Is ROKU a Great Investment Choice?

Saga Partners, an investment management firm, published its second-quarter 2022investor letter – a copy of which can be seen here. During the second quarter of 2022, the Saga Portfolio (“the Portfolio”) declined 56.3% net of fees. This compares to the overall decrease for the S&P 500 Index, including dividends, of 16.1%. The cumulative return since inception on January 1, 2017, for the Saga Portfolio, is -7.3% net of fees compared to the S&P 500 Index of 86.8%. The annualized return since inception for the Saga Portfolio is -1.4% net of fees compared to the S&P 500’s 12.0%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Saga Partners mentioned Roku, Inc. (NASDAQ:ROKU) and explained its insights for the company. Founded in 2002, Roku, Inc. (NASDAQ:ROKU) is a San Jose, California-based publicly traded company with a $9.3 billion market capitalization. Roku, Inc. (NASDAQ:ROKU) delivered a -70.18% return since the beginning of the year, while its 12-month returns are down by -78.52%. The stock closed at $68.05 per share on September 13, 2022.

Here is what Saga Partners has to say about Roku, Inc. (NASDAQ:ROKU) in its Q2 2022 investor letter:

“The Portfolio first bought Roku in Q3’20. It was a company we followed closely given our investment in The Trade Desk and its importance in connected television (CTV). Roku continued to impressively grow its CTV market share and it took some extra work to understand the underlying dynamics causing Roku’s success. I think there is some misunderstanding surrounding the connected television landscape. Since I haven’t written extensively on the topic in past letters, I thought it would be helpful to provide a little more background on the underlying dynamics of the space below…” (Click here to see the full text)

Photo by Petter Lagson on Unsplash

Our calculations show that Roku, Inc. (NASDAQ:ROKU) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Roku, Inc. (NASDAQ:ROKU) was in 34 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. Roku, Inc. (NASDAQ:ROKU) delivered a -8.40% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Roku, Inc. (NASDAQ:ROKU) 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.