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9 Stocks to Buy According to Robert W. Koehn’s Ivy Lane Capital

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·9 min read
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In this article, we discuss 9 stocks to buy according to Robert W. Koehn's Ivy Lane capital. If you want to skip our detailed analysis of Koehn's history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy According to Robert W. Koehn's Ivy Lane Capital.

Robert W. Koehn earned a B.A. in Economics from Princeton University and an MBA from UNC Kenan-Flagler Business School. He began his career working as an associate at First Union Capital Markets. Robert W. Koehn also worked as a senior associate and director at a Private equity fund manager. He also served the Redan Capital Management, LP as a general partner. Currently, he is working as the managing partner at Ivy Lane Capital.

Ivy Lane Capital is a fundamental value-oriented hedge fund located in Miami, Florida, founded by Robert Koehn in 2010. The majority of Ivy Lane's 13F portfolio in Q4 2021 is split between three sectors: information technology, finance, and communications. The heaviest sector, technology, accounted for 38.67% of the portfolio.

Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and BlackRock, Inc. (NYSE:BLK) were among the most significant positions in Ivy Lane Capital's portfolio.

In the fourth quarter, the hedge fund did not change its stake in Microsoft Corporation (NASDAQ:MSFT). Robert W. Koehn's Ivy Lane Capital holds 86,000 shares of Microsoft Corporation (NASDAQ:MSFT), valued at $28.92 million. On February 8, Morgan Stanley analyst Keith Weiss maintained an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) and gave a 372 price target of $372.

 

Robert W. Koehn's hedge fund owns 9,700 shares of Alphabet Inc. (NASDAQ:GOOG), worth over $28.07 million. After the business posted another solid quarter, Stifel analyst Scott Devitt boosted his price objective on Alphabet Inc. (NASDAQ:GOOG) from $3,200 to $3,500 and reiterated a Buy recommendation on the stock.

Another outstanding stock in the fourth quarter portfolio of Robert W. Koehn's Ivy Lane Capital was BlackRock, Inc. (NYSE:BLK). On February 18, Deutsche Bank analyst Brian Bedell kept a Buy rating on BlackRock, Inc. (NYSE:BLK) but reduced his price target to $1,024 from $1,125. The analyst provided a mid-Q1 outlook for brokers and asset managers, stating that rate-sensitive stocks will be preferred for at least the next two quarters.

Our Methodology

Let’s analyze the list of 9 stocks to buy according to Robert W. Koehn's Ivy Lane Capital. We used Koehn's 13F portfolio for Q4 2021 for this analysis.

Stocks to Buy According to Robert W. Koehn's Ivy Lane Capital

9. Ingredion Incorporated (NYSE:INGR)

Ivy Lane Capital Stake Value: $5,992,000

 

Percentage of Ivy Lane Capital's 13F Portfolio: 4.21%

 

Number of Hedge Fund Holders: 25

Ingredion Incorporated (NYSE:INGR) located in Westchester, Illinois, is a worldwide ingredient producer specializing in starch, modified starches, and starch sugars such as glucose syrup and high fructose syrup. Ingredion Incorporated (NYSE:INGR) is getting the attention of the smart money, as 25 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 20 funds a quarter earlier.

Ingredion Incorporated (NYSE:INGR) is one of the latest acquisitions of Ivy Lane Capital in Q4 2021. The hedge fund bought 62,000 shares worth over $5.99 million in Ingredion Incorporated (NYSE:INGR), representing 4.21% of its 13F portfolio.

Ingredion Incorporated (NYSE:INGR), on February 3, posted earnings for the fourth quarter. The reported EPS came in at $1.09, below estimates by $0.20. However, revenue over the period gained 10.7% compared to the previous year's quarter, reaching $1.76 billion, outperforming estimates by $40 million.

Robert W. Koehn's Ivy Lane Capital holds a significant stake in Ingredion Incorporated (NYSE:INGR), in addition to owning significant positions in Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and BlackRock, Inc. (NYSE:BLK).

8. EchoStar Corporation (NASDAQ:SATS)

Ivy Lane Capital Stake Value: $6,008,000

 

Percentage of Ivy Lane Capital's 13F Portfolio: 4.22%

 

Number of Hedge Fund Holders: 29

EchoStar Corporation (NASDAQ:SATS) is a global satellite communication and internet services supplier. Ivy Lane Capital boosted its stake in EchoStar Corporation (NASDAQ:SATS) by 11% as of Q4 2021, holding 228,000 shares worth $6.01 million.

On February 24, EchoStar Corporation (NASDAQ:SATS) published earnings for the fourth quarter, reporting a loss per share of $0.83, missing estimates by $1.22. Revenue over the period came in at $498.64 million, up 1.9% year-over-year.

By the end of the fourth quarter of 2021, Insider Monkey identified 29 hedge funds that had stakes in EchoStar Corporation (NASDAQ:SATS). The total value of these stakes was over $216.82 million. As of March 4, 2022, Jim Simons’ Renaissance Technologies is the leading stakeholder in EchoStar Corporation (NASDAQ:SATS). The fund owns more than 2.08 million shares of stock worth $54.76 million.

7. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)

Ivy Lane Capital Stake Value: $9,241,000

 

Percentage of Ivy Lane Capital's 13F Portfolio: 6.5%

 

Number of Hedge Fund Holders: 55

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is a company that makes interactive software games and publishes them. Robert W. Koehn elevated his position in Take-Two Interactive Software, Inc. (NASDAQ:TTWO) by 56% in Q4 2021, holding 52,000 shares valued at $9.24 million.

Take-Two Interactive (NASDAQ: TTWO) was raised from Neutral to Buy by MKM Partners analyst Eric Handler on March 4, with a price objective of $200.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) was in 55 hedge fund portfolios at the end of the fourth quarter, according to Insider Monkey. The total stakes that these funds had in the company are worth $1.49 billion, up from $1.20 billion the prior quarter with 53 positions.

In its fourth-quarter 2021 investor letter, Arch Capital Management, an investment management firm, mentioned Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Here is what the fund said:

“Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American video game publisher of franchises like Grand Theft Auto (GTA), Red Dead Redemption (RDR), and NBA 2K. It is currently one of the larger positions in the fund at an 8.3% allocation.

We are bullish on Take-Two because we believe the company has competitive advantages that will keep its franchises relevant for many years. First, its games have distinct network effects that keep it insulated from competitors. Multiplayer online games are only fun if others are also playing them, creating a winner-take-all effect that has specifically benefited GTA and NBA 2K over the last decade.

On top of network effects, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has decades of developmental expertise and over 5,000 developers across its divisions, giving it semi-strong economies of scale that insulate it from most competitors. Yes, large competitors like Microsoft or any mega-cap company could invest the dollars to get to this developer count, but it is impossible for a smaller studio to make games as immersive and at as quick of a pace as Take-Two Interactive Software, Inc. (NASDAQ:TTWO) does for its customers. They just don’t have the scale…” (Click here to see the full text)

6. Twitter, Inc. (NYSE:TWTR)

Ivy Lane Capital Stake Value: $13,614,000

 

Percentage of Ivy Lane Capital's 13F Portfolio: 9.58%

 

Number of Hedge Fund Holders: 83

Twitter, Inc. (NYSE:TWTR) is a real-time social media network that allows anyone to express themselves publicly. It links users to people, information, ideas, views, and news through a network. On March 1, Benchmark analyst Mark Zgutowicz initiated coverage of Twitter, Inc. (NYSE:TWTR) with a Hold rating.

On February 24, Twitter, Inc. (NYSE:TWTR) announced that it issued 5.000% senior notes due March 1, 2030, whose principal amount is $1 billion. The net earnings would be utilized for general corporate purposes, including capital expenditures, investments, debt reduction, common stock repurchases, cash flow, potential acquisitions, and significant transactions.

In the third quarter, 83 hedge funds in the database of Insider Monkey reported owning stakes in Twitter, Inc. (NYSE:TWTR), worth $3.13 billion, as compared to 94 funds holding stakes in Twitter, Inc. (NYSE:TWTR) valued at $6.31 billion in the preceding quarter.

Twitter, Inc. (NYSE:TWTR) is a notable stock in Robert W. Koehn's Q4 portfolio, just like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and BlackRock, Inc. (NYSE:BLK).

RiverPark Funds mentioned Twitter, Inc. (NYSE:TWTR) in its third-quarter 2021 investor letter. Here is what the fund said:

“Twitter: Despite reporting in-line third quarter results, TWTR shares struggled at the end of 2021. For TWTR, the declines could be attributed to a fear of continued headwinds from Apple’s iOS tracking changes, as well as the stock continuing to be a show-me story after posting two disappointing quarters since its investor day in February (prior to this in-line quarter), as well as its recent CEO change (founder Jack Dorsey stepped down and is being succeeded by long-time CTO Parag Agrawal). Investors continue to be concerned with the platform’s user engagement, as total monetizable daily active users (mDAU) grew 13% year over year to 211 million, in-line with expectations, but still below management’s long-term target of 20% growth. Management expects mDAU growth to accelerate, driven by continued economic reopening and new features such as Spaces and Communities and an increase in the number and penetration of Twitter Topics. For the quarter, revenue increased 37% year over year to $1.3 billion and 4Q guidance was strong at about 20% growth, as Twitter has less exposure to Apple’s ATT headwinds.

With $4.8 billion of TTM revenue (only 4% of Facebook’s revenue), the company has a large opportunity to take share in the $200 billion global digital advertising market that continues to flow to mobile, Twitter’s focus. As the company continues to launch and improve its products (including stories, audio chat, podcasting, video and subscriptions), its platform should become more compelling to both users and advertisers, allowing it to take advertising dollar share through increased user engagement and ad pricing. As Twitter showed this year, we believe that the company can generate 20%+ revenue growth while also driving operating leverage in its already highly profitable business model, generating expanding excess free cash flow growth over time (3Q OCF grew 81% year over year).”

 

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Disclosure: None. 9 Stocks to Buy According to Robert W. Koehn's Ivy Lane Capital is originally published on Insider Monkey.