LVS Advisory, a New York City-based full-service investment firm, recently released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The defensive portfolio of the fund gained 2.5% (net of all fees and expenses) for the six months ended 2023 compared to a 5.1% gain for its benchmark High-Yield Bond Index. On the other hand, its Growth Portfolio gained 10.7% year to date compared to 16.9% for its benchmark, S&P 500 Total Return Index. For more information on the fund’s top picks in 2023, please check its top five holdings.
LVS Advisory highlighted stocks like Adobe Inc. (NASDAQ:ADBE) in the second quarter 2023 investor letter. Headquartered in San Jose, California, Adobe Inc. (NASDAQ:ADBE) is a software company that operates through Digital Media, Digital Experience, and Publishing and Advertising segments. On July 18, 2023, Adobe Inc. (NASDAQ:ADBE) stock closed at $532.23 per share. One-month return of Adobe Inc. (NASDAQ:ADBE) was 11.47%, and its shares gained 32.56% of their value over the last 52 weeks. Adobe Inc. (NASDAQ:ADBE) has a market capitalization of $247.345 billion.
LVS Advisory made the following comment about Adobe Inc. (NASDAQ:ADBE) in its second quarter 2023 investor letter:
“Adobe Inc. (NASDAQ:ADBE) is another long-time holding that we sold in the quarter. Last year Adobe announced the acquisition of Figma which made sense from a strategic standpoint but the deal’s valuation and financing were puzzling. Adobe agreed to pay a 50x ARR multiple for Figma which represented a peak software industry multiple – but the company inked this deal after software industry valuation multiples collapsed. Additionally, Adobe financed most of the acquisition with the issuance of shares, materially diluting existing investors. Capital allocation mistakes can destroy shareholder value over time even if the core business is world class. We viewed the Figma deal as a red flag although we felt that the stock was too cheap to sell at the time. That changed in 2023 as Adobe’s stock rallied along with other software companies due to the current excitement over artificial intelligence. Adobe’s valuation re-rated in the first half of 2023, providing an opportunity to exit the position.”
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Adobe Inc. (NASDAQ:ADBE) is in 20th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Adobe Inc. (NASDAQ:ADBE) at the end of first quarter which was 99 in the previous quarter.
We discussed Adobe Inc. (NASDAQ:ADBE) in another article and shared Akre Focus Fund’s views on the company. 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.
