Rowan Street Capital, an investment management company, released its 2023 investor letter. A copy of the same can be downloaded here. The year 2023 proved to be a successful one for the fund as it recorded a net gain of +102.6%. In 2023, Meta Platforms (+194%), Spotify (+138%), Trade Desk (+60%), and Shopify (+124%) were the main contributors to the outperformance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Rowan Street Capital featured stocks such as Spotify Technology S.A. (NYSE:SPOT) in the 2023 yearly investor letter. Headquartered in Luxembourg, Luxembourg, Spotify Technology S.A. (NYSE:SPOT) offers audio streaming services. On January 26, 2024, Spotify Technology S.A. (NYSE:SPOT) stock closed at $214.29 per share. One-month return of Spotify Technology S.A. (NYSE:SPOT) was 14.04%, and its shares gained 114.29% of their value over the last 52 weeks. Spotify Technology S.A. (NYSE:SPOT) has a market capitalization of $41.816 billion.
Rowan Street Capital stated the following regarding Spotify Technology S.A. (NYSE:SPOT) in its 2023 annual investor letter:
“In our year-end 2022 letter we wrote: “Spotify Technology S.A. (NYSE:SPOT) is currently selling for about $15 billion. Does this make any sense?” We argued that Spotify stock was extremely mis-priced by the market. That aged pretty well as the current market cap for Spotify is ~$40 billion. Spotify’s stock skyrocketed +138% in 2023, strongly contributing to our outperformance. Spotify surpassed analyst expectations by adding 26% more monthly active users (MAUs) year-over-year in Q3 2023, reaching a total of 489 million (estimated to close the year with 600 million MAUs). This impressive growth solidified Spotify’s position as the world’s leading music streaming platform. Investors also applauded Spotify’s bid to improve profitability by suspending its podcasting spending spree and implementing cost-cutting measures, including layoffs, which reduced operating expenses.”
A person wearing headphones listening to an audio streaming service.
Spotify Technology S.A. (NYSE:SPOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held Spotify Technology S.A. (NYSE:SPOT) at the end of third quarter which was 57 in the previous quarter.
We discussed Spotify Technology S.A. (NYSE:SPOT) in another article and shared the list of most valuable media companies in the world. In addition, please check out our hedge fund investor letters Q4 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.
