Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” July 2023 investor letter. A copy of the same can be downloaded here. July was a relatively busy month for the Fund, as several portfolio businesses released earnings. During the month, the fund returned 0.8% net of fees and expenses compared to 2.4% for its benchmark, the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Lakehouse Global Growth Fund highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in the July 2023 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a global cloud computing solutions provider. On September 1, 2023, ServiceNow, Inc. (NYSE:NOW) stock closed at $590.88 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 7.12%, and its shares gained 35.99% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $120.54 billion.
L1 Long Short Fund made the following comment about ServiceNow, Inc. (NYSE:NOW) in its July 2023 investor letter:
“US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result that came in ahead of analysts expectations. Subscription revenues grew 25% year-on-year in constant currency terms to $2.1 billion and operating margins came in at 23.4%. Despite ongoing variability in the macro backdrop, ServiceNow continues to benefit from spend prioritisation within the IT tech stack as vendors look to consolidate back-office apps onto an integrated platform. The company’s operational metrics held firm, with remaining performance obligations growing 24% year-on-year to $14.2 billion and renewal rates ticking up to 99%. As we have mentioned before, the company’s renewal rates are noteworthy as not only are they best-in-class but they are also remarkably consistent, typically in the range of 97% to 99%. They speak to the mission critical nature of the platform and are a key driver of long term annuity value.
Investors were also excited to hear management speak to the burgeoning artificial intelligence (AI) opportunity. Things are moving fast and the company plans to release new premium offerings of their workflow products – across IT, customer service and human resources – towards the back end of 2023 that will have new Generative AI capabilities embedded into them. Management also mentioned that they anticipate these new offerings could deliver a “minimum” 60%-plus list price uplift relative to its current Pro versions as they provide meaningful productivity improvements for end users. Whilst it’s still early days, ServiceNow appears well placed to capitalise on the Generative-AI opportunity and we believe it could be a meaningful driver for the company’s next phase of growth.”
ServiceNow, Inc. (NYSE:NOW) is in 24th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of second quarter which was 96 in the previous quarter.
We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the list of top growth stocks in Ken Fisher’s portfolio. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
