Saltlight Capital, an asset management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The SaltLight SNN Worldwide Flexible Fund A1 class returned +4.96% during the fourth quarter of 2021 and since inception, the A1 class has returned 18.69%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Saltlight Capital, in its Q4 2021 investor letter, mentioned Amazon.com, Inc. (NASDAQ:AMZN) and discussed its stance on the firm. Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) is a Seattle, Washington-based multinational technology company with a $1.6 trillion market capitalization, and is currently spearheaded by its CEO, Andy Jassy. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -3.28% return since the beginning of the year, while its 12-month returns are up by 4.88%. The stock closed at $3,225.01 per share on March 18, 2022.
Here is what Saltlight Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Once there are sufficient buyers and sellers, the network starts to become selfsustaining. The job of the marketplace is about retaining these networks and growing into new ones. We’ll often listen to potential investees to see what KPIs 7 they care about. Many will promote metrics around average order sizes or the number of user accounts that they have. We have found that the best marketplace management teams focus on engagement (order frequency, engagement time and activity metrics).
As we have mentioned in previous letters, the most finite constraint today is attention. If a user is engaging in your app, they’re not spending time on another (or ordering from the competition). Habits are developed from engagement.
We’ve been very impressed with some of our portfolio companies and what they focus on. SEA Ltd uses its background in gaming to gamify the shopping experience. In the US, Amazon introduced Prime (free 2-day shipping, Prime Video and Prime Music) resulting in a highly engaged customer base. All these retention loops create a longer lifetime value and potential to earn revenue where the customer acquisition investment has already been made.
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Our calculations show that Amazon.com, Inc. (NASDAQ:AMZN) ranks 1st on our list of the 30 Most Popular Stocks Among Hedge Funds. Amazon.com, Inc. (NASDAQ:AMZN) was in 279 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 242 funds in the previous quarter. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -5.16% return in the past 3 months.
In February 2022, we published an article that includes Amazon.com, Inc. (NASDAQ:AMZN) in the 5 Technology Stocks Hedge Funds Are Talking About. You can find more than 100 investor 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.
