Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” October 2023 investor letter. A copy of the same can be downloaded here. October was a busy month for the Fund with the team’s main attention on several portfolio businesses that released earnings. The Fund returned 0.7% net of fees and expenses for the month compared to -1.1% for its benchmark. Since its inception at the start of December 2017, the Fund has returned 102.7% compared to 67.8% for its benchmark’s, MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2023.
Lakehouse Capital highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in the October 2023 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On January 2, 2024, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $149.93 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 3.74%, and its shares gained 76.10% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.549 trillion.
In its October 2023 investor letter, Lakehouse Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN):
“The Fund’s largest position, Amazon.com, Inc. (NASDAQ:AMZN), reported an impressive quarterly result with strong execution and cost discipline driving significant operating leverage across the business. Net sales grew13% year-over-year (11% in constant currency terms) to $143 billion whilst operating income grew 348% to $11.2 billion, well ahead of guidance and analysts’ expectations. Growth within their core e-commerce business proved resilient again and management noted that they are continuing to see material productivity and operational benefits from the recent reorganisation of their US fulfilment network. This involved transitioning from one national network to a series of eight separate regions serving smaller geographic areas.
The companies second largest segment, Amazon Web Services (AWS), grew revenue at 12%, a rate consistent with what was achieved last quarter. This was pleasing to see as it signalled that growth is stabilising after several quarters of deceleration driven by customer optimisations. Whilst these customer optimisations are moderating, management noted that they still remain at elevated levels, and hence, they will likely provide a slight (albeit diminishing) headwind for the next few quarters. In any event, we are not concerned as we believe the current headwinds are more a factor of cyclical weakness, as opposed to any fundamental issues. Zooming out, AWS remains the leading cloud provider (in what is an increasingly two-horse race with Microsoft’s Azure) and with 90% of global IT spend still on-premise there is still plenty of runway for future growth.”
Amazon.com, Inc. (NASDAQ:AMZN) is in second position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 286 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of third quarter which was 278 in the previous quarter.
We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared stocks to consider in the Mark Cuban stock portfolio. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
