In this article, we will be taking a look at some of the top stocks in the portfolio of Jeffrey Diehl. 

Jeffrey Diehl is the managing partner and current head of investments of Adams Street Partners. Adams Street Partners is a Chicago-based private equity markets investment firm. Before joining Adams Street, Jeffrey Diehl worked as a Principal at the Parthenon Group, a strategy consulting and principal investing company with roots in Bain Consulting. Being a partner since 2000, he is in charge of managing the company in addition to supervising the general procedure and plans that the investment team creates.

Adams Street Partners’ last reported 13F filing for Q2 2022 included $384.119 million in managed 13F securities. The hedge fund has undertaken portfolio rebalance during Q2 by purchasing 3 new stocks and increasing its share in 1 stock. The fund also sold 5 stocks and reduced its holding in 1 stock. Some of the notable stocks that the fund sold during Q2 include UiPath Inc. (PATH), Squarespace, Inc. (SQSP), and Roblox Corporation (RBLX).

 

Aptinyx Inc. (APTX)

Adams Street Partners Stake Value: $3.010 million

Percentage of Adams Street Partners 13F Portfolio: 0.78%

Number of Hedge Fund Holders as of Q2 2022: 5

Aptinyx Inc. (NASDAQ:APTX) was founded in 2015 and is based in Evanston, Illinois. It is a clinical-stage biopharmaceutical company that focuses on the discovery, development, and commercialization of novel, proprietary, and synthetic small molecules for the treatment of brain and nervous system disorders.

On August 26, Raghuram Selvaraju, an analyst at H.C. Wainwright, cut his price target on Aptinyx Inc. (NASDAQ:APTX) to $1 from $2 and kept a Buy rating on the shares. On August 12 last month, Aptinyx Inc. (NASDAQ:APTX) stock fell 34% after the news broke about the mid-stage study failure of its musculoskeletal pain drug NYX-2925. The stock has lost 85% value year to date.

Jeffrey Diehl’s Adams Street Partners is the largest shareholder of Aptinyx Inc. (NASDAQ:APTX) as of Q2, holding 5.39 million of its shares worth $3.010 million. The number of hedge funds holding Aptinyx Inc. (NASDAQ:APTX) shares has reduced to half during Q2 as a total of 5 hedge funds are holding a stake as compared to 10 in the previous quarter.

 

Corvus Pharmaceuticals, Inc. (CRVS)

Adams Street Partners Stake Value: $3.243 million

Percentage of Adams Street Partners 13F Portfolio: 0.84%

Number of Hedge Fund Holders as of Q2 2022: 7

Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) is a clinical-stage biopharmaceutical company that focuses on the development and commercialization of immuno-oncology therapies. The company was incorporated in 2014 and is based in Burlingame, California. On September 26, Angel Pharma, a Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) partner, received approval to begin a phase 1/1b cancer therapy trial in China.

On August 9, analyst Li Watsek with Cantor Fitzgerald cut his price target for Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) to $4 from $8 and maintained an Overweight rating on the stock. Watsek believes that the short-term CPI-818 data, which will be presented in December at the annual American Society of Hematology meeting, could improve the current negative sentiment surrounding the company.

Samuel Isaly OrbiMed Advisors is the largest shareholder of Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS), holding 6.94 million of its shares worth $6.8 million. Hedge fund sentiment around Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) has decreased in the second quarter of 2022, with 7 hedge funds long the stock, compared to 13 in Q1 2022.

 

HashiCorp, Inc. (HCP)

Adams Street Partners Stake Value: $5.107 million

Percentage of Adams Street Partners 13F Portfolio: 1.32%

Number of Hedge Fund Holders as of Q2 2022: 15

HashiCorp, Inc. (NASDAQ:HCP) provides multi-cloud infrastructure automation solutions worldwide. The company was incorporated in 2012 and is based in San Francisco, California. HashiCorp, Inc. (NASDAQ:HCP) is a new addition to Jeffrey Diehl’s 13F portfolio as the fund acquired 173,478 of its shares during Q2.

On September 2, Stifel analyst Brad Reback cut his price target on HashiCorp, Inc. (NASDAQ:HCP) to $45 from $51 and kept a Buy rating on the shares after the company reported a “strong” fiscal Q2 and raised guidance for the full year despite factoring in a $4 million-$6 million headwind to revenue.

Coatue Management was the leading hedge fund investor in HashiCorp, Inc. (NASDAQ:HCP) during Q2 2022. At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $103.3 million in HashiCorp, Inc. (NASDAQ:HCP), compared to 14 in the preceding quarter worth $114.38 million.

Unlike UiPath Inc. (NYSE:PATH), Squarespace, Inc. (NYSE:SQSP), and Roblox Corporation (NYSE:RBLX), which it sold in Q2, Jeffrey Diehl’s Adams Street Partners is bullish on HashiCorp, Inc. (NASDAQ:HCP).

 

Fusion Pharmaceuticals Inc. (FUSN)

Adams Street Partners Stake Value: $7.340 million

Percentage of Adams Street Partners 13F Portfolio: 1.91%

Number of Hedge Fund Holders as of Q2 2022: 7

Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) was incorporated in 2014 and is situated in Hamilton, Canada. Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) is a clinical-stage oncology company that focuses on developing radiopharmaceuticals as precision medicines.

On September 15, Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) was given coverage by Truist analyst Nicole Germino with a Buy rating and a $10 price target. Although Jeffrey Diehl’s Adams Street Partners sold some notable stocks such as UiPath Inc. (NYSE:PATH), Squarespace, Inc. (NYSE:SQSP), and Roblox Corporation (NYSE:RBLX) during Q2, it is bullish on Fusion Pharmaceuticals Inc. (NASDAQ:FUSN). Adams Street Partners initiated a position in Fusion Pharmaceuticals Inc. (NASDAQ:FUSN) by acquiring 3.5 million of its shares worth $55.06 million during Q2, 2020. The fund has been holding a constant stake of 2.947 million shares worth roughly $7.34 million in the stock since Q3, 2021.

 

Couchbase, Inc. (BASE)

Adams Street Partners Stake Value: $18.417 million

Percentage of Adams Street Partners 13F Portfolio: 4.79%

Number of Hedge Fund Holders as of Q2 2022: 7

The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. (NASDAQ:BASE) was incorporated in 2008 and is based in Santa Clara, California. It provides a database for enterprise applications worldwide. On September 8, Rob Oliver, a Baird analyst, maintained an Outperform rating on the shares while lowering his price target for Couchbase from $25 to $22. According to the analyst, the company recorded a strong Q2 with gains in revenue growth, profitability, and ARR growth. In addition, Q2 being a record quarter for pipeline generation, the analyst claimed that neither demand for their products nor customer purchasing habits had changed significantly.

GPI Capital is the largest shareholder of Couchbase, Inc. (NASDAQ:BASE), holding 4.36 million of its shares worth $71.748 million. Adams Street Partners lowered its stake in the stock during Q2 by 38% holding 1.12 million Couchbase, Inc. (NASDAQ:BASE) shares worth $18.417 million. At the end of the second quarter of 2022, 7 hedge funds in the database of Insider Monkey held stakes worth $107.753 million in Couchbase, Inc. (NASDAQ:BASE), compared to 8 in the preceding quarter worth $128.876 million.

Baron Discovery Fund, in its Q3 2021 investor letter, mentioned Couchbase, Inc. (NASDAQ: BASE) and discussed its stance on the firm. Here is what the fund said:

“Couchbase, Inc., a new position in the Fund after a successful IPO, provides a modern database that collects and stores data and powers enterprise applications, for which there is no tolerance for disruption, inaccuracy, or downtime. The Couchbase database is based on a platform called NoSQL, which means that rather than having a pre-determined rigid structure to store data (like legacy relational database software), it stores data in documents, making it easy to have a flexible set of items that can move into and out of each record. Its solution is fast as it utilizes caching, or retrieval from memory, versus hard drives; scales to large numbers of records, which is expensive for old-style relational databases and not even possible with some of the other NoSQL solutions; and works in all settings (on-premise, in the cloud, or in mixed hybrid environments). Couchbase is addressing a large total market of $62 billion, which is slowly migrating to the cloud and using less rigid database structures. We believe Couchbase can win its fair share of these workloads over time given its unified platform, ability to scale run anywhere, and its familiar query language that makes it easier for developers to quickly create solutions. The company’s growth rate is currently being impacted by COVID (about 15% of Couchbase’s customers are in the travel and hospitality industries), but we believe a return to normal pre-COVID spending levels later this year and into early 2022 should help to accelerate growth. Longer term, we believe that management will improve its go-tomarket efficiency, which will further accelerate growth. Given that revenues are only about $150 million now, it has a huge opportunity in this $62 billion marketplace, and we expect that Couchbase will be a profitable investment for many years to come.”

 

Icosavax, Inc. (ICVX)

Adams Street Partners Stake Value: $19.438 million

Percentage of Adams Street Partners 13F Portfolio: 5.06%

Number of Hedge Fund Holders as of Q2 2022: 9

Icosavax, Inc. (NASDAQ:ICVX) was incorporated in 2017 and is based in Seattle, Washington. Icosavax, Inc. (NASDAQ:ICVX) is a biopharmaceutical company that develops vaccines against infectious diseases.

Adams Street Partners initiated its position in Icosavax, Inc. (NASDAQ:ICVX) during Q3, 2021, holding 3.39 million shares worth roughly $19.438 million. The fund has kept a constant share in the stock since then. Hedge fund sentiment around Icosavax, Inc. (NASDAQ:ICVX) has decreased in the second quarter of 2022, with 9 hedge funds long the stock, compared to 12 in Q1 2022.

 

Q2 Holdings, Inc. (QTWO)

Adams Street Partners Stake Value: $29.991 million

Percentage of Adams Street Partners 13F Portfolio: 7.8%

Number of Hedge Fund Holders as of Q2 2022: 19

Brett Barakett’s Tremblant Capital held the largest stake of 1.68 million shares in Q2 Holdings, Inc. (NYSE:QTWO) during Q2, worth $64.845 million. On September 12, after the Q2 results, Citi analyst Andrew Schmidt cut his price target for Q2 Holdings, Inc. (NYSE:QTWO) to $63 from $78 and maintained a Buy rating on the shares.

At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $131.957 million in Q2 Holdings, Inc. (NYSE:QTWO), compared to the same 9 in the preceding quarter but having a worth of $195.910 million.

Artisan Small Cap Fund, in its Q3 2021 investor letter, mentioned Q2 Holdings, Inc. (NYSE: QTWO) and discussed its stance on the firm. Here is what the fund said:

“Among our bottom contributors was Q2 Holdings. Q2 Holdings is a leading provider of secure, cloud-based virtual banking solutions for smaller regional and community banks. Shares have been pressured alongside slowing in the company’s bookings backlog as it faces difficult year-over-year growth comparisons and recovers from an air pocket of bookings caused by delays in bank decision-making during the harshest of pandemic lockdowns. We expect these headwinds to abate over the near-to-intermediate term. We believe several areas of Q2’s business appear lowly penetrated— RCFI regional and community financial institutions—and given recent client wins, a reasonable valuation and an improving selling environment, we are remaining patient.”

 

Vacasa Inc. (VCSA)

Adams Street Partners Stake Value: $47.600 million

Percentage of Adams Street Partners 13F Portfolio: 12.39%

Number of Hedge Fund Holders as of Q2 2022: 13

Located in Portland, Oregon, Vacasa Inc. (NASDAQ:VCSA) was established in 2009. Vacasa Inc. (NASDAQ:VCSA) manages holiday rentals across Belize, Costa Rica, and North America. Customers can use Vacasa.com and the Vacasa Guest App to browse, find, and reserve the company’s properties.

Silver Lake Partners is bullish on Vacasa Inc. (NASDAQ:VCSA) as of Q2, holding the largest number of its shares among the 895 funds tracked by Insider Monkey. It holds 62.473 million shares of the company worth $179.92 million. Adams Street Partners initiated its position in Vacasa Inc. (NASDAQ:VCSA) during Q4, 2021, by acquiring 16.527 million of its shares worth $47.6 million. The fund’s stake in the stock has remained unchanged since then. Hedge fund sentiment around Vacasa Inc. (NASDAQ:VCSA), however, has decreased in the second quarter of 2022, with 13 hedge funds long the stock, compared to 20 in Q1 2022.

 

Paylocity Holding Corporation (PCTY)

Adams Street Partners Stake Value: $103.466 million

Percentage of Adams Street Partners 13F Portfolio: 26.93%

Number of Hedge Fund Holders as of Q2 2022: 23

Adams Street Partners is the largest shareholder of Paylocity Holding Corporation (NASDAQ:PCTY) during Q2, holding 593,200 of its shares worth $103.466 million. Adams Street Partners initiated its position in Paylocity Holding Corporation (NASDAQ:PCTY) during Q4, 2015. The fund has gradually decreased its stake in the stock since then, from holding 6.1 million shares in Q4, 2015 to a mere 593,2o0 shares in Q2, 2022.

According to Insider Monkey’s Q2 data, Paylocity Holding Corporation (NASDAQ:PCTY) was found in the public stock portfolios of 23 hedge funds, with collective stakes in the company worth $458.687 million. Paylocity Holding Corporation (NASDAQ:PCTY) was first covered by Citi analyst Steven Enders on September 1, who gave the company a Neutral rating and a $294 price target. The analyst sees a more balanced risk/reward for shares at current prices and some higher risk relative to Paylocity Holding Corporation (NASDAQ:PCTY) end market.

Polen U.S. Small Company Growth Fund, in its Q4 2021 investor letter, mentioned Paylocity Holding Corporation (NASDAQ:PCTY) and discussed its stance on the stock. Here is what the fund said:

“All our Portfolio companies, detractors included, are delivering on our long-term expectations and continue to have compelling growth prospects… We also reduced our position in Paylocity. This was purely a risk management decision, as we are still very positive on each company and its prospects.”

 

Rimini Street, Inc. (RMNI)

Adams Street Partners Stake Value: $141.628 million

Percentage of Adams Street Partners 13F Portfolio: 36.87%

Number of Hedge Fund Holders as of Q2 2022: 16

Adams Street Partners was holding the largest stake in Rimini Street, Inc. (NASDAQ:RMNI) during Q2 out of the 895 hedge funds tracked by Insider Monkey. It holds 23.56 million shares worth $141.628 million. At the end of the second quarter of 2022, 16 hedge funds in the database of Insider Monkey held stakes worth $29.54 million in Rimini Street, Inc. (NASDAQ:RMNI), compared to 15 in the preceding quarter worth $163.46 million.

On September 19, analyst Brian Kinstlinger with Alliance Global Partners cut his price target on Rimini Street, Inc. (NASDAQ:RMNI) from $8.50 to $7 while maintaining a Buy recommendation for the shares. The analyst revised his 2023 revenue and adjusted EBITDA projections because he now anticipates more postponed enterprise decisions over third-party software maintenance. Given the current state of the economy, Kinstlinger informs investors in a research note that the executive management teams’ priority lists are changing.

In its Q1 2022 investor letter, Diamond Hill Small Cap Fund mentioned Rimini Street, Inc. (NASDAQ:RMNI) and explained its insights for the company. Here is what the fund said:

“IT services provider Rimini Street — a new holding in Q1 — reported solid fundamentals and is making progress on rectifying recent challenges with its US sales organization. The company remains profitable and is generating solid cash levels contributing to net cash on its balance sheet. What’s more, the elimination of preferred stock in 2021 demonstrates a management team that’s aligned with common shareholders.”

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