Is UBER a Great Investment Choice?

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 Uber Technologies, Inc. (NYSE: UBER) and discussed its stance on the firm. Uber Technologies, Inc. is a San Francisco, California-based transport company with an $85.1 billion market capitalization. UBER delivered a -13.90% return since the beginning of the year, while its 12-month returns are up by -16.96%. The stock closed at $43.91 per share on December 24, 2021.

Here is what Tollymore Investment Partners has to say about Uber Technologies, 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, Uber broke the link between hailing a taxi. Uber 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.”

Based on our calculations, Uber Technologies, Inc. (NYSE: UBER) ranks 7th in our list of the 30 Most Popular Stocks Among Hedge Funds. UBER was in 143 hedge fund portfolios at the end of the third quarter of 2021, compared to 135 funds in the previous quarter. Uber Technologies, Inc. (NYSE: UBER) delivered a -3.45% return in the past 3 months.

In October this year, we also shared another hedge fund’s views on UBER 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.