In this article, we will be taking a look at the top 5 stock picks of Jeffrey Diehl’s Adams Street Partners. To read our detailed analysis, you can go directly to see Top 10 Stock Picks of Jeffrey Diehl’s Adams Street Partners.
5. Couchbase, Inc. (NASDAQ:BASE)
Adams Street Partners’ Stake Value: $31.040 million
Number of Hedge Fund Holders: 8
Couchbase, Inc. (NASDAQ:BASE) is a NoSQL cloud database, with its aim being to provide a modern database for enterprise applications. While Couchbase, Inc. (NASDAQ:BASE) has lost 32% in share price YTD during 2022, it has started to recover a bit in the past month, rising by nearly 18%.
Baron Funds published its Q3 investor letter, where Couchbase, Inc. (NASDAQ:BASE) was mentioned. Here is what it said:
“Couchbase, Inc., a new position in the Fund after a successful IPO, provides a modern database that collects and stores data and powers enterprise applications, for which there is no tolerance for disruption, inaccuracy, or downtime. The Couchbase database is based on a platform called NoSQL, which means that rather than having a predetermined rigid structure to store data (like legacy relational database software), it stores data in documents, making it easy to have a flexible set of items that can move into and out of each record. Its solution is fast as it utilizes caching, or retrieval from memory, versus hard drives; scales to large numbers of records, which is expensive for old-style relational databases and not even possible with some of the other NoSQL solutions; and works in all settings (on-premise, in the cloud, or in mixed hybrid environments). Couchbase is addressing a large total market of $62 billion, which is slowly migrating to the cloud and using less rigid database structures. We believe Couchbase can win its fair share of these workloads over time given its unified platform, ability to scale run anywhere, and its familiar query language that makes it easier for developers to quickly create solutions. The company’s growth rate is currently being impacted by COVID (about 15% of Couchbase’s customers are in the travel and hospitality industries), but we believe a return to normal pre-COVID spending levels later this year and into early 2022 should help to accelerate growth. Longer term, we believe that management will improve its go-to market efficiency, which will further accelerate growth. Given that revenues are only about $150 million now, it has a huge opportunity in this $62 billion marketplace, and we expect that Couchbase will be a profitable investment for many years to come.”