Here’s Why Tao Value Sold its Avalara (AVLR) Stake

Tao Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -4.82 percentage points was delivered by the fund for the fourth quarter of 2021, underperforming its benchmark, the MSCI All Country World Index which delivered +6.98 percentage points for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Tao Value, in its Q4 2021 investor letter, mentioned Avalara, Inc. (NYSE:AVLR) and discussed its stance on the firm. Founded in 1999, Avalara, Inc. (NYSE:AVLR) is a Seattle, Washington-based technology company with an $8.5 billion market capitalization, and is currently spearheaded by its CEO, Scott McFarlane. Avalara, Inc. (NYSE:AVLR) delivered a -23.93% return since the beginning of the year, while its 12-month returns are down by -28.32%. The stock closed at $98.21 per share on March 21, 2022.

Here is what Tao Value has to say about Avalara, Inc. (NYSE:AVLR) in its Q4 2021 investor letter:

“On the detracting side, our largest detractor includes Avalara (ticker: AVLR). Avalara (AVLR) is caught in a big rotation out of high growth stocks starting from November. We also sold Avalara (AVLR) as I identified it subject to high retail bubble risk (using above method) and are not part of our core “Mindful Compounder” holdings.”

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Our calculations show that Avalara, Inc. (NYSE:AVLR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Avalara, Inc. (NYSE:AVLR) was in 34 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 24 funds in the previous quarter. Avalara, Inc. (NYSE:AVLR) delivered a -28.56% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on Avalara, Inc. (NYSE:AVLR) 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.