In this article, we present Chet Kapoor’s list of Tenzing Global Investors’ Top 10 Stocks for 2022. You can skip our in-depth analysis of Tenzing Global Investors’ hedge fund history, investment philosophy and performance and go straight to Top 5 stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors.
Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:RVRF) and Zoom Video Communications, Inc. (NASDAQ:ZM) are among Tenzing Global’s largest former investments, as the fund has previously shown strong interest in social media and work-related online stocks.
At Chet Kapoor’s Tenzing Global Investors is a San Francisco-based investment adviser that was co-founded in 2011 by Mr. Kapoor, who previously worked at Blum Capital and Credit Suisse First Boston. Mr. Kapoor holds a BS and BA from Rice University and an MBA from Stanford.
Tenzing Global aims to deliver superior risk-adjusted returns to its clients by building a concentrated portfolio of only its best long ideas. Unlike a traditional hedge fund, Tenzing only uses short positions as a way to generate alpha for its clients rather than as a hedge against its other holdings.
Since its inception in January 2012, Tenzing Global Investors Fund I LP has been a strong performer, delivering a compound annual return of 11.42% through April 2020. The fund really started to take off before the coronavirus outbreak. , posting double-digit wins each. between 2016 and 2019, including gains of 32.75% in 2017. Tenzing Global had nearly $456 million in assets under management as of March 30, 2021.
Tenzing Global had just 13 long positions in its 13F portfolio as of September 30, 2021, although that figure is up from just 9 a quarter earlier as Tenzing initiated several new positions during the quarter. Its 13F portfolio was valued at just under $296 million at the end of the third quarter and was heavily weighted to industrials, telecommunications and consumer discretionary stocks. We’ll take a look at the fund manager’s top 10 stock picks in this article.
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Now, let’s look at the 10 best stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors. Note that all hedge fund data is based on the exclusive group of over 800 funds tracked by Insider Monkey as part of our market-beating investing strategy.
Top 10 stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors
10. 2U Inc (NASDAQ:OF THEM)
The second part of our list of Tenzing Global’s top stock picks for 2022 begins with 2U Inc (NASDAQ: TWOU), which the investment adviser has held since the second quarter of 2020. Tenzing held 300,000 TWOU shares as of September 30, selling a total net of 180,000 shares during the quarter.
A die 5 online education stocks to buy, 2U Inc (NASDAQ: TWOU) was owned by 23 of the hedge funds tracked by Insider Monkey as of September 30, up from 29 a year earlier. In its Q3 2021 letter to investors, Artisan Partners’ Artisan Small Cap Fund praised the company’s impressive customer base, which includes Yale, Harvard and Columbia, and praised its acquisition of the edX learning platform. The fund believes that 2U Inc (NASDAQ: TWOU) is well positioned as a market leader to capitalize on the campus-to-online trend in the $2.2 trillion higher education market, a trend which he believes will only intensify in the years to come. as online learning certificates become more widely accepted.
9. Overstock.com, Inc. (NASDAQ:OSTK)
Online retailer Overstock.com, Inc. (NASDAQ:OSTK) was another new addition to Tenzing Global’s 13F portfolio in the third quarter and ranks ninth on that list after the company bought 50,000 shares valued at a just under $3.9 million as of September 30.
Tenzing is far from the only fund manager to recently take an interest in Overstock.com, Inc. (NASDAQ:OSTK) as there has been a fourfold increase in hedge fund ownership of the stock since the end of the first quarter of 2020. Overstock stocks gained more than 2000% between March and August 2020, but have fallen sharply in recent months due to lower consumer spending, as the omicron variant has become dominant, as well as significant supply chain disruptions.
Overstock.com, Inc. (NASDAQ:OSTK) was recently named Best Idea by Wedbush, which appreciates the company’s diverse selection of commodity and unbranded products and its potential to significantly increase revenue in the furniture, the future growth of which, according to the company, will be entirely captured by the e-commerce market.
8.VIZIO Holding Corp. (NYSE:VZIO)
Tenzing Global is also bullish on VIZIO Holding Corp. (NYSE:VZIO), which makes smart TVs and other home entertainment devices, as well as its own smart TV operating system, which generates advertising revenue. Tenzing held 250,000 VZIO shares on Sept. 30 after selling 125,000 shares during the third quarter. However, other hedge funds were buying Vizio shares, as there was a net increase of 850,000 shares held by hedge funds tracked by Insider Monkey.
In its Q2 2021 letter to investors, Argosy Investors noted that VIZIO Holding Corp. (NYSE:VZIO) was now one of its top five positions, although the fund noted that the company could be negatively affected by higher wage inflation in terms of producing its low-margin TVs. He also thinks the company may have less bargaining power with advertisers compared to bigger rivals like Roku when it comes to raising advertising prices, although he thinks the business ad from VIZIO Holding Corp. (NYSE: VZIO) is otherwise well insulated.
7. Kaltura, Inc. (NASDAQ:KLTR)
Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:FVRR) and Zoom Video Communications, Inc. (NASDAQ:ZM) were not among the stocks Tenzing Global was buying in Q3 2021, but corporate video company and Zoom competitor Kaltura, Inc. (NASDAQ: KLTR), which had its IPO during the quarter, was. The investment adviser initiated a position of 225,000 KLTR shares valued at $2.32 million on September 30. Tenzing was one of 15 hedge funds tracked by Insider Monkey that bought Kaltura during the quarter.
Kaltura, Inc. (NASDAQ:KLTR) went public in July after 15 years as a private company, raising $150 million through its IPO to help accelerate its growth. The stock has slumped from its $12.00 bid, sitting at just $3.37 as the phenomenal 46% year-over-year growth in the first quarter that fueled its hype already started to decline. Fourth-quarter revenue projections call for flat quarter-over-quarter growth, while Kaltura, Inc. (NASDAQ:KLTR) also admitted to falling behind on its sales force hiring targets, which which could further hamper its revenue goals.
6. Enovix Corporation (NASDAQ:ENVX)
In addition to adding 182,500 public warrants of Enovix Corporation (NASDAQ:ENVX) to its 13F portfolio during the third quarter, which the company has since repurchased, Tenzing Global also added a long position of 400,000 shares in the company, which produces lithium-ion batteries for the electric vehicle industry.
Enovix Corporation (NASDAQ:ENVX) went public in July after completing its reverse merger with Rodgers Silicon Valley Acquisition Corp., of which Tenzing held 405,000 shares as of June 30. 29 hedge funds tracked by Insider Monkey are long ENVX after its first quarter as a public company, holding 46 million of its shares.
Enovix Corporation (NASDAQ:ENVX) was a relatively secretive company until its public debut, focusing on developing its proprietary 3D stack structure, which allows it to create more powerful silicon-based batteries. The company now thinks it’s ready to expand and put its batteries in the limelight, raising $405 million from its offering to do just that. To that end, Enovix plans to build an additional plant to complement its existing facility in Fremont, California.
Will some of these stocks eventually go the way of Pinterest, Inc. (NYSE:PINS), Fiverr International Ltd. (NYSE:FVRR) and Zoom Video Communications, Inc. (NASDAQ:ZM) and will they be sold by Tenzing Global in favor of more attractive opportunities? Only time will tell. What we do know is that Tenzing has five other stocks he thinks very highly of right now, which you can read about at the link below.
Click to continue reading and see the Top 5 stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors.
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Disclosure: none. Top 10 stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors is originally published on Insider Monkey.
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