John Burbank’s Passport Capital Is Another Yelp Bull

Page 1 of 2

Passport Capital, a hedge fund managed by John Burbank, has reported a position of 1.1 million shares in Yelp Inc (NYSE:YELP), which makes for 6.3% of the outstanding shares of the business reviews website. Our database of 13F filings shows that the fund had not owned any shares at the end of the third quarter of 2012. Earlier this year we looked at Passport’s investment philosophy and process. Learn more about how Burbank and his team invest and see what stocks it did own at the end of September. We track hedge fund filings to stay up to date on what these investors are doing, as well as to help us develop investment strategies; the most popular small cap picks among hedge funds, listed in our August newsletter, outperformed the market by 18 percentage points between September and January (read more about our hedge fund strategies).

John Burbank PASSPORT CAPITAL

Yelp Inc has become something of a battleground stock. On the one hand, we’ve reported on several hedge funds taking significant stakes in the company; just two weeks ago, Robert Karr’s Joho Capital reported that it had increased its own holdings to almost 6% of the outstanding shares. Read more about Joho buying Yelp. Steadfast Capital Management has also been a major shareholder in the company. On the other hand, over 60% of the outstanding shares are held short and we would note that our records of insider trades include a number of insider sales in the past few months, including three different insiders selling over $100,000 in stock in January 2013 (see a history of insider sales at Yelp). Insider sales generally aren’t as informative as insider purchases as selling shares can be rational, but it can be a factor to take note of.

What Are the Biggest Risks Facing Yelp (YELP) Investors?In its most recent quarter, Yelp Inc reported a small loss- which isn’t good for a company with a market capitalization of more than $1 billion- though its revenue did increase by 63% from its levels in the third quarter of 2011. Wall Street analyst expectations are for a small profit this year, resulting in a very high current-year P/E, though as with many other websites the presumption is that at some point Yelp will develop a monetization strategy that will leave it with high earnings growth. Of course, another potential investment thesis is that Yelp would be acquired by another Internet company. Still, we don’t think that the stock is a buy right now.

Let’s look at some of the company’s peers:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!