As second-quarter portfolios roll in, it appears financier Leon Cooperman (Trades, Portfolio) went off the beaten track from his peers, choosing a strong position in tech companies that do not bear familiar names.
The tech sector expanded to 19.2% of Cooperman’s stocks from 14.8% in the previous quarter, the highest sector jump in his portfolio. He veteran value investor and head of hedge fund Omega Advisors bought 20 new stocks in the second quarter, making his top pick MaxLinear Inc. (MXL, Financial), a semiconductor company with a $2.73 billion market cap.
Five other tech stocks joined Omega’s fold: Autodesk Inc. (ADSK, Financial), Gardner Denver Holdings Inc. (GDI, Financial), MINDBODY Inc. (MB, Financial) and Yext Inc. (YEXT, Financial). His Microsoft position increased by 166%, and shares were added to Gigamon Inc. (GIM, Financial) and Zynga (ZNGA, Financial).
The stretch in his tech sector investments would have been slightly less pronounced if Amazon (AMZN, Financial) were not considered a retail stock. Cooperman reduced his position in the online retail behemoth, one of the quarter’s largest gainers, by 45.9%. He also trimmed Netflix Inc. (NFLX, Financial), classified as an entertainment company, 16.34% and Facebook, another top gainer in tech, 10.2%. He holds no position in one of the “A” FAANG stocks, Apple (AAPL, Financial), or in the “G,” Google (GOOG, Financial).
His only untouched FAANG holding was Alphabet, which remained 6.2% of portfolio as of quarter-end. Cooperman likes the company, the largest position in his portfolio, for its inexpensive 18 times earnings valuation, 20% growth and mountain of cash on its balance sheet, he told CNBC a week ago.
Cooperman’s second-quarter tech buys
MaxLinear Inc.
Cooperman purchased 757,000 shares of semiconductor company MaxLinear, giving it 0.88% portfolio space. The price of the stock averaged $29 per share for the quarter.
Maxlinear Inc. has a market cap of $2.72 billion; its shares were traded around $21.78 Monday with a P/E ratio of 40.33 and P/S ratio of 3.98.
Autodesk Inc.
Cooperman purchased 93,400 shares of Autodesk, giving it 0.39% portfolio weight. The price of the stock averaged $99.
Autodesk Inc. has a market cap of $24 billion; its shares were traded around $108.90 Monday with a P/S ratio of 12.04.
Gardner Denver Holdings Inc.
Cooperman purchased 300,000 shares of Gardner Denver Holdings, a 0.27% portfolio weight. The stock’s price averaged $22 per share for the quarter.
Gardner Denver Holdings Inc has a market cap of $4.46 billion; its shares were traded around $22.74 Monday with a P/S ratio of 2.21.
MINDBODY Inc.
Cooperman purchased 70,000 shares of MINDBODY, a 0.08% portfolio weight. The share price of the stock averaged $28.
Mindbody Inc has a market cap of $1.12 billion; its shares were traded around $24.25 Monday with a P/S ratio of 6.25.
Yext Inc.
Cooperman purchased 80,800 shares of Yext, a 0.04% portfolio weight. The stock’s price averaged $14 per share.
Yext Inc. has a market cap of $1.26 billion; its shares were traded around $13.99 with a P/S ratio of 10.50.
See more stocks of Leon Cooperman (Trades, Portfolio) here.
