L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of 6.2 % was recorded by the fund for the fourth quarter of 2021, underperforming its benchmark by -0.9%. The benchmark meanwhile had a 7.1% gain for the same period. The Australian dollar appreciated 0.5% against the U.S. dollar and 2.4% against the Euro, detracting from reported Fund and benchmark returns. For the 2021 calendar year, the Fund returned 41.1% (net of fees), outperforming the benchmark by 11.9%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
L1 Capital International Fund, in its Q4 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ: AMZN) and discussed its stance on the firm. Amazon.com, Inc. is a Seattle, Washington-based e-commerce company with a $1.5 billion market capitalization. AMZN delivered a -8.05% return since the beginning of the year, while its 12-month returns are down by -6.46%. The stock closed at $3,065.87 per share on February 11, 2022.
Here is what L1 Capital International Fund has to say about Amazon.com, Inc. in its Q4 2021 investor letter:
“We call out Amazon’s share price performance during 2021 as being below our expectations, only slightly increasing, and materially underperforming the benchmark average return. We explicitly state share price performance, as Amazon’s business performance was strong. Amazon Web Services (AWS) exceeded our robust expectations, while Amazon’s eCommerce business continues to extend its competitive advantages. Short-term earnings have been pressured by elevated investment and operating costs (partly COVID-19 related), but we believe Amazon’s margins, earnings and cashflow will inflect substantially higher over coming years. Amazon is one of the largest investments in the portfolio. We considered Amazon to be undervalued at the start of 2021 and we believe it is even more undervalued today.”
25 best things to buy on Amazon under $20 (Photo credit: Pixabay)
Our calculations show that Amazon.com, Inc. (NASDAQ: AMZN) ranks 3rd on our list of the 30 Most Popular Stocks Among Hedge Funds. AMZN was in 242 hedge fund portfolios at the end of the third quarter of 2021, compared to 271 funds in the previous quarter. Amazon.com, Inc. (NASDAQ: AMZN) delivered a -13.03% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on AMZN 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.
