Candlestick Capital’s Top 5 Stock Holdings

3. Amazon.com (NASDAQ: AMZN)

The hedge fund has sold 29% of its stake in Amazon.com (NASDAQ: AMZN) during the September quarter to capitalize on the share price rally. Despite that, Amazon is Candlestick’s third-largest stock holding, representing 3.53% of the overall portfolio.

L1 Capital International Fund, which has returned 5.1% for the third quarter, is bullish on the future fundamentals of Amazon. Here is what L1 Capital stated:

“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:

– The consistency and longevity of Amazon’s growth potential in its key businesses;

– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and

– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”