Rowan Street Capital LLC, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. In its letter, the fund said that the recent quarter was particularly tough in terms of market performance for most digital economy stocks and for its focused strategy, where its portfolio declined -12.3%. This resulted in a -19.4% (gross) decline for the full year 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Rowan Street Capital, in its Q4 2021 investor letter, mentioned The Trade Desk, Inc. (NASDAQ: TTD) and discussed its stance on the firm. The Trade Desk, Inc. is a California-based software company with a $28.5 billion market capitalization. TTD delivered a -35.13% return since the beginning of the year, while its 12-month returns are down by -24.32%. The stock closed at $59.45 per share on January 21, 2022.
Here is what Rowan Street Capital has to say about The Trade Desk, Inc. in its Q4 2021 investor letter:
“Trade Desk (TTD)
Revenues grew from $477 million in 2018 to estimated $1.1 billion for 2021, which represents a 2.4x growth over past 3 years or 33% per annum.
Gross profits grew even faster at 35% per annum.
TTD Stock has grown approximately 600% since the beginning of 2019.
The stock advance has surpassed an already very rapid growth in the business itself as the price-to-sale multiple has grown from 7x to current 35x (see below). Trade Desk was a relatively unknown company back in 2017, operating in the space that was widely viewed with a lot of skepticism and now its has grown into a leader in the industry with solid growth and profitability (even though its still very early in its growth stage) and a massive total addressable market (TAM). Thus, Mr. Market has not only warmed up to TTD, but has grown very enthusiastic about the future potential of this business. We have been fortunate to acquire a position in TTD stock during pandemic lows in April of 2020 (our cost basis is $17.40) — the only time when its valuation seemed reasonable and presented some margin of safety.”
Research, Investment, Finance
Our calculations show that The Trade Desk, Inc. (NASDAQ: TTD) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TTD was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 25 funds in the previous quarter. The Trade Desk, Inc. (NASDAQ: TTD) delivered a -21.89% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on TTD 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.
