Eric Bannasch’s Cadian Capital Portfolio: 10 Biggest Stock Picks

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In this article, we discuss the 10 biggest stock picks in Eric Bannasch’s portfolio. If you want to skip our detailed analysis of Bannasch’s history, investment philosophy, and hedge fund performance, go directly to Eric Bannasch Portfolio: 5 Biggest Stock Picks.

Serving as its portfolio manager, Eric Bannasch is the founder of the New York-based global long/short investment management firm, Cadian Capital. Prior to founding his hedge fund, he served as senior manager at Cisco Systems for two years, before moving on to join Richard Perry’s Perry Capital as a portfolio manager. He left the firm in 2007 to establish Cadian Capital, an investment firm that focuses on the Technology, Media, and Telecommunications sectors. Bannasch holds a B.S and M.S in Industrial Engineering from Stanford University, and an M.B.A from the Stanford University Graduate School of Business.

Employing a value-oriented long term value approach when investing in small and mid-cap companies, Cadian Capital, as an investment management firm, manages over $2.25 billion in its investment portfolio. Currently, the fund’s heaviest sector is Technology, making up 54.8% of the total portfolio value.

Eric Bannasch’s Cadian Capital owns stocks in several well-known companies as of the end of the second quarter of 2021, including Meta Platforms, Inc (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), DoorDash, Inc. (NYSE:DASH) and Uber Technologies, Inc. (NYSE:UBER).

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Our Methodology

Let us now examine the 10 biggest stock picks in Eric Bannasch’s portfolio. For this article, we analyzed the top stocks in Cadian Capital’s 13F portfolio as of the end of the second quarter.

Eric Bannasch Portfolio: 10 Biggest Stock Picks

10. Etsy, Inc. (NASDAQ:ETSY)

Cadian Capital’s Stake Value: $86.2 million

Percentage of Cadian Capital’s 13F Portfolio: 3.82%

Number of Hedge Fund Holders: 47

Starting off our list of the 10 biggest stock picks in Eric Bannasch’s portfolio, Etsy, Inc. (NASDAQ:ETSY) is an e-commerce company focused on handmade or vintage items and craft supplies.

Based on Eric Bannasch’s 13F filings for the second quarter of 2021, his hedge fund owned 418,993 shares in Etsy, Inc. (NASDAQ:ETSY) worth $86.2 million, representing 3.82% of the fund’s total holdings value.

On October 25, Wedbush analyst Ygal Arounian raised the price target on Etsy, Inc. (NASDAQ:ETSY) to $264 from $195, and kept an Outperform rating on the shares of the company.

At the end of the second quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.73 billion in Etsy, Inc. (NASDAQ:ETSY), down from 53 in the previous quarter worth $1.64 billion.

Just like Meta Platforms, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), DoorDash, Inc. (NYSE:DASH) and Uber Technologies, Inc. (NYSE:UBER), Etsy, Inc. (NASDAQ:ETSY) is a notable stock to invest in.

In its Q1 2021 investor letter, Polen Capital mentioned Etsy, Inc. (NASDAQ:ETSY), and shared their insights on the company. Here is what the fund said:

Etsy continued to be a top contributor in the Portfolio during the first quarter. Etsy experienced record levels of demand in 2020. Throughout the beginning of this year, the business has continued to see accelerated growth trends. The company’s recently announced fourth-quarter results provided numerous data points that highlight Etsy’s success in both broadening and deepening the relationship it has with buyers and sellers on its platform. In fact, Etsy now stands as the fourth largest e-commerce site in the U.S. Repeat buyers have grown nearly 100% year-over-year, despite mask sales, which grew rapidly at the onset of the pandemic, shrinking to less than 5% of sales.

9. Alphabet Inc. (NASDAQ:GOOG)

Cadian Capital’s Stake Value: $87.9 million

Percentage of Cadian Capital’s 13F Portfolio: 3.9%

Number of Hedge Fund Holders: 155

Multinational parent company of Google, Alphabet Inc. (NASDAQ:GOOG) earned $27.99 a share in the third quarter, while its revenue jumped 41% from a year ago to $65.12 billion. The company grew by 72.71% year-to-date.

Despite a slight decline in the number of hedge funds having stakes in the company in the second quarter, the stock remains one of the most popular amongst institutional investors. At the end of June, 155 funds out of the 873 tracked by Insider Monkey had stakes in the company, compared to 159 in the previous quarter

On October 12, JPMorgan analyst Doug Anmuth maintained an Overweight rating on Alphabet Inc. (NASDAQ:GOOG) with a $3,250 price target, noting that the company was the most liked mega-cap internet stock.

According to our database, Eric Bannasch’s Cadian Capital holds 36,004 shares in Alphabet Inc. (NASDAQ:GOOG) as of Q2 2021. These shares are valued at $87.9 million and represent 3.9% of the investment firm’s portfolio value.

Alger, in its Q3 2021 investor letter, mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund had to say:

Alphabet Inc. was among the top contributors to performance during the third quarter. Alphabet is a leading internet search provider and is a beneficiary in the share shift of advertising dollars from traditional mediums like television, radio and newspapers to digital platforms. The company is a leader in implementing Al, autonomous vehicles and cloud computing it and owns the highly trafficked YouTube property. Alphabet contributed to performance due to a strong quarterly report highlighted by revenue growth that beat consensus expectations across segments. The company’s core search revenues have increased 10% over the past two years, with cloud computing increasing 8%. Results from YouTube also exceeded expectations. When discussing quarterly results, Alphabet management said retail, entertainment and travel were end markets that were particularly strong. The fixed cost structure of Alphabet’s search service resulted in profitability resulting from the increase in revenues being better than expected.”

8. Bookings Holdings Inc. (NASDAQ:BKNG)

Cadian Capital’s Stake Value: $93 million

Percentage of Cadian Capital’s 13F Portfolio: 4.13%

Number of Hedge Fund Holders: 100

Booking Holdings Inc. (NASDAQ:BKNG) is an online travel firm that offers hotels, bed and breakfasts, hostels, apartments, vacation rentals, and other types of lodgings. The company’s stock has returned over 42% to investors in the past year as travel restrictions have been eased.

On October 12, Cowen analyst Kevin Kopelman raised his price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2950 from $2700, and maintained an Outperform rating on the shares.

Eric Bannasch’s Cadian Capital ended the second quarter with 42,514 shares of the company, worth more than $93 million.

Ensemble Capital, an investment management firm, in its third-quarter 2021 investor letter mentioned Booking Holdings Inc. (NASDAQ:BKNG). Here is what the fund said:

“Booking : On the March 20, 2020 conference call we referenced at the beginning of this letter, we discussed our assessment of online travel agent Booking Holdings during the initial phase of the pandemic. At that time, we explained why we continued to hold a position in the company. We highlighted that while we fully expected demand to collapse and be slow to recover, our analysis indicated that they were very well positioned to survive the pandemic even if it lasted much longer than expected. And we said that companies that survived the pandemic would be well positioned to thrive on the other side

The key for us to holding the stock was our belief that traveling is hardwired into human DNA. While we could not know how long the pandemic would last, we were certain that when it was once again safe to travel, business would boom once again.

Today, more than 18 months later, travel has come roaring back despite the pandemic still not having come to an end. There continues to be significant barriers to travel, such as severe restrictions on international travel and the general health concerns of travelers. But in areas where people are allowed to

travel, such as domestically within the United States, leisure travel has boomed…” (Click here to see the full text)

7. Blueprint Medicines Corporation (NASDAQ:BPMC)

Cadian Capital’s Stake Value: $116.2 million

Percentage of Cadian Capital’s 13F Portfolio: 5.16%

Number of Hedge Fund Holders: 36

Blueprint Medicines Corporation (NASDAQ:BPMC) is a pharmaceutical company that focuses on the development of treatments for various types of cancer.

On September 29, Stifel analyst Bradley Canino resumed coverage of Blueprint Medicines Corporation (NASDAQ:BPMC) with a Hold rating and $105 price target.

Eric Bannasch’s hedge fund currently holds over 1.3 million shares in Blueprint Medicines Corporation (NASDAQ:BPMC), amounting to more than $116.2 million in worth and accounting for 5.16% of his fund’s investment portfolio. Of the 873 elite funds being tracked by Insider Monkey, 36 held stakes in the company at the end of the second quarter of 2021.

Besides Meta Platforms, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), DoorDash, Inc. (NYSE:DASH) and Uber Technologies, Inc. (NYSE:UBER), Blueprint Medicines Corporation (NASDAQ:BPMC) is a stock investors should pay attention to.

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

Cadian Capital’s Stake Value: $117.1 million

Percentage of Cadian Capital’s 13F Portfolio: 5.19%

Number of Hedge Fund Holders: 266

According to our database, 266 hedge funds held stakes worth $42 billion in Meta Platforms, Inc. (NASDAQ:FB) at the end of the second quarter of 2021, up from 257 hedge funds in the previous quarter with stakes worth more than $40.9 billion. As of Q2 2021, Cadian Capital holds 336,802 shares in Meta Platforms, Inc. (NASDAQ:FB). These shares are valued at $117.1 million and account for 5.19% of the investment firm’s portfolio value.

With roughly 2.89 billion monthly active users (MAUs) as of Q2 2021, Meta Platforms, Inc. (NASDAQ:FB) is the largest social networking website. The company reported a revenue of $29 billion, growing by 35% on a year-over-year basis.

On October 7, JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Facebook, Inc. (NASDAQ:FB) alongside a $450 price target on the company’s shares.

First Eagle Investment Management, an investment management firm, in its Q2 2021 investor letter, mentioned Meta Platforms, Inc. (NASDAQ:FB). Here is what the fund said:

“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”

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Disclosure: None. Eric Bannasch Portfolio: 10 Biggest Stock Picks is originally published on Insider Monkey.