Bares Capital’s Top 5 Stock Picks

3. Etsy Inc (NASDAQ:ETSY)

Number of Hedge Fund Holders: 36
Bares Capital Management’s Equity Stake: $330.71 Million
2023 share price performance: -31%

Etsy Inc (NASDAQ:ETSY) is a consumer cyclical investment play and one of Bares Capital Management’s top stock picks owing to its exposure in the internet retail business. The company operates one of the biggest online marketplaces that connect buyers and sellers. Etsy Inc (NASDAQ:ETSY) focuses on connecting artisans and entrepreneurs with various consumers.

Etsy Inc (NASDAQ:ETSY) was a big disappointment, dropping by 31% last year at the height of the strong bull run. In response to the poor run, Citi analysts downgraded Etsy Inc (NASDAQ:ETSY) to a ‘Hold’ due to concerns over the company’s growth outlook.

“We believe there is limited visibility into 2024 GMS growth. Etsy has become one of the more debated names in our coverage universe,” the analysts wrote in a note. “We see at least some headwinds to a return to stronger GMS/revenue growth, particularly near-term.”

Nevertheless, 36 hedge funds out of the 933 tracked by the Insider Monkey Database held stakes in Etsy Inc (NASDAQ:ETSY) as of the end of the fourth quarter. Bares Capital Management remained the most significant stockholder with stakes worth $330.71 million.

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