10 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners

In this article, we discuss the 10 best stocks to buy according to Angela Aldrich’s Bayberry Capital Partners. If you want to read about some more stocks in the Aldrich portfolio, go directly to 5 Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners.

Angela Aldrich started her hedge fund, Bayberry Capital Partners, with Brian Smith in 2019. She is currently the fund’s managing partner and portfolio manager.

Aldrich, 33, majored in economics at Duke University and earned her MBA from the Stanford Graduate School of Business. She has worked for Goldman Sachs, BDT Capital Partners, Scout Capital Management, and Blue Ridge Capital. She worked under Tiger Cub John Griffin at Blue Ridge Capital, earning the nickname “Tiger Grandcub.”

Bayberry Capital Partners, a New York-based hedge fund, invests long and short in small- and mid-size companies. According to the 13F filings from the end of the second quarter, the hedge fund had a portfolio value of $319 million, with a turnover rate of 28%.

In Q2 2022, Bayberry Capital Partners increased its position in 4 companies, reduced its exposure to 3 companies, discarded 3 of its positions, and added 3 new positions to its portfolio. Its largest holding is Burford Capital Limited (NYSE:BUR), with more than 4 million shares.

Some of the top stock picks of Angela Aldrich presently include Janus International Group, Inc. (NYSE:JBI), Hillman Solutions Corp. (NASDAQ:HLMN), and Arthur J. Gallagher & Co. (NYSE:AJG), among others discussed in detail below.

Our Methodology:

Here is our list of the top 10 best stocks to buy according to Angela Aldrich’s Bayberry Capital Partners. These stocks were picked from the investment portfolio of Bayberry Capital Partners at the end of the second quarter of 2022.

Best Stocks to Buy According to Angela Aldrich’s Bayberry Capital Partners

10. Purple Innovation, Inc. (NASDAQ:PRPL)

Bayberry Capital Partners Stake Value: $3 million

Percentage of Bayberry Capital Partners 13F Portfolio: 0.97%

Number of Hedge Fund Holders: 13

Purple Innovation, Inc. (NASDAQ:PRPL) offers comfort solutions. Mattresses, pillows, cushions, and sheets are just a few of the branded and premium comfort products that the company designs and manufactures. Purple Innovation, Inc. (NASDAQ:PRPL) is one of the top stocks to watch, according to Angela Aldrich’s Bayberry Capital Partners. On August 9, the firm posted earnings for the second quarter of 2022. The revenue over the period was $144 million, down 21.1% compared to the revenue over the same period last year. It now expects full year 2022 net revenue to be between $570 million and $590 million, compared with its prior range of $650 million to $690 million.

Seth Basham, an analyst at Wedbush, maintained an “Outperform” recommendation on Purple Innovation, Inc. (NASDAQ:PRPL) on September 20 after the company announced that Coliseum Capital Management has made a proposal to acquire all remaining shares of Purple Innovation, Inc. (NASDAQ:PRPL) for $4.35 per share. He also increased his price target from $3.30 to $5.

In Q2 2022, Bayberry Capital Partners decreased its holdings in Purple Innovation, Inc. (NASDAQ:PRPL) by 32% and now holds shares worth $3 million. According to the second quarter database of Insider Monkey, 13 hedge funds were bullish on Purple Innovation, Inc. (NASDAQ:PRPL), with combined stakes worth about $152 million.

Like Janus International Group, Inc. (NYSE:JBI), Hillman Solutions Corp. (NASDAQ:HLMN), and Arthur J. Gallagher & Co. (NYSE:AJG), Purple Innovation, Inc. (NASDAQ:PRPL) is one of the best stocks to buy according to Angela Aldrich’s Bayberry Capital Partners.

Here is what ClearBridge Investments has to say about Purple Innovation, Inc. in its Q2 2021 investor letter:

“Purple Innovation, in the consumer discretionary sector, adds to innovative, high-growth exposure. The mattress maker operates a direct-to-consumer business that has taken off due to its superior marketing technology and the quality of its internally manufactured, unique, purple-colored ”hyper-elastic polymer“ products.”

9. BWX Technologies, Inc. (NYSE:BWXT)

Bayberry Capital Partners Stake Value: $6.9 million

Percentage of Bayberry Capital Partners 13F Portfolio: 2.15%

Number of Hedge Fund Holders: 27

BWX Technologies, Inc. (NYSE:BWXT) supplies nuclear components and fuel to the United States. Aldrich initiated a new stake in BWX Technologies, Inc. (NYSE:BWXT) in the second quarter of 2022 by purchasing 125,000 shares worth $6.9 million.

In July, BWX Technologies, Inc. (NYSE:BWXT) received a contract valued at approximately C$130 million from Bruce Power for supporting its Major Component Replacement (MCR) Project. A completion date of 2031 is anticipated for the project.

BWX Technologies, Inc. (NYSE:BWXT) released earnings for the second quarter of 2022 on August 8. The company reported an EPS of $0.82, beating estimates by $0.07. The revenue over the period was $554 million, up 9.7% compared to the revenue over the same period last year. The company said it was expecting 2022 revenue to increase by 6.5% to 8.0% compared to 2021.

BWX Technologies, Inc. (NYSE:BWXT) is also popular with hedge funds. According to Insider Monkey’s Q2 data, 27 hedge funds had stakes in BWX Technologies, Inc. (NYSE:BWXT). The total value of the holdings is approximately $322.5 million. When looking at the institutional investors followed by Insider Monkey, Cardinal Capital, managed by Amy Minella, holds the biggest position in BWX Technologies, Inc. (NYSE:BWXT).

Here’s how ClearBridge Investments mentioned BWX Technologies, Inc. (NYSE:BWXT) in the Q2, 2022 investor letter:

“We also added BWX Technologies, Inc. (NYSE:BWXT), which manufactures and sells nuclear components globally. BWX supplies nuclear reactors to the U.S. Navy and commercial power producers, primarily in Canada, as well as a nascent offering in nuclear medicine raw materials. With roughly 80% of the company tied to a highly visible and well-funded defense priority (nuclear submarines), the company should drive steady and defensive growth with multiple upside drivers from greater acceptance of nuclear energy’s role in the energy transition coupled with technology advances in micro-reactors and small modular reactors.”

8. The TJX Companies, Inc. (NYSE:TJX)

Bayberry Capital Partners Stake Value: $9 million

Percentage of Bayberry Capital Partners 13F Portfolio: 2.82%

Number of Hedge Fund Holders: 49

The TJX Companies, Inc. (NYSE:TJX) works as a retailer of home fashion and apparel products at discounted prices.

Analysts are bullish on the firm’s long-term prospects, with investment advisories like JPMorgan, Loop Capital, Barclays, Cowen, and Baird raising their price targets on the stock in recent months.

Given its financial stability and expansion prospects, the company has the potential to grow earnings in the long term. On September 19, The TJX Companies, Inc. (NYSE:TJX) declared a quarterly dividend of $0.295 per share, in line with the previous. The company’s dividend yield on September 29 came in at 1.93%.

The TJX Companies, Inc. (NYSE:TJX) is one of the latest acquisitions of Bayberry Capital Partners in Q2 2022. The hedge fund held shares worth over $9 million in the company, representing 2.82% of its 13F portfolio.

49 hedge funds in Insider Monkey’s database had The TJX Companies, Inc. (NYSE:TJX) in a bullish position at the end of the second quarter of 2022. These hedge funds held shares in the firm worth about $1.6 billion. Alkeon Capital Management, with a position worth $318.8 million, stood as the most significant shareholder of The TJX Companies, Inc. (NYSE:TJX).

Here is what ClearBridge Investments has to say about The TJX Companies, Inc. (NYSE:TJX) in its Q4 2021 investor letter:

“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included TJX, an off-brand retailer with a large presence in the U.S. and Europe that should continue to benefit from the contraction of many traditional retailers, particularly as consumer spending resumes.”

7. Funko, Inc. (NASDAQ:FNKO)

Bayberry Capital Partners Stake Value: $13.9 million

Percentage of Bayberry Capital Partners 13F Portfolio: 4.36%

Number of Hedge Fund Holders: 18

Funko, Inc. (NASDAQ:FNKO), a pop culture lifestyle brand, offers a variety of products including vinyl figurines, action figures, plush, clothing, board games, home goods, NFTs, and accessories. The stock has climbed about 5.19% YTD as of September 29.

According to the latest 13F filings, Bayberry Capital Partners owns 625,000 shares worth $13.9 million in Funko, Inc. (NASDAQ:FNKO). The hedge fund increased its holdings in the company by 109% in the second quarter of 2022. The company is amongst the best stocks to buy in Angela Aldrich’s Bayberry Capital Partners.

Alexander Perry, an analyst at BofA, increased his price target on Funko, Inc. (NASDAQ:FNKO) from $30 to $35 on September 15 while maintaining a ‘Buy’ recommendation on the stock. The analyst believes that the company’s long-term algorithm justifies a multiple that is more in line with other high-growth leisure brands.

As of August 23, 2022, Woodson Capital Management is the largest shareholder in Funko, Inc. (NASDAQ:FNKO) in our database and holds a stake worth more than $86 million.

6. Cannae Holdings, Inc. (NYSE:CNNE)

Bayberry Capital Partners Stake Value: $14.9 million

Percentage of Bayberry Capital Partners 13F Portfolio: 4.68%

Number of Hedge Fund Holders: 19

Cannae Holdings, Inc. (NYSE:CNNE) is a holding company. It manages and runs several businesses and investments. The company is amongst the best stocks to buy in Angela Aldrich’s Bayberry Capital Partners.

Cannae Holdings, Inc. (NYSE:CNNE), on August 22, announced that it has agreed to invest $84 million in Computer Services, Inc. (OTC:CSVI), a significant provider of end-to-end fintech and regtech solutions, in addition to further investments approved by a group of private equity investors.

On August 5, Cannae Holdings, Inc. (NYSE:CNNE) declared a three-year stock repurchase plan that allows the company to repurchase up to 10 million shares of its common stock.

In Q2, Bayberry Capital Partners decreased its position in Cannae Holdings, Inc. (NYSE:CNNE) by 10%, which represented 4.68% of the hedge fund’s 13F portfolio.

Among the hedge funds tracked by Insider Monkey, 19 were bullish on Cannae Holdings, Inc. (NYSE:CNNE) at the end of June 2022, compared to 22 funds in the prior quarter. When looking at the institutional investors followed by Insider Monkey, Nitorum Capital, managed by Seth Rosen, holds the biggest position in Cannae Holdings, Inc. (NYSE:CNNE).

Just like Janus International Group, Inc. (NYSE:JBI), Hillman Solutions Corp. (NASDAQ:HLMN), and Arthur J. Gallagher & Co. (NYSE:AJG), Cannae Holdings, Inc. (NYSE:CNNE) is one of the stocks that hedge funds are buying.

Here is what Madison Funds has to say about Cannae Holdings, Inc. in its Q3 2021 investor letter:

“Our investment in Cannae was raised to a more typical position size. The underlying business continue to perform well and as we’ve gotten to know the management teams better over the past year, our confidence in their companies’ futures have increased, even as the market continues to undervalue both stocks. Cannae shares trade a large discount to its net asset value as computed using the market prices of its holdings.”

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