Touchstone Sands Capital Institutional Growth Fund recently released its Q1 2020 Investor Letter, a copy of which you can download below. The fund posted a return of -9.45% for the quarter, outperforming its benchmark, the Russell 1000 Growth Index which returned -14.10% in the same quarter. You should check out Touchstone Sands Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Touchstone Sands Capital highlighted a few stocks and Uber Technologies Inc (NYSE:UBER) is one of them. Uber Technologies is a ride-sharing company. Year-to-date, UBER stock gained 8.1% and on May 13th it had a closing price of $33.02. Its market cap is of $55.8 billion. Here is what Touchstone Sands Capital said:
“Uber Technologies is the world’s leading mobility technology platform. Based on gross bookings, Uber’s ride-hailing business (Rides) is the leader in each of its markets, and its food delivery business (Eats) is a leader or fast follower in over 30 countries. The ride-hailing industry has grown explosively over the past decade, but we believe that many underestimate the durability of Rides’ above-average growth potential. We believe both users and rides per user will continue to grow, driven by convenience and habit formation. The earnings potential of Rides is also underappreciated, in our view, and we believe Uber will expand its margins as incremental revenues grow. In addition to ride-hailing, Uber leverages its mobility technology to operate one of the world’s leading food delivery business. This market remains highly competitive, but Uber benefits from scale and its ability to reinvest the profits from Rides into growing Eats. The company also operates several other smaller businesses—including Advanced Technology Group, Freight, and New Mobility—that we believe have the potential to become more material contributors over time.”
In Q4 2019, the number of bullish hedge fund positions on UBER stock increased by about 96% from the previous quarter (see the chart here), so a number of other hedge fund managers also seem to agree with UBER’s growth potential.
Disclosure: None. This article is originally published at Insider Monkey.