Is it Still Safe to Own SAP Shares?

Mayar Capital, an asset management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees, while the MSCI World Index declined by 5.2% in the same period. Since its inception in May 2011, Mayar Fund has seen a 198.7% increase versus a 180.9% increase for the MSCI. That corresponds to a 10.6% annualized rate of return for the Mayar Fund, compared to 10.1% for the MSCI. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Mayar Capital mentioned SAP SE (NYSE:SAP) and explained its insights for the company. Founded in 1972, SAP SE (NYSE:SAP) is a Walldorf, Germany-based multinational software company with a $108.7 billion market capitalization. SAP SE (NYSE:SAP) delivered a -33.66% return since the beginning of the year, while its 12-month returns are down by -37.02%. The stock closed at $92.95 per share on August 17, 2022.

Here is what Mayar Capital has to say about SAP SE (NYSE:SAP) in its Q2 2022 investor letter:

SAP, the German software company, continues its transition from a licensing-based business model to a Cloud subscription- based model. This is an attractive structural shift as the cloud business – aside from being more predictable – has greater lifetime value per customer. The cloud business now stands at 34%, up from just 14% five years previously.”


Our calculations show that SAP SE (NYSE:SAP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SAP SE (NYSE:SAP) was in 19 hedge fund portfolios at the end of the second quarter of 2022, compared to 14 funds in the previous quarter. SAP SE (NYSE:SAP) delivered a -0.31% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on SAP SE (NYSE:SAP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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