The 5 Stocks That Stephen Perkins’ Toronado Partners Can’t Live Without

In this article, we present the list of the 5 stocks that Stephen Perkins’ Toronado Partners can’t live without. If you want to read our comprehensive analysis of  Toronado Partners’ history, investment philosophy, and hedge fund performance, go directly to The 10 Stocks That Stephen Perkins’ Toronado Partners Can’t Live Without.

5. BlackLine, Inc. (NASDAQ:BL)

Toronado Partners’ Stake Value: $32,820,000

Percentage of Toronado Partners’ 13F Portfolio: 11.53%

Number of Hedge Fund Holders: 18

Toronado Partners appears to be a big fan of several software-as-a-service stocks, including BlackLine, Inc. (NASDAQ:BL), of which it owned 277,998 shares of on September 30. Hedge fund ownership of Blackline has dipped by over 25% over the past two quarters, though several funds think highly of the company.

One of them is Ensemble Capital, which discussed BlackLine, Inc. (NASDAQ:BL) in its Q4 2021 investor letter, declaring that the company is worth materially more than its current market rate. It believes Blackline has a long runway of growth ahead of it and a very competitive moat, which has allowed it to post strong customer and revenue retention rates over the past few years.

BlackLine, Inc. (NASDAQ:BL) shares are down by 40% over the last year after gaining 140% during the previous one-year period, as the pandemic has negatively impacted the company’s aforementioned revenue retention rate, which fell to 106% in the first half of this year compared to 110% in 2019.

Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter and mentioned BlackLine, Inc. (NASDAQ:BL). Here‘s what the fund said:

“Blackline’s stock was down, along with other high-growth Software as a Service stocks, during the quarter. While we believe that many of these types of businesses became very over valued earlier this
year and their declines this quarter were justified, we think Blackline is worth materially more than the current market price. We will be discussing this company at length later in this letter. The stock finished the quarter down 12%.”