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 Shopify Inc. (NYSE:SHOP) and explained its insights for the company. Founded in 2006, Shopify Inc. (NYSE:SHOP) is an Ottawa, Canada-based multinational e-commerce company with a $73.2 billion market capitalization. Shopify Inc. (NYSE:SHOP) delivered a -57.82% return since the beginning of the year, while its 12-month returns are down by -48.26%. The stock closed at $581.00 per share on April 18, 2022.
Here is what Cooper Investors Rowan Street Capital has to say about Shopify Inc. (NYSE:SHOP) in its Q1 2022 investor letter:
“The beauty of the public markets is that if you can be patient, there is a good chance the volatility of the marketplace will give you the chance to own companies on your watch list. The stock prices of our 3 new positions (please refer to charts below) have fluctuated from 100-350% over the past 12 months (when comparing 52-week high by 52-week low). Certainly, the underlying value of a business doesn’t fluctuate that much on an annual basis, so the public markets are a fantastic arena to buy businesses if you can sit still without growing tired of sitting still.
Shopify is the company we have been following for a long time, but never had a chance to buy due to its persistent stratospheric valuations (the best companies are never without a huge fan club). The recent sell-off in the stock finally gave us an opportunity to build a core position for our fund.”
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Our calculations show that Shopify Inc. (NYSE:SHOP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Shopify Inc. (NYSE:SHOP) was in 86 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 73 funds in the previous quarter. Shopify Inc. (NYSE:SHOP) delivered a -44.91% return in the past 3 months.
In April 2022, we published an article that includes Shopify Inc. (NYSE:SHOP) 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.
