Ensemble Capital: “Blackline (BL) is Worth Materially More than the Current Market Price”

Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund has focused on economic and COVID-related commentary. The fund also covered the notable detractors and contributors to its fourth-quarter investment performance and offered a discussion of an aspect of its investment strategy. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Ensemble Capital Management, in its Q4 2021 investor letter, mentioned BlackLine, Inc.  (NASDAQ: BL) and discussed its stance on the firm. BlackLine, Inc. is a California-based enterprise software company with a $5 billion market capitalization. BL delivered a -17.61% return since the beginning of the year, while its 12-month returns are down by -36.82%. The stock closed at $85.31 per share on January 21, 2022.

Here is what Ensemble Capital Management has to say about BlackLine, Inc. in its Q4 2021 investor letter:

“Blackline’s stock was down, along with other high-growth Software as a Service stocks, during the quarter. While we believe that many of these types of businesses became very over valued earlier this
year and their declines this quarter were justified, we think Blackline is worth materially more than the current market price. We will be discussing this company at length later in this letter. The stock finished the quarter down 12%.”

Photo by Austin Distel on Unsplash

Our calculations show that BlackLine, Inc.  (NASDAQ: BL) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BL was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. BlackLine, Inc.  (NASDAQ: BL) delivered a -32.00% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on BL in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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