Mercator International, an investment management firm, published its “Mercator International Opportunity Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In Q4 2021 and early in the new year 2022, rising inflation and a more hawkish Fed led to a selloff of growth stocks. The Mercator International Opportunity Fund had a -3.65% return for the fourth quarter of 2021, compared to its benchmark, the MSCI EAFE Index which had a 2.75% 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.
Mercator International Opportunity Fund, 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 $1.5 trillion market capitalization, and is currently spearheaded by its CEO, Andy Jassy. Amazon.com, Inc. (NASDAQ:AMZN) delivered a -7.35% return since the beginning of the year, while its 12-month returns are down by -8.59%. The stock closed at $3,089.21 per share on April 08, 2022.
Here is what Mercator International Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Transformative technologies often generate euphoria. People are excited by the big new thing that is changing the world. We saw this pattern with the boom of westward canal transportation at the dawn of the nineteenth century. Railway stocks similarly attracted large numbers of eager investors a few decades later. Then came the electrification of America, the telephone, and the automobile industry, to name just a few transformative technologies.
The initial euphoric phase always ends with a reality check. Valuations come back to earth. At the end of the cycle, only a few companies remain standing. A shakeout has a way of clarifying the field of opportunities.
For example, readers may recall that when the internet bubble burst two decades ago, Amazon.com, Inc. (NASDAQ:AMZN) stock suffered greatly but pet.com was gone. For those investors who had stayed on the sidelines, this was an excellent time to buy Amazon. The company’s business model had shown its merits and competition was rapidly shrinking. The stock price was now also much more attractive.”
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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 -4.35% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Amazon.com, Inc. (NASDAQ:AMZN) 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.
