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10 New Stock Picks of Suraj Parkash Chopra’s Force Hill Capital Management

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·11 min read
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In this article, we discuss 10 new stock picks of Suraj Parkash Chopra's Force Hill Capital Management. If you want to skip our detailed analysis of these stocks, go directly to 5 New Stock Picks of Suraj Parkash Chopra's Force Hill Capital Management.

Surah Parkash Chopra founded Force Hill Capital Management in September 2019, and currently serves as the chief executive officer and chief investment officer of the New York-based hedge fund. Force Hill Capital Management, as of Q3 2021, has a portfolio worth approximately $405 million, and discretionary assets under management of $930 million.

Suraj Chopra graduated from Brown University with a Bachelor’s in economics in 2000, and started his career with The Goldman Sachs Group, Inc. (NYSE:GS) as a financial analyst the same year. He then worked at Owenoke Capital Management and Citadel Investment Group as a technology investor, having a collective experience of almost 19 years in that role. In 2019, Chopra established Force Hill Capital Management.

Chopra plays to his strengths, with 88.78% of his 13F portfolio concentrated in the information technology sector, which is his niche. He additionally invests in the consumer discretionary and communications sectors, and his fund has a top ten holdings concentration of 47.86%.

The most notable stocks from the third quarter portfolio of Suraj Parkash Chopra's Force Hill Capital Management include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Airbnb, Inc. (NASDAQ:ABNB).

10 New Stock Picks of Suraj Parkash Chopra's Force Hill Capital Management
10 New Stock Picks of Suraj Parkash Chopra's Force Hill Capital Management

Source:Pixabay

Our Methodology

We used the Q3 portfolio of Suraj Parkash Chopra's Force Hill Capital Management to select the fund’s top 10 new stock picks, ranking the securities according to the hedge fund’s stake value in each holding.

New Stock Picks of Suraj Parkash Chopra's Force Hill Capital Management

10. Western Digital Corporation (NASDAQ:WDC)

Force Hill Capital Management’s Stake Value: $5,611,000

Percentage of Force Hill Capital Management’s 13F Portfolio: 1.38%

Number of Hedge Fund Holders: 41

Western Digital Corporation (NASDAQ:WDC) is a California-based manufacturer of computer and cloud storage systems. The company also sells data technology products and solutions. Force Hill Capital Management acquired a stake in Western Digital Corporation (NASDAQ:WDC) during the third quarter of 2021, buying 99,400 shares of the company, worth $5.61 million, representing 1.38% of the fund’s Q3 investments.

Evercore ISI analyst C.J. Muse on December 13 raised the price target on Western Digital Corporation (NASDAQ:WDC) to $75 from $65 to reflect 7.2 times his 2023 EPS estimate. He kept an Outperform rating on Western Digital Corporation (NASDAQ:WDC) shares, which he notes are "structurally under-valued."

On October 28, Western Digital Corporation (NASDAQ:WDC) posted earnings for the third quarter. The Q3 EPS came in at $2.49, exceeding estimates by $0.05. Revenue over the period totaled $5.05 billion, up 28.79% year-over-year, but missed estimates by $7.48 million.

In the third quarter of 2021, 41 hedge funds reported owning stakes in Western Digital Corporation (NASDAQ:WDC), down from 57 funds in the preceding quarter. Lyrical Asset Management is the largest stakeholder of the company, with 4.2 million shares worth $239.1 million.

In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Airbnb, Inc. (NASDAQ:ABNB), Western Digital Corporation (NASDAQ:WDC) is a notable stock from Suraj Chopra's Q3 portfolio.

Here is what ClearBridge Investments has to say about Western Digital Corporation (NASDAQ:WDC) in its Q1 2021 investor letter:

“Our high active share approach made the most difference in IT, where the portfolio’s holdings gained 4.5% compared to a loss for the benchmark. Results were led by our more cyclical positions in digital storage provider Western Digital.”

9. Citrix Systems, Inc. (NASDAQ:CTXS)

Force Hill Capital Management’s Stake Value: $7,655,000

Percentage of Force Hill Capital Management’s 13F Portfolio: 1.89%

Number of Hedge Fund Holders: 24

Force Hill Asset Management purchased 71,300 shares of Citrix Systems, Inc. (NASDAQ:CTXS) in the third quarter, worth $7.65 million, representing 1.89% of the fund’s Q3 portfolio. Citrix Systems, Inc. (NASDAQ:CTXS) is an American tech company specializing in virtualization technology, networking, software as a service, and cloud computing.

Publishing its Q3 results on November 4, Citrix Systems, Inc. (NASDAQ:CTXS) posted earnings per share of $1.20, beating estimates by $0.25. The $778.49 million revenue also outperformed estimates by $7.93 million.

Barclays analyst Raimo Lenschow lowered the price target on Citrix Systems, Inc. (NASDAQ:CTXS) to $80 from $88 and kept an Underweight rating on the shares. The analyst says the main question for software investors in 2022 is not around end demand, as there are "no issues there", but the correct valuation level for the space.

William Von Mueffling’s Cantillon Capital Management is the leading stakeholder of Citrix Systems, Inc. (NASDAQ:CTXS), holding 2.5 million shares of the company, worth $277.3 million. Overall, 24 hedge funds were long Citrix Systems, Inc. (NASDAQ:CTXS) in Q3 2021, with stakes amounting to $766.5 million.

Like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Airbnb, Inc. (NASDAQ:ABNB), Citrix Systems, Inc. (NASDAQ:CTXS) is a notable stock from Suraj Chopra's Q3 portfolio.

Here is what ClearBridge Mid Cap Growth Strategy has to say about Citrix Systems, Inc. (NASDAQ:CTXS) in its Q3 2021 investor letter:

“When we notice a meaningful slowdown due to growing competitive threats or our thesis has not played out as expected, we remain disciplined in acting. These concerns motivated our sale of Citrix Systems, which is experiencing complications in transitioning its business model to the cloud while a reorganization of its sales force is pushing out financial targets; as well as a small position in technology-driven real estate brokerage Compass.”

8. Apple Inc. (NASDAQ:AAPL)

Force Hill Capital Management’s Stake Value: $10,372,000

Percentage of Force Hill Capital Management’s 13F Portfolio: 2.56%

Number of Hedge Fund Holders: 120

Apple Inc. (NASDAQ:AAPL) gained in market share for selling Macs at twice the rate of PCs in the fourth quarter. According to reports on January 10, the tech giant sold approximately 7.8 million units of Macs over the period, up 9% from the prior-year quarter. Apple Inc. (NASDAQ:AAPL) held 8.5% of the total PC market share, up 7.9% year-over-year.

Suraj Chopra’s Force Hill Capital Management acquired a $10.37 million position in Apple Inc. (NASDAQ:AAPL) as of Q3 2021, buying 73,300 shares of the company. The stock accounts for 2.56% of the fund’s 13F securities.

In the third quarter earnings report, disclosed on October 28, Apple Inc. (NASDAQ:AAPL) posted an EPS of $1.24, in line with analysts’ estimates. The $83.36 billion revenue increased 28.84% from the prior-year quarter, but missed estimates by $1.62 billion.

Bernstein analyst Toni Sacconaghi on January 11 raised the price target on Apple Inc. (NASDAQ:AAPL) to $170 from $132 and kept a Market Perform rating on the shares. The analyst believes that Apple Inc. (NASDAQ:AAPL) benefited significantly from the COVID-19 pandemic, and sees risk of more muted earnings growth over the next few years.

Billionaire Warren Buffett’s Berkshire Hathaway is the largest Apple Inc. (NASDAQ:AAPL) stakeholder, owning more than 887 million shares of the company, worth $125.5 billion. Overall, 120 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) in Q3 2021, down from 138 funds in the prior quarter.

Like Microsoft Corporation (NASDAQ:MSFT) and Airbnb, Inc. (NASDAQ:ABNB), hedge funds are betting on Apple Inc. (NASDAQ:AAPL).

Here is what ClearBridge Investments has to say about Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter:

“As we actively manage holdings and position sizes, we look to regularly recycle capital into more compelling opportunities. Maintaining our valuation discipline, we sharply reduced our position in Apple, whose shares more than doubled following our initial purchase in mid-2019 with an earnings multiple rising from the low-to-mid teens to nearly 30x.”

7. Roku, Inc. (NASDAQ:ROKU)

Force Hill Capital Management’s Stake Value: $10,549,000

Percentage of Force Hill Capital Management’s 13F Portfolio: 2.60%

Number of Hedge Fund Holders: 57

Roku, Inc. (NASDAQ:ROKU) is a California-based company that sells digital media players for video streaming, has a licensed advertising business, and distributes hardware and software to other companies. Suraj Chopra purchased a $10.5 million stake in Roku, Inc. (NASDAQ:ROKU) during Q3 2021, which accounts for 2.60% of his 13F portfolio.

KeyBanc analyst Justin Patterson lowered the price target on Roku, Inc. (NASDAQ:ROKU) to $325 from $430 and kept an Overweight rating on the shares on January 11. The analyst noted that supply chain headwinds would persist into the first half of the year, which weighs on active account growth. He also expects slower direct-to-consumer subscription service growth.

On November 3, Roku, Inc. (NASDAQ:ROKU) announced earnings for the third quarter, posting an EPS of $0.48, exceeding estimates by $0.42. The quarterly revenue totaled $679.45 million, up 50.54% from the prior-year quarter, but missed estimates by $859,360.

In the third quarter of 2021, 57 hedge funds in the database of elite funds monitored by Insider Monkey were long Roku, Inc. (NASDAQ:ROKU), down from 61 funds in the preceding quarter. Cathie Wood’s ARK Investment Management purchased 166,100 shares of Roku, Inc. (NASDAQ:ROKU) on January 5, and her stake in the company totaled to 4.73 million shares, worth $1.48 billion.

Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Airbnb, Inc. (NASDAQ:ABNB), Roku, Inc. (NASDAQ:ROKU) is one of Suraj Chopra's notable Q3 stock picks.

Here is what LRT Capital Management has to say about Roku, Inc. (NASDAQ:ROKU) in its Q3 2021 investor letter:

“Roku, Inc. (ROKU) – the streaming TV company is currently trading at the lowest valuation it has been in many years, despite reporting 50% revenue growth, and over 80% growth in its most important and profitable “Platform” segment. Ostensibly the risk of increased competition is weighing on the stock, in practice we believe Roku’s recent underperformance has more to do with it being the 4th largest holding in Cathy Wood’s ARKK ETF, which has been hammered by outflows in recent weeks. We wrote about Roku in our July Investor Letter.”

6. Microsoft Corporation (NASDAQ:MSFT)

Force Hill Capital Management’s Stake Value: $10,595,000

Percentage of Force Hill Capital Management’s 13F Portfolio: 2.61%

Number of Hedge Fund Holders: 250

Microsoft Corporation (NASDAQ:MSFT) is one of the newest additions in the Q3 portfolio of Suraj Parkash Chopra’s Force Hill Capital Management, with the hedge fund buying 37,580 shares of the company, worth $10.5 million, representing 2.61% of the total third quarter investments.

Wedbush analyst Daniel Ives observed Microsoft Corporation (NASDAQ:MSFT)’s December quarter and noticed incremental strength again "as the Azure cloud growth story is hitting its next gear of growth in Redmond." The analyst believes significant and transformational cloud deals at Microsoft Corporation (NASDAQ:MSFT) are up more than 50% with clear momentum heading into 2022. He has an Outperform rating and a price target of $375 on Microsoft Corporation (NASDAQ:MSFT) shares.

On October 26, Microsoft Corporation (NASDAQ:MSFT) announced its third quarter financial results, reporting earnings per share of $2.27, surpassing estimates by $0.19. The company’s revenue over the period totaled $45.32 billion, reflecting a 21.97% increase on a year-over-year basis, outperforming estimates by $1.33 billion.

Microsoft Corporation (NASDAQ:MSFT) is expanding its collaboration with Acuity Brands, Inc. (NYSE:AYI) to enhance the capabilities of Acuity Brands’ smart lighting, lighting controls, and building automation solutions with Microsoft Azure, IoT, and AI. This will allow companies using Acuity Brands’ smart solutions to reduce carbon emissions while saving money on operating expenses.

Microsoft Corporation (NASDAQ:MSFT) is one of the most popular stocks among hedge funds, in addition to Apple Inc. (NASDAQ:AAPL) and Airbnb, Inc. (NASDAQ:ABNB).

Of the 250 hedge funds that were bullish on Microsoft Corporation (NASDAQ:MSFT) in the third quarter, Fisher Asset Management is the largest stakeholder of the company, with a $7.1 billion position in the company.

Here is what Baron Opportunity Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”

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Disclosure: None. 10 New Stock Picks of Suraj Parkash Chopra's Force Hill Capital Management is originally published on Insider Monkey.