In this article, we discuss the top 5 stock picks of Peter S. Park’s Park West Asset Management. If you want to read our detailed analysis of Park’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Peter S. Park’s Park West Asset Management.
5. Option Care Health, Inc. (NASDAQ:OPCH)
Park West Asset Management Stake Value: $146,615,000
Percentage of Park West Asset Management’s 13F Portfolio: 3.48%
Number of Hedge Fund Holders: 30
Option Care Health, Inc. (NASDAQ:OPCH) provides infusion services at home and other locations. In addition, the business is involved in infusion treatment clinical management, nursing assistance, and care coordination. Park West Asset Management holds more than 6.04 million shares in Option Care Health, Inc. (NASDAQ:OPCH) worth $146.62 million, representing 3.48% of its Q3 portfolio. The hedge fund has increased its stake in the firm by 1% in the third quarter of 2021.
Option Care Health, Inc. (NASDAQ:OPCH) collected $891.93 million in revenue during the third quarter, beating analyst estimates by $5.46 million. After the solid Q3 results, Deutsche Bank analyst Pito Chickering boosted his price objective on Option Care Health, Inc. (NASDAQ:OPCH) to $32 from $23.50 in November and reiterated a “Buy” rating on the stock.
Option Care Health, Inc. (NASDAQ:OPCH) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 30 at the end of the third quarter, compared to 31 positions in the previous quarter.
4. ThredUp Inc. (NASDAQ:TDUP)
Park West Asset Management Stake Value: $199,895,000
Percentage of Park West Asset Management’s 13F Portfolio: 4.74%
Number of Hedge Fund Holders: 12
ThredUp Inc. (NASDAQ:TDUP) is a second-hand marketplace for women’s and children’s clothing, shoes, and accessories. In the third quarter, active buyers of ThredUp Inc. (NASDAQ:TDUP) totaled 1.4 million, with orders totaling 1.3 million, up 14% and 28% over the previous quarter, respectively.
In November, Guggenheim analyst Seth Sigman commenced coverage of ThredUp Inc. (NASDAQ:TDUP) with a “Buy” rating and a $25 price target. Park West Asset Management holds 9.22 million shares in ThredUp Inc. (NASDAQ:TDUP), worth over $199.90 million, representing 4.74% of its third quarter portfolio.
As of the end of the third quarter, 12 hedge funds in Insider Monkey’s database held stakes in ThredUp Inc. (NASDAQ:TDUP), compared to 13 funds in the second quarter.
3. Vonage Holdings Corp. (NASDAQ:VG)
Park West Asset Management Stake Value: $202,929,000
Percentage of Park West Asset Management’s 13F Portfolio: 4.81%
Number of Hedge Fund Holders: 29
Vonage Holdings Corp. (NASDAQ:VG) provides communication services to customers via cloud-connected devices. Park West Asset Management is Vonage Holdings Corp. (NASDAQ:VG)’s largest shareholder. It has a $202.93 million stake in the firm. The hedge fund increased its position in Vonage Holdings Corp. (NASDAQ:VG) by 32% in the third quarter of 2021.
Ericsson had agreed to buy all of Vonage Holdings Corp.’s (NASDAQ:VG) outstanding shares on November 22. As a result, Citi analyst Michael Rollins downgraded Vonage Holdings Corp. (NASDAQ:VG) to “Neutral” from “Buy” with a price target of $21, as he does not expect any rival bids for Vonage Holdings Corp. (NASDAQ:VG) at this time.
At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $843.02 million in Vonage Holdings Corp. (NASDAQ:VG), as compared to a similar number of funds in the preceding quarter, with stakes equaling $708.09million.
Adestella Investment Management, in its fourth-quarter 2020 investor letter, mentioned Vonage Holdings Corp. (NASDAQ:VG). Here is what the fund said:
“Vonage (VG) – the VG thesis has largely played out as expected. The market has gradually shifted its focus from the declining consumer operations to the growing business ones, highlighted by the API unit. As its legacy home phone VOIP solutions continue to become a smaller and smaller portion of the overall pie, we think this trend will continue. If the API unit can continue to grow at 25-30%, that segment alone covers most of the enterprise value at just a ~6x sales multiple before giving any credit to the sizable UCaaS operations. The API unit’s closest comparable, Twilio (TWLO), currently trades at 31x sales, so it’s not unreasonable to think there’s upside to our estimate here. Shares have returned around 80% since our writeup (and slightly higher from our cost as we added in the weeks that followed), but we’ve maintained most of our position as the key growth drivers remain intact.”
2. Caesars Entertainment, Inc. (NASDAQ:CZR)
Park West Asset Management Stake Value: $219,945,000
Percentage of Park West Asset Management’s 13F Portfolio: 5.22%
Number of Hedge Fund Holders: 64
Caesars Entertainment, Inc. (NASDAQ:CZR), located in Reno, Nevada, is an American hotel and casino entertainment corporation. Park West Asset Management began building its stake in Caesars Entertainment, Inc. (NASDAQ:CZR) back in the third quarter of 2020. According to the 13F filings for the third quarter of 2021, the hedge fund holds 1.96 million shares of the company, worth about $219.95 million.
In December, Wells Fargo analyst Daniel Politzer trimmed his price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $127 from $145 and kept an “Overweight” rating on the shares. The recent decline in USSB/iGaming-exposed equities, according to Politzer, has generated some intriguing possibilities and he recommends Caesars Entertainment, Inc. (NASDAQ:CZR) to anybody who is interested in investing in digital gambling.
As of the end of the third quarter, 64 hedge funds in Insider Monkey’s database of 867 funds held stakes in Caesars Entertainment, Inc. (NASDAQ:CZR), compared to 73 funds in the previous quarter.
1. Enovix Corporation (NASDAQ:ENVX)
Park West Asset Management Stake Value: $228,798,000
Percentage of Park West Asset Management’s 13F Portfolio: 5.43%
Number of Hedge Fund Holders: 23
Enovix Corporation (NASDAQ:ENVX) develops and manufactures innovative silicon-anode lithium-ion batteries. The company’s patented 3D cell layout boosts energy density while also ensuring long cycle life. In November, Enovix Corporation (NASDAQ:ENVX) published its financial results for the third quarter, announcing a loss per share of $0.08, beating estimates by $0.02.
Cowen analyst Gabe Daoud initiated coverage of Enovix Corporation (NASDAQ:ENVX) on January 4 with an “Outperform” rating and a $32 price target. Park West Asset Management added Enovix Corporation (NASDAQ:ENVX) to its portfolio in the third quarter of 2021 by purchasing 12.73 million shares.
Overall, 23 hedge funds monitored by Insider Monkey were bullish on Enovix Corporation (NASDAQ:ENVX) in the third quarter. The collective stakes held by these funds are valued at $661.84 million.
You can also take a look at Top 10 Stock Picks of Billionaire Nicholas Pritzker and Top 10 Stock Picks of Barry Rosenstein’s JANA Partners
