In this article, we discuss the top 5 stocks to buy according to billionaire James Dinan. If you want our detailed analysis of Dinan’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stocks To Buy According To Billionaire James Dinan.
5. Sea Limited (NYSE:SE)
York Capital Management’s Stake Value: $32,103,000
Percentage of York Capital Management’s 13F Portfolio: 3.38%
Number of Hedge Fund Holders: 117
Sea Limited (NYSE:SE), a provider of digital entertainment, e-commerce, and digital financial services, is one of the top stocks to buy according to billionaire James Dinan, who elevated his position in the company by 26% and holds a $32.1 million stake in Sea Limited (NYSE:SE) as of Q3 2021.
On January 4, Sea Limited (NYSE:SE) was among top losers in a broadly lower tech market, falling 11.4% after Tencent Holdings (OTC:TCEHY) moved to sell $3 billion worth of the stock. Tencent Holdings (OTC:TCEHY) had looked to unload 14.5 million shares in a price range of $208-$212 each, and ended up selling to Morgan Stanley (NYSE:MS) at $208 per share. Although Sea Limited (NYSE:SE) took a hit, investors are processing that the news may not be what the headlines suggest, and Tencent may just be looking to free up some cash to focus on its own new business areas, or this sell off may be in response to China’s antitrust regulations and tech crackdown.
Citi analyst Alicia Yap on January 31 views the 43% year-to-date selloff in shares of Sea Limited (NYSE:SE) as overdone and believes investors wanted to wait for the Q4 print and 2022 guidance “before feeling comfortable to step in”. The analyst expects that Sea Limited (NYSE:SE) management will work on user engagement and step up new game release effort, and consequently reiterated a Buy rating on the shares with a $386 price target.
Sea Limited (NYSE:SE) caught the interest of smart investors in Q3 2021. According to Insider Monkey’s Q3 data, 117 funds were bullish on Sea Limited (NYSE:SE), up from 104 funds in the preceding quarter. Chase Coleman’s Tiger Global Management held the largest stake in Sea Limited (NYSE:SE) in the third quarter of 2021, with 10.4 million shares worth $3.3 billion.
Here is what ClearBridge Large Cap Growth Strategy has to say about Sea Limited (NYSE:SE) in its Q3 2021 investor letter:
“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”
