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10 Stocks to Buy Now According to Leonard A. Potter’s Wildcat Capital Management

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·10 min read
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In this article, we discuss 10 stocks to buy now according to Leonard A. Potter's Wildcat Capital Management. If you want to skip our detailed analysis of Potter's history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy Now According to Leonard A. Potter's Wildcat Capital Management.

Leonard A. Potter is the founder, president, and chief investment officer of Wildcat Capital Management. After starting his career as an analyst, Leonard A. Potter went on to hold various prominent industry positions, including partner and managing director at Capstone Partners and Alpine Consolidated. In 2002, he joined Soros Fund Management as managing director & co-head until 2009. Later, he served as a director at Hilton Worldwide, Auto Europe Car Rental, Solar Capital Ltd, GSV Capital Corp, and Solar Senior Capital Ltd. He graduated from Brandeis University with a bachelor's degree and Fordham University School of Law with a master's degree.

Wildcat Capital Management, a New York-based hedge fund, was established in 2011 to manage capital for David Bonderman, TPG Capital's founding partner. The hedge fund is in charge of 16 underlying vehicles and 42 individuals, including David's friends and family. During the first six months of 2017, the fund's 13F portfolio was among the strongest performers. For example, its non-microcap stock picks returned 31% in the second quarter, 52% in the first quarter, 99.5% in the first half of 2017, and 118% between mid-2016 and mid-2017.

Leonard A. Potter likes to diversify his portfolio. His hedge fund puts emphasis on small and large businesses that have strong fundamentals and the ability to develop in the future. Some of these companies include Intuit Inc. (NASDAQ:INTU), Snowflake Inc. (NYSE:SNOW), and Datadog, Inc. (NASDAQ:DDOG).

Intuit Inc. (NASDAQ:INTU) is one of the companies in Wildcat Capital Management's 13F portfolio. On March 11, Edward Jones analyst Logan Purk upgraded Intuit Inc. (NASDAQ:INTU) to 'Buy' from 'Hold'.

10 Stocks to Buy Now According to Leonard A. Potter's Wildcat Capital Management
10 Stocks to Buy Now According to Leonard A. Potter's Wildcat Capital Management

Photo by Timothy Hales Bennett on Unsplash

Wildcat Capital Management also owns 7,144 shares of Snowflake Inc. (NYSE:SNOW). BTIG analyst Gray Powell trimmed his price objective on Snowflake Inc. (NYSE:SNOW) to $359 from $435 on March 3, but reiterated a 'Buy' rating on the stock. The analyst noted that his lower price estimate was completely attributable to a decline in software multiples in previous months.

Wildcat Capital Management also has a $2.37 million stake in Datadog, Inc. (NASDAQ:DDOG). On February 22, Goldman Sachs analyst Kash Rangan added Datadog, Inc. (NASDAQ:DDOG) to his Conviction List with a 'Buy' rating and $250 price objective.

Our Methodology

With this context and industry outlook in mind, let’s start our list of the 10 stocks to buy now according to Leonard A. Potter's Wildcat Capital Management. These stocks represent the ten largest holdings in Wildcat's 13F portfolio as of December 31, 2021, according to the fund's latest filing with the SEC.

Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.

Stocks to Buy Now According to Leonard A. Potter's Wildcat Capital Management

10. TransDigm Group Incorporated (NYSE:TDG)

Wildcat Capital Management Stake Value: $22,504,000

Percentage of Wildcat Capital Management’s 13F Portfolio: 3.66%

Number of Hedge Fund Holders: 64

TransDigm Group Incorporated (NYSE:TDG) is a company that specializes in the design and manufacture of engineered aircraft components, systems, and subsystems. In Q4 2021, 64 hedge funds were bullish on TransDigm Group Incorporated (NYSE:TDG), up from 63 funds in the preceding quarter.

TransDigm Group Incorporated (NYSE:TDG) was upgraded to 'Outperform' from 'Peer Perform' by Wolfe Research analyst Mike Maugeri on February 16, with a $760 price objective. Narrow-body demand was expected to be robust, according to the expert.

TransDigm Group Incorporated (NYSE:TDG) is one of Wildcat Capital Management's newest acquisitions, being added to the fund's portfolio in Q4 2021. The hedge fund held TDG shares worth over $22.50 million on December 31, representing 3.66% of its 13F portfolio value.

Intuit Inc. (NASDAQ:INTU), Snowflake Inc. (NYSE:SNOW), and Datadog, Inc. (NASDAQ:DDOG) were among Wildcat Capital Management's other new purchases in Q4 2021, as the fund overhauled its portfolio heading into 2022.

Vulcan Value Partners, in its Q2 2021 investor letter mentioned TransDigm Group Incorporated (NYSE: TDG). Here is what the fund said:

“TransDigm Group Inc., another material contributor during the quarter, is an aerospace manufacturer providing highly engineered, niche components for use on commercial and military aircraft. The vast majority of the company’s profits come from aftermarket sales. Its business was impacted by the global pandemic; however, the company has been able to maintain margins despite strong revenue headwinds, and it continues to generate strong free cash flow.”

9. Allogene Therapeutics, Inc. (NASDAQ:ALLO)

Wildcat Capital Management Stake Value: $25,608,000

Percentage of Wildcat Capital Management’s 13F Portfolio: 4.17%

Number of Hedge Fund Holders: 22

Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a clinical-stage immuno-oncology firm that develops and markets genetically modified allogeneic T cell treatments for cancer therapy. Based on its 13F filing for the fourth quarter of 2021, Wildcat Capital Management owns 1.72 million shares in Allogene Therapeutics, Inc. (NASDAQ:ALLO) as of the end of December, a position valued at $25.61 million at that time.

B.Riley analyst Kalpit Patel cut the firm's price target on Allogene Therapeutics, Inc. (NASDAQ:ALLO)’s to $21 from $30 on February 28 and maintained a 'Buy' recommendation on the stock. The analyst concluded the quarterly report by mentioning the potential regulatory risk associated with ALLO-647. ALLO-647 is a monoclonal anti-CD52 antibody used as part of a lymphodepletion protocol.

The number of hedge funds tracked by Insider Monkey having stakes in Allogene Therapeutics, Inc. (NASDAQ:ALLO) grew to 22 in Q4, from 21 in the preceding quarter. Those stakes are valued at $163.86 million on December 31, up from $205.58 million three months earlier.

8. Liberty Broadband Corporation (NASDAQ:LBRDA)

Wildcat Capital Management Stake Value: $31,824,000

Percentage of Wildcat Capital Management’s 13F Portfolio: 5.18%

Number of Hedge Fund Holders: 22

Liberty Broadband Corporation (NASDAQ:LBRDA) is a holding company with a major presence in cable television and cellular telecommunications. Eagle Capital Management is the biggest shareholder in Liberty Broadband Corporation (NASDAQ:LBRDA) among the hedge funds being tracked by Insider Monkey, owning 8.56 million shares worth more than $1.38 billion.

22 hedge funds held stakes in Liberty Broadband Corporation (NASDAQ:LBRDA) in the fourth quarter of 2021, worth $754.79 million, down from 24 in the preceding quarter, with stakes in LBRDA valued at $885.75 million.

On December 15, Citi analyst Michael Rollins trimmed his price target on Liberty Broadband Corporation (NASDAQ:LBRDA) from $199 to $177 and maintained a 'Buy' rating. According to the analyst, consensus cable broadband net add predictions for 2022 and the next four years are still in jeopardy.

In its Q4 2021 investor letter, Longleaf Partners Fund mentioned Liberty Broadband Corporation (NASDAQ:LBRDA). Here is what the fund said:

“We swapped out of Comcast into Liberty Broadband in the quarter, as Comcast neared its appraisal, while misguided shortterm fears about slowing broadband subscriber additions miss Liberty Broadband’s latent pricing power and its best-in-class capital allocation, thanks to Liberty Media’s effective control. The portfolio activity section in our last several letters has highlighted our growing ondeck list, and we were able to act on those opportunities to put cash to work in the fourth quarter. We initiated three new holdings, which we are still building to various degrees. We already discussed the Liberty Media for Comcast swap above, where we now have a better company on Business, People and Price and more opportunities to close the P/V gap sooner rather than later.”

7. Booking Holdings Inc. (NASDAQ:BKNG)

Wildcat Capital Management Stake Value: $34,575,000

Percentage of Wildcat Capital Management’s 13F Portfolio: 5.63%

Number of Hedge Fund Holders: 92

Booking Holdings Inc. (NASDAQ:BKNG) is a global provider of online travel and restaurant reservations, as well as associated services. Booking Holdings Inc. (NASDAQ:BKNG) was given a 'Buy' rating and $2,512 price objective by Deutsche Bank analyst Lee Horowitz on March 10.

At the end of the fourth quarter of 2021, Wildcat Capital Management owned 14,411 shares in Booking Holdings Inc. (NASDAQ:BKNG), worth $34.58 million. This represented 5.63% of the value of the hedge fund's investment portfolio.

Booking Holdings Inc. (NASDAQ:BKNG) was held in the portfolios of 92 hedge funds at the end of 2021, with their stakes valued at $7.73 billion, down from 96 funds with $8.43 billion in holdings a quarter earlier.

Wedgewood Partners mentioned Booking Holdings Inc. (NASDAQ:BKNG) in its Q4 2021 investor letter. Here is what the fund said:

“Booking Holdings also contributed to performance, though less so compared to most portfolio holdings. The Company reported substantial room-night growth compared to the year ago period, which was heavily affected by COVID. Intra-quarter, Booking Holdings consolidated room-nights approached almost 90% of pre-COVID levels because both domestic and international travelers have had to endure a few years of pent-up travel aspirations and are being eased back into the market with various governments relaxing some of their most stringent, COVID-related travel restrictions. Although infection rates related to new COVID variants (particularly Omicron) have risen subsequent to last quarter, we think populations around the world are coming to grips with the risk of infection and will inevitably return to spending on travel. Booking Holdings represents a key source of demand for the small and medium sized hospitality industry and has the second largest global booking volume for alternative accommodations. The latter observation is significantly misunderstood by investors and represents substantial upside to the stock, regardless of the timing of the recovery of traditional hospitality spending; hence, we added to our position in Booking Holdings.”

6. Meta Platforms, Inc. (NASDAQ:FB)

Wildcat Capital Management Stake Value: $34,830,000

Percentage of Wildcat Capital Management’s 13F Portfolio: 5.67%

Number of Hedge Fund Holders: 224

Meta Platforms, Inc. (NASDAQ:FB) is a technology and social media behemoth situated in California. Meta Platforms, Inc. (NASDAQ:FB) was given a 'Buy' rating and $265 price objective by Deutsche Bank analyst Benjamin Black on March 10.

The hedge fund chaired by Leonard A. Potter owns 103,553 shares in Meta Platforms, Inc. (NASDAQ:FB) worth over $34.83 million as of December 31, representing 5.67% of its investment portfolio.

Out of the 924 hedge funds in Insider Monkey’s database that filed 13Fs for the Q4 reporting period, 224 owned a stake in Meta Platforms, Inc. (NASDAQ:FB) at the end of 2021, down from 248 in the third quarter of 2021. Ken Fisher’s Fisher Asset Management has taken a major long position in Meta Platforms, Inc. (NASDAQ:FB), with a stake worth over $3.22 billion.

Meta Platforms, Inc. (NASDAQ:FB) is one of the stocks gaining the attention of Leonard A. Potter, along with Intuit Inc. (NASDAQ:INTU), Snowflake Inc. (NYSE:SNOW), and Datadog, Inc. (NASDAQ:DDOG).

ClearBridge Investments, in its Q1 2021 investor letter, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:

“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”

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Disclosure: None. 10 Stocks to Buy Now According to Leonard A. Potter's Wildcat Capital Management is originally published on Insider Monkey.