Guardian Fund, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In 2021, the return of the Guardian Fund was 3.27%, measured in euros and net of fees and expenses. This compares to 28.71% for the S&P 500 Index, measured in U.S. dollars, and including dividends. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Guardian Capital Management, in its Q4 2021 investor letter, mentioned Shopify Inc. (NYSE: SHOP) and discussed its stance on the firm. Shopify Inc. is an Ottawa, Canada-based multinational e-commerce company with a $145.9 billion market capitalization. SHOP delivered a -15.15% return since the beginning of the year, while its 12-month returns are down by -2.59%. The stock closed at $1,168.76 per share on January 12, 2022.
Here is what Guardian Capital Management has to say about Shopify Inc. in its Q4 2021 investor letter:
“When we first bought the shares in 2016, we were generally right about the fact that Shopify would be an important player in facilitating digital commerce by offering merchants good software. Early on we had a lot of respect for Tobi Lütke and his team, and we understood the enormous opportunity that laid in front of them. Yet, we were terrified by the valuation.
Today, it has become the dominant operating software platform for commerce with over 43,000 ecosystem partners and almost two million merchants. The market value has multiplied, and the valuation is lower than when we initiated the investment. We think that the risk-adjusted expected return is superior today.
At the beginning of 2021, market observers believed that the growth of pure digital commerce enablers like Shopify would come down significantly following a booming 2020 year. Growth remained strong; Shopify’s revenue for the first 9 months of 2021 increased by 65% versus the same period in 2020.
Shopify has two main revenue streams: merchant subscriptions and merchant solutions. The merchant subscription business is a SaaS business where companies pay a certain fixed amount to Shopify each month based on their size. Subscriptions offer revenue visibility to Shopify…” (Click here to see the full text)
Photo by Charles Deluvio on Unsplash
Our calculations show that Shopify Inc. (NYSE: SHOP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SHOP was in 73 hedge fund portfolios at the end of the third quarter of 2021, compared to 85 funds in the previous quarter. Shopify Inc. (NYSE: SHOP) delivered a -16.46% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on SHOP 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.
