10 best growth stocks to buy according to Marc Majzner’s Clearline Capital

In this article, we discuss the 10 best growth stocks to buy according to Marc Majzner’s Clearline Capital. If you want to know more about other stocks in the Majzner portfolio, go directly to 5 best growth stocks to buy according to Marc Majzner’s Clearline Capital.

Marc G. Majzner launched Clearline Capital in February 2013 with $70 million in seed capital from Talpion Fund Management. He is currently the fund’s portfolio manager.

Majzner earned his master’s degree in computer science from Brown University. He then worked as an investment banking analyst at Credit Suisse. Additionally, he worked at Talpion Fund Management as a Senior Portfolio Manager.

Clearline Capital, based in New York, is a catalyst-focused long/short equity hedge fund. He specializes in mid-cap stocks. The objective of the fund is to generate high absolute rates of return while reducing the risk of capital loss.

At the end of the second quarter of 2022, Clearline Capital’s 13F portfolio was valued at over $773.9 million, up from $869.8 million a quarter earlier. The hedge fund invests in several sectors, including information technology, industrials, consumer discretionary, healthcare, financials and communications.

Among the top growth stocks in Majzner’s fund portfolio at the end of the second quarter of 2022 were Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META), and Array Technologies, Inc. ( NASDAQ: ARRY).

Image by Sergei Tokmakov Terms.Law from Pixabay

Our Methodology:

For this article, we scoured Clearline Capital’s latest 13F filing for the quarter ending June 30 and selected the top 10 growth stocks that were in the fund’s portfolio.

Growth stocks to buy according to Marc Majzner’s Clearline Capital

10. Magnachip Semiconductor Corporation (NYSE: MX)

Value of stake in Clearline Capital’s 13F portfolio: $17.34 million

Percentage of Clearline Capital portfolio: 2.24%

Number of hedge funds: 27

Magnachip Semiconductor Corporation (NYSE:MX) designs and produces semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The company is among the largest growth stocks in Marc Majzner’s Clearline Capital portfolio.

In September, Magnachip Semiconductor Corporation (NYSE:MX) announced an extension of its share buyback program to $87.5 million.

At the end of the second quarter, 27 hedge funds in our database held a position in Magnachip Semiconductor Corporation (NYSE:MX).

Here’s what Altron Capital Management has to say about Magnachip Semiconductor Corporation (NYSE:MX) in its Q4 2021 Letter to Investors:

MagnaChip Semiconductor Corp. (NYSE:MX). While Wise Road Capital’s previous takeover bid did not go through as expected, the company is still in talks with other potential buyers. Additionally, the company announced a $75 million stock buyback, which is a significant percentage of the company’s stock. Although we don’t usually enter positions in anticipation of a takeover, it is true that an acquisition of MagnaChip will be the most likely outcome.

9. New Relic, Inc. (NYSE: NEWR)

Value of stake in Clearline Capital’s 13F portfolio: $18.89 million

Percentage of Clearline Capital portfolio: 2.44%

Number of hedge funds: 41

Based in San Francisco, Calif., New Relic, Inc. (NYSE: NEWR) provides a software platform that allows website and app owners to track the performance of their services.

New Relic, Inc. (NYSE:NEWR) announced second quarter 2022 results in August, reporting revenue of $216.46 million. Reported normalized EPS was -$0.26. Clearline Capital increased its holdings in the company by 93% in the second quarter of 2022. The hedge fund held 377,509 shares in New Relic, Inc. (NYSE: NEWR) worth $18.89 million at the end of the second quarter of 2022.

New Relic, Inc.’s (NYSE:NEWR) strategic partnerships with companies like Microsoft Azure are also attracting investor attention. In September, Credit Suisse analyst Fred Lee launched coverage of New Relic with an outperform rating and a price target of $78.

41 hedge funds in Insider Monkey’s database held stakes in New Relic, Inc. (NYSE:NEWR). These hedge funds held shares of the company worth about $1.20 billion. Eminence Capital, with a position worth $279.24 million, was the largest shareholder of New Relic, Inc. (NYSE: NEWR).

8. Zendesk, Inc. (NYSE:ZEN)

Value of stake in Clearline Capital’s 13F portfolio: $19.10 million

Percentage of Clearline Capital portfolio: 2.46%

Number of hedge funds: 63

Zendesk, Inc. (NYSE: ZEN) is a California-based software development company that provides service solutions in the United States as well as internationally. In September 2022, Zendesk (NYSE: ZEN) shareholders approved the software maker’s merger with a consortium led by Hellman & Friedman and Permira to deliver superior value.

Clearline Capital increased its holdings in Zendesk, Inc. (NYSE: ZEN) by 540% in the second quarter of 2022, bringing the value of the holdings to a total of $19.10 million.

Our data shows that Light Street Capital is a top stakeholder in Zendesk, Inc. (NYSE: ZEN), with 7.29 million shares worth $540.14 million.

At the end of the second quarter of 2022, 63 hedge funds in Insider Monkey’s database held stakes worth $1.89 billion in Zendesk, Inc. (NYSE: ZEN).

In its letter to investors for the fourth quarter of 2021, Carillon Towers Advisers, an asset management company, highlighted a few stocks and Zendesk, Inc. (NYSE: ZEN) was one of them. Here is what the fund said:

Zendesk, Inc. (NYSE: ZEN) provides customer support software solutions. After successfully weathering the early stages of the pandemic in 2020, the company has seen its stock cool under threat from increased competition from low-cost alternatives. We do not believe that competitive dynamics have been altered. In fact, the company’s annual revenue growth rate accelerated in 2021 compared to the second half of 2020. The shares are also currently trading at a steep discount to other cloud-based software providers.

7. Brink’s Company (NYSE: BCO)

Value of stake in Clearline Capital’s 13F portfolio: $19.54 million

Percentage of Clearline Capital portfolio: 2.52%

Number of hedge funds: 20

Virginia-based The Brink’s Company (NYSE: BCO) provides transportation, cash management and other security-related services. The company is among the largest growth stocks in Marc Majzner’s Clearline Capital.

Clearline Capital increased its holdings in The Brink’s Company (NYSE:BCO) by 5% in the second quarter of 2022. The hedge fund held 321,942 shares in Brink’s Company (NYSE:BCO), worth $19.54 million .

In line with The Brink’s Company (NYSE:BCO) expansion strategy, it acquired NoteMachine in October 2022, which operates over 9,000 ATMs in the UK.

The Brink’s Company (NYSE:BCO) reported revenue of $1.13 billion in the second quarter of 2022. Reported normalized EPS was $1.29. Both exceeded market estimates by $33.07 million and $0.10, respectively. Even though the company is facing headwinds due to the macro environment, analysts remain bullish on the company’s stock. Truistic analyst Tobey Sommer retained a buy rating on the company’s stock.

At the end of the second quarter, 20 hedge funds tracked by Insider Monkey held stakes in The Brink’s Company (NYSE: BCO). The total value of these interests is $261.27 million. Ariel Investments is the largest stakeholder in The Brink’s Company (NYSE: BCO September, with a $132.89 million position in the company.

6. Momentive Global Inc. (NASDAQ: MNTV)

Value of stake in Clearline Capital’s 13F portfolio: $20.31 million

Percentage of Clearline Capital portfolio: 2.62%

Number of hedge funds: 41

California-based Momentive Global Inc. (NASDAQ: MNTV) provides software solutions to help companies turn stakeholder feedback into action. The company announced its second quarter 2022 results in August, with revenue of $120.16 million.

Clearline Capital is a lead investor in Momentive Global Inc. (NASDAQ: MNTV). In the second quarter, Clearline Capital increased its stake in Momentive Global Inc. (NASDAQ: MNTV) by 81%, bringing the total value of the stake to $20.31 million.

In August 2022, following the company’s earnings release, Wells Fargo analyst Brian Fitzgerald maintained an overweight rating on the company’s stock with a price target of $15.

At the end of Q2 2022, 41 hedge funds were long Momentive Global Inc. (NASDAQ: MNTV) with holdings worth $285.03 million. Sachem Head Capital is the largest shareholder of Momentive Global Inc. (NASDAQ: MNTV) as of August, with a $61.29 million position in the company.

here what’s this ClearBridge Investments had to say about Momentive Global Inc. (NASDAQ: MNTV) in its Q3 2021 letter to investors “Mid Cap Strategy”:

During the quarter, we also initiated a position in Global momentum in the IT sector. Known for its online survey brand Survey Monkey, Momentive is capitalizing on the growing importance of customer feedback, market research and employee engagement. Momentive’s competitive positioning through low pricing has helped it achieve strong brand recognition, with its enterprise division generating high growth rates and attractive incremental margins.

Click to read on and see 5 best growth stocks to buy according to Marc Majzner’s Clearline Capital.

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Disclosure. None. 10 best growth stocks to buy according to Marc Majzner’s Clearline Capital is originally published on Insider Monkey.

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