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Billionaire Daniel Sundheim is Buying These 10 Tech Stocks

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·10 min read
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In this article, we will be discussing the 10 tech stocks billionaire Daniel Sundheim is buying. If you want to skip our detailed analysis of Sundheim’s hedge fund returns, investment philosophy, and history, go directly to Billionaire Daniel Sundheim is Buying These 5 Tech Stocks.

Serving as its chief investment officer, billionaire Daniel Sundheim is the founder of D1 Capital Partners, an investment firm based in New York. Having earned his B.S in Economics from the Wharton School at the University of Pennsylvania, Daniel Sundheim joined the Connecticut-based Viking Global Investors in 2002, where he served as an analyst. He then progressed swiftly to eventually become the chief investment officer of the firm in 2014. After leaving Viking Global, Sundehim established D1 Capital Partners in 2018, with a seed funding of more than $5 billion, including $500 million from his personal wealth.

D1 Capital Partners' investments include both the public, and private markets. It invests on behalf of corporations and foundations, family offices, sovereign wealth funds, hospitals, and pension funds throughout the world, with an investment strategy largely based on fundamentals and research, placing emphasis on medium to long-term returns.

D1 Capital Partners, as an investment management fund, oversees more than $15.29 billion in its portfolio. According to the most recent 13F filings, D1 Capital Partners' portfolio branches out into 9 principal sectors, with the Consumer Discretionary sector dominating, making up 48.5% of the fund’s total portfolio value. A majority of the companies in the fund’s portfolio are large-cap companies based in the United States, with stocks scaling up to more than $10 billion in market capitalization making up 65% of the fund's total value.

Some of the top stocks present in the investment portfolio of D1 Capital Partners at the end of the second quarter of 2021 include Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and JD.com, Inc. (NYSE:JD) among others.

Billionaire Daniel Sundheim is Buying These 10 Tech Stocks
Billionaire Daniel Sundheim is Buying These 10 Tech Stocks

Daniel Sundheim of D1 Capital Partners

Our Methodology

With this background in mind, let us now look towards the 10 tech stocks billionaire Daniel Sundheim is buying. We made use of D1 Capital Partners' 13F portfolio for the second quarter for this analysis.

Why should we pay attention to Daniel Sundheim's stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Billionaire Daniel Sundheim is Buying These 10 Tech Stocks

10. Kanzhun Limited (NASDAQ:BZ)

Sundheim's Stake Value: $20.8 million

Percentage of Daniel Sundheim's 13F Portfolio: 0.13%

Number of Hedge Fund Holders: 26

Kanzhun Limited is a holding company that provides online recruitment services. Based in China, the company links job seekers and corporation users through its mobile application. Ranked tenth on the list of the 10 tech stocks billionaire Daniel Sundheim is buying, Kanzhun Limited (NASDAQ:BZ) has a market capitalization of $14.60 billion.

According to the recent 13F Filings, Daniel Sundheim's D1 Capital Partners holds over 525,000 shares of Kanzhun Limited (NASDAQ:BZ), amounting to over $20.8 million in worth and accounting for 0.13% of the fund’s investment portfolio. At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $447.7 million in Kanzhun Limited (NASDAQ:BZ)

For the second quarter of 2021, Kanzhun Limited (NASDAQ:BZ) reported earnings per share at $0.20, beating market estimates by $0.13. The company also reported revenues of $180.48 million, surpassing estimates by $11.22 million.

On July 23, Goldman Sachs analyst Piyush Mubayi initiated coverage of Kanzhun Limited (NASDAQ:BZ) with a Neutral rating and $41 price target.

9. Pinterest Inc. (NYSE:PINS)

Sundheim's Stake Value: $40.9 million

Percentage of Daniel Sundheim's 13F Portfolio: 0.26%

Number of Hedge Fund Holders: 63

Pinterest Inc. (NYSE:PINS) is a social media company that provides image sharing services. Ranked ninth on the list of the 10 tech stocks billionaire Daniel Sundheim is buying, Pinterest Inc. (NYSE:PINS) enables the discovery of information in the form of images and GIFs.

In the second quarter of 2021, Pinterest, Inc. (NYSE: PINS) had an actual EPS of $0.25, beating estimates by $0.12. Pinterest, Inc. (NYSE: PINS) reported revenues amounting to $613.21 million, up 125.04% year over year, beating estimates by $51.07 million.

Based on the latest 13F filings, Daniel Sundheim's hedge fund holds 519,000 shares of Pinterest, Inc. (NYSE:PINS), worth $40.9 million as of the second quarter of 2021. These shares represent 0.26% of his fund's investment portfolio. By the end of the second quarter of 2021, 63 hedge funds out of the 873 tracked by Insider Monkey held stakes in Pinterest, Inc. (NYSE: PINS) worth roughly $2.9 billion. This is compared to 83 hedge funds in the previous quarter with a total stake value of approximately $4.18 billion.

On September 13, Goldman Sachs analyst Eric Sheridan initiated coverage of Pinterest with a Neutral rating and $57 price target

Carillon Tower Advisers, an investment management firm, shared insights regarding Pinterest, Inc. (NYSE:PINS)'s quarterly earnings in their Q1 investor letter and shared their expectations of the company. Here’s what they had to say:

“Pinterest is an operator of a pinboard-style social media website that enables users to create theme-based image collections for events, hobbies, and other personal interests. The firm delivered another quarter of both earnings and forward guidance above investor expectations, sending shares higher. Strength was driven by notable user growth and a return of advertising spending. We remain excited about an increase in video content, new analytics tools for advertisers, and an increasing shift towards ecommerce.”

8. Squarespace, Inc. (NYSE:SQSP)

Sundheim's Stake Value: $47.8 million

Percentage of Daniel Sundheim's 13F Portfolio: 0.31%

Number of Hedge Fund Holders: 12

Squarespace, Inc. (NYSE:SQSP) is a leading American all-in-one company that specializes in website building and hosting. The company is mainly known for providing a software platform that enables individuals, as well as whole corporations, to build their brands. The New York-based company ranks eighth on the list of the 10 tech stocks billionaire Daniel Sundheim is buying.

On August 9, Squarespace, Inc. (NYSE:SQSP) posted its quarterly earnings report for the second quarter of 2021, with reported earnings per share coming in at $0.41, beating market estimates by $0.32. Additionally, the revenue for the quarter was reported to be $196.01 million, surpassing the predicted revenues by $7.32 million.

D1 Capital Partners currently holds over 804,621 shares of Squarespace, Inc. (NYSE:SQSP), worth $47.8 million and accounting for 0.31% of the fund's total portfolio value. At the end of the second quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $163.7 million within Squarespace, Inc. (NYSE:SQSP).

On July 19, BofA analyst Nat Schindler initiated coverage of Squarespace with a Buy rating and $73 price target, stating his belief in the upside drive of the stock.

Much like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and JD.com, Inc. (NYSE:JD), Squarespace, Inc. (NYSE:SQSP) has a notable position in Daniel Sundheim's portfolio.

7. Fortive Corporation (NYSE:FTV)

Sundheim's Stake Value: $80.2 million

Percentage of Daniel Sundheim's 13F Portfolio: 0.52%

Number of Hedge Fund Holders: 31

Fortive Corporation (NYSE:FTV) is an industrial technology conglomerate that designs, manufactures and markets engineered products as well as professional services. Ranked seventh on our list of the 10 tech stocks billionaire Daniel Sundheim is buying, the Washington-based company has a market capitalization of $25.42 billion.

Based on the latest 13F Filings, Daniel Sundheim owns 1.15 million shares of Fortive Corporation (NYSE:FTV), amounting to over $80.2 million in worth and accounting for 0.52% of the fund’s total investment portfolio. At the end of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth over $2.23 billion in Fortive Corporation (NYSE:FTV), up from 27 hedge funds in the previous quarter with stakes worth $1.69 billion.

The company issued its quarterly earnings report for the second quarter of 2021 on July 29, with earnings per share at $0.66, crossing estimates by $0.06. Additionally, the company generated revenues amounting to $1.32 billion, surpassing market predictions by $27.46 million.

On July 12, Wolfe Research analyst Nigel Coe upgraded Fortive Corporation (NYSE:FTV) to Outperform from Peer Perform with a price target of $84, up from $81.

Much like Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and JD.com, Inc. (NYSE:JD), Fortive Corporation (NYSE:FTV) has a notable position in Daniel Sundheim's portfolio.

6. CrowdStrike Holdings, Inc. (NYSE:CRWD)

Sundheim's Stake Value: $89.3 million

Percentage of Daniel Sundheim's 13F Portfolio: 0.58%

Number of Hedge Fund Holders: 66

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a California-based cybersecurity technology company that provides endpoint and cloud workload security solutions. The company is placed sixth on our list of the 10 tech stocks billionaire Daniel Sundheim is buying.

Daniel Sundheim's D1 Capital Partners currently holds 355,400 shares of CrowdStrike Holdings, Inc. (NYSE:CRWD), worth over $89.3 million and representing 0.58% of the fund’s portfolio value. At the end of the second quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $7.26 billion in CrowdStrike Holdings, Inc. (NYSE:CRWD), down from 77 hedge funds in the preceding quarter with stake worth $5.25 billion.

On September 1, BTIG analyst Gray Powell raised his price target on CrowdStrike Holdings, Inc. (NYSE:CRWD) to $313 from $302, and kept a Buy rating on the shares.

For the second quarter of 2021, CrowdStrike Holdings, Inc. (NYSE:CRWD) reported its EPS at $0.03, beating market estimates by $0.04. The company also reported revenues of $198.97 million, an increase of 84.05% on a year-over-year basis, surpassing estimates by $47.46 million.

In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and CrowdStrike Holdings, Inc. (NASDAQ: CRWD) was one of them. Here is what the fund said:

“CrowdStrike provides cloud-based software used in the security of computers, servers, and mobile phones. The stock pulled back a bit during the quarter as investor sentiment shifted away from stocks with higher valuation multiples. We remain shareholders, as the protection of enterprise assets and cloud workloads from various forms of cyberattacks remains more important than ever for many enterprises, and we believe this will continue to result in a strong demand environment for CrowdStrike’s innovative products and services.”

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Disclosure. None. Billionaire Daniel Sundheim is Buying These 10 Tech Stocks is originally published on Insider Monkey.