In this article, we will discuss 10 stocks to invest in according to Stephen White’s SW Investment based on Q2 holdings of the fund. If you want to skip our detailed analysis of White’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Invest In According to Stephen White’s SW Investment.
SW Investment Management was founded by Stephen White in 2016. White completed his MBA from the University of Chicago Graduate School of Business. White spent four years as a portfolio manager at RMB Capital. He was the managing partner of Castle Union LLC for three years before establishing SW Investment Management.
Some notable holdings of Stephen White’s SW Investment as of the end of the secondquarter include Amazon.com, Inc. (NASDAQ: AMZN) and Cloudflare, Inc. (NYSE: NET).
In Amazon.com, Inc. (NASDAQ: AMZN), Stephen White’s SW Investment owns 12,000 shares. JPMorgan analyst Doug Anmuth recently added Amazon (AMZN) in his “Best Ideas in 2021” list. He has an Overweight rating for the ecommerce giant.
Stephen White’s SW Investment also has a stake in Cloudflare, Inc. (NYSE: NET). The hedge fund owns 550,000 shares of the company, worth $58.21 million. On August 11, Cloudflare, Inc. (NYSE: NET) announced that it issued 0% senior unsecured notes due August 15, 2026, whose principal amount is $1.125 billion. Initial buyers were offered the option to acquire an additional $168.75 million worth of notes. Cloudflare plans to spend around $75 million of the net proceeds to cover the cost of the capped call transactions, with the rest going to general business purposes. On August 8, Argus analyst Joseph Bonner raised the price target on Cloudflare, Inc. (NYSE: NET) to $140 from $125 and kept a “Buy” rating on the shares.
Why should we pay attention to White’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 124 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 more than 115 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.
With this context in mind, here is our list of stocks to invest in according to Stephen White’s SW Investment. We used White’s 13F portfolio for the second quarter for this analysis.
Stocks to Invest In According to Stephen White’s SW Investment
White’s Stake Value: $370,000 Percentage of Stephen White’s 13F Portfolio: 0.14% Number of Hedge Fund Holders: 35
Stitch Fix, Inc. (NASDAQ: SFIX) provides clothes, shoes, and accessories through its website and mobile app. It was founded in 2011 and is placed tenth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. The company stock has offered investors more than 59.09% in returns over the course of the past 12 months.
On June 8, Canaccord analyst Maria Ripps raised the price target on Stitch Fix, Inc. (NASDAQ: SFIX) to $76 from $68 and kept a “Buy” rating on the shares.
SW Investment holds 15,000 Call options in Stitch Fix, Inc. (NASDAQ: SFIX), worth $370,000. This represents 0.14% of their portfolio. D E Shaw is a leading shareholder in Stitch Fix, Inc. (NASDAQ: SFIX), with 2.66 million shares worth more than $160 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Cloudflare, Inc. (NYSE: NET), and Sun Communities, Inc. (NYSE: SUI), Stitch Fix, Inc. (NASDAQ: SFIX) is one of the best stocks according to Stephen White’s SW Investment.
In its second-quarter 2021 investor letter RGA Investment Advisors LLC, mentionedStitch Fix, Inc. (NASDAQ: SFIX). Here is what the fund said:
“We purchased a new position–Stitch Fix–which is attacking this problem of abundance and the friction of shopping digitally head on with curation and personalization.
Your Own Personal Clothing Store
Stitch Fix is incredibly interesting. Founded by Katrina Lake in 2011, Stitch Fix turned apparel shopping into a delightfully personalized, subscription-based platform. The company collects numerous data points when onboarding a customer from the generics and quirks of each individual’s size and shape to tastes in designers, colors and styles. This empowers the company’s stylists to curate a “fix” with five clothing items on a periodic cadence (monthly, quarterly, semi-annually, etc.) of the customer’s choosing. A box arrives with its contents formerly unseen by the customer, with the constant being each item is already a known fit based on the size and shape of the customer’s body type and the trove of data Stitch Fix has on other “look alikes” across their customer base. Of the 5 items, a customer can keep all or none, but they must pay $20 irrespective of whether they keep anything. After reviewing the items, a customer can keep all items (for which they would get a 25% keep five discount) or return some items and checkout online to pay full price.…” (Click here to see the full text)
White’s Stake Value: $1,470,000 Percentage of Stephen White’s 13F Portfolio: 0.56% Number of Hedge Fund Holders: 7
NI Holdings, Inc. (NASDAQ: NODK) underwrites property and liability insurance products. The company was founded in 1946 and stands ninth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. NI Holdings, Inc. (NASDAQ: NODK) currently has a $411.02 million market capitalization.
On August 4, NI Holdings, Inc. (NASDAQ: NODK) released earnings for the second quarter of 2021. It reported net loss of $2.644 million (-$0.12 per share), compared to a net income of $18.733 million ($0.86 per share) in the prior-year quarter.
The hedge fund chaired by Stephen White holds 77,376 shares in NI Holdings, Inc. (NASDAQ: NODK), worth $1.47 million. Michael Price’s MFP Investors is the most significant shareholder in NI Holdings, Inc. (NASDAQ: NODK), with 528,791 shares worth more than $10 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Cloudflare, Inc. (NYSE: NET), and Sun Communities, Inc. (NYSE: SUI), NI Holdings, Inc. (NASDAQ: NODK) is one of the best stocks according to Stephen White’s SW Investment.
White’s Stake Value: $13,712,000 Percentage of Stephen White’s 13F Portfolio: 5.24% Number of Hedge Fund Holders: 30
Sun Communities, Inc. (NYSE: SUI) invests in manufactured housing communities, RV resorts, and marinas. The company was founded in 1975 and ranks eighth on the list of 10 stocks to invest in according to Stephen White’s SW Investment. Sun Communities, Inc. (NYSE: SUI) currently has a $22.86 billion market capitalization, and was able to deliver a 36.52% return in the past 12 months.
On July 26, Sun Communities, Inc. (NYSE: SUI) announced earnings for the second quarter of 2021. The company declared funds from operations(FFO) of $1.80, beating the estimates by $0.19. In addition, the revenue over the period was $603.86 million, up 99.1% YoY, beatingthe predictions by $152.39 million. On June 3, Michael Goldsmith initiated coverage on Sun Communities, Inc. (NYSE: SUI) with a “Buy” rating and gave a $190 price target.
SW Investment holds 80,000 shares in Sun Communities, Inc. (NYSE: SUI), worth over $13 million, representing 5.24% of its portfolio. Sun Communities, Inc. (NYSE: SUI) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 30 at the end of the second quarter compared to 35 positions in the previous quarter.
7. Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC)
White’s Stake Value: $14,688,000 Percentage of Stephen White’s 13F Portfolio: 5.61% Number of Hedge Fund Holders: 29
Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) produces tools and equipment for assembling semiconductors. The company was founded in 1951 and is placed seventh on the list of 10 stocks to invest in according to Stephen White’s SW Investment.
On August 6, Craig-Hallum analyst Christian Schwab raised the price target on Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) to $88 from $64 and kept a “Buy” rating on the shares. On August 4, Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) announced its earnings for the second quarter of 2021. Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) posted earnings per share of $1.87, beating the estimates by $0.51. Furthermore, the revenue over the period was $424.3 million, up 182.1% YoY, surpassing the forecast by $24.36 million.
Stephen White’s SW Investment currently holds 240,000 shares of Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) that amounts to $14.69 million. Kulicke occupies 5.61% of SW Investment’s total portfolio. Royce & Associates is a leading shareholder in Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC), with 2.80 million shares worth more than $171 million.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Cloudflare, Inc. (NYSE: NET), and Sun Communities, Inc. (NYSE: SUI), Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) is one of the best stocks according to Stephen White’s SW Investment.
White’s Stake Value: $19,552,000 Percentage of Stephen White’s 13F Portfolio: 7.47% Number of Hedge Fund Holders: 39
The AES Corporation (NYSE: AES) is a utility firm with a diverse portfolio. It was incorporated in 1981 and is ranked sixth on the list of 10 stocks to invest in according to Stephen White’s SW Investment.
On August 6, Wolfe Research analyst Steve Fleishman upgraded The AES Corporation (NYSE: AES) to “Outperform” from “Peer Perform” with a $29 price target. On August 5, The AES Corporation (NYSE: AES) posted earnings results for the second quarter of 2021. The earnings per share was $0.31, missing the estimates by $0.13. In addition, the revenue over the period was $2.7 billion, up 21.6% YoY, surpassing the predictions by $180 million.
The hedge fund managed by Stephen White holds 750,000 shares in The AES Corporation (NYSE: AES), worth over $19 million, representing 7.47% of their portfolio. In the second quarter of 2021, 39 hedge funds in Insider Monkey’s database of 873 funds held stakes in The AES Corporation (NYSE: AES) compared to 51 funds in the quarter earlier.
Just like Amazon.com, Inc. (NASDAQ: AMZN), Cloudflare, Inc. (NYSE: NET), and Sun Communities, Inc. (NYSE: SUI), The AES Corporation (NYSE: AES) is one of the best stocks according to Stephen White’s SW Investment.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
