Vltava Fund, an investment management company, recently released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund believes in being better, not bigger, and also emphasizes the right type of investors in the fund. The firm also has the opinion that the best investments are not in the stocks that everyone praises but underappreciated. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Vltava Fund highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in the second quarter 2023 investor letter. Headquartered in Mountain View, California, Alphabet Inc. (NASDAQ:GOOG) is a multinational technology company. On July 5, 2023, Alphabet Inc. (NASDAQ:GOOG) stock closed at $122.63 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -0.03%, and its shares gained 2.79% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.527 trillion.
Vltava Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2023 investor letter:
“We sold Alphabet Inc. (NASDAQ:GOOG). We have only held these shares for a few months, and this turnaround after such a short time is quite unusual for us. This is what I wrote when we bought the stock at the end of last year: “The only stock (in the technology sector) that has slipped through our screen so far is Alphabet. It’s a quality business, no question about it. When the price fell to $90, we cautiously started buying. It’s not yet a price that makes a buyer jump for joy, but it’s a reasonable price for a solid company. We see a lot of future potential (perhaps somewhat paradoxically) in trimming the corporate fat that the company has packed on over the past few years. When revenues were growing rapidly, this could have been hidden, but now it’s proving to be a problem. Costs are rising too fast, the company apparently has too many employees and too many overpaid employees, and it has some other segments, like the so-called “other bets”, that have swallowed up tens of billions of dollars and still produce virtually no sales. Management seems to be realising this and if they start running the company with much greater emphasis on efficiency, then maybe we will add some more to this position.”
What has happened since then? The stock’s price has risen, and, considering that we had already turned two blind eyes to the price when we bought it, that alone would be reason enough to sell. The imaginary last drop which made the cup runneth over was release of the news that Alphabet’s CEO had received $226 million in bonuses for 2022. I think there is no need to comment further on that.”
Photo by Kai Wenzel on Unsplash
Alphabet Inc. (NASDAQ:GOOG) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 155 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of first quarter which was 152 in the previous quarter.
We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared the list of best stocks for the next 20 years. In addition, please check out our hedge fund investor letters Q2 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.
