Top 9 Stock Picks of Eduardo Costa’s Calixto Global Investors

Published September 29, 2022 at 11:14 am EDT Updated August 19, 2026 at 12:37 pm EDT

In this article, we discuss the top 9 stock picks of Eduardo Costa’s Calixto Global Investors.

Eduardo Costa, a former director of research at JAT Capital, founded the Florida-based hedge fund Calixto Global Investors. In 2014, the hedge fund was established without any initial funding. Instead of going for a seed transaction, Costa explained, “We bootstrapped and built from the ground up, raising assets from friends and family and a few important investors.” Calixto Global Investors, which he launched with a $25 million investment, now has assets worth over $300 million.

The hedge fund invests in small-caps but not micro-caps. Thus the strategy is still liquid. Eduardo Costa elaborated on his invest strategy:

“I always want to stay liquid because you never know when circumstances might invalidate a thesis, when you might just be wrong, or when a technical situation like January 2021 might crop up.”

He joined Shumway Capital Partners after receiving an MBA from Columbia Business School. His hedge fund focuses on unconventional investment strategies that provide investors a distinctive exposure, decrease the likelihood of trading simultaneously as its rivals, and often have less sell-side attention. Through June 2021, the fund gained 3.9% and returned 3.2% to investors. The hedge fund also had a very impressive 2020, with net earnings of 47% for the year.

Top 9 Stock Picks of Eduardo Costa's Calixto Global Investors

Research, Investment, Finance

Calixto Global Investors’ Q2 2022 portfolio had a value of $99.96 million. The hedge fund’s long/short stock strategy is motivated by fundamentals and primarily targets the consumer discretionary, communications, transportation, and technology industries. The most notable stocks held by Calixto Global Investors in Q2 2022 include Airbnb, Inc. (NASDAQ:ABNB), Alibaba Group Holding Limited (NYSE:BABA), and ZTO Express (Cayman) Inc. (NYSE:ZTO).

Our Methodology

Let’s begin our list of top 9 stock picks of Eduardo Costa’s Calixto Global Investors. We chose these stocks from the Q2 portfolio of Costa’s hedge fund.

Top Stock Picks of Eduardo Costa’s Calixto Global Investors

9. Affirm Holdings, Inc. (NASDAQ:AFRM)

Calixto Global Investors’ Stake Value: $2,447,000

Percentage of Calixto Global Investors’ 13F Portfolio: 2.44%

Number of Hedge Fund Holders: 27

Affirm Holdings, Inc. (NASDAQ:AFRM) is a “buy now, pay later” company that offers clients installment loans at the time of sale. Affirm Holdings, Inc. announced on September 23 that it had expanded its partnership with Amazon.com, Inc. (NASDAQ:AMZN) to provide Canadian customers with a buy now, pay later (BNPL) option.

Among the hedge funds tracked by Insider Monkey, 27 were bullish on Affirm Holdings, Inc. at the end of June 2022, compared to 29 funds in the prior quarter. Colin Moran’s Abdiel Capital Advisors is the most prominent position holder in Affirm Holdings, Inc., with 2.13 million shares worth $38.54 million.

On September 22, Mizuho analyst Dan Dolev stated that the 30-day delinquency trends for Affirm Holdings, Inc. were encouraging. Therefore, he maintained a ‘Buy’ recommendation on the stock with a $42 price objective. Affirm Holdings, Inc. is one of the latest acquisitions of Calixto Global Investors in Q2 2022. The hedge fund held shares worth over $2.45 million in the company, representing 2.44% of its 13F portfolio.

Like Airbnb, Inc., Alibaba Group Holding Limited, and ZTO Express (Cayman) Inc., Affirm Holdings, Inc. has been one of the top stock picks of Eduardo Costa’s Calixto Global Investors.

In its Q2 2022 investor letter, Bireme Capital mentioned Affirm Holdings, Inc.. Here is what the fund said:

“We recently covered our short position in Affirm Holdings, Inc. after a rapid decline brought the share price to ~$30 – down from our entry point above $100 – in only 7 months. We discussed Affirm in our Q4 letter, saying the following:

Affirm is a “Buy Now, Pay Later” (BNPL) company founded by former PayPal CTO and cofounder Max Levchin. They provide installment loans to consumers, partnering with retail companies looking to drive higher sales. They have two primary products: a zero-fee installment loan for consumers with the best credit scores, and a more traditional product with 20%+ interest rates for subprime borrowers. Their stated plan is to disrupt the credit industry with more transparent, lower-fee loans. At a roughly $28b market cap at the start of 2022, AFRM stock was priced at more than 20x trailing sales, a steep price for a money-losing lender. While their early lead in online BNPL transactions and partnerships with fast-growing retailers like Peloton has fueled significant historical growth, a wave of competition has arrived… While the stock has already fallen sharply from where we initiated our short position, we think it could fall another ~40% to trade at 8x FY2022 sales…(Click to read the full text).”

8. Airbnb, Inc. (NASDAQ:ABNB)

Calixto Global Investors’ Stake Value: $2,628,000

Percentage of Calixto Global Investors’ 13F Portfolio: 2.62%

Number of Hedge Fund Holders: 57

Airbnb, Inc. and its subsidiaries run an interface that enables hosts to offer stays and experiences to visitors worldwide. Eduardo Costa initiated a new stake in Airbnb, Inc. in the second quarter of 2022 by purchasing 29,500 shares worth $2.63 million.

Ivan Feinseth, an analyst at Tigress Financial, decreased his price objective on Airbnb, Inc. from $214 to $160 on September 23 while maintaining a ‘Buy’ recommendation on the stock. He predicted a short-term increase in valuation as travel demand declined from its high. Still, he insisted that the company’s substantial brand equity and position as the market leader in alternative accommodation remained unaffected.

According to Insider Monkey’s data, Airbnb, Inc. was part of 57 hedge fund portfolios at the end of Q2 2022, compared to 66 funds in the last quarter. In addition, Jim Simons’ Renaissance Technologies is one of the leading stakeholders of the company, with 5.60 million shares worth close to $499.26 million.

Here is what ClearBridge Investments had to say about Airbnb, Inc. in its Q2 2022 investor letter:

“Airbnb is the leading online platform for alternative accommodations globally. We believe the company is well-positioned to capitalize on the large and growing market for travel and experiences, with the potential for growth in e-travel to be higher post-pandemic due to pent-up demand and increased work from anywhere flexibility. Airbnb is highly profitable today, though we see room for further margin expansion ahead. Furthermore, secular underpinnings to growth, a more variable cost structure and strong balance sheet should help the company drive better through-cycle performance as compared to its consumer discretionary peers.”

7. Kanzhun Limited (NASDAQ:BZ)

Calixto Global Investors’ Stake Value: $5,256,000

Percentage of Calixto Global Investors’ 13F Portfolio: 5.25%

Number of Hedge Fund Holders: 25

Kanzhun Limited (NASDAQ:BZ) is a Chinese holding firm that primarily offers internet recruiting services. The company links corporate users and job searchers through its interactive BOSS Zhipin mobile application, which works in conjunction with its other mobile applications and small programs to form a network.

On September 13, Barclays analyst Jiong Shao initiated coverage of Kanzhun Limited, assigning an ‘Equal Weight’ rating to the stock and a $21 price target due to the company’s proven leadership in job recruiting applications.

According to Insider Monkey’s data, 25 hedge funds were long Kanzhun Limited at the end of the second quarter of 2022, compared to 20 funds in the preceding quarter. Chase Coleman Tiger Global Management is one of the most prominent stakeholders in Kanzhun Limited, with 11.66 million shares worth over $306.31 million.

Eduardo Costa’s Calixto Global Investors has owned a stake in Kanzhun Limited since Q1 2022. However, his Kanzhun Limited position was reduced by 57% in the second quarter of 2022. The hedge fund held 200,000 shares of Kanzhun Limited, worth $5.26 million.

6. Avis Budget Group, Inc. (NASDAQ:CAR)

Calixto Global Investors’ Stake Value: $9,737,000

Percentage of Calixto Global Investors’ 13F Portfolio: 9.74%

Number of Hedge Fund Holders: 38

Avis Budget Group, Inc. (NASDAQ:CAR) offers mobility solutions and car rentals. Avis Budget Group’s forward P/E ratio is 2.96x. This is less than the industry average forward P/E ratio of 14.13x. On August 4, Morgan Stanley analyst Adam Jonas maintained an ‘Underweight’ rating on the shares of Avis Budget Group, Inc. and boosted his price objective from $140 to $150.

In addition to Airbnb, Inc., Alibaba Group Holding Limited, and ZTO Express (Cayman) Inc., Avis Budget Group, Inc. is also a part of Eduardo Costa’s Q2 portfolio. He added Avis Budget Group, Inc. to his portfolio in Q2 2022, where his hedge fund purchased 66,205 shares.

In the second quarter of 2022, 38 hedge funds tracked by the database of Insider Monkey were long Avis Budget Group, Inc., down from 28 in the preceding quarter. Karthik Sarma’s SRS Investment Management is the leading stakeholder of Avis Budget Group, Inc., with 18.43 million shares worth $2.71 billion.

In its Q4 2021 investor letter, Broyhill Asset Management mentioned Avis Budget Group, Inc.. Here is what the fund said:

“Avis surged 166% during the final two quarters of the year. The company hit a new record for quarterly EBITDA – third quarter EBITDA was higher than any full year in Avis history – while buying back nearly $1B of stock and announcing another $1B increase in their repurchase authorization. Shares hit an intra-day peak of $545 after reporting earnings, ultimately closing at $357, more than doubling the prior close. Frenzied retail trading, prompted by management commentary around electric vehicles adoption, prompted a dozen trading halts throughout the day. The mania grew so intense that TD Ameritrade stopped allowing short sales in Avis, as short interest represented ~ 30% of the float.”

5. Alibaba Group Holding Limited (NYSE:BABA)

Calixto Global Investors’ Stake Value: $9,924,000
Percentage of Calixto Global Investors’ 13F Portfolio: 9.92%
Number of Hedge Fund Holders: 106

Alibaba Group Holding Limited operates online marketplaces for retail and wholesale trading. A financial technology unit of Alibaba Group Holding Limited, Ant Group, announced intentions to use its cross-border payment service Alipay+ to let four Asian e-wallets enter South Korea on September 26 as travel restrictions loosen throughout Asia. Calixto Global Investors added Alibaba Group Holding Limited to its portfolio in the second quarter by buying 87,300 shares.

Leo Chiang, an analyst at Deutsche Bank, maintained a “Buy” recommendation on Alibaba Group Holding Limited on August 8 after the company’s June quarter net income and adjusted net margins topped forecasts. He also increased his price target from $155 to $160.

According to Insider Monkey’s data, 106 hedge funds were bullish on Alibaba Group Holding Limited at the end of Q2 2022, compared to 100 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of Alibaba Group Holding Limited, with 14.48 million shares worth $1.65 billion.

In its Q2 2022 investor letter, Artisan Partners mentioned Alibaba Group. Here is what the fund had to say:

“Alibaba rose 4% during the quarter. We would love to say the share price performance was due to strong operational performance. Unfortunately, that was not the case. The most recent earnings results showed its core e-business still had not returned to growth, primarily due to the difficult retail environment caused by the government’s zero-COVID policy. Alibaba also appears to be losing market share due to its product mix tilted toward apparel and cosmetics, categories currently stalled in this environment. The share price performance this quarter was largely a function of exogenous items—specifically, government actions in the form of stimulus to support the economy and less regulations.

Despite the poor recent results, Alibaba remains a powerful economic engine. It is a global leader in e-commerce and cloud computing, both of which should grow nicely over time. Management has started taking actions to improve profitability, which has been burdened by significant investment in loss-making business ventures. The financial results should improve significantly when China’s economy starts to recover from COVID-19 outbreaks. The shares are incredibly cheap and have some of the highest upside potential in the portfolio. Even embedding significant losses from new ventures, we estimate they are trading at 11X-12X unlevered earnings. In our view, the shares could double, and they still would not be expensive.”

4. Smartsheet Inc. (NYSE:SMAR)

Calixto Global Investors’ Stake Value: $11,404,000
Percentage of Calixto Global Investors’ 13F Portfolio: 11.4%
Number of Hedge Fund Holders: 48

Smartsheet Inc. (NYSE:SMAR) is a cloud-based corporate platform enabling teams and organizations to plan, collect, manage, automate, and report data. After visiting Smartsheet’s Engage 2022 annual user conference, RBC Capital analyst Rishi Jaluria reiterated a ‘Sector Perform’ rating and a $32 price objective on Smartsheet Inc. on September 26. He was more optimistic about Smartsheet’s go-to-market strategy and competitive positioning after consulting with 12 clients and investors.

Smartsheet Inc. stock represents 11.4% of Calixto Global Investors’ second-quarter portfolio, with the hedge fund holding 362,843 shares worth $11.40 million. Smartsheet Inc. has featured in Calixto Global Investors’ portfolio since the fourth quarter of 2019.

By the end of the second quarter, Smartsheet Inc. was part of 48 hedge fund portfolios. The consolidated stakes these funds had in the company were worth $838.14 million, down from $1.35 billion the prior quarter. North Peak Capital is the most significant stakeholder of Smartsheet Inc., with a $123.47 million position in the company.

Alger, an investment management firm, mentioned Smartsheet Inc. in its Q4 2021 investor letter. Here is what the fund said:

“Smartsheet provides a cloud based-based platform for work management that lets employees plan and manage their work using grids, projects, cards and calendars. It enhances enterprise productivity and as such is a Positive Dynamic Change beneficiary of corporate America’s rapid digitization. We believe even as employees return to the office, demand for work management software is persistent and durable. The strong value proposition was evident in Smartsheet’s recent quarter as revenue growth and billings accelerated relative to recent periods driven by an increased mix toward upmarket enterprise level customers. Additionally, management provided guidance for next fiscal year of 37% to 40% billings growth versus a 26% consensus expectation.”

3. Nexstar Media Group, Inc. (NASDAQ:NXST)

Calixto Global Investors’ Stake Value: $14,507,000
Percentage of Calixto Global Investors’ 13F Portfolio: 14.51%
Number of Hedge Fund Holders: 33

Nexstar Media Group, Inc. (NASDAQ:NXST) operates in the television broadcasting and digital media industries. Nexstar Media Group, Inc. was in 33 hedge fund portfolios at the end of the second quarter of 2022, compared to 39 in the previous quarter.

Nexstar Media Group, Inc. was raised to ‘Buy’ from ‘Neutral’ by Rosenblatt analyst Barton Crockett on September 6, with a price objective of $246, up from $181. His viewpoint on TV stations has been altered by cord-cutting hedges, mix-driven ad resiliency, and new income streams from next-generation transmission technology. These might support the industry leader, Nexstar Media Group, Inc., to expand even in difficult times.

During the second quarter, Calixto Global Investors sold 39% of its stake in Nexstar Media Group, Inc.. The hedge fund first initiated a position in Nexstar Media Group, Inc. in 2016. Cardinal Capital is the most significant stakeholder of Nexstar Media Group, Inc., with 1.05 million shares worth $171.21 million.

Richie Capital Group published its first-quarter 2022 investor letter and mentioned Nexstar Media Group, Inc.. Here is what the fund said:

“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

2. Five9, Inc. (NASDAQ:FIVN)

Calixto Global Investors’ Stake Value: $21,928,000
Percentage of Calixto Global Investors’ 13F Portfolio: 21.93%
Number of Hedge Fund Holders: 51

Five9, Inc. (NASDAQ:FIVN) delivers cloud-native contact center software to help with digital sales, customer support, and marketing. On September 20, Five9, Inc. introduced Five9 Service Cloud Voice for Partner Telephony, the most recent version of its Salesforce, Inc. (NYSE:CRM) interface.

On September 23, Credit Suisse analyst Fred Lee initiated coverage of Five9, Inc., assigning the stock a ‘Neutral’ rating and a $90 price target. He saw Five9, Inc. as profiting from shifts to more digital channels because of its AI and automation technologies in the Intelligent Cloud Contact Center.

Christopher Lyle’s SCGE Management is Five9, Inc.’s most notable stakeholder, with a $140.21 million position in the company. In addition, the number of hedge funds tracked by Insider Monkey owning stakes in Five9, Inc. fell to 51 in the second quarter from 52 in the preceding quarter. Those stakes held a consolidated value of $1.52 billion, down from $2.12 billion.

Securities filings reveal that Calixto Global Investors owned 240,596 shares of Five9, Inc. at the end of June 2022, worth $21.93 million and representing 21.93% of the fund’s portfolio. Eduardo Costa’s Calixto Global Investors has kept a stake in Five9, Inc. since the second quarter of 2020.

1. ZTO Express (Cayman) Inc. (NYSE:ZTO)

Calixto Global Investors’ Stake Value: $22,131,000
Percentage of Calixto Global Investors’ 13F Portfolio: 22.13%
Number of Hedge Fund Holders: 17

ZTO Express (Cayman) Inc. is a Chinese firm that provides express delivery and other value-added logistics services. On August 25, Morgan Stanley analyst Qianlei Fan labeled ZTO Express (Cayman) Inc. as a “Research Tactical Idea” after the stock’s decline. However, over the next 60 days, he expects the share price to increase in absolute terms. Accordingly, he assigned ZTO shares an ‘Overweight’ rating and a $38.80 price target.

Kerr Neilson’s Platinum Asset Management is the biggest shareholder of ZTO Express (Cayman) Inc., with 15.32 million shares worth $420.60 million. According to Insider Monkey’s data, 17 hedge funds were long ZTO Express (Cayman) Inc. at the end of the second quarter of 2022, with aggregate stakes valued at about $789.82 million.

ZTO Express (Cayman) Inc. stands first on the list of top stock picks of Eduardo Costa’s Calixto Global Investors. Costa’s fund holds a $22.13 million position in ZTO Express (Cayman) Inc., which accounts for 22.13% of the total Q2 13F investments.

You can also take a peek at Top 10 Stock Picks of Roberto Mignone’s Bridger Management and Top 10 Stock Picks of John Hempton’s Bronte Capital.

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