Top 10 Stock Picks of Jason McDougall’s 11 Capital Partners

Published February 21, 2022 at 1:46 pm EST Updated August 19, 2026 at 12:32 pm EDT

In this article, we discuss the top 10 stock picks of Jason McDougall’s 11 Capital Partners.

11 Capital Partners is a New York-based equity long/short hedge fund, with a 13F portfolio worth $494 million and discretionary assets under management of $592.3 million as per the 13F filings from Q3 2021.

The hedge fund’s investments are concentrated in the transport, materials, information technology, industrials, healthcare, finance, consumer discretionary, and communications sectors. The top ten holdings comprise 73.04% of the fund’s total 13F investments.

In the third quarter of 2021, 11 Capital Partners bought 6 new stocks, made additional purchases in 5 securities, sold out of 6 equities, and reduced holdings in 7 companies.

The top buys of the hedge fund included Netflix, Inc. (NASDAQ:NFLX), Twitter, Inc. (NYSE:TWTR), and NIKE, Inc. (NYSE:NKE). Whereas, 11 Capital Partners reduced holdings in Ross Stores, Inc. (NASDAQ:ROST), Cannae Holdings, Inc. (NYSE:CNNE), and Starbucks Corporation (NASDAQ:SBUX).

The most notable securities from the Q3 portfolio of 11 Capital Partners included Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Sea Limited (NYSE:SE).

Top 10 Stock Picks of Jason McDougall's 11 Capital Partners

Our Methodology

We used the third quarter portfolio of 11 Capital Partners for this analysis, selecting the top 10 holdings of the hedge fund. We have ranked the securities according to 11 Capital Partners’ stake value in each holding.

Top Stock Picks of Jason McDougall’s 11 Capital Partners

10. Alibaba Group Holding Limited (NYSE:BABA)

11 Capital Partners’ Stake Value: $21,027,000

Percentage of 11 Capital Partners’ 13F Portfolio: 4.25%

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational e-commerce and technology company, specializing in cloud computing, artificial intelligence, entertainment, mobile commerce, and media. 11 Capital Partners holds 142,029 Alibaba Group Holding Limited shares as of Q3 2021, worth $21 million, representing 4.25% of the fund’s total investments.

On January 31, Mizuho analyst James Lee lowered the price target on Alibaba Group Holding Limited to $180 from $215 and kept a Buy rating on the shares. The analyst anticipates a “challenging” Q4 for the company but looks for customer management revenue growth to reach a bottom in Q1.

Alibaba Group Holding Limited shares fell roughly 4% on January 18, following a report that U.S. officials are investigating the Chinese internet giant’s cloud business over national security concerns. The focus of the probe is on how Alibaba Group Holding Limited stores U.S. clients’ data, including personal information and intellectual property, and whether the Chinese government could gain access to it.

According to the third quarter database of Insider Monkey, 115 hedge funds were bullish on Alibaba Group Holding Limited, with stakes totaling $10.20 billion, as compared to 146 funds in the preceding quarter, holding stakes in Alibaba Group Holding Limited worth $16.79 billion.

Billionaire Ken Fisher’s Fisher Asset Management is the biggest Alibaba Group Holding Limited stakeholder as of the close of the third quarter of 2021, with 14.2 million shares valued at $2.10 billion.

Here is what Oakmark Global Fund has to say about Alibaba Group Holding Limited in its Q4 2021 investor letter:

“Alibaba Group (China) was a top detractor for the quarter due to increased regulation from the Chinese government on local technology businesses, which continued to pressure the company’s share price. In addition, investors were disappointed with second-quarter earnings reported in November, marked by decelerating growth and lowered revenue guidance for the full year. Alibaba’s slowing growth was attributable to decreased retail spending in China, increased e-commerce competition and the company’s reinvestments into its merchant base. Although the company currently faces several headwinds, we believe Alibaba is an important driver of innovation in China, and several of its businesses have yet to fully scale. Finally, we believe the shares are undervalued given the quality of the company’s assets and its technological know-how.”

9. Teledyne Technologies Incorporated (NYSE:TDY)

11 Capital Partners’ Stake Value: $21,830,000

Percentage of 11 Capital Partners’ 13F Portfolio: 4.41%

Number of Hedge Fund Holders: 38

Teledyne Technologies Incorporated (NYSE:TDY) is a California-based technology conglomerate with business divisions including digital imaging, instrumentation, engineered systems, aerospace, and defense electronics. 11 Capital Partners owns 50,816 Teledyne Technologies Incorporated shares as of the third quarter of 2021, worth $21.8 million, representing 4.41% of the fund’s 13F securities. 11 Capital Partners increased its stake in Teledyne Technologies Incorporated by 4% in Q3.

Needham analyst James Ricchiuti on January 28 lowered the price target on Teledyne Technologies Incorporated to $520 from $560 but kept a Buy rating on the shares. The company’s Q4 results were “much stronger than expected” with “broad-based performance” across its business portfolio, the analyst told investors in a research note. The analyst further noted that following the market selloff, Teledyne Technologies Incorporated shares are now trading at an “attractive” 21-times his expected 2023 earnings estimate multiple.

Among the hedge funds tracked by Insider Monkey in Q3 2021, 38 funds were bullish on Teledyne Technologies Incorporated, with collective stakes amounting to $1.70 billion. Select Equity Group is the largest stakeholder of the company, with 1.88 million shares worth $808.90 million.

In addition to Amazon.com, Inc., Alphabet Inc., and Sea Limited, Teledyne Technologies Incorporated is one of the top holdings from the Q3 portfolio of 11 Capital Partners.

Here is what Artisan Small Cap Fund has to say about Teledyne Technologies Incorporated in its Q1 2021 investor letter:

“Teledyne Technologies is a supplier of ultra-sensitive components and sensors to various end markets. We initiated our campaign in 2012 as the company was divesting its defense sector-related business to transition to a more asset-light business exposed to several compelling secular trends. Over the course of our campaign, the company repositioned its business into higher-growth and higher-margin areas such as instrumentation, digital imaging and defense electronics. In Q1, Teledyne announced its intention to acquire FLIR Systems, the largest provider of thermal imaging systems for military and industrial applications. We expect the combined entity to far exceed our small-cap market cap mandate, and we ended our successful campaign.”

8. Autodesk, Inc. (NASDAQ:ADSK)

11 Capital Partners’ Stake Value: $22,740,000

Percentage of 11 Capital Partners’ 13F Portfolio: 4.60%

Number of Hedge Fund Holders: 54

Autodesk, Inc. (NASDAQ:ADSK) is an American multinational software corporation that provides software products and services to the industrial bioscience, architecture, engineering, construction, media, education, and entertainment sectors. 11 Capital Partners owns 79,741 Autodesk, Inc. shares, worth $22.74 million, accounting for 4.60% of the fund’s third quarter portfolio.

Autodesk, Inc. announced on January 19 the acquisition of Moxion, which is a New Zealand-based developer of a cloud-based platform for digital dailies used by filmmakers. Autodesk, Inc. explained that the acquisition of Moxion’s talent and technology will expand Autodesk, Inc.’s cloud platform for the Media and Entertainment upstream. The transaction will have no material impact on Autodesk, Inc.’s Q4 and FY2022 guidance presented on November 23, 2021.

On November 29, Deutsche Bank analyst Johannes Schaller lowered the price target on Autodesk, Inc. to $330 from $370 and kept a Buy rating on the shares. Autodesk, Inc.’s fiscal Q3 results were mixed with solid business momentum and improving renewal rates overshadowed by commentary regarding demand headwinds from labor constraints, supply chain disruption, and construction activity in China decelerating the pace of recovery in end demand, the analyst told investors in a research note.

According to the third quarter database of Insider Monkey, Cantillon Capital Management held the largest stake in Autodesk, Inc., with 1.19 million shares worth $341.6 million. Overall, 54 hedge funds were bullish on Autodesk, Inc., down from 64 funds in the quarter earlier.

Here is what Polen Capital has to say about Autodesk, Inc. in its Q3 2021 investor letter:

“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”

7. Liberty Broadband Corporation (NASDAQ:LBRDA)

11 Capital Partners’ Stake Value: $22,976,000

Percentage of 11 Capital Partners’ 13F Portfolio: 4.65%

Number of Hedge Fund Holders: 24

Liberty Broadband Corporation (NASDAQ:LBRDA) owns interests in multiple communications businesses, with the primary assets consisting of Charter Communications, Inc. (NASDAQ:CHTR) and its subsidiary GCI, which is the largest communications provider in Alaska.

In the third quarter of 2021, 11 Capital Partners held 133,040 Liberty Broadband Corporation shares, worth approximately $23 million, representing 4.65% of the fund’s total 13F securities.

On December 15, Pivotal Research analyst Jeffrey Wlodarczak lowered the price target on Liberty Broadband Corporation to $212 from $267 and kept a Buy rating on the shares. The analyst updated his sum-of-the-parts valuation after a $200 reduction in Charter Communications, Inc.’s target price to $800.

Eagle Capital Management is the largest stakeholder of Liberty Broadband Corporation as of Q3 2021, owning 8.85 million shares worth $1.53 billion. Overall, 24 hedge funds were long Liberty Broadband Corporation in the third quarter, down from 28 funds in the preceding quarter.

Liberty Broadband Corporation is a significant stock from the Q3 portfolio of 11 Capital Partners, just like Amazon.com, Inc., Alphabet Inc., and Sea Limited.

Here is what Weitz Investment Management, Inc. has to say about Liberty Broadband Corporation in its Q4 2021 investor letter:

“Finally, a couple of old favorites. Liberty Broadband owns 26% of Charter Communications, the second-largest U.S. cable company. Charter finished the year -20.6% from its recent high, and we believe it is a cheap stock in its own right. Liberty Broadband, whose primary asset is its Charter shares, offers Charter ownership at a discount. Another Liberty company, Liberty SiriusXM, owns over 80% of SiriusXM Satellite Radio. We believe that SiriusXM is undervalued and that the Liberty SiriusXM structure allows us to own the company at a discount. Both Charter Communications and SiriusXM are growing nicely, generating prodigious amounts of free cash flow and buying back lots of their own stock. John Malone controls both of these Liberty securities, and we believe he will find ways to close the discounts and extract maximum value for shareholders. Both Liberty securities were stock market duds in 2021, but we expect them to be contributors in 2022 regardless of what the general market does.”

6. Netflix, Inc. (NASDAQ:NFLX)

11 Capital Partners’ Stake Value: $25,422,000

Percentage of 11 Capital Partners’ 13F Portfolio: 5.14%

Number of Hedge Fund Holders: 106

11 Capital Partners owns 41,652 Netflix, Inc. shares as of the close of the third quarter of 2021, worth $25.4 million, representing 5.14% of the hedge fund’s Q3 portfolio. Netflix, Inc. is an American company that offers streaming media, pay television, video on demand, and film production.

In its Q4 earnings report published on January 20, Netflix, Inc. posted earnings per share of $1.33, beating estimates by $0.51. Revenue for the quarter jumped 16.03% year-over-year to $7.71 billion, exceeding estimates by $2.24 million.

Citi analyst Jason Bazinet upgraded Netflix, Inc. on January 31 to Buy from Neutral with a price target of $450, down from $595. Subscriber-based stocks have come under significant pressure and the equity returns now lag the S&P 500 Index since January 2020, the analyst told investors in a research note. However, the analyst’s enterprise value per subscriber analysis suggests prevailing equity values don’t assume material subscriber growth or improving subscriber economics beyond 2023. He believes Netflix, Inc. has “ample pricing power.”

According to the Q3 database of Insider Monkey, 106 hedge funds were long Netflix, Inc., down from 113 funds in the quarter earlier. Matrix Capital Management is one of the leading stakeholders of Netflix, Inc., with 2 million shares worth $1.22 billion.

Here is what Rowan Street Capital has to say about Netflix, Inc. in its Q4 2021 investor letter:

“It’s always good to remind ourselves of what we are trying to really do here in the first place?

As we constantly repeat this in almost all annual letters, our goal from day one was to compound our investor’s capital at double-digit returns over the long run.

Now, everyone loves outsized returns. We could compare a strong track record of long-term returns to a fit body. Both need a lot of patience, discipline and both require you to “pay the price.” The reality is that the majority of people lack patience, lack discipline and are just not willing to “pay the price.” We all know what paying the price in fitness really means, but let’s take a look at what that means in investing.

Let’s look at an example of Netflix stock performance since 2010 and compare that to the S&P 500 index. As you can tell from the chart below, the difference over the past 12 years has been absolutely staggering and leaves anyone salivating over these kinds of returns (6,981% for NFLX vs. 312% for the S&P 500).

(Click here to see the charts)

With that, now let’s take a look at the “Cost of Admission” in order to generate these kinds of returns. We want to show you the painful drawdowns over the same time period since 2010. Here, you had a couple of 80% drawdowns back in the 2011-2013 time period, a bunch of 40% drawdowns, and countless 20%+ drawdowns.

So, the question is how many people do you think actually were able to withstand the volatility of Netflix stock over the last 12 years, pay the price and hold it all the way through? During the investment period shown above, Netflix was up almost seventy-fold, and this volatility is the price you had to pay to get it. A lot of market participants are striving for these outsized returns, but just don’t want to pay that price. It seems too risky and they try to cling towards safety without realizing that this is the cost of admission for above average returns.

The good news is that at Rowan Street we do have the patience, the discipline and are very willing to ’pay the price’ in order to achieve the long-term results we have outlined. All that we ask of you, our Limited Partners, is to trust our process and to allow us to do what we do best — compound your hard-earned capital over time. If you can do that, our partnership will work like magic — we are confident in that! In addition, you should derive some comfort in that the majority of our net worth is invested in Rowan Street alongside you (we like to eat our own cooking). We want our partners’ financial fortunes to move in lockstep with ours.”

5. CSX Corporation (NASDAQ:CSX)

11 Capital Partners’ Stake Value: $27,056,000

Percentage of 11 Capital Partners’ 13F Portfolio: 5.47%

Number of Hedge Fund Holders: 56

CSX Corporation (NASDAQ:CSX) is a Florida-based holding company that focuses on rail transportation, technology, and real estate in North America. 11 Capital Partners owns 909,736 shares of CSX Corporation, worth $27 million, accounting for 5.47% of the fund’s third quarter 13F securities.

On January 20, CSX Corporation reported its Q4 results, posting earnings per share of $0.42, beating estimates by $0.01. The $3.43 billion revenue gained 21.31% year-over-year, exceeding estimates by $109.29 million. Heading into 2022, CSX Corporation is targeting full-year capex spending of about $2 billion.

Argus analyst John Eade kept his Buy rating and $39 price target on CSX Corporation on January 25, and noted that the recent pullback in the stock offers a buying opportunity. The analyst stated that he is positive on the company from a macro standpoint, with the rail industry having been on a secular growth path compared to other transport options. He is also positive on CSX Corporation’s history of raising the dividend and buying back stock.

In Q3 2021, 56 hedge funds were long CSX Corporation, with stakes totalling $3.91 billion, as compared to the same number of funds in the prior quarter, holding stakes in CSX Corporation worth $4.2 billion. Soroban Capital Partners is the biggest stakeholder of the company, with 39.5 million shares valued at $1.17 billion.

4. Aramark (NYSE:ARMK)

11 Capital Partners’ Stake Value: $33,961,000

Percentage of 11 Capital Partners’ 13F Portfolio: 6.87%

Number of Hedge Fund Holders: 29

Aramark (NYSE:ARMK) is an American company that offers food service and uniforms to clients operating in the education, healthcare, business, prisons, and leisure sectors. Aramark provides its services to customers in the United States, Canada, the United Kingdom, Germany, Philippines, South Korea, Chile, Ireland, and Spain, among others. 11 Capital Partners held a $33.9 million position in Aramark as of Q3 2021, which represents 6.87% of the fund’s total 13F securities.

On January 5, Aramark entered into a strategic partnership with Patient Engagement Advisors (PEA), and the access to PEA’s technology and service platform positions Aramark to assist health systems in managing post-discharge patient care and reduce costly readmissions. The strategic partnership aligns with Aramark’s growth strategy and enhances the overall client and customer experience.

Aramark declared on February 2 a $0.11 per share quarterly dividend, in line with previous. The dividend is payable on March 2, to shareholders of record on February 16.

Stifel analyst Shlomo Rosenbaum believes that Aramark is on track to generate solid new business wins, accelerate organic revenue growth, and improve its margins and free cash flow. The analyst kept a Buy rating and a $48 price target on Aramark shares on December 10.

A total of 29 hedge funds were bullish on Aramark as of Q3 2021, down from 36 funds in the quarter earlier. Thomas Steyer’s Farallon Capital is the biggest Aramark stakeholder, with 18.3 million shares worth roughly $602 million.

3. Microsoft Corporation (NASDAQ:MSFT)

11 Capital Partners’ Stake Value: $39,264,000

Percentage of 11 Capital Partners’ 13F Portfolio: 7.94%

Number of Hedge Fund Holders: 250

Microsoft Corporation (NASDAQ:MSFT), one of the Big Five American technology firms, is one of the most significant holdings of 11 Capital Partners, with the hedge fund owning 139,275 shares of the company, worth $39.2 million. The stock accounts for 7.94% of the fund’s Q3 13F portfolio.

Microsoft Corporation posted its Q4 financial results on January 25, announcing earnings per share of $2.48, beating estimates by $0.16. Microsoft Corporation’s revenue jumped 20.09% year-over-year to $51.73 billion, outperforming estimates by $938.45 million.

Tigress Financial analyst Ivan Feinseth on February 4 raised the price target on Microsoft Corporation to $411 from $366 and kept a Buy rating on the shares after the company reported “another strong quarter”. According to the analyst, a strong revenue and profit driver for Microsoft Corporation is the ongoing enterprise digitization trend that continues to drive increasing cloud migration.

In the third quarter of 2021, the long hedge fund positions in Microsoft Corporation increased to 250, up from 238 funds in the preceding quarter. Arrowstreet Capital is one of the prominent Microsoft Corporation stakeholders, with roughly 18 million shares worth over $5 billion.

Here is what Alger Spectra Fund has to say about Microsoft Corporation in its Q4 2021 investor letter:

“Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the fourth quarter of 2021. Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s CEO believes technology spending as a percent of GDP is likely to jump from about 5% today to 10% in a few years and that Microsoft will continue to take market share Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 50% inthe past quarter. This high unit volume growth is a primary driver of the company’s higher share price, but strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”

2. Alphabet Inc. (NASDAQ:GOOG)

11 Capital Partners’ Stake Value: $40,103,000

Percentage of 11 Capital Partners’ 13F Portfolio: 8.11%

Number of Hedge Fund Holders: 156

11 Capital Partners acquired a stake in Alphabet Inc. in Q3 2021, buying 15,000 shares worth $40.1 million. Alphabet Inc. is a California-based multinational technology conglomerate that became the parent company of Google and several former Google subsidiaries on October 2, 2015.

Alphabet Inc. reported its fourth quarter earnings on February 1, reporting an EPS of $30.69, beating estimates by $3.41. Revenue over the period increased 32.39% year-over-year to $75.33 billion, surpassing estimates by $3.50 billion.

Monness Crespi analyst Brian White on February 2 raised the price target on Alphabet Inc. to $3,850 from $3,660 and kept a Buy rating on the shares as he raised estimates after the company reported “strong” Q4 results that demonstrate resilient digital ad trends and continued cloud momentum. Alphabet Inc. should continue to benefit from secular digital ad trends, see strength in the cloud, and introduce metaverse innovations, according to the analyst.

In Q3 2021, 156 hedge funds were long Alphabet Inc., with stakes totaling roughly $35 billion, as compared to 155 funds in the quarter earlier, holding stakes in Alphabet Inc. worth $33.79 billion. TCI Fund Management is the largest Alphabet Inc. stakeholder as of the close of the third quarter of 2021, with 2.95 million shares valued at $7.8 billion.

Here is what Weitz Investment Management has to say about Alphabet Inc. in its Q4 2021 investor letter:

“A couple of other platform companies deserve a mention as well. Meta Platforms and Alphabet have both been under regulatory scrutiny that has affected their valuations. The threats of punitive action are real, but we have tried to be imaginative about how onerous any fines, rule changes or forced divestitures might be, and we believe that the five year outlook for each is well above average under almost any scenario. So, we include these two in the list of the under-appreciated.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

11 Capital Partners’ Stake Value: $42,991,000

Percentage of 11 Capital Partners’ 13F Portfolio: 8.70%

Number of Hedge Fund Holders: 242

Jeff Bezos’ Amazon.com, Inc. is the most significant holding of 11 Capital Partners, with the hedge fund elevating its position in the company by 20% in Q3 2021, holding 13,087 shares worth roughly $43 million. Amazon.com, Inc. stock represents 8.70% of the fund’s 13F securities for the period.

Publishing its Q4 results on February 3, Amazon.com, Inc. posted earnings per share of $27.75, topping estimates by $24.09. The 137.41 billion revenue jumped 9.44% from the prior-year quarter, but missed estimates by $173.16 million.

On February 4, after Amazon.com, Inc. delivered better-than-expected operating income results and guidance, Jefferies analyst Brent Thill said that operating income is likely to improve throughout 2022, as capital spending moderates and the U.S. Prime fees increase. The fourth quarter also represented the fourth consecutive acceleration in Amazon Web Services sales growth, noted the analyst, who kept a Buy rating and a $4,000 price target on Amazon.com, Inc. shares.

According to Insider Monkey’s third quarter database, 242 hedge funds were bullish on Amazon.com, Inc., with stakes amounting to $42.5 billion, as compared to 271 funds in the quarter earlier, holding stakes in Amazon.com, Inc. worth $60.4 billion. Tiger Global Management is one of the leading Amazon.com, Inc. stakeholders, with 567,870 shares worth $1.86 billion.

Here is what Weitz Investment Management, Inc. has to say about Amazon.com, Inc. in its Q4 2021 investor letter:

“Several “platform” companies thrived during COVID and have been very strong stocks. In 2021, their businesses continued to thrive, though their stock prices cooled off. Amazon continues to steamroll the competition and grow rapidly, but its stock ended the year about where it began.”

You can also take a look at Michael Burry Stock Portfolio Performance in 2021: 8 Best Picks and Top 10 Stock Picks of Matthew Halbower’s Pentwater Capital Management.

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