10 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management

In this article, we discuss 10 stocks to buy according to Matthew Hulsizer’s PEAK6 Capital Management. If you want to skip our detailed analysis of Hulsizer’s history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management.

Peak6 Investments is an investment management firm that manages fund of funds, private equity, and private debt. Jennifer Just and Matthew Hulsizer founded this business in 1997 in Chicago, Illinois, to invest in debt and late-stage startups. Both formerly worked in derivatives at O’Connor & Associates and Swiss Bank. Through their investment firm, Peak6, the two have founded or acquired around 15 businesses.

PEAK6 Capital Management is a subsidiary of Peak6 Investments. Peak6 Capital Management is a market maker and a business that specializes in proprietary trading. It maintains the online brokerage OptionsHouse, advises affluent clients, and runs a paper trading site, among other things. As of the first quarter of 2022, Matthew Hulsizer managed a portfolio of 13F securities worth $49.96 billion at PEAK6 Capital Management, with a 22.49% concentration of the top 10 holdings. Information technology, consumer discretionary, healthcare, and finance are the primary areas in which the fund invests. The fund manager initiated new positions in 1232 stocks during the first quarter of 2022. PEAK6 Capital Management’s most notable stocks from its Q1 portfolio included Meta Platforms, Inc. (NASDAQ:FB), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Adobe Inc. (NASDAQ:ADBE).

PEAK6 Capital Management has a significant stake in Meta Platforms, Inc. (NASDAQ:FB), earlier known as Facebook, Inc. Morgan Stanley analyst Brian Nowak decreased his Meta Platforms, Inc. (NASDAQ:FB)’s price objective to $300 from $330 on June 1 and maintained an Overweight rating on the stock. Nowak notified investors that he reduced projections for online ad and e-commerce firms due to a more conservative base case he picked to account for heightened macro and micro uncertainty.

10 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management

Matthew Hulsizer of PEAK6 Capital

Advanced Micro Devices, Inc. (NASDAQ:AMD) is another large-cap stock in PEAK6 Capital Management’s portfolio, in which the fund has upped its stake by an impressive 3256615%. Harsh Kumar of Piper Sandler raised Advanced Micro Devices, Inc. (NASDAQ:AMD) from Neutral to Overweight on May 17 and a price objective of $140, up from $98.

Matthew Hulsizer also owns 41,314 shares in Adobe Inc. (NASDAQ:ADBE) after raising his stake in the company by 251%. On May 23, Jefferies analyst Brent Thill decreased his price objective on Adobe Inc. (NASDAQ:ADBE) from $570 to $550 while maintaining a Buy rating. Given the strengthening economic headwinds and the imminent prospect of recession, Thill cut his projections for the 28 software businesses he monitors.

Our Methodology

With this context in mind, let’s take a look at the list of 10 stocks to buy according to Matthew Hulsizer’s PEAK6 Capital Management. We used Hulsizer’s Q1 portfolio to select these stocks, ranking them according to Hulsizer’s stake value in each holding.

Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management

10. Expedia Group, Inc. (NASDAQ:EXPE)

PEAK6 Capital Management’s Stake Value: $34,690,000

 

Percentage of PEAK6 Capital Management’s Portfolio: 0.07%

 

Number of Hedge Fund Holders: 88

Expedia Group, Inc. (NASDAQ:EXPE) is an online firm that provides leisure and business travel products and services. Daniel Sundheim’s D1 Capital Partners reported a significant stake in Expedia Group, Inc. (NASDAQ:EXPE) in the first fiscal quarter of 2022, with 7.61 million shares worth $1.49 billion.

Securities filings reveal that PEAK6 Capital Management trimmed its stake in Expedia Group, Inc. (NASDAQ:EXPE) by 61% compared to the fourth quarter of 2021. In Q1 2022, the hedge fund owned 177,285 shares of Expedia Group, Inc. (NASDAQ:EXPE), worth over $34.69 million, representing 0.07% of the portfolio.

According to Insider Monkey’s Q1 database, 88 hedge funds were long Expedia Group, Inc. (NASDAQ:EXPE), compared to 82 funds in the prior quarter. On June 3, Truist analyst Naved Khan reduced his price objective on Expedia Group, Inc. (NASDAQ:EXPE) to $240 from $260 as part of a more extensive research study on Online Travel names but maintained a Buy rating on the stock.

In addition to Meta Platforms, Inc. (NASDAQ:FB), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Adobe Inc. (NASDAQ:ADBE), Expedia Group, Inc. (NASDAQ:EXPE) is a notable stock in Matthew Hulsizer’s Q1 2022 portfolio.

In its first quarter 2022 investor letter, Aristotle Capital Management mentioned Expedia Group, Inc. (NASDAQ:EXPE). Here is what the fund said:

“Expedia outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”

9. The Boeing Company (NYSE:BA)

PEAK6 Capital Management’s Stake Value: $41,651,000

 

Percentage of PEAK6 Capital Management’s Portfolio: 0.08%

 

Number of Hedge Fund Holders: 52

The Boeing Company (NYSE:BA) is an American multinational firm that designs, produces, and sells aircrafts, rotorcrafts, rockets, satellites, telecommunications equipment, and missiles worldwide. Among the hedge funds tracked by Insider Monkey, 52 funds were bullish on The Boeing Company (NYSE:BA) at the end of Q1 2022, with combined stakes of $1.36 billion.

The Boeing Company (NYSE:BA) is a new arrival in PEAK6 Capital Management’s portfolio, as the hedge fund bought about 217,497 shares of the company, worth $41.65 million. In the first quarter of 2022, Matthew Halbower’s Pentwater Capital Management was a prominent stakeholder of The Boeing Company (NYSE:BA), with 1.13 million shares worth $216.40 million.

Susquehanna analyst Charles Minervino decreased his price objective on The Boeing Company (NYSE:BA) to $192 from $193 on May 20 while maintaining his Positive rating on the stock. The Boeing Company (NYSE:BA) has been under pressure this year as a result of various company-specific obstacles, such as low 737 MAX deliveries and delayed 787 reassessments, as well as macroeconomic factors, according to the analyst.

8. PayPal Holdings, Inc. (NASDAQ:PYPL)

PEAK6 Capital Management’s Stake Value: $43,277,000

 

Percentage of PEAK6 Capital Management’s Portfolio: 0.09%

 

Number of Hedge Fund Holders: 100

PayPal Holdings, Inc. (NASDAQ:PYPL) is a technology company that facilitates digital payments for merchants and customers worldwide. In the first quarter of 2022, Ken Fisher’s Fisher Asset Management disclosed a prominent position in PayPal Holdings, Inc. (NASDAQ:PYPL), consisting of 16.78 million shares worth about $1.94 billion.

Wedbush analyst Moshe Katri maintained an Outperform rating and a $110 price target on PayPal Holdings, Inc. (NASDAQ:PYPL) shares on June 6. In the first quarter, Matthew Hulsizer increased his stake in PayPal Holdings, Inc. (NASDAQ:PYPL) by 339%, and his position in the company is now worth about $43.28 million. In addition, according to Insider Monkey’s Q1 data, 100 hedge funds were long PayPal Holdings, Inc. (NASDAQ:PYPL), down from 110 funds in the prior quarter.

Here is what Aristotle Capital Management has to say about Paypal Holdings, Inc. (NASDAQ:PYPL) in its Q1 2022 investor letter:

“We sold our position in PayPal due to the uncertain twelve-month horizon the company faces due to market headwinds from inflation and supply chain issues impacting e-commerce. On a more fundamental level, we sold due to the seismic shift in strategy and our disappointment with management credibility. The company reported weak 2022 guidance, and a strategic shift announced on the fourth quarter 2021 earnings call. The global payments space is undergoing a massive transition due to new technology introduced by both private and new Initial Public Offerings prospects, and we believe that the significant amount of private capital underwriting the new technology will continue to pressure incumbent players, even those as large and seemingly in the sweet spot of e-commerce payments, as PayPal currently is.”

7. Shopify Inc. (NYSE:SHOP)

PEAK6 Capital Management’s Stake Value: $44,106,000

 

Percentage of PEAK6 Capital Management’s Portfolio: 0.09%

 

Number of Hedge Fund Holders: 72

Shopify Inc. (NYSE:SHOP) is a cloud-based commerce platform that caters to small and medium-sized enterprises. Hulsizer’s investment fund also strengthened its position in Shopify Inc. (NYSE:SHOP) by buying 55,486 additional shares in the first quarter of 2022. This makes PEAK6 Capital Management’s stake in Shopify Inc. (NYSE:SHOP) amount to 65,249 shares worth $44.11 million.

According to Insider Monkey’s database of elite hedge funds, 72 funds reported owning stakes in Shopify Inc. (NYSE:SHOP) at the end of Q1 2022, down from 86 funds in the last quarter. Stephen Mandel’s Lone Pine Capital held a leading stake in Shopify Inc. (NYSE:SHOP), with almost 1.03 million shares worth $699.15 million.

On May 23, Jefferies analyst Samad Samana cut his price objective on Shopify Inc. (NYSE:SHOP) from $550 to $475 while maintaining a Buy rating. Due to stiffer economic headwinds and the likelihood of recession, Samana has downgraded a number of software firms in his coverage and reduced pricing objectives across the board.

In its Q1 2022 investor letter, Baron Funds mentioned Shopify Inc. (NYSE:SHOP). Here is what the fund said:

“Shopify Inc. is a cloud-based software provider offering an operating system for multi-channel commerce. Shopify has been adopted by over two million merchants who processed $175 billion of gross merchandise volume in 2021, making it the second largest e-commerce player in the U.S. The stock corrected sharply in the first quarter, declining 51%, as a result of investor rotation out of fast-growing, long-duration stocks and after the company released quarterly results, expecting a normalization in the rapid growth it has experienced during the early stages of the pandemic. We remain shareholders as we believe Shopify has a long runway for growth addressing less than 1% of global commerce spending with a unique and competitively advantaged platform.”

6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

PEAK6 Capital Management’s Stake Value: $48,668,000

 

Percentage of PEAK6 Capital Management’s Portfolio: 0.1%

 

Number of Hedge Fund Holders: 81

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and semiconductor wafer devices. PEAK6 Capital Management started building its position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the second quarter of 2013. In Q1 of 2022, the hedge fund held 466,790 shares in the company, valued at $48.67 million. The company represented 0.1% of the hedge fund’s 13F portfolio.

Hans Engel of Erste Group lowered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) from Buy to Hold on April 14. Despite Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s strong competitive position, Engel reminded investors that sales and profit anticipations for 2022 had been cut owing to a worldwide economic slowdown.

Insider Monkey’s Q1 2022 database shows that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) remained popular among hedge funds, as 81 hedge funds held stakes in the company at the end of March 2022, up from 72 in the previous quarter. The combined value of these stakes is over $10.15 billion. Fisher Asset Management was the largest stakeholder of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in Q1 2022, owning a position worth over $2.73 billion.

Like Meta Platforms, Inc. (NASDAQ:FB), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Adobe Inc. (NASDAQ:ADBE), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is on the radar of Matthew Hulsizer’s PEAK6 Capital Management.

In its Q1 2022 investor letter, Wedgewood Partners mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and discussed its stance on the firm. Here is what the fund said:

“Taiwan Semiconductor pulled back on geopolitical concerns and periodic market fears about the end of the “cycle” in semiconductors. First, we think the company might be one of the most – if not the most – important Companies in the world. Taiwan Semiconductor has a near-monopoly on semiconductor processing at advanced nodes, which makes it irreplaceable to customers such as Apple, AMD, NVIDIA, Mediatek, Amazon, and even Intel. Second, much less important manufacturers have more direct geopolitical risk than Taiwan Semiconductor, yet they trade at substantial premiums – both multiple and market cap. For example, Tesla is a heavy manufacturer of only about 1 million automobiles with significant production capacity located in the heart of China, yet it trades at double the market cap of Taiwan Semiconductor. Third, while it is hard to know when the current semiconductor “cycle” will slow or end, we see very few signs of it, as Taiwan Semiconductor continues to generate bookings well in excess of its current capacity – unlike any previous cycle. Taiwan Semiconductor traded to levels that are much too pessimistic given its competitive positioning and opportunity for growth driven by a more robust semiconductor cycle, driven by high-performance computing. As such, we added to our position during the quarter.”

     

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Disclosure: None. 10 Stocks to Buy According to Matthew Hulsizer’s PEAK6 Capital Management is originally published on Insider Monkey.