Is Spotify (SPOT) A Great Investment Choice?

Arch Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Through the first 11 months of the partnership, the fund was able to deliver a 3.53%  return, compared to the S&P 500 Total Return Index, its core benchmark, which returned 30.02% 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.

Arch Capital, in its Q4 2021 investor letter, mentioned Spotify Technology S.A. (NYSE: SPOT) and discussed its stance on the firm. Spotify Technology S.A. is a Stockholm, Sweden-based music streaming company with a $39.0 billion market capitalization. SPOT delivered a -12.99% return since the beginning of the year, while its 12-month returns are down by -40.99%. The stock closed at $203.62 per share on January 31, 2022.

Here is what Arch Capital has to say about Spotify Technology S.A. in its Q4 2021 investor letter:

“Spotify remains one of our top holdings, as we are incredibly optimistic about its future as a global audio platform. In the Fall of 2021, we released a report on Spotify outlining our thesis, which is still relevant today. You can download the report here: https://www.archcapitalfund.com/letters.”

Photo by Norbert Buduczki on Unsplash

Our calculations show that Spotify Technology S.A. (NYSE: SPOT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SPOT was in 48 hedge fund portfolios at the end of the third quarter of 2021, compared to 48 funds in the previous quarter. Spotify Technology S.A. (NYSE: SPOT) delivered a -31.72% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on SPOT 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.