Here’s Why Rowan Street Capital Sold its LYFT Position

Rowan Street Capital LLC, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be seen here. The past two quarters have been difficult for all growth investors and certainly for Rowan Street partners. COVID reopening, inflation, the threat of a rapid increase in interest rates as well as the war going on in Europe all contributed to a very rapid market rotation out of growth stocks, which were the darlings of the 2020-21 time period. These types of rotations and corrections are normal and to be expected from time to time. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Rowan Street Capital mentioned Lyft, Inc. (NASDAQ:LYFT) and explained its insights for the company. Founded in 2012, Lyft, Inc. (NASDAQ:LYFT) is a San Francisco, California-based online ridesharing services provider with a $12.6 billion market capitalization. Lyft, Inc. (NASDAQ:LYFT)  delivered a -15.02% return since the beginning of the year, while its 12-month returns are down by -40.28%. The stock closed at $36.31 per share on April 19, 2022.

Here is what Rowan Street Capital has to say about Lyft, Inc. (NASDAQ:LYFT) in its Q1 2022 investor letter:

“Lyft (NASDAQ:LYFT): We sold Lyft in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”

Our calculations show that Lyft, Inc. (NASDAQ:LYFT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Lyft, Inc. (NASDAQ:LYFT) was in 43 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 33 funds in the previous quarter. Lyft, Inc. (NASDAQ:LYFT) delivered a -5.52% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on Lyft, Inc. (NASDAQ:LYFT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.