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Top Tech Stock Picks of Amir Mokari’s Emerson Point Capital

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·9 min read
In this article:
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  • ADBE
  • INTU
  • AMZN
  • OKTA
  • ABNB
  • SQ
  • MSFT
  • PYPL
  • BILL

In this article, we discuss the top tech stock picks of Amir Mokari's Emerson Point Capital. You can skip our detailed analysis of the topic, and go directly to read the Top 5 Tech Stock Picks of Amir Mokari's Emerson Point Capital.

Amir Mokari is the founder and the portfolio manager of Emerson Point Capital (EPC), a Washington-based hedge fund which he founded in 2017. He graduated from Duke University in 2005 with an Economics degree. Before starting his investment career at EPC, Mokari was a partner and Managing Director at Conatus Capital, an equity hedge fund, where he worked for seven years. EPC mainly focuses on investing in public equities and incorporates real-time data analytics into risk management sources. Moreover, the firm aims to generate returns that outperform the market.

Hedge funds have been taking interest in technology stocks since the dot-com bubble. According to a paper published by The Journal of Finance, hedge funds were heavily invested in expensive tech stocks from 1998 to 2000, as this investment helped them generate an average quarterly return of 4.5%. This inclination toward tech stocks was again seen in 2020 as tech companies benefitted massively from the Covid-related lockdowns. The tech-heavy NASDAQ gained 43.6% in 2020, outperforming a 16% return of the S&P 500 index during the same period, as reported by The Washington Post.

As of Q3, Emerson Point Capital’s portfolio value stands at $665.7 million. The hedge fund invests in technology, services, and consumer goods. In this article, we will focus on the top tech stock picks of Amir Mokari’s Emerson Point Capital. Some of the notable tech stocks in his portfolio include Airbnb, Inc. (NASDAQ:ABNB), Square, Inc. (NYSE:SQ), PayPal Holdings, Inc. (NASDAQ:PYPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).

Our Methodology:

Let’s analyze our list of the top tech picks of Amir Mokari's Emerson Point Capital. The stocks were picked from Emerson Point Capital's 13F portfolio as of Q3 and are ranked according to their position in the portfolio. Along with this, we also took into account hedge fund sentiment for each stock using the data of 867 hedge funds tracked by Insider Monkey.

Top Tech Stock Picks of Amir Mokari's Emerson Point Capital

10. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 64

Intuit Inc. (NASDAQ:INTU) is an American technology company that creates financial software for small businesses as well as individual consumers. As of Q3, Emerson Point Capital owns $4.6 million worth of shares in the company, which represents 0.69% of the hedge fund’s 13F portfolio.

On November 9, Intuit Inc. (NASDAQ:INTU) gained 12% as Goldman Sachs upgraded the stock to Buy while uplifting its price target to $840. In the past year, the stock delivered a 95.4% return to shareholders. In fiscal Q1 2022, Intuit Inc. (NASDAQ:INTU) posted an EPS of $1.53, beating the estimates by $0.56.

At the end of Q3 2021, 64 hedge funds tracked by Insider Monkey reported owning stakes in Intuit Inc. (NASDAQ:INTU), down from 66 in the previous quarter. These stakes are valued at over $6.15 billion, compared with $5.3 billion in the previous quarter. Fundsmith LLP was the largest shareholder of Intuit Inc. (NASDAQ:INTU) in Q3, owning shares worth $2.47 billion.

Like Airbnb, Inc. (NASDAQ:ABNB), Square, Inc. (NYSE:SQ), PayPal Holdings, Inc. (NASDAQ:PYPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), Intuit Inc. (NASDAQ:INTU) is gaining investors’ attention in 2021.

Cooper Investors mentioned Intuit Inc. (NASDAQ:INTU) in its Q3 2021 investor letter. Here is what the firm has to say:

“The other meaningful deal during the quarter was Intuit’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.

Management have executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”

9. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 95

As of Q3, Insider Monkey’s data shows that hedge fund interest is increasing in Adobe Inc. (NASDAQ:ADBE), an American computer software and technology company. By the end of Q3, 95 hedge funds tracked by Insider Monkey were bullish on the company, up from 89 in the previous quarter. These stakes are valued at $12.6 billion.

Emerson Point Capital owns 8,282 shares in Adobe Inc. (NASDAQ:ADBE), valued at roughly $4.8 million in Q3. The company accounts for 0.71% of the hedge fund’s 13F portfolio. Ken Fisher’s Fisher Asset Management was the leading shareholder of Adobe Inc. (NASDAQ:ADBE) in the third quarter, owning $3.7 billion worth of shares.

Recently, Atlantic Equities noted the strong position of Adobe Inc. (NASDAQ:ADBE) in the Creative Cloud business and upgraded the stock to Overweight, with an $820 price target. In Q3, the company posted an EPS of $3.11, beating the estimates by $0.09. In the past year, Adobe Inc. (NASDAQ:ADBE) gained 47.8%.

Richie Capital Group mentioned Adobe Inc. (NASDAQ:ADBE) in its second-quarter 2021 investor letter. Here is what the firm has to say:

“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”

8. Okta, Inc. (NASDAQ:OKTA)

Number of Hedge Fund Holders: 62

Okta, Inc. (NASDAQ:OKTA) is an American technology and software company that specializes in identity and access management. As of Q3, Emerson Point Capital holds 55,551 shares in the company, worth $13.1 million. Okta, Inc. (NASDAQ:OKTA) represents 1.98% of the hedge fund’s 13F portfolio.

Recently, DA Davidson initiated its coverage on Okta, Inc. (NASDAQ:OKTA) with a Buy rating and a $315 price target. The firm’s analyst appreciated the company’s cloud workforce identity and expects over 35% growth in its revenue through fiscal 2026.

As of Q3, 62 hedge funds tracked by Insider Monkey were bullish on Okta, Inc. (NASDAQ:OKTA), valued at $2.26 billion. In the previous quarter, 57 hedge funds held stakes in the company, highlighting a positive hedge fund sentiment.

Lakehouse Capital mentioned Okta, Inc. (NASDAQ:OKTA) in its Q2 2021 investor letter. Here is what the firm has to say:

“The Fund held 20 positions as of the end of June and exited four during the year (including) Okta. The companies we exited were sold almost entirely on the basis of their valuations getting stretched well past their norms and to levels where the return profile no longer offered the asymmetric upside that led us to invest in the first place. We dislike selling on valuation as great growth companies are hard to find and letting winners run is an important facet of a winning growth strategy, however, we’re not gluttons for punishment either and in each of those cases we redeployed capital towards other high-quality growth companies with less demanding valuations.”

7. Bill.com Holdings, Inc. (NYSE:BILL)

Number of Hedge Fund Holders: 65

Bill.com Holdings, Inc. (NYSE:BILL) is a cloud-based payments company that facilitates its users by offering online business payment solutions. On November 4, the stock surged 14% in pre-market trading as the company reported strong Q3 results, with revenue standing at $116.4 million, presenting a 151.9% year-over-year growth.

Insider Monkey’s data for the third quarter shows that the smart money is also taking interest in Bill.com Holdings, Inc. (NYSE:BILL), as 65 hedge funds tracked by Insider Monkey were bullish on the company, up from 53 in the previous quarter. The total value of these stakes is $4.28 billion, up significantly from $2.76 billion in Q2. Among these hedge funds, Whale Rock Capital Management was the leading shareholder of Bill.com Holdings, Inc. (NYSE:BILL) in Q3, owning over 3.5 million shares.

As of Q3, Emerson Point Capital holds stakes worth $13.2 million in Bill.com Holdings, Inc. (NYSE:BILL), which represents 1.98% of the hedge fund’s 13F portfolio. After the company’s strong Q3 earnings, Canaccord lifted its price target on Bill.com Holdings, Inc. (NYSE:BILL) to $366, with a Buy rating on the shares.

6. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 242

Recently, Guggenheim showed confidence in nearly all business segments of Amazon.com, Inc. (NASDAQ:AMZN) as consumer spending is returning to normal after the pandemic. The firm initiated its coverage on the stock with a Buy rating and a $4,300 price target.

Emerson Point Capital owns an $18.1 million worth of stake in Amazon.com, Inc. (NASDAQ:AMZN) as of Q3. The company accounts for 2.72% of the hedge fund’s 13F portfolio. For Q3 2021, the revenue of Amazon.com, Inc. (NASDAQ:AMZN) experienced a 15.3% year-over-year growth at $110.8 billion.

As of Insider Monkey’s Q3 data, 242 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN), down from 271 in the previous quarter. The total value of these stakes is over $42.5 billion. Fisher Asset Management was one of the leading shareholders of Amazon.com, Inc. (NASDAQ:AMZN) in Q3, holding shares worth $6.3 billion.

Amazon.com, Inc. (NASDAQ:AMZN) is also favored by investors and analysts like Airbnb, Inc. (NASDAQ:ABNB), Square, Inc. (NYSE:SQ), PayPal Holdings, Inc. (NASDAQ:PYPL), and Microsoft Corporation (NASDAQ:MSFT).

Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter. Here is what the firm has to say:

Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”

 

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Disclosure. None. Top Tech Stock Picks of Amir Mokari's Emerson Point Capital is originally published on Insider Monkey.