MPE Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The 5-year-old investment firm had a decline of 24.8% for the year ended December 31st, 2021, below its S&P 500 TR benchmark that had a 28.7% return for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
MPE Capital, in its Q4 2021 investor letter, mentioned Squarespace, Inc. (NYSE: SQSP) and discussed its stance on the firm. Squarespace, Inc. is a New York City, New York-based website building and hosting company with a $4.7 billion market capitalization. SQSP delivered a -6.61% since the beginning of the year and it closed at $34.31 per share on February 15, 2022.
Here is what MPE Capital has to say about Squarespace, Inc. in its Q4 2021 investor letter:
“One recent investment we made is in Squarespace. Squarespace offers a do-it-yourself website product, as well as some ancillary products including marketing and analytics tools, and domain registrations. Instead of hiring a traditional website developer and paying thousands for a website, most people can use templates and drag and drop to create a professional looking website for just $12 per month. They offer websites for all types of businesses, including ecommerce, restaurant bookings, paid content section, appointments, etc.
Their closest peers are Wix, GoDaddy, and Weebly. GoDaddy’s offering is far more basic and tailored to people who want a super simple website up and running very quickly. Wix is very similar but also offers slightly more advanced functionality, giving the user more flexibility in design. Weebly is very similar, but some users report slow down issues once a site reaches a certain size. Shopify is also a competitor, but their website offering is very basic and they are solely focused on e-commerce. Squarespace also integrates with Shopify, so a user can create a more beautiful website using Squarespace then use Shopify for the e-commerce back end. Most agencies use WordPress which still accounts for a large percentage of websites; however, WordPress requires coding skills and is not even close to the product offering of companies like Squarespace. As for number of users, Wix has about 6 million premium subscribers, Squarespace about 4 million, and Weebly and GoDaddy have about 1 million each (estimates)…” (Click here to see the full text)
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Our calculations show that Squarespace, Inc. (NYSE: SQSP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SQSP was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 12 funds in the previous quarter. Squarespace, Inc. (NYSE: SQSP) delivered a -41.21% return in the past 3 months.
In August 2021, we published an article that includes SQSP in the 15 Best New Tech Stocks to Buy Now. 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.
