Is Airbnb (ABNB) A Great Long-Term Investment?

Tollymore Investment Partners, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Year-to-date, the Fund has returned 9%, underperforming its MSCI ACWI benchmark that delivered an 11% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Tollymore Investment Partners, in its Q3 2021 investor letter, mentioned Airbnb, Inc. (NASDAQ: ABNB) and discussed its stance on the firm. Airbnb, Inc. is a San Francisco, California-based vacation rental company with a $108.8 billion market capitalization. ABNB delivered a 16.70% return since the beginning of the year, while its 12-month returns are up by 10.64%. The stock closed at $171.31 per share on December 24, 2021.

Here is what Tollymore Investment Partners has to say about Airbnb, Inc.  in its Q3 2021 investor letter:

“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”

Photo by Karsten Winegeart on Unsplash

Based on our calculations, Airbnb, Inc. (NASDAQ: ABNB) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. ABNB was in 58 hedge fund portfolios at the end of the third quarter of 2021, compared to 58 funds in the previous quarter. Airbnb, Inc. (NASDAQ: ABNB) delivered a -2.18% return in the past 3 months.

In October this year, we also shared another hedge fund’s views on ABNB in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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