In this article, we will take a look at the top 5 stock picks of Leon Shaulov’s Maplelane Capital. If you want to read our comprehensive analysis of the history, investment philosophy, and hedge fund preference of Leon Shaulov’s Maplelane Capital, you can head over to Top 10 Stock Picks of Leon Shaulov’s Maplelane Capital.
5. Carvana Co. (NYSE:CVNA)
Maplelane Capital’s Stake Value: $6.687 million
Percentage of Maplelane Capital’s 13F Portfolio: 0.22%
Number of Hedge Fund Holders as of Q3 2021: 58
In October 2021, the Arizona-based online used car retailer announced a partnership with Hertz in which the latter would use Carvana Co. (NYSE:CVNA) as its vehicle disposition channel. At the strategic move, Sharon Zackfia, an analyst at William Blair, declared that the partnership would boost Carvana Co. (NYSE:CVNA)’s inventory breadth and sales.
Announced on November 4, the company’s revenue for the third quarter of 2021 was $3.48 billion, beating consensus by $210 million. However, its EPS for Q3 2021 was -$0.38 which missed estimates by $0.10. Due to the miss, on the same day, Chris Pierce, an analyst at Needham, lowered his price target on Carvana Co. (NYSE:CVNA) to $378 from $421 yet kept a “Buy” rating on the stock.
Carvana Co. (NYSE:CVNA) is one of the newest stocks in Leon Shaulov’s portfolio. At the end of the third quarter of 2021, Maplelane Capital held over 22,000 shares of Carvana Co. (NYSE:CVNA) worth more than $6 million. Overall, at the end of Q3, 58 funds out of the 867 funds tracked by Insider Monkey held stakes in Carvana Co. (NYSE:CVNA) worth over $8 billion, down from 63 by the end of Q2.
4. The Wendy’s Company (NASDAQ:WEN)
Maplelane Capital’s Stake Value: $10.840 million
Percentage of Maplelane Capital’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders as of Q3 2021: 33
The Wendy’s Company (NASDAQ:WEN) is a holding company for the famous fast-food chain named Wendy’s. Leon Shaulov’s fund held 500,000 shares in The Wendy’s Company (NASDAQ:WEN) worth more than $140 million by the end of the third quarter of 2021. Moreover, Maplelane Capital increased its stake in the company by 93% during the third quarter of 2021.
In Q3 2021, The Wendy’s Company (NASDAQ:WEN) presented a positive hedge fund sentiment, as 33 hedge funds out of the 867 in the Insider Monkey database reported having stakes in the company, up from 30 in the previous quarter. The total value of these stakes is over $949 million.
3. Align Technology, Inc. (NASDAQ:ALGN)
Maplelane Capital’s Stake Value: $10.980 million
Percentage of Maplelane Capital’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders as of Q3 2021: 49
Maplelane Capital held 16,500 shares of Align Technology, Inc. (NASDAQ:ALGN) by the end of Q3 2021. The total value of this stake is over $10 million. The California-based manufacturer of orthodontics equipment is famous for producing its 3D digital scanners and Invisalign clear aligners.
Align Technology, Inc. (NASDAQ:ALGN)’s revenue grew by 39% year over year to over $1 billion during Q3 2021. It beat consensus by a $42 million margin while the Q3 EPS of $2.28 beat estimates by $0.02. This revenue jump was primarily due to the 32% increase in sales of its Invisalign product.
Among the 867 elite funds tracked by Insider Monkey, 49 hedge funds reported having stakes in Align Technology, Inc. (NASDAQ:ALGN) at the end of the third quarter worth over $2.2 billion.
2. Microchip Technology Incorporated (NASDAQ:MCHP)
Maplelane Capital’s Stake Value: $17.191 million
Percentage of Maplelane Capital’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders as of Q3 2021: 41
Microchip Technology Incorporated (NASDAQ:MCHP), based in Arizona, manufactures microcontroller, analog, mixed-signal, and Flash-IP integrated circuits.
In November, the company announced the repurchase of $4 billion of its common stock using proceeds from its operations after capital expenditures and dividend payments. Microchip Technology Incorporated (NASDAQ:MCHP) has predicted its Q3 revenue to be between $1.71 billion and $1.78 billion but has not yet announced its earnings.
At the end of the third quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth over $1.1 billion in Microchip Technology Incorporated (NASDAQ:MCHP), compared to 50 in the previous quarter worth slightly less than the combined value in Q3.
Kerr Neilson’s Platinum Asset Management is the leading stakeholder of the manufacturing company.
1. Nuance Communications Inc. (NASDAQ:NUAN)
Maplelane Capital’s Stake Value: $51.187 million
Percentage of Maplelane Capital’s 13F Portfolio: 1.73%
Number of Hedge Fund Holders as of Q3 2021: 61
Nuance Communications Inc. (NASDAQ:NUAN) is a software technology company that is famous for its clinical speech recognition and artificial intelligence software used in the United States healthcare industry. By the end of the third quarter of 2021, Leon Shaulov’s Maplelane Capital held 930,000 shares of Nuance Communications Inc. (NASDAQ:NUAN) worth over $51 million and constituting 1.7% of the fund’s 13F portfolio.
Investment management firm Rhizome Partners published its third-quarter 2021 investor letter in which it mentioned Nuance Communications Inc. (NASDAQ: NUAN). Here is what the letter said about Nuance Communications Inc. (NASDAQ: NUAN) in its Q3 2021 investor letter:
“We also exited our small position in Nuance upon Microsoft’s acquisition. Nuance is a leader in voice recognition software, with dominant market share, and its speech-to-text product is the gold standard in radiology. In addition, by eliminating the need for note taking and allowing doctors to focus on patient care, Nuance could transform the way doctors treat patients. We built a 1% position in Nuance after attending its comprehensive investor day. Our view is that if Nuance can successfully grow its voice-recognition software in doctor’s offices, it could be worth multiples of our cost basis. Microsoft’s acquisition eliminated the multi-bagger upside but also partially validates the belief that Nuance is a high-quality technology company. We exited Nuance with a 62% gain in less than a year. This example is representative of the slight adjustments we made to our portfolio construction. We will allocate to small bets on technology and high-growth companies that could increase our exposure to “right tail” upside. Rest assured that our focus is still roughly 50% real estate, 30% high-quality companies trading at cheap multiples of free cash flow, and the rest in investments with the potential for growth and higher upside.”
You can also take a peek at the Why These 10 Stocks Fell on Monday and 10 Best Tech ETFs to Buy According to Reddit.
