Rowan Street Capital LLC, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be seen here. The past two quarters have been difficult for all growth investors and certainly for Rowan Street partners. COVID reopening, inflation, the threat of a rapid increase in interest rates as well as the war going on in Europe all contributed to a very rapid market rotation out of growth stocks, which were the darlings of the 2020-21 time period. These types of rotations and corrections are normal and to be expected from time to time. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Rowan Street Capital mentioned Spotify Technology S.A. (NYSE:SPOT) and explained its insights for the company. Founded in 2006, Spotify Technology S.A. (NYSE:SPOT) is a Stockholm, Sweden-based domiciled holding company with a $25.8 billion market capitalization. Spotify Technology S.A. (NYSE:SPOT) delivered a -42.56% return since the beginning of the year, while its 12-month returns are down by -53.97%. The stock closed at $134.43 per share on April 18, 2022.
Here is what Cooper Investors Rowan Street Capital has to say about Spotify Technology S.A. (NYSE:SPOT) in its Q1 2022 investor letter:
“Let’s run through our top holdings in order to visualize what happened to their stocks in relation to the fundamentals of their underlying businesses:
We have owned Spotify (NYSE:SPOT) stock since its IPO year in 2018, and this company continued to be one of our highest long-term convictions despite the recent drawdown in the stock. We had outlined our investment thesis for SPOT in our H1 2021 Letter and in Q2 2020 Letter (we encourage you to review those). We believe there is great future for this company beyond what you can see and hear today!”
Photo by Norbert Buduczki on Unsplash
Our calculations show that Spotify Technology S.A. (NYSE:SPOT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Spotify Technology S.A. (NYSE:SPOT) was in 53 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 48 funds in the previous quarter. Spotify Technology S.A. (NYSE:SPOT) delivered a -38.49% return in the past 3 months.
Earlier this month, we also shared another hedge fund’s views that includes Spotify Technology S.A. (NYSE:SPOT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
