Top 5 Stocks To Buy According To Billionaire James Dinan

3. GDS Holdings Limited (NASDAQ:GDS)

York Capital Management’s Stake Value: $99,696,000

Percentage of York Capital Management’s 13F Portfolio: 10.52%

Number of Hedge Fund Holders: 24

GDS Holdings Limited (NASDAQ:GDS) is a Shanghai-based company that operates data centers and provides colocation, managed hosting, managed cloud services, and consulting services to the cloud, internet, and banking industries. 

York Capital Management boosted its position in GDS Holdings Limited (NASDAQ:GDS) by 244% in the third quarter of 2021, holding 1.76 million shares worth $99.6 million. The stock represents 10.52% of the total Q3 13F portfolio at York Capital Management. 

On January 31, RBC Capital analyst Jonathan Atkin lowered the price target on GDS Holdings Limited (NASDAQ:GDS) to $65 from $80, turning more cautious on the name due to regulatory uncertainties in both China and the United States. The analyst stated that these uncertainties could impact the stock’s performance and lend themselves to heightening price volatility. He still kept an Outperform rating on GDS Holdings Limited (NASDAQ:GDS), citing its attractive multiples relative to its peers, along with its “robust and varied demand”.

In the third quarter of 2021, 24 hedge funds in the database of Insider Monkey were long GDS Holdings Limited (NASDAQ:GDS), down from 38 funds in the preceding quarter. 12 West Capital Management held the largest stake in the company as of Q3, with 8.1 million shares worth $463.5 million. 

Here is what Baron Asset Fund has to say about GDS Holdings Limited (NASDAQ:GDS) in its Q3 2021 investor letter:

“GDS Holdings Limited is a leading data center operator focused on Tier 1 Chinese cities. Its shares fell in concert with a widespread sell-off in Chinese technology-related companies. This occurred in response to tightening regulations against businesses that may not be perceived as aligned with the Chinese government’s goals. Given the uncertainty about future governmental actions, we exited our position.”