As per Choice Equities Capital Management’s Q1 2019 Investor Letter, the fund returned 10.5% in the quarter. If you are interested you can track down a copy of the letter here. The fund, which mainly focuses on small cap stocks, posted comments on several stocks in its portfolio, including its largest position – Rubicon Project, Inc. (NYSE:RUBI).
“Rubicon Project, Inc. (RUBI), our largest position in the quarter, performed well contributing ~7% to gross returns for the quarter. The Q4 report marked the first “clean” year over year comparison since the company became a one-sided supply-focused platform and featured strong 25% level revenue growth and impressive incremental margins in the ~90% range. The outlook, which includes continued mid-20s revenue growth and steady progress to a mid-20s EBITDA margin was equally strong. With new products soon to rollout to enable continued share gains against an industry backdrop that has advertisers focused on consolidating to fewer and more trustworthy platforms, the company appears well positioned to become the preeminent independent supply side platform in an industry featuring attractive mid-teens expected growth rates.”
Rubicon Project, Inc. (RUBI) is a Los Angeles-based online advertising technology company with a market cap of $330.24 million. Year-to-date, the company’s stock gained 69.23%, and on May 14th it had a closing price of $6.38.
At Q4’s end, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 29% from the second quarter of 2018. On the other hand, there were a total of 10 hedge funds with a bullish position in RUBI a year ago. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Chuck Royce’s Royce & Associates has the most valuable position in The Rubicon Project Inc (NYSE:RUBI), worth close to $6.8 million, corresponding to 0.1% of its total 13F portfolio. The second largest stake is held by Raymond J. Harbert of Harbert Management, with a $6 million position; the fund has 6.2% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish encompass Jim Roumell’s Roumell Asset Management, D. E. Shaw’s D E Shaw and Jim Simons’ Renaissance Technologies.
This article is originally published at Insider Monkey.