VGI Partners Global Investments Limited, an investment management company, released its 2022 annual investor letter. A copy of the same can be downloaded here. The firm returned -22.3% (net) for the year ended 31st December 2022. 2022 was a challenging year for the global equity market, the S&P 500 declined -19% during the period, the NASDAQ Composite retreated -33%, and the MSCI World Index fell -19% in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2022.
VGI Partners highlighted stocks like Amazon.com, Inc. (NASDAQ:AMZN) in the Q4 2022 investor letter. Headquartered in Seattle, Washington, Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products and subscriptions. On March 31, 2023, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $103.29 per share. One-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 10.18%, and its shares lost 38.64% of their value over the last 52 weeks. Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $1.058 trillion.
VGI Partners made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its 2022 annual investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a dominant player in e-commerce (#1 globally), cloud computing (#1 globally), and digital advertising (#3 globally), all massive and structurally growing end markets. Amazon’s share price declined nearly 50% in calendar 2022 due to a myriad of macro and company-specific headwinds, including slowing economic growth, rising inflation, tighter monetary policy, and substantial overinvestment. Free cashflow turned deeply negative. We are disappointed, to say the least. Nevertheless, the investment case for Amazon today is remarkably compelling. Market expectations have been reset, the valuation is extremely attractive, and management is intent on improving profitability and reducing capital intensity. Amazon remains a high conviction holding and we are incredibly excited by its prospects.
For the past year, the market has been concerned about the growth and profit outlook for its e-commerce business, which is presently loss-making due to overinvestment and cost inflation. Management has responded by laying off more than 18,000 employees — the biggest reduction in Amazon’s history. Beyond the reduction in force, Amazon has frozen hiring in its e-commerce and corporate divisions, cancelled or delayed warehouse openings, raised prices on a variety of products (including Prime memberships), eliminated several unprofitable lines of business and seeded new ones (e.g. Buy with Prime) to fill excess capacity. (Amazon doubled the size of its e-commerce footprint over 2020-2021.) Buy with Prime has been shown to increase shopper conversion by 25% on average and is now widely available to US-based merchants…” (Click here to read the full text)
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Amazon.com, Inc. (NASDAQ:AMZN) is in 2nd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 240 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the fourth quarter which was 269 in the previous quarter.
We discussed Amazon.com, Inc. (NASDAQ:AMZN) in another article and shared the list of best growth stocks to buy for the next 5 years. In addition, please check out our hedge fund investor letters Q4 2022 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.
