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6 Favorite Stock Picks of Munir Javeri’s 3G Sahana Capital Management

·8 min read

In this article, we will look at 6 favorite stock picks of Munir Javeri's 3G Sahana Capital Management. If you want to skip reading about Munir Javeri's investment career and his hedge fund's performance, you can go directly to 3 Favorite Stock Picks of Munir Javeri's 3G Sahana Capital Management.

Munir Javeri's Investment Career

Munir Javeri is the founder and hedge fund manager of 3G Sahana Capital Management, a young Connecticut-based hedge fund. Mr. Javeri graduated from the Massachusetts Institute of Technology with a bachelor's degree in electrical science and engineering back in 2000. He landed his first job as an associate at Oak Investment Partners and stayed there for 3 years. In 2003, Mr. Javeri was recruited as the VP of Soros Fund Management. Then in 2006, Mr. Javeri served as the portfolio manager at Gandhara Capital, a London-based investment management firm. He left his roles at Gandhara Capital in 2006 and moved to New York in 2009, where he focused on private investing for 2 years, after which he was recruited as a partner in 2011 at 3G Capital. Mr. Javeri stayed at 3G capital for 9 years and, in 2020, he founded his hedge fund 3G Sahana Capital Management.

3G Sahana Capital Management's Strategy and Returns

3G Sahana Capital Management is a long-bias hedge fund that identifies and invests in public equities by employing a highly-concentrated and opportunistic strategy. The hedge fund has only been 2 years in the investment business. In the second quarter of 2022, the fund posted a 9.33% quarter-on-quarter gain. The fund has maintained its quarter-on-quarter performance and averaged a quarter-on-quarter return of 4.55%, up until Q3 2021, since inception. The fund's quarter-on-quarter gains fell in Q4 2021 and came in at negative 6.77%, and further dropped down to a negative 15.48%, quarter-on-quarter, in Q1 2022.

3G Sahana Capital Management's Investment Portfolio

In the first quarter of 2022, 3G Sahana Capital Management increased 4 of its positions, sold out of 5 of its previous holdings, and reduced its position in 2 of its investments. As of March 31, Munir Javeri manages more than $744.44 million in 13F securities through his hedge fund. 3G Sahana Capital Management's portfolio is concentrated in the services sector and the fund's top holdings include Charter Communications, Inc. (NASDAQ:CHTR) and Comcast Corporation (NASDAQ:CMCSA).

Other major players in the communication and satellite services industries include AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).

Wall Street analysts are bullish on the communication services sector. On June 16, Tigress Financial analyst Ivan Feinseth said in a report that AT&T Inc. (NYSE:T) has a resilient business model which will allow the company to drive more cash flow and long-term value creation for shareholders. As of July 19, AT&T Inc. (NYSE:T) has a trailing twelve-month PE ratio of 8.72 and is offering a forward dividend yield of 5.41%, which the company supports with its excess free cash flow of $20.52 billion. On June 28, Scotiabank analyst Maher Yaghi assumed coverage of Verizon Communications Inc. (NYSE:VZ) with a buy-side Outperform rating and a $59 price target. As of July 19, Verizon Communications Inc. (NYSE:VZ) has a trailing twelve-month PE ratio of 9.82 and is offering a forward dividend yield of 5.09%, which the company supports with $10.40 billion of free cash flow.

Photo by Mario Caruso on Unsplash

Our Methodology

To determine the 6 favorite stock picks of Munir Javeri's 3G Sahana Capital Management, we reviewed the hedge fund's investment portfolio at the close of Q1 2022. We arranged these stocks in increasing order of 3G Sahana Capital Management's stake in them.

6. Liberty Broadband Corporation (NASDAQ:LBRDA)

3G Sahana Capital Management's Stake Value: $37,508,000 

Percentage of 3G Sahana Capital Management's 13F Portfolio: 5.03%

Number of Hedge Fund Holders: 26

Liberty Broadband Corporation (NASDAQ:LBRDA) engages in communications businesses through two segments: GCI Holdings and Charter. As of May 10, Deutsche Bank analyst Bryan Kraft has a $158 price target and a Buy rating on Liberty Broadband Corporation (NASDAQ:LBRDA).

Over the past three months, 2 Wall Street analysts have offered their ratings and price targets on Liberty Broadband Corporation (NASDAQ:LBRDA). The stock has received 2 Buy ratings and has an average price target of $159, which implies a 36.18% upside from its closing price on July 18 which sits at $116.76. On the high side, the stock has a price target of $160 and on the low side, the stock has a price target of $158.

As of March 31, 3G Sahana Capital Management owns roughly 0.27 million shares of Liberty Broadband Corporation (NASDAQ:LBRDA). The investment covers 5.03% of Munir Javeri's 13F portfolio.

At the close of Q1 2022, 26 hedge funds disclosed ownership of stakes in Liberty Broadband Corporation (NASDAQ:LBRDA). The total stakes of these hedge funds came in at $606.15 million, down from $754.78 million with 22 positions in Q4 2021.

Here is what Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, had to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its “Longleaf Partners Fund” first-quarter 2022 investor letter:

Liberty Broadband – A new position in 4Q 2021, holding company Liberty Broadband also suffered from a widening of a market-imposed holdco discount in an uncertain quarter. Liberty’s stakes in Charter and Alaskan cable company GCI also faced near-term concerns over slowing industry broadband additions, but these businesses have over a decade of pricing power history and are well positioned to weather an inflationary environment. We have a high degree of respect for our partners in John Malone and Greg Maffei, who are focused on growing value per share and are actively repurchasing discounted shares to help close the price-to-value gap.”

Other companies that operate in the services industry, like Liberty Broadband Corporation (NASDAQ:LBRDA), include Charter Communications, Inc. (NASDAQ:CHTR), Comcast Corporation (NASDAQ:CMCSA), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ).

5. Booking Holdings Inc. (NASDAQ:BKNG)

3G Sahana Capital Management's Stake Value: $102,517,000

Percentage of 3G Sahana Capital Management's 13F Portfolio: 13.77%

Number of Hedge Fund Holders: 99

Booking Holdings Inc. (NASDAQ:BKNG) is an American travel technology company that provides online reservation services for the hotel and travel industries. As of March 31, 3G Sahana Capital Management's stake in Booking Holdings Inc. (NASDAQ:BKNG) is valued at $102.51 million. The investment covers 13.77% of its 13F portfolio.

Over the past 3 months, 24 Wall Street analysts have rated and given their price targets on Booking Holdings Inc. (NASDAQ:BKNG). The stock has received 17 Buy and 7 Hold ratings. Booking Holdings Inc. (NASDAQ:BKNG) has a high price target of $3,210 and a low price target of $2,100. The stock's median price target of roughly $2,625 implies a 50.99% upside from its closing price on July 18, which sits at $1,738.

On July 14, Truist analyst Naved Khan trimmed his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2,600 from $3,000 but reiterated a Buy rating on the shares.

Insider Monkey found 99 hedge funds bullish on Booking Holdings Inc. (NASDAQ:BKNG) at the close of Q1 2022. These funds held collective stakes worth $7.58 billion in the company, down from $7.72 billion in Q4 2021 when 92 hedge funds held stakes in the company.

3G Sahana Capital Management is a long-bias hedge fund that is concentrated in the services sector. Some major players, apart from Booking Holdings Inc. (NASDAQ:BKNG), that operate in the services industry include Charter Communications, Inc. (NASDAQ:CHTR), Comcast Corporation (NASDAQ:CMCSA), AT&T Inc. (NYSE:T), and Verizon Communications Inc. (NYSE:VZ).

4. Bath & Body Works Inc. (NYSE:BBWI)

3G Sahana Capital Management's Stake Value: $121,176,000 

Percentage of 3G Sahana Capital Management's 13F Portfolio: 16.27%

Number of Hedge Fund Holders: 57

Bath & Body Works, Inc. (NYSE:BBWI) is a leading retailer of home fragrance, body care, soaps, and sanitizer products. The stock is currently trading at bargain levels. As of July 19, Bath & Body Works Inc. (NYSE:BBWI) has a trailing twelve-month PE ratio of 6.34 and is also offering a forward dividend yield of 2.91%, which the company can support with its free cash flow of $1.01 billion.

On July 15, UBS analyst Jay Sole trimmed his price target on Bath & Body Works Inc. (NYSE:BBWI) to $42 from $70 and reiterated a Buy rating on the shares.

Over the past 3 months, 19 Wall Street analysts have rated and given their price targets for Bath & Body Works Inc. (NYSE:BBWI). The stock has received 15 Buy and 4 Hold ratings, and has an average price target of roughly $53, which implies an 83.80% increase from its closing price of $28.58 on July 18. The stock has a maximum price target of $75 and a minimum price target of $28.

In the first quarter of 2022, 3G Sahana Capital Management raised its stakes in Bath & Body Works Inc. (NYSE:BBWI) by 153%, bringing them to $121.17 million. The investment covers 16.27% of Munir Javeri's 13F portfolio.

At the end of the first quarter of 2022, 57 hedge funds held stakes in Bath & Body Works Inc. (NYSE:BBWI). The total value of these stakes amounted to $4.11 billion. This is compared to 62 positions in the previous quarter with stakes worth $6.78 billion.

 

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Disclosure: None. 6 Favorite Stock Picks of Munir Javeri's 3G Sahana Capital Management is originally published on Insider Monkey.