October 6, 2022

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10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital

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In this article, we discuss 10 best stocks to buy now according to billionaire Nicholas Pritzker’s Tao Capital. If you want to see some more favorite stocks of the billionaire, click 5 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.

Nicholas Pritzker is an American entrepreneur and hedge fund manager who co-founded Tao Capital, a California-based hedge fund that actively invests in companies throughout various stages of their life-cycles. Tao Capital aims to deliver a positive impact with its investments, and its portfolio holds companies from the transportation, energy, technology, healthcare, sustainable food and agriculture, and real estate sectors.

Nicholas Pritzker has a solid history of working in the real estate industry, and he spent a significant amount of time leading the Chicago-based Hyatt Hotels Corporation as its president. He served as a board member of the company from 1980 to 2007. He has also been on the board of JUUL Labs, an e-cigarette company, since 2017.

Tao Capital has a concentrated portfolio with 15 securities and the top ten holdings comprising 94.97% of the total 13F investments. The portfolio is valued at $327.28 million, and the hedge fund’s top buys in Q4 2021 were IonQ, Inc. (NYSE:IONQ), Bird Global, Inc. (NYSE:BRDS), and Luminar Technologies, Inc. (NASDAQ:LAZR). Tao Capital completely sold out of Denali Therapeutics Inc. (NASDAQ:DNLI) and Sensei Biotherapeutics, Inc. (NASDAQ:SNSE).

The most notable stocks in the Q4 portfolio of Nicholas Pritzker’s Tao Capital include Hyatt Hotels Corporation (NYSE:H), Tesla, Inc. (NASDAQ:TSLA), and Uber Technologies, Inc. (NYSE:UBER), among others discussed in detail below.

Our Methodology

We used the fourth quarter portfolio of Nicholas Pritzker’s Tao Capital for this analysis, ranking the list according to the hedge fund’s stake value in each holding.

Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital

10. Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL)

Tao Capital’s Stake Value: $6,581,000

Percentage of Tao Capital’s 13F Portfolio: 2.01%

Number of Hedge Fund Holders: 22

Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a Pennsylvania-based clinical stage biopharmaceutical company that develops treatments for cardiovascular, metabolic, and liver diseases.

Nicholas Pritzker’s Tao Capital owns 77,657 shares of Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) as of Q4 2021, worth $6.5 million, representing 2.01% of the fund’s total portfolio. Tao Capital increased its stake in the company by 52% in the fourth quarter.

On February 25, H.C. Wainwright analyst Ed Arce reiterated his Buy rating and unchanged $170 price target on Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) shares. This came in light of the company announcing that its 52-week top-line results from the Phase 3 MAESTRO-NASH trial for treating liver diseases are now expected in Q4, based on “more conservative timeline assumptions for analysis of biopsies and other data from the trial.” Assuming positive data, the analyst expects an NDA submission in the first quarter of 2023, FDA approval for NASH in the first quarter of 2024, and a commercial launch in the United States in the first half of 2024.

Among the hedge funds tracked by Insider Monkey, 22 funds were bullish on Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) at the end of December 2021, compared to 17 funds in the prior quarter. The total stakes held in Q4 amounted to $449.2 million.

In addition to Hyatt Hotels Corporation (NYSE:H), Tesla, Inc. (NASDAQ:TSLA), and Uber Technologies, Inc. (NYSE:UBER), Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) is a notable stock to invest in according to billionaire Nicholas Pritzker.

9. Hyatt Hotels Corporation (NYSE:H)

Tao Capital’s Stake Value: $6,713,000

Percentage of Tao Capital’s 13F Portfolio: 2.05%

Number of Hedge Fund Holders: 38

Hyatt Hotels Corporation (NYSE:H) was founded in 1957 and is headquartered in Chicago, Illinois. It operates as a worldwide hospitality company, owning hotels and resorts under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt Resorts, and Secrets Resorts & Spas brands, among others.

In the fourth quarter of 2021, Tao Capital held 70,000 Hyatt Hotels Corporation (NYSE:H) shares, worth $6.7 million, representing 2.05% of the total 13F portfolio. The stock has featured on Nicholas Pritzker’s portfolio since the fourth quarter of 2019.

In 2021, Hyatt Hotels Corporation (NYSE:H)’s full-year revenue stood at $1.4 billion, up from $780 million in the previous year. The net loss in 2021 came in at $222 million, a solid rebound from the $703 million loss in 2020.

On March 23, Truist analyst Patrick Scholes maintained a Buy recommendation on Hyatt Hotels Corporation (NYSE:H) and raised the firm’s price target on the shares to $111 from $106. The analyst stated that the acquisition of the Apple Leisure Group and the planned dispositions worth $2 billion are a “game changer” in how he values Hyatt Hotels Corporation (NYSE:H). The company is set on a path for diversified global growth, and the analyst noted that investor sentiment on Hyatt Hotels Corporation (NYSE:H) could become more positive.

According to Insider Monkey’s Q4 data, 38 hedge funds were bullish on Hyatt Hotels Corporation (NYSE:H), with combined stakes of $1.30 billion, compared to 37 funds in the previous quarter, holding stakes in Hyatt Hotels Corporation (NYSE:H) worth $1 billion. Gabriel Plotkin’s Melvin Capital Management is the biggest position holder in the company, with 4.95 million shares valued at $474.70 million.

Here is what Baron Partners Fund has to say about Hyatt Hotels Corporation (NYSE:H) in its Q4 2021 investor letter:

“Higher inflation made many of the Fund’s investments in Real/Irreplaceable Assets more valuable. Hyatt Hotels Corp. has used its strong financial positioning to acquire assets in the faster growing leisure travel segment. It has also divested assets at favorable prices while retaining lucrative management contracts.

Shares of global hotelier Hyatt Hotels Corp. increased as the company continued to pivot towards a more asset-light business and greater focus on leisure with the acquisition of Apple Leisure Group. The acquisition increases the company’s leisure exposure from 25% to 50% of its business. Together with the planned sale of $2 billion of owned real estate over the next two years, this acquisition should result in a business that is 80% fee-based and 20% owned-based. Hyatt plans to use proceeds from the sale of owned assets to pay down debt incurred to complete the acquisition.”

8. Benson Hill, Inc. (NYSE:BHIL)

Tao Capital’s Stake Value: $12,938,000

Percentage of Tao Capital’s 13F Portfolio: 3.95%

Number of Hedge Fund Holders: 23

Benson Hill, Inc. (NYSE:BHIL) is a Missouri-based food technology company that studies and improves the natural genetic diversity of plants. The company uses artificial intelligence to optimize crop yields for food, ingredients, and feed products. Tao Capital owns 1.77 million shares of Benson Hill, Inc. (NYSE:BHIL), worth roughly $13 million, representing 3.95% of the total fourth quarter securities.

Benson Hill, Inc. (NYSE:BHIL) reported financial results for the December quarter on March 28, posting a loss per share of $0.32, missing estimates by $0.08. The Q4 revenue of $43.72 million outperformed market consensus by $2.33 million.

On March 29, Barclays analyst Benjamin Theurer kept an Overweight rating on Benson Hill, Inc. (NYSE:BHIL) but lowered the firm’s price target on the stock to $8 from $10. The analyst noted that Benson Hill, Inc. (NYSE:BHIL) announced strong fiscal 2021 results but its adjusted EBITDA loss was slightly higher than expected. He still sees upside to profits in 2022 and looks forward to the detailed guidance for revenue growth contribution.

Benson Hill, Inc. (NYSE:BHIL) announced its strategic alliance with Denofa on April 5. The companies will distribute sustainable non-GMO soy protein ingredients to the Northern European aquaculture feed market to enhance yields.

According to Insider Monkey’s Q4 data, 23 hedge funds placed long calls on Benson Hill, Inc. (NYSE:BHIL), compared to 26 funds in the prior quarter. The total stakes owned in the fourth quarter amounted to $27.6 million.

7. 908 Devices Inc. (NASDAQ:MASS)

Tao Capital’s Stake Value: $14,720,000

Percentage of Tao Capital’s 13F Portfolio: 4.49%

Number of Hedge Fund Holders: 12

908 Devices Inc. (NASDAQ:MASS) is a Massachusetts-based technology company that designs and develops solutions for life sciences research, industrial biotech, and forensics applications. According to securities filings from Q4 2021, Nicholas Pritzker’s Tao Capital owns 568,981 shares of 908 Devices Inc. (NASDAQ:MASS), worth $14.72 million, representing 4.49% of the total 13F portfolio.

On March 7, 908 Devices Inc. (NASDAQ:MASS) reported its Q4 results, announcing a loss per share of $0.12, beating market consensus by $0.06. Revenue for the period climbed 177% year-over-year to $15.84 million, topping analysts’ predictions by $716,000.

Among the hedge funds tracked by Insider Monkey, 12 funds held long positions in 908 Devices Inc. (NASDAQ:MASS) at the end of December 2021, compared to 8 funds in the last quarter. Cathie Wood’s ARK Investment Management owned the leading position in 908 Devices Inc. (NASDAQ:MASS), with approximately 3 million shares worth $77.5 million.

6. ironSource Ltd. (NYSE:IS)

Tao Capital’s Stake Value: $28,673,000

Percentage of Tao Capital’s 13F Portfolio: 8.76%

Number of Hedge Fund Holders: 24

ironSource Ltd. (NYSE:IS) is an Israeli company that allows app developers to launch, monetize, and scale their applications and video games by offering tech solutions for app discovery, clientele growth, monetization, data analytics, and publishing. Tao Capital owned 3.70 million ironSource Ltd. (NYSE:IS) shares in Q4 2021, worth $28.6 million, representing 8.76% of the 13F portfolio.

On March 17, Wedbush analyst Michael Pachter added ironSource Ltd. (NYSE:IS) to the firm’s Best Ideas List, and reiterated an Outperform rating and a price target of $13 on the shares. The analyst cited valuation, stating that the current share price offers a compelling entry point owing to the recent broader technology selloff. There are multiple potential long-term tailwinds that should benefit ironSource Ltd. (NYSE:IS) and its shareholders.

The company reported its Q4 results on February 16, posting earnings per share of $0.05, beating consensus estimates by $0.01. The fourth quarter revenue of $158.27 million also outperformed market estimates by $13.64 million.

According to Insider Monkey’s fourth quarter database, 24 hedge funds placed long calls on ironSource Ltd. (NYSE:IS), compared to 29 funds in the previous quarter. Chase Coleman’s Tiger Global Management held the leading stake in ironSource Ltd. (NYSE:IS), with 20.5 million shares worth $158.6 million.

Just like Hyatt Hotels Corporation (NYSE:H), Tesla, Inc. (NASDAQ:TSLA), and Uber Technologies, Inc. (NYSE:UBER), ironSource Ltd. (NYSE:IS) is one of the top stocks to buy according to Nicholas Pritzker’s Tao Capital.

Click to continue reading and see 5 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital.

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Disclosure: None. 10 Best Stocks to Buy Now According to Billionaire Nicholas Pritzker’s Tao Capital is originally published on Insider Monkey.