Billionaire money managers piled on to these fast-paced companies during the third quarter.

Amid a flurry of earnings reports and economic-data announcements, you may have missed one of the most important data releases of the entire quarter on November 14. That’s when money managers and wealthy individuals with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission.

A 13F offers an under-the-hood look at what some of the smartest money managers in the world were holding in their portfolios at the end of the most recent quarter — in this case, as of Sept. 30, 2022. Even though this portfolio snapshot is more than six weeks old, it can still provide insight as to what stocks and/or trends are piquing the interests of top-tier fund managers. Image source: Getty Images. Despite being clobbered by the 2022 bear market, growth stocks remained a popular buy for billionaire money managers during the third quarter. What follows are seven supercharged growth stocks billionaires can’t stop buying. 1. Philippe Laffont: PayPal Holdings

First up is billionaire Philippe Laffont of Coatue Management, who oversaw the purchase of 3.47 million shares of fintech-stock PayPal Holdings ( PYPL -0.84%) during the third quarter. This came close to quadrupling Coatue’s stake in PayPal from just three months prior.

Although fintech companies have taken a hit with inflation soaring and the U.S. economy weakening, PayPal has demonstrated incredible resilience. Total payment volume, without currency movements, has continued to grow by a low double-digit percentage.

Perhaps most important, active account engagement keeps climbing. On a trailing-12-month basis, active accounts completed an average of 40.1 transactions when 2020 ended and 50.1 transactions in the quarter that ended in September 2022 . Since PayPal is primarily a transaction-driven model, this bodes well for its sales and profit growth.

Additionally, CEO Dan Schulman is tightening the company’s belt amid growing economic uncertainty and doing what he can to bolster shareholder value. PayPal is aiming for $1.3 billion in annual cost savings in 2023 and recently authorized a $15 billion share-repurchase program. 2. Israel Englander: Intuitive Surgical

For billionaire Israel Englander of Millennium Management, robotic-assisted surgical-systems developer Intuitive Surgical ( ISRG 0.51%) was a stock he couldn’t stop buying in the third quarter. Englander’s fund scooped up 567,169 shares, which increased its position by 97% in just three months.

One reason for Englander’s optimism likely has to do with Intuitive Surgical’s industry dominance. The company had installed 7,364 of its da Vinci systems in hospitals and surgical centers around the world by the end of September, which is far and away more than any of its competitors. Further, the $0.5 million to $2.5 million price tag for these systems makes it unlikely that its customers would ever switch to a competitor.

Intuitive Surgical also benefits from its razor-and-blades-designed operating model . In its early days, the company generated most of its revenue from selling its pricey da Vinci systems. However, these are intricate systems to build, and therefore produce only mediocre margins. Over time, selling instruments with each procedure and servicing its systems have become the company’s key — and considerably higher margin — revenue sources. 3. Paul Singer: Pinterest

Billionaire activist-investor Paul Singer of Elliott Investment Management was a busy bee during the third quarter, with a notable buy of 10 million shares of social media stock Pinterest ( PINS -0.57%). This tripled Singer’s fund’s stake from the sequential second quarter.

Although growing recessionary fears have taken their toll on social media stocks this year, Pinterest has outperformed its peers. The company’s monthly active user (MAU) count has climbed on a sequential basis for the past two quarters.

Even more important is the fact that Pinterest has had no trouble monetizing its 445 million MAUs. Average revenue per user jumped 11% globally in the most recent quarter, with especially strong growth from international markets, not including Europe.

But as I’ve previously opined , the best aspect of Pinterest is its operating model. Since users willingly share what interests them, data-tracking app changes make little difference to Pinterest. It can still serve critical data to advertisers on a silver platter. 4. Jim Simons: Airbnb

As for billionaire Jim Simons of Renaissance Technologies, his eyes were fully set on host-and-stay marketplace Airbnb ( ABNB -1.54%). Simons added more than 1.67 million shares of Airbnb in the latest quarter, pushing Airbnb to become Renaissance’s third-largest holding by market value.

What makes Airbnb such an exciting investment is that it’s disrupting the stodgy hotel-and-travel industries. […]

source 7 Supercharged Growth Stocks Billionaires Can’t Stop Buying

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