Blue Tower Management LLC, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. While we may have hoped that with the end of Covid-related restrictions, 2022 would be a return to economic normalcy, it is now clear that the extreme market volatility that began in 2020 will continue for at least another year. The fund’s strategy composite returned -15.87% net of fees in the first quarter (-15.62% gross) driven primarily by our Russian equity holdings. Excluding its Russian securities, its composite would have had a gain despite the decline in overall equity markets. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Blue Tower Asset Management mentioned Splunk Inc. (NASDAQ:SPLK) and explained its insights for the company. Founded in 2003, Splunk Inc. (NASDAQ:SPLK) is a San Francisco, California-based software company with a $15.0 billion market capitalization. Splunk Inc. (NASDAQ:SPLK) delivered a -19.14% return since the beginning of the year, while its 12-month returns are down by -25.44%. The stock closed at $93.57 per share on June 21, 2022.
Here is what Blue Tower Asset Management has to say about Splunk Inc. (NASDAQ:SPLK) in its Q1 2022 investor letter:
“The exit of Western companies creates opportunities for both firms as the large software development and operation teams of each business will be able to fill in the niches left behind. For example, in past years when Splunk (NASDAQ:SPLK) pulled their enterprise monitoring software from the Russian market, Tinkoff built their own product, Sage, which they began marketing to other Russian corporations as a new line of business. The exit of Visa and Mastercard will allow Tinkoff and Sberbank to introduce co-badged cards that use Mir payments for Russia and China’s UnionPay for international transactions. As the current crisis will be tough for many businesses, it should allow Tinkoff and Sberbank to take market share from their weaker competitors.”
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Our calculations show that Splunk Inc. (NASDAQ:SPLK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Splunk Inc. (NASDAQ:SPLK) was in 42 hedge fund portfolios at the end of the first quarter of 2022, compared to 44 funds in the previous quarter. Splunk Inc. (NASDAQ:SPLK) delivered a -30.16% return in the past 3 months.
In May 2022, we also shared another hedge fund’s views on Splunk Inc. (NASDAQ:SPLK) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
