GreenWood Investors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund’s fourth-quarter performance was impacted along with most other stocks, -12.3% for the Global Micro Fund and -10.9% for the euro-denominated Luxembourg Global Fund. Both funds were up 13.0% and 24.2% respectively for the year, highlighting the impact of our unhedged currency position that we believe is transitory. These returns frustratingly compare poorly to the MSCI ACWI benchmark returns of +6.0% in the quarter and +18.2% YTD (+16.6% and +27.2% respectively in euro-denominations). Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Greenwood Investors, in its Q4 2021 investor letter, mentioned Peloton Interactive, Inc. (NASDAQ:PTON) and discussed its stance on the firm. Founded in 2012, Peloton Interactive, Inc. (NASDAQ:PTON) is a New York, New York-based exercise equipment company with a $8.2 billion market capitalization, and is currently spearheaded by its CEO, Barry McCarthy. Peloton Interactive, Inc. (NASDAQ:PTON) delivered a -25.56% return since the beginning of the year, while its 12-month returns are down by -75.42%. The stock closed at $26.62 per share on March 18, 2022.
Here is what Greenwood Investors has to say about Peloton Interactive, Inc. (NASDAQ:PTON) in its Q4 2021 investor letter:
“While we sold down around half of our stake in Peloton (PTON) over a year ago, it was our single largest detractor to the fund’s performance in 2021 (-6.8%). This was largely offset by a well-timed exit of MicroStrategy (MSTR, +7.1%). While both valuations got ahead of themselves, we remained too enamored by the exceptionally high customer satisfaction at Peloton and didn’t take the opportunity to fully exit.
Customers are actually loving them… to death. And that’s the problem. Management spared literally no expense to fulfill once-in-a-generation levels of demand, and they have since paid a very high price for these errors in judgementlosing their jobs and their lavish lifestyles. While Peloton has remained a small position for us, we remain encouraged by the strength of the ecosystem as measured by low subscriber churn and continued high customer satisfaction, as well as the undemanding valuation of 6-8x next year’s EBITDA…” (Click here to see the full text)
Our calculations show that Peloton Interactive, Inc. (NASDAQ:PTON) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Peloton Interactive, Inc. (NASDAQ:PTON) was in 60 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 62 funds in the previous quarter. Peloton Interactive, Inc. (NASDAQ:PTON) delivered a -37.29% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Peloton Interactive, Inc. (NASDAQ:PTON) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
