Argosy Investors: “GDYN is a Good Company”

Argosy Investors, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The fund’s 2022 first-quarter performance was -15.1% in select accounts. The S&P 500 by comparison returned -4.4%. Argosy ended the quarter with 43% of the portfolio in cash and equivalents, which means that these results would have been worse without the allocation to cash. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Argosy Investors mentioned Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) and explained its insights for the company. Founded in 2006, Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) is a San Ramon, California-based IT services company with a $1.1 billion market capitalization. Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) delivered a -54.94% return since the beginning of the year, while its 12-month returns are up by 0.59%. The stock closed at $17.11 per share on June 17, 2022.

Here is what Argosy Investors has to say about Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) in its Q1 2022 investor letter:

“While I’m not at all happy with this quarter, there are some things that give me some comfort. For instance, Grid Dynamics (NASDAQ:GDYN) has a significant employee count in Ukraine and Russia, a fact that not many would have considered relevant until recently. The silver lining with GDYN is that I had sold down this position by 75%+ in the quarters leading up to this one, but I still believe GDYN is a good company with the ability to adapt to changing geopolitics (they announced a joint venture in India shortly after the war in Ukraine broke out), and it may be attractively priced for further investment now.”

Our calculations show that Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) was in 18 hedge fund portfolios at the end of the first quarter of 2022, compared to 15 funds in the previous quarter. Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) delivered a 37.43% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Grid Dynamics Holdings, Inc.  (NASDAQ:GDYN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.