Vulcan Value Partners, an investment management firm, published its “Large Cap, Small Cap, Focus Composite, Focus Plus Composite, and All Cap” fourth quarter 2020 investor letter – a copy of which can be downloaded here. Vulcan’s Large Cap, Small Cap and All Cap strategies beat both their primary and secondary benchmarks, while Focus and Focus Plus trailed their primary benchmarks but beat their secondary benchmarks. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Vulcan Value Partners, in their Q4 2020 investor letter, mentioned Wayfair Inc. (NYSE: W) and emphasized their views on the company. Wayfair Inc. is a Boston, Massachusetts-based e-commerce company that currently has a $32.95 billion market capitalization. Since the beginning of the year, Wayfair delivered a 40.87% return, impressively extending its 12-month gains to 495.25%. As of March 29, 2021, the stock closed at $332.64 per share.
Here is what Vulcan Value Partners has to say about Wayfair Inc. in their Q4 2020 investor letter:
“Wayfair Inc. is a premier e-commerce retailer for home goods and furnishings. Its platform connects buyers to sellers, offering customers over 18 million SKUs from 12,000 suppliers. The company also provides fast delivery for all items, including large, bulky products. Wayfair’s unique shopping experience, inventory-light model, scale, and excellent customer service platform make it an attractive business. The company has a small market share in this large and growing total addressable market (TAM) across North America and Europe. During 2020, consumer trends that would have normally taken years to accomplish were compressed into months, Wayfair’s free cash flow production and margins improved dramatically. Wayfair’s business hit an inflection point, and we expect the company to continue to grow steadily, gain market share, and generate free cash flow for years to come.”
Our calculations show that Wayfair Inc. (NYSE: W) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Wayfair Inc. was in 40 hedge fund portfolios. Wayfair delivered a decent 36.31% return in the past 3 months.