Rowan Street Capital, an investment management company, released its Q3 2023 investor letter. A copy of the same can be downloaded here. The fund gained -6.1% (net) in the third quarter compared to a -3.3% return for the S&P 500 Index. Year-to-date the fund gained +67.6% (net) compared to +13.1% return for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Rowan Street Capital highlighted stocks like Meta Platforms, Inc. (NASDAQ:META) in the third quarter 2023 investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On October 17, 2023, Meta Platforms, Inc. (NASDAQ:META) stock closed at $324.00 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 8.12%, and its shares gained 143.19% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $ 833.704 billion.
Rowan Street Capital made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.
A deep dive into what is driving the optimism for the stock.
It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same time period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.
Are the markets really efficient when you witness this kind of a phenomenon?
Our belief is that the markets have actually become a lot less efficient over the short term with the proliferation of the internet, smart-phones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is the way it has worked in reality. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We wanted to share this observation and be clear that we are not exactly complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job in valuing companies…” (Click here to read the full text)
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 225 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of second quarter which was 220 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared Jim Cramer’s best AI stocks. 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.
