In this article, we discuss the top 10 stock picks of Girish Kumar’s TenCore Partners.
Girish Kumar Bhakoo is the Principal, Chief Investment Officer (CIO), and Partner at TenCore Partners with experience of over two decades in the investment world. Kumar was a partner at Acacia Partners from September 2001 to June 2018, where he invested in the developed, developing, and frontier markets. During the same tenure, he also served as a Partner at Ruane, Cunniff, and Goldfarb (RCG) before finding TenCore Partners in 2018.
Kumar completed his Bachelor’s degree in Economics with High Honors from Williams College in 1995. He started as an intern, became an analyst, and finally became one of the three partners at Mason Hill Management and Equinox Partners during his time there from June 1993 till September 2001. He established and launched the Kuruto Fund during this period, which was targeted towards investing in the South Korean consumer sector and finding other strong companies following the 1997 Asian financial crisis.
TenCore Partners invests to achieve high absolute returns in the long run compared to the global equity markets. The hedge fund looks to invest in publicly listed companies across all continents. This is reflected by the holdings in the hedge fund’s portfolio that not only cater to the US markets but also strategize to capture from the Chinese and Latin American market. Some of the popular stocks included in Kumar’s portfolio as of Q3 2021 are Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG). The hedge fund has a portfolio value of over $723.5 million as of the third quarter of 2021.
Photo by Nick Chong on Unsplash
Our Methodology
In this article, we will be going through the top 10 stock picks of Girish Kumar’s TenCore Partners. These stocks have been taken from the Q3 portfolio of TenCore Partners and represent over 86% of the hedge fund’s overall portfolio.
Top 10 Stock Picks of Girish Kumar’s TenCore Partners
10. MercadoLibre, Inc. (NASDAQ:MELI)
Girish Kumar’s TenCore Partners’ Stake Value: $20,000,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 2.76%
Number of Hedge Funds: 68
Stock Price as of December 31: $1,348.40
MercadoLibre, Inc. (NASDAQ:MELI) is the biggest e-commerce platform in Latin America, with a presence in over 19 countries. The company offers advertisement, marketplace, and payment solutions. Furthermore, MercadoLibre, Inc. (NASDAQ:MELI) is the seventh most visited e-commerce website in the world and operates in a region with a population of over 550 million people and one of the fastest internet penetration rates globally.
On December 13, MercadoLibre, Inc. (NASDAQ:MELI) announced its acquisition of Redelcom, a Chilean payment service provider that had started offering point-of-sales (POS) terminals to retailers since October 2019. The acquisition will aid MercadoLibre, Inc. (NASDAQ:MELI) in consolidating its offering in the Chilean market. In November 2021, the company also revealed that it would allow the users of its digital wallet MercadoPago in Brazil to trade cryptocurrencies.
In a report issued to investors on November 5 following the Q3 2021 results, Trevor Young at Barclays increased the price target on MercadoLibre, Inc. (NASDAQ:MELI) from $2,100 to $2,200 and reiterated an Overweight rating. He stated that the company is “executing well in terms of value prop and service levels.”
LRT Capital Management shared its stance on MercadoLibre, Inc. (NASDAQ:MELI) in its Q3 2021 investor letter. Here’s what the firm said:
“Mercadolibre, Inc. (MELI) – the LatAm eCommerce, shipping, and payments company, is now trading at a very attractive valuation – its lowest P/S ratio ever. The concerns here have to do with the recession in Brazil and slowing economic growth throughout the region.”
Besides MercadoLibre, Inc. (NASDAQ:MELI), Girish Kumar also has a stake in popular companies like Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG) as of Q3 2021.
9. HubSpot, Inc. (NYSE:HUBS)
Girish Kumar’s TenCore Partners’ Stake Value: $29,802,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 4.11%
Number of Hedge Funds: 48
Stock Price as of December 31: $659.15
HubSpot, Inc. (NYSE:HUBS) develops and markets software products related to customer relationship management (CRM), inbound marketing, search engine optimization (SEO), social media marketing, and sales. The Cambridge, Massachusetts-based organization was founded by Brian Halligan and Dharmesh Shah in 2006 at the Massachusetts Institute of Technology (MIT).
HubSpot, Inc. (NYSE:HUBS) was mentioned in the Q3 2021 investor letter of ClearBridge Investments. Here’s what the investment management firm said:
“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. HubSpot saw greater utilization of its marketing software by small and medium size businesses. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”
8. Alibaba Group Holding Limited (NYSE:BABA)
Girish Kumar’s TenCore Partners’ Stake Value: $36,311,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 5.01%
Number of Hedge Funds: 115
Stock Price as of December 31: $118.79
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese e-commerce giant that caters to various channels through numerous web portals. The Zhejiang-based corporation also provides cloud computing, electronic payment, and shopping search engines services. Jack Ma, along with 17 friends, founded the company in his Hangzhou apartment in June 1999.
There have been reports that Alibaba Group Holding Limited (NYSE:BABA) is looking to offload its 30% stake in Weibo Corporation (NASDAQ:WB) to state-owned Shanghai Media Group. The move is expected because the Chinese government is looking to control the influence of tech giants in the highly regulated media industry.
On December 22, John Choi at Daiwa kept a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock with a price target of $170.
Miller Value Partners shared its stance on Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2021 investor letter. Here’s what the firm said:
“Alibaba Group Holding Ltd. ADS (BABA) dropped 34.22% during the quarter, along with most Chinese stocks as increased regulatory scrutiny pressured the market. Chinese regulators asked all companies in the industry to stop blocking links from competitors, rumors circulated that Alibaba, and Tencent would be opening up their platforms to one another. During the period, Alibaba reported mixed 1Q Fiscal Year 2022 (FY22) earnings with revenue coming in below expectations due to slower core commerce growth while adjusted earnings before income, taxes, depreciation and amortization (EBITDA) beat. Total revenue of Rmb 205.8B (34% YoY), came in below consensus of Rmb 209.4B with Alibaba Cloud revenue growing 29% YoY to reach Rmb 16.1B. Adjusted EBITDA margin came in at 23.6% versus consensus of 22.5%. The company announced an increase in its share buyback program to $15B from $10B previously while reiterating their original FY22 guidance of revenue of Rmb 930B (30% YoY). Alibaba also announced its plans to invest Rmb 100B by 2025 to support the government’s goal of “Common Prosperity”. Their investments will include tech investments in underdeveloped areas, overseas expansion, agricultural investments, high-quality employment for young adults, and facilitating digital equality between urban and rural areas among others.”
7. Microsoft Corporation (NASDAQ:MSFT)
Girish Kumar’s TenCore Partners’ Stake Value: $42,394,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 5.93%
Number of Hedge Funds: 250
Stock Price as of December 31: $336.32
Microsoft Corporation (NASDAQ:MSFT) is the first member of the Big Five tech giants in Girish Kumar’s TenCore Partners LLC’s portfolio. The Redmond, Washington-based corporation, founded by Bill Gates and Paul Allen in 1975, is involved in the development of the operating system, software, consumer electronics, cloud computing, personal computers, and other related services.
On December 21, Steve Koenig at SMBC Nikko initiated coverage on Microsoft Corporation (NASDAQ:MSFT) with a $410 price target and an Outperform rating. The analyst thinks that Microsoft Corporation (NASDAQ:MSFT) is becoming successful in transitioning its customers to the cloud platform. Furthermore, the tech giant is also in a strong position to benefit from the big secular trends in the software industry and become a beneficiary of the IT spending trends in the future. Koenig talked specifically about the continued momentum of the cloud unit and expects it to be “within spitting distance of Amazon Web Services for market leadership in the public cloud domain by 2025.”
Out of the 867 hedge funds being tracked by Insider Monkey, 250 held a stake in Microsoft Corporation (NASDAQ:MSFT) at the end of Q3 2021, up from 238 in the preceding quarter.
6. Monday.com Ltd. (NASDAQ:MNDY)
Girish Kumar’s TenCore Partners’ Stake Value: $45,668,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 6.31%
Number of Hedge Funds: 17
Stock Price as of December 31: $308.72
Monday.com Ltd. (NASDAQ:MNDY) allows corporations to create personalized work management software applications on their cloud-based platform. The Israel-based corporation went public in June 2021. Girish Kumar’s TenCore Partners LLC initiated a position in Monday.com Ltd. (NASDAQ:MNDY) in Q3 2021.
According to industry experts, the company has a total addressable market (TAM) of over $56 billion, growing at a CAGR of 12%. The value is expected to surpass the $87 billion level by 2024. The existing TAM is 200 times the current revenue of the company and provides a growth opportunity for Monday.com Ltd. (NASDAQ:MNDY).
J. Derrick Wood at Cowen maintained an Outperform rating on Monday.com Ltd. (NASDAQ:MNDY) stock and increased the price target from $410 to $450 in a note issued to investors on November 11. The analyst thinks that the recent pullback in stock price is a great opportunity to enter and initiate a long position in the stock. Furthermore, Wood finds the demand and awareness increasing for the no-code Work OS platform.
In addition to Monday.com Ltd. (NASDAQ:MNDY), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG) is also amongst the top 10 stock picks of Girish Kumar’s TenCore Partners.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Girish Kumar’s TenCore Partners’ Stake Value: $55,172,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 7.62%
Stock Price as of December 31: $3,334.34
Number of Hedge Funds: 242
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Big Five tech companies leading the e-commerce industry and is currently involved in artificial intelligence, cloud computing, and digital streaming initiatives.
Colin Sebastian at Baird has chosen Amazon.com, Inc. (NASDAQ:AMZN) as one of the top three internet stock picks for 2022. The analyst thinks that the company will continue to gain from the digital transformation across the economy, and the revenue mix will shift towards recurring revenues. The stock has also been chosen as a top internet pick for 2022 by Mark Mahaney at Evercore ISI.
In its Q3 2021 investor letter, Davis Funds shared its stance on Amazon.com, Inc. (NASDAQ:AMZN). Here’s what the firm said:
“E-commerce, online search and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
4. DoorDash, Inc. (NYSE:DASH)
Girish Kumar’s TenCore Partners’ Stake Value: $63,203,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 8.73%
Number of Hedge Funds: 42
Stock Price as of December 31: $148.90
DoorDash, Inc. (NYSE:DASH) is the biggest food delivery company in the US with over 55% market share. The San Francisco, California-based company initiated an ultra-fast 15-minutes or less delivery service in New York in December 2021. The orders are fulfilled by DashMarts, virtual convenience stores with an inventory of 2,000 essential household items. DoorDash, Inc. (NYSE:DASH) went public in December 2020 and has been a part of Girish Kumar’s TenCore Partners’ hedge fund portfolio since Q4 2020.
On December 15, Doug Anmuth at JPMorgan kept a Neutral rating with a price target of $175 on DoorDash, Inc. (NYSE:DASH). Owing to increased digitalization across the economy, Doug believes that internet companies are now better positioned as opposed to before the arrival of the COVID-19 pandemic. He further shared that an integral factor influencing stock price performance and volatility will be related to the operations of the specific organizations as we move towards normalization.
Out of the 867 hedge funds in Insider Monkey’s database, 42 funds reported owning a stake in DoorDash, Inc. (NYSE:DASH) at the end of Q3 2021, down from 45 in the previous quarter.
3. Meta Platforms, Inc. (NASDAQ:FB)
Girish Kumar’s TenCore Partners’ Stake Value: $87,055,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 12.03%
Number of Hedge Funds: 248
Stock Price as of December 31: $336.35
Meta Platforms, Inc. (NASDAQ:FB) has been a part of TenCore Partners’ portfolio since Q4 2019.
Colin Sebastian at Baird has termed Meta Platforms, Inc. (NASDAQ:FB) as one of the top internet stock picks for 2022. The analyst thinks that the investors in internet stocks are more concerned about near-term trends, growth outlook, and macroeconomic events as opposed to long–term secular growth drivers. As a result, they would be more interested in growth and margin numbers and less in secular growth trends or total addressable market. The analyst anticipates more positive development related to the core advertising trends in 2022. Meta Platforms, Inc. (NASDAQ:FB) is also considered as a top internet pick for 2022 by Mark Mahaney at Evercore ISI.
Investment management firm Canterbury Tollgate shared its stance on Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here’s what the firm said:
To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of media narrative. However, in the case of Facebook I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.”iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-atlarge, but that it is of Facebook’s doing…” (Click here to see the full text)
2. Alphabet Inc. (NASDAQ:GOOG)
Girish Kumar’s TenCore Partners’ Stake Value: $120,255,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 16.61%
Number of Hedge Funds: 156
Stock Price as of December 31: $2,893.59
Alphabet Inc. (NASDAQ:GOOG) is the fourth member of the Big Five tech giants in TenCore Partners’ portfolio. The stock has been a part of Girish Kumar’s TenCore Partners’ portfolio every quarter since Q4 2019.
Hedge fund manager Dan Niles has also recommended Alphabet Inc. (NASDAQ:GOOG) as one of the few stocks to consider for investment in 2022. Although the hedge fund manager thinks the S&P 500 Index is trading at a high valuation and an interest rate increase by the Federal Reserve will result in a decline in the broader equity markets and the treasury market in 2022, he still believes that Alphabet Inc. (NASDAQ:GOOG) stock provides an upside for the investors. Meanwhile, Rohit Kulkarni, managing director at MKM Partners, considers Alphabet Inc’s decision to spin-off YouTube and take it public as a separate entity as one of the 10 Black Swan events for 2022.
RiverPark Funds mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q3 2021 investor letter. Here’s what the firm said:
“Internet services leader Alphabet was also a top contributor for the quarter, hitting its all-time high on September 1. Fundamentals at the company remain stellar—the company reported its highest quarter ever for sales and profit in late July. The company reported secondquarter revenue of $62 billion, an increase of 62% year over year, which, when combined with strong expense controls, led to a tripling of operating income to $19 billion. The company experienced strong revenue growth across all its segments—Google Services (mostly Advertising) grew 63%, Google Cloud grew 54% and Other Bets grew 30%.
With its continued strength across its core Search and YouTube franchises and emerging strength in its still small Cloud business, we continue to view Alphabet as among the best-positioned secular growth franchises. Additionally, despite its strong performance this year, GOOG shares trade at a compelling 20x our 2022 EPS estimate (which includes earnings drags from losses in its Other Bets and Google Cloud segments, which lost a combined $2 billion last quarter), only a slight premium to the market.”
1. Salesforce.com, Inc. (NYSE:CRM)
Girish Kumar’s TenCore Partners’ Stake Value: $124,782,000
Percentage of Girish Kumar’s TenCore Partners’ 13F Portfolio: 17.24%
Number of Hedge Funds: 119
Stock Price as of December 31: $254.13
Salesforce.com, Inc. (NYSE:CRM) is a software company providing customer relationship management (CRM) services through cloud-based software that cater to various aspects of CRM. The stock has been a part of Kumar’s portfolio since Q4 2019, and since then, the hedge fund has increased its holdings by more than three times in terms of the number of shares owned as compared to its initial holding.
In a report issued on December 22, Kirk Materne at Evercore ISI revealed Salesforce.com, Inc. (NYSE:CRM) as his top stock pick for 2022 with a price target of $375 and an Outperform rating.
In its Q3 2021 investor letter, Polen Capital discussed its stance on Salesforce.com, Inc. (NYSE:CRM). Here’s what the investment management firm said:
“Salesforce came under pressure earlier in the year after agreeing to purchase Slack for about $26 billion. Since then, management has articulated well the strategic rationale and integration of Slack into its other software offerings and has demonstrated continued double-digit organic revenue growth within its legacy product offerings. At its recent investor day, the company also outlined long-term growth plans in line with our estimates but probably above what others may have been expecting, especially on margin expansion.”
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Disclose. None. Top 10 Stock Picks of Girish Kumar’s TenCore Partners is originally published on Insider Monkey.
