5 Biggest Losers in Gabriel Plotkin’s Melvin Capital Portfolio

In this article, we discuss the 5 biggest losers in Gabriel Plotkin’s Melvin Capital portfolio. If you want to see more holdings that dropped in value and read about the hedge fund’s recent performance, click 10 Biggest Losers in Gabriel Plotkin’s Melvin Capital Portfolio.

5. Bill.com Holdings, Inc. (NYSE:BILL)

YTD Share Price Decline as of May 25: 52.82%

Number of Hedge Fund Holders: 58

Bill.com Holdings, Inc. (NYSE:BILL) is a California-based company that offers an AI-powered cloud software to simplify, digitize, and automate back-office financial operations for businesses worldwide. As of May 25, Bill.com Holdings, Inc. (NYSE:BILL) stock has tumbled about 53% year-to-date, making it one of the biggest losers in Gabriel Plotkin’s Melvin Capital portfolio. The hedge fund dumped 46% of its Bill.com Holdings, Inc. (NYSE:BILL) shares in Q1, owning 1.6 million units worth $367.8 million. 

On May 24, Piper Sandler analyst Brent Bracelin cut the price target on Bill.com Holdings, Inc. (NYSE:BILL) to $205 from $300 and reiterated an Overweight rating on the shares. After meeting with company management, the analyst had a better appreciation for automation as a cost saver and back-office resiliency “that differs from front-office apps more tied to new company formations”.

According to Insider Monkey’s Q1 data, Bill.com Holdings, Inc. (NYSE:BILL) was part of 58 public hedge fund portfolios, down from 65 funds in the preceding quarter. Stephen Mandel’s Lone Pine Capital held a prominent stake in the company, consisting of 1.3 million shares worth $309.6 million. 

Here is what Alger Mid Cap Focus Fund has to say about Bill.com Holdings, Inc. (NYSE:BILL) in its Q4 2021 investor letter:

“Bill.com Holdings, Inc., was among the top detractors from performance. Bill.com provides cloud-based software solutions that simplify, digitize, and automate complex back-office financial operations for small and medium size businesses. Its software helps customers to generate and process invoices, streamline approvals, send and receive payments, synchronize data with their accounting system and manage their cash.”