Rowan Street Capital, an investment management company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund gained +78.5% in the first half compared to a +16.8% gain for the S&P 500 Index. The fund’s portfolio is dominated by digital platform businesses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Rowan Street Capital highlighted stocks like Tractor Supply Company (NASDAQ:TSCO) in the Q2 2023 investor letter. Headquartered in Brentwood, Tennessee, Tractor Supply Company (NASDAQ:TSCO) is a rural lifestyle retailer. On July 12, 2023, Tractor Supply Company (NASDAQ:TSCO) stock closed at $220.78 per share. One-month return of Tractor Supply Company (NASDAQ:TSCO) was 0.04%, and its shares gained 9.42 % of their value over the last 52 weeks. Tractor Supply Company (NASDAQ:TSCO) has a market capitalization of $24.376 billion.
Rowan Street Capital made the following comment about Tractor Supply Company (NASDAQ:TSCO) in its second quarter 2023 investor letter:
“Our current portfolio is made up of just 10 companies — we are very focused! We described our ‘10-Player All-Star Team’ philosophy in our Q1 2018 Letter (we encourage you to review it). We have been building this portfolio since our founding in 2015. In total, over the past 8 years, we bought stock in 47 different companies (that’s ~6 per year), and obviously, for anyone who is good at arithmetic, we sold 37 of them (~4.6 per year). We are constantly trying to learn from every decision (good or bad) that we make. We went through every position that we’ve sold since 2015 and analyzed how we would have done had we held on to those positions. The top 3 performing positions would have been: Chipotle (CMG) +630%, Tractor Supply Company (NASDAQ:TSCO) +315% and Novo Nordisk (NVO) +387%. Your managers are at fault here because we sold all of these (in 2017-18) for non-fundamental reasons. All of these continued to be great businesses and management has executed at very high levels. In all three cases, we made a decision to sell because we thought the stock price got way ahead of itself.
Our main take-away lesson has to be Do NOT sell your winners and avoid adding more to your losers. Or as Peter Lynch once famously put it: “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.”…” (Click here to read the full text)
Photo by Sebastian Gómez on Unsplash
Tractor Supply Company (NASDAQ:TSCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Tractor Supply Company (NASDAQ:TSCO) at the end of first quarter which was 49 in the previous quarter.
We discussed Tractor Supply Company (NASDAQ:TSCO) in another article and shared TimesSquare U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
