro Devices, Inc. (NASDAQ:AMD), Lattice Semiconductor Corporation (NASDAQ:LSCC) is one of the top stock picks of Sylebra Capital Management.
Artisan Partners, a high value-added investment management firm, published third quarter 2021 investor letter. Here is what the fund said:
“Lattice Semiconductor is a vendor of field programmable gate array (FPGA) chips used in personal computers, 5G infrastructure, routers and switches, and servers, to name a few. The company is executing well, particularly given the broader supply chain constraints the semiconductor industry is facing. In addition to providing FPGA chips to data centers and new 5G infrastructure—compelling opportunities given these end markets are and will likely continue benefiting from strong secular tailwinds—we believe the company is well positioned to tap into low-power/reprogrammable chips as well as industrial and automotive end markets.”
9. Aeva Technologies, Inc. (NYSE:AEVA)
Sylebra Capital Management’s Stake Value: $206.8 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 4.65%
No. of Hedge Fund Holders: 9
Aeva Technologies, Inc. (NYSE:AEVA) is engaged in the next generation 4D LiDAR sensing and perception systems. The company was founded in 2017 by former Apple engineers, Soroush Salehian and Mina Rezk, and it is being led by a multidisciplinary team of engineers and operators having experience in the sensing and perception domain.
Sylebra Capital Management owns 26.05 million shares in Aeva Technologies, Inc. (NYSE:AEVA), amounting to $206.8 million. The company represents 4.65% of the total investment portfolio of Sylebra Capital Management at the end of the third quarter of 2021.
As of Q3 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $288.9 million in Aeva Technologies, Inc. (NYSE:AEVA), down from 15 in the preceding quarter worth $413.02 million.
8. PureCycle Technologies, Inc. (NASDAQ:PCT)
Sylebra Capital Management’s Stake Value: $236.2 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 5.31%
No. of Hedge Fund Holders: 25
PureCycle Technologies, Inc. (NASDAQ:PCT) is engaged in providing recycling services. It holds a global license to commercialize the only patented solvent-based purification recycling technology. This is developed by The Procter & Gamble Company (P&G) and it helps in restoring waste polypropylene (PP) into the virgin-like resin.
The company is eighth on our list of top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management.
Sylebra Capital Management owned 17.7 million shares in PureCycle Technologies, Inc. (NASDAQ:PCT), amounting to $236.2 million, as of the end of the third quarter. The company represents 5.31% of the total investment portfolio of Sylebra Capital Management at the end of the third quarter of 2021. At the end of the third quarter of 2021, 25 hedge funds in Insider Monkey’s database held stakes amounting to $381.08 million in PureCycle Technologies, Inc. (NASDAQ:PCT). In the previous quarter, 22 hedge funds held stakes worth $637.9 million.
7. Impinj, Inc. (NASDAQ:PI)
Sylebra Capital Management’s Stake Value: $251.2 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 5.65%
No. of Hedge Fund Holders: 22
Impinj, Inc. (NASDAQ:PI) enables digital transformation by advancing the reach of the Internet from the cloud, through edge connectivity devices, all the way to physical items.
In the third quarter of 2021, the company has posted a revenue of $45.2 million. Its adjusted EBITDA loss stood at $0.4 million.
The company represents 5.65% of the total investment portfolio of Sylebra Capital Management at the end of the third quarter of 2021. At the end of the third quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $410.4 million in Impinj, Inc. (NASDAQ:PI). In the preceding quarter, 20 hedge funds held stakes worth $379.2 million.
Jefferies Financial Group analyst M. Lipacis has given a price target of $100.00 and has a “buy” rating on Impinj, Inc. (NASDAQ:PI).
6. Everbridge, Inc. (NASDAQ:EVBG)
Sylebra Capital Management’s Stake Value: $303.2 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 6.82%
No. of Hedge Fund Holders: 23
Everbridge, Inc. (NASDAQ:EVBG) is a software company engaged in offering enterprise software applications. These applications help in automating and accelerating organizations’ operational response to critical events so that people can be safe and businesses can run.
At the end of the third quarter of 2021, 23 funds out of the 867 tracked by Insider Monkey held stakes worth $1.3 billion, down from 26 in the preceding quarter worth $1.2 billion. JPMorgan analyst Sterling Auty slashed his price target on Everbridge, Inc. (NASDAQ:EVBG) to $127 from $200. He has given a “neutral” rating on the stock.
Just like Chegg Inc. (NYSE:CHGG), DocuSign Inc. (NASDAQ:DOCU) and Advanced Micro Devices, Inc. (NASDAQ:AMD), Everbridge, Inc. (NASDAQ:EVBG) is one of the top stock picks of Sylebra Capital Management.
Baron Discovery Fund published its Q1 2021 investor letter and mentioned Everbridge, Inc. (NASDAQ:EVBG). Here is what the fund has to say about the company:
“Everbridge, Inc. provides a cloud-based software solution to companies for critical event management (“CEM”) as well as general population alerts for public authorities. Shares declined during the first quarter as part of the broader market rotation from high-valuation software stocks coupled with continued pandemic-related pressure on Everbridge’s organic growth rates. We retain conviction given the company’s significant lead over its competition and the early stage of CEM adoption, with just 2% of Everbridge’s 5,000-plus population alert customers having adopted CEM thus far.”
5. 8×8, Inc. (NYSE:EGHT)
Sylebra Capital Management’s Stake Value: $318.3 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 7.16%
No. of Hedge Fund Holders: 27
8×8, Inc. (NYSE:EGHT) is engaged in providing contact-center-as-a-service and unified-communications-as-a-service software applications. Its unified platform helps in enabling omnichannel communication to help employees in communicating through voice, video, text, chat, and contact centers.
The company is fifth on our list of top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management.
At the end of the third quarter of 2021, 27 funds out of the 867 tracked by Insider Monkey had stakes in 8×8, Inc. (NYSE:EGHT), down from 29 in the previous quarter. The company represents 7.16% of the total investment portfolio of the hedge fund at the end of the third quarter of 2021.
Colliers Securities analyst Catharine Trebnick kept a “buy” rating on 8×8, Inc. (NYSE:EGHT), giving a price target of $32.
4. Opendoor Technologies Inc. (NASDAQ:OPEN)
Sylebra Capital Management’s Stake Value: $401.5 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 9.03%
No. of Hedge Fund Holders: 35
Opendoor Technologies Inc. (NASDAQ:OPEN) is the digital platform for residential real estate. The platform helps in enabling customers to buy and sell houses online. The company generates revenue with the help of home sales, along with other revenue from real estate services.
Sylebra Capital Management owns about 19.5 million shares in Opendoor Technologies Inc. (NASDAQ:OPEN), amounting to $401.5 million, and making up 9.03% of Daniel Patrick Gibson’s 13F portfolio.
Baron Opportunity Fund published its second-quarter investor letter and mentioned Opendoor Technologies Inc. (NASDAQ:OPEN). Here is what the fund said:
“Opendoor Technologies Inc. operates a digital platform for home purchases and sales on which buyers can tour homes, make offers, and secure financing, and sellers can receive next-day cash offers with flexible close dates. Shares were down in the quarter given rising mortgage rates and the potential knock-on effects to the housing environment. Despite investor concerns, the housing market remains robust. As the iBuying industry leader disrupting an enormous and highly inefficient industry, we believe Opendoor will grow regardless of the housing market environment.”
3. PagSeguro Digital Ltd. (NYSE:PAGS)
Sylebra Capital Management’s Stake Value: $490.4 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 11.04%
No. of Hedge Fund Holders: 41
Ranked third on our list of top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management is PagSeguro Digital Ltd. (NYSE:PAGS), which acts as a provider of financial technology solutions. These solutions are focused primarily on Micro-Merchants, Small Companies, and Medium-Sized Companies (SMEs) in Brazil.
At the end of the third quarter of 2021, the company represents 11.04% of the total investment portfolio of the hedge fund.
At the end of the third quarter of 2021, 41 funds out of the 867 tracked by Insider Monkey held stakes worth $2.44 billion, up from 40 in the preceding quarter worth $2.39 billion. Bradesco Corretora reduced their price target on PagSeguro Digital Ltd. (NYSE:PAGS) from $63.00 to $33.00 and has given a “neutral” rating on the stock in the research report dated 22nd November.
Artisan Partners, an investment management firm, published its first-quarter 2021 investor letter and mentioned PagSeguro Digital Ltd. (NYSE:PAGS). Here is what the fund has to say:
“We also reduced our position in PagSeguro. PagSeguro is making good progress establishing a fast-growing digital bank and expanding its Brazilian payments business despite the pandemic. However, the company’s growth initiatives will require another year of heavy investment spending in 2021. This comes as Brazil’s progress combatting COVID-19 trails many major economies’, casting a cloud over the broader economic outlook. Given these potential headwinds, we trimmed our position to fund higher conviction holdings.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Sylebra Capital Management’s Stake Value: $503.4 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 11.33%
No. of Hedge Fund Holders: 65
Advanced Micro Devices, Inc. (NASDAQ:AMD) is the next stock on our list of top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management. The company is engaged in developing high-performance computing and visualization products. It is responsible for innovation in high-performance computing, graphics, and visualization technologies.
According to the 13F filings for the third quarter of 2021, the fund managed by Daniel Patrick Gibson holds 4.89 million shares in the company.
Deutsche Bank analyst Ross Seymore kept a “hold” rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) and has raised his price target on the stock to $120 from $113. At the end of the third quarter of 2021, 65 funds out of the 867 tracked by Insider Monkey held stakes worth $5.25 billion.
1. Elastic N.V. (NYSE:ESTC)
Sylebra Capital Management’s Stake Value: $675.8 million
Percentage of Sylebra Capital Management’s 13F Portfolio: 15.21%
No. of Hedge Fund Holders: 59
Elastic N.V. (NYSE:ESTC) is a search company and it created the Elastic Stack. This is a powerful set of software products, ingesting and storing data from any source and in any format. It performs a search, analysis, and visualization in milliseconds or less. The company, with a market cap of $11.4 billion, is first on our list of top 10 stock picks of Daniel Patrick Gibson’s Sylebra Capital Management as of the end of the third quarter.
According to the 13F filings for the third quarter of 2021, Elastic N.V. (NYSE:ESTC) represents 15.21% of the total investment portfolio. At the end of the third quarter of 2021, 59 hedge funds tracked by Insider Monkey held positions in Elastic N.V. (NYSE:ESTC). These stakes were valued at $2.98 billion.
Greenhaven Road Capital, an investment management firm, released its third-quarter 2021 investor letter and mentioned Elastic N.V. (NYSE:ESTC). Here is what the fund has to say:
“Elastic Software (ESTC) – Share prices are up more than threefold since our first purchases of Elastic Software. The company continues to report best-in-class net revenue retention (amount generated from existing customers) of 130%. With recent acquisitions, they are continuing their expansion into security. This is the company with the highest product velocity and largest addressable markets in our portfolio. With a massive base of customers using freemium/opensource products, there are fertile hunting grounds for growth.”
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Disclosure: None. Top 10 Stock Picks of Daniel Patrick Gibson’s Sylebra Capital Management is originally published on Insider Monkey.
