Hayden Capital, a value-oriented investment firm, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. The portfolio rose in the third quarter and returned 11.6% (net) compared to (3.3%) return for the S&P 500 Index and (3.7%) return for the MSCI World Index. Several holding companies began to exhibit indications of reaccelerating growth in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Hayden Capital highlighted stocks like SmartRent, Inc. (NYSE:SMRT) in the third quarter 2023 investor letter. Headquartered in Scottsdale, Arizona, SmartRent, Inc. (NYSE:SMRT) is an enterprise real estate technology company. On December 8, 2023, SmartRent, Inc. (NYSE:SMRT) stock closed at $3.34 per share. One-month return of SmartRent, Inc. (NYSE:SMRT) was 13.99%, and its shares gained 30.47% of their value over the last 52 weeks. SmartRent, Inc. (NYSE:SMRT) has a market capitalization of $678.538 million.
Hayden Capital made the following comment about SmartRent, Inc. (NYSE:SMRT) in its third 2023 investor letter:
“SmartRent, Inc. (NYSE:SMRT): A few months ago, I drove down to Scottsdale, Arizona to meet with the SmartRent team (see our original investment memo here; LINK). Lucas (CEO), Hiroshi (CFO) and Brian (IR), were generous enough to spend a few hours with me, and I left even more confident that the business is on the cusp of producing significant free cash flow in just a few months.
It was coincidental timing as well, since a new short report targeting the company had just come out a few days earlier.
Short reports on our companies are not new to us. During our ownership, nearly every single investment has been subject to a short-seller report at some point. Most of our companies are still developing, and therefore have a higher likelihood of the market misunderstanding their business models. But I actually think this aspect is a benefit (even if annoying at the time), since it overtly allows us to understand what controversies or concerns the company needs to overcome, for the stock to appreciate.
In SmartRent’s case, I had a cordial call with the short report’s author prior to meeting with management. I think the primary concerns revolve around whether they can keep growing the number of units they deployed per quarter, and how much of their existing base is from RET Ventures (their original seed investor) promoting the service to their own LPs10. The crux of both of these concerns is the same – that the company won’t be able to scale to a large enough customer base, to cover their costs and reach profitability…” (Click here to read the full text)
A real estate agent pointing to a neighborhood map with clients in the background.
SmartRent, Inc. (NYSE:SMRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held SmartRent, Inc. (NYSE:SMRT) at the end of third quarter which was 12 in the previous quarter.
We discussed SmartRent, Inc. (NYSE:SMRT) in another article and shared Vulcan Value Partners’ views on the company. 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.
