In this article, we will take a look at the top 10 stock picks of Eli Samaha’s Madison Avenue Partners.
Eli Samaha is the founder and managing partner of Madison Avenue Partners. Madison Avenue Partners operates on a value-oriented investment strategy and has affiliations with leading university endowments, hospital systems, and philanthropic foundations.
Prior to founding his hedge fund, Mr. Samaha was a partner and the director of research at Newtyn Management and was a senior associate at KPS Capital Partners. Mr. Samaha also worked as an analyst and associate at the GSC Group. He graduated with a bachelor’s degree in Mathematics from Dartmouth College. Through his hedge fund, Madison Avenue Partners, Mr. Samaha manages over $451.27 million in 13F securities.
Among the major contributors and top 5 holdings of Eli Samaha’s Madison Avenue Partners, we have James River Group Holdings Ltd (NASDAQ:JRVR), Super Micro Computer, Inc. (NASDAQ:SMCI), and Graham Holdings Co (NYSE:GHC). Read on to discover more stocks picked by Madison Avenue Partners according to their value-oriented investment practices.
Our Methodology
With this context in mind, here are the top 10 stock picks of Eli Samaha’s Madison Avenue Partners. These were ranked according to the investment portfolio of Madison Avenue Partners at the end of the third quarter of 2021.
Photo by Nick Chong on Unsplash
Top 10 Stock Picks of Eli Samaha’s Madison Advisors
10. Safeguard Scientifics, Inc (NYSE:SFE)
Stake Value of Madison Avenue Partners: $8,571,000
Percentage of Madison Avenue Partners 13F Portfolio: 1.89%
Number of Hedge Fund Holders: 13
Safeguard Scientifics, Inc (NYSE:SFE) is a venture capital firm headquartered in Radnor, Pennsylvania. The firm specializes in expansion financing, growth capital, management buyouts, recapitalizations, industry consolidations, corporate spinouts, growth stage, and early-stage financings. Safeguard Scientifics, Inc (NYSE:SFE) announced in September that it has successfully acquired Flashtalking, an advertising company.
By the third quarter of 2021, Safeguard Scientifics, Inc (NYSE:SFE) was a part of 13 hedge fund portfolios. These 13 hedge funds had a total stake of $34.2 million in the company. This is compared to 11 positions in the first quarter with stakes worth $24.1 million. The hedge fund sentiment for the stock is positive.
9. Tegna Inc (NYSE:TGNA)
Stake Value of Madison Avenue Partners: $11,832,000
Percentage of Madison Avenue Partners 13F Portfolio: 2.62%
Number of Hedge Fund Holders: 37
Tegna Inc. (NYSE:TGNA) operates as a media company in the United States. The company operates television stations that deliver television programming and digital content. As of the third quarter of 2021, Madison Avenue Partners owns 600,000 shares of the media corporation, which make up 2.62% of their 13F portfolio.
This September, Tegna Inc (NYSE:TGNA) released its third-quarter earnings for 2021. The company reported an EPS of $0.55, beating estimates by $0.06. Tegna Inc (NYSE:TGNA) saw a growth of 2.45% year over year in its revenue and generated $756.49 million, up from $9.61 million.
We, at Insider Monkey, keep track of 867 hedge funds. Of these 867, Tegna Inc (NYSE:TGNA) is present in 37 investment portfolios as of the third quarter of 2021. The total stakes of these funds in the company amount to $420.37 million, up from 18 hedge funds in the second quarter with stakes of $347.07 million.
Like James River Group Holdings Ltd (NASDAQ:JRVR), Super Micro Computer, Inc. (NASDAQ:SMCI), and Graham Holdings Co (NYSE:GHC), Tegna Inc (NYSE:TGNA) is a top stock pick of Eli Samaha’s Madison Avenue Partners.
8. PFSweb Inc (NASDAQ:PFSW)
Stake Value of Madison Avenue Partners: $15,157,000
Percentage of Madison Avenue Partners 13F Portfolio: 3.35%
Number of Hedge Fund Holders: 13
PFSweb, Inc (NASDAQ:PFSW) provides omnichannel commerce solutions in the United States, Belgium, Bulgaria, the United Kingdom, Canada, and India. It operates in two segments: PFS Operations and LiveArea Professional Services. PFSweb, Inc (NASDAQ:PFSW) was founded in 1994 and is headquartered in Allen, Texas.
On November 17th, PFSweb, Inc (NASDAQ:PFSW) announced that Nasdaq has approved its updated plan to regain compliance with Nasdaq Listing Rule 5250 related to the delayed filings of its Form 10-Q for the periods ended June 30 and September 30. With this approval, PFSweb, Inc (NASDAQ:PFSW) has been granted 180 days to file for both periods.
Among the hedge funds being tracked by Insider Monkey, 13 had stakes in PFSweb, Inc (NASDAQ:PFSW) that amounted to $83.78 million by the end of the third quarter of 2021. This is compared to 10 positions in the second quarter, with stakes worth $27.75 million.
7. Theravance Biopharma Inc (NASDAQ:TBPH)
Stake Value of Madison Avenue Partners: $36,478,000
Percentage of Madison Avenue Partners 13F Portfolio: 8.08%
Number of Hedge Fund Holders: 20
Theravance Biopharma, Inc (NASDAQ:TBPH) operates as a biopharmaceutical company that is involved in the discovery, development, and commercialization of organ-selective medicines in the United States, Europe, and Asia. The company was incorporated in 2013 and is based in George Town, the Cayman Islands.
On November 5th Anupam Rama, an analyst at JPMorgan, upgraded Theravance Biopharma, Inc (NASDAQ:TBPH) from Underweight to Neutral and gave it a price target of $12, up from $7 in light of the third-quarter earnings of the company.
By the end of the third quarter of 2021, 20 hedge funds held stakes in Theravance Biopharma Inc (NASDAQ:TBPH). The total value of these stakes was roughly $276.8 million. This is compared to 17 hedge funds in the second quarter, with stakes of $294.9 million.
6. Stagwell Inc. (NASDAQ:STGW)
Stake Value of Madison Avenue Partners: $38,429,000
Percentage of Madison Avenue Partners 13F Portfolio: 8.51%
Number of Hedge Fund Holders: 10
Stagwell Inc. (NASDAQ:STGW) provides marketing, advertising, activation, communications, and strategic consulting solutions in the United States, Canada, and internationally. The company was founded in 1980 and is headquartered in New York, New York. Stagwell Inc. (NASDAQ:STGW) released its third-quarter earnings for 2021. The company reported earnings per share of $0.02 and revenues of $466.63 million. The company’s revenue has grown by 104.6% year over year.
This October, Stagwell Inc. (NASDAQ:STGW)-owned company PRophet announced a collaboration with PeakMetrics which is a pioneer in AI-powered media monitoring and narrative analytics. The goal of this partnership is for PRophet users to gauge the success of their PR efforts using the machine-learning-driven PeakMetrics platform.
Out of the 867 elite hedge funds being tracked by Insider Monkey, 10 funds held stakes in Stagwell Inc. (NASDAQ:STGW) worth $111.58 million by the end of the third quarter.
Stagwell Inc. (NASDAQ:STGW), along with James River Group Holdings Ltd (NASDAQ:JRVR), Super Micro Computer, Inc. (NASDAQ:SMCI), and Graham Holdings Co (NYSE:GHC), is among the top picks of Madison Avenue Partners.
5. N-able Inc. (NYSE:NABL)
Stake Value of Madison Avenue Partners: $42,656,000
Percentage of Madison Avenue Partners 13F Portfolio: 9.45%
Number of Hedge Fund Holders: 11
N-able Inc. (NYSE:NABL) provides cloud-based software solutions for managed service providers (MSPs). The company’s solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. This September, N-able Inc. (NYSE:NABL) reported earnings per share of $0.10 and beat EPS estimates by $0.01. The company also beat revenue estimates by $1.67 million and generated $88.42 million in revenues for the third quarter of 2021.
On 5th October, BMO Capital analyst Keith Bachman initiated coverage of N-able Inc. (NYSE:NABL) with a Market Perform rating and $14 price target.
As of September 30th, Madison Avenue Partners’ stakes in N-able Inc. (NYSE:NABL) were over $42.65 million, which accounts for 9.45% of the fund’s 13F portfolio.
By the end of the third quarter of 2021, 11 hedge funds held stakes in N-able Inc. (NYSE:NABL). The total value of these stakes was $829.54 million.
4. James River Group Holdings Ltd (NASDAQ:JRVR)
Stake Value of Madison Avenue Partners: $60,745,000
Percentage of Madison Avenue Partners 13F Portfolio: 13.46%
Number of Hedge Fund Holders: 17
James River Group Holdings Ltd (NASDAQ:JRVR) provides specialty insurance and reinsurance services in the United States. It operates through Excess and Surplus Lines, Specialty Admitted Insurance, and Casualty Reinsurance segments. James River Group Holdings Ltd (NASDAQ:JRVR) was founded in 2002 and is headquartered in Pembroke, Bermuda.
On November 12, Keefe Bruyette analyst Meyer Shields upgraded James River Group Holdings Ltd (NASDAQ:JRVR) to Outperform from Market Perform with a price target of $35.
By the end of the third quarter of 2021, 17 hedge funds out of the 867 elite funds being tracked by Insider Monkey held stakes in James River Group Holdings Ltd (NASDAQ:JRVR) worth $206.48 million. This is compared to 15 positions in the prior quarter with stakes worth roughly $182.1 million. It can be observed that the sentiment for the stock is positive.
Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” second-quarter 2021 investor letter in which it mentioned James River Group Holdings Ltd (NASDAQ:JRVR). Here’s what the firm had to say:
“James River (JRVR): Owns and operates a group of specialty insurance and reinsurance companies. The vast majority of premiums are originated by the company’s US excess and surplus lines market and nearly all of the premiums are casualty insurance and reinsurance. In 2013, JRVR began insuring rideshare business including Uber which grew to a substantial percentage of the total gross written premium by 2019. JRVR ceased underwriting this business line and placed it in runoff at the end of 2019 following disappointing performance and a desire to refocus on its core E&S business. Paid and incurred loss emergence remained elevated in 2020 and after a change to its reserving methodology JRVR significantly strengthened its reserves by $170 million in 1Q which we believe is now adequate to cover future losses. With the commercial auto distraction behind them, we expect investor attention to turn to JRVR’s strong, core business trends and for shares to trade in-line with similar, high-performing peers.”
3. Super Micro Computer, Inc. (NASDAQ:SMCI)
Stake Value of Madison Avenue Partners: $60,860,000
Percentage of Madison Avenue Partners 13F Portfolio: 13.48%
Number of Hedge Fund Holders: 21
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. For the fiscal first quarter of 2022, Super Micro Computer, Inc. (NASDAQ:SMCI) reported earnings per share of $0.58, beating EPS estimates by $0.20. The company also generated revenues of $1.03 billion, up 35.48% year over year, and beat revenue estimates by $87.61 million. The company was incorporated in 1993 and is headquartered in San Jose, California.
Ananda Baruah, an analyst at Loop Capital, reiterated a Buy rating on the shares of Super Micro Computer Inc. (NASDAQ:SMCI) and raised the price target from $50 to $60 this November. Moreover, the share price for the stock has grown by 16.28% over the past six months, and 34.56% year to date.
Madison Avenue Partners is one of the 21 hedge funds that have stakes in Super Micro Computer Inc. (NASDAQ:SMCI) by the end of the third quarter of 2021. The total value of these funds’ stakes is more than $358.8 million. This is compared to 20 positions in the second quarter, with stakes of $373.6 million.
2. Adtalem Global Education Inc. (NYSE:ATGE)
Stake Value of Madison Avenue Partners: $63,146,000
Percentage of Madison Avenue Partners 13F Portfolio: 13.99%
Number of Hedge Fund Holders: 14
Adtalem Global Education Inc. (NYSE:ATGE) provides workforce solutions worldwide, through its two segments: Medical and Healthcare and Financial Services. Adtalem Global Education Inc. (NYSE:ATGE) was incorporated in 1987 and is based in Chicago, Illinois. For the fiscal first quarter of 2022, the company reported earnings per share of $0.62 and revenues of $348.33 million, up 29.86% year over year.
By the end of the third quarter of 2021, 14 hedge funds held stakes in Adtalem Global Education Inc. (NYSE:ATGE). The total value of these stakes was approximately $276.6 million. This is compared to 19 hedge funds having stakes of $295 million in the company in the prior quarter.
1. Graham Holdings Co (NYSE:GHC)
Stake Value of Madison Avenue Partners: $91,769,000
Percentage of Madison Avenue Partners 13F Portfolio: 20.33%
Number of Hedge Fund Holders: 24
Graham Holdings Co (NYSE:GHC) operates as a diversified education and media company worldwide. The company was founded in 1877 and is headquartered in Arlington, Virginia.
For the third quarter of 2021, Graham Holdings Co (NYSE:GHC) reported earnings per share of $7.90 and generated revenues of up to $809.43 million. The company’s revenue grew by 12.9% year over year. On top of this, the stock has gained 14.10% year to date.
Graham Holdings Co (NYSE:GHC) is the top stock pick of Eli Samaha’s Madison Avenue Partners. According to the September filings, the fund’s stake in the company is about $91.76 million, which accounts for 20.33% of the fund’s 13F portfolio.
By the end of the third quarter of 2021, 24 hedge funds had Graham Holdings Co (NYSE:GHC) on their 13F portfolios. The total stake of these hedge funds in the company was $457.53 million. This is compared to 23 positions in the second quarter of 2021, with stakes of $467.6 million.
Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, shared its insights on Graham Holdings Co (NYSE:GHC) in its “Longleaf Partners Small-Cap Fund” second quarter 2021 investor letter. Here’s what the firm had to say:
“Graham Holdings (13%, 0.60%), the media, education and manufacturing conglomerate, was also a top contributor after its acquisition of Leaf Group in early April was well received by the market. Leaf Group is a smaller public company that is diversified across digital media and e-commerce. While we are generally wary of mergers and acquisitions, we think this deal can be a positive move that fits uniquely well with Graham’s existing assets. Graham was able to take advantage of a limited buyer universe, given Leaf’s size and disparate assets. Graham also reported a solid quarter that saw continued growth at the TV segment, with 8% YOY revenue growth without political advertising in either period.”
You can also take a look at 10 Stocks that Tripled in 2021 and 10 Best Biotech Stocks to Buy According to Cathie Wood
Follow Insider Monkey on Twitter
Suggested Articles:
- 15 Best Financial Stocks to Buy Now
- 10 Best Stocks Under $10 to Buy Right Now
- 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks
Disclosure. None. Top 10 Stock Picks of Eli Samaha’s Madison Avenue Partners is originally published on Insider Monkey.
