Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” April 2024 investor letter. A copy of the letter can be downloaded here. April was a busy month as many of the companies in the portfolio reported earnings. The Fund returned -4.3% net of fees and expenses for the month compared to -2.8% for its benchmark. Since its inception in December 2017, the Fund has returned 152.8% compared to 96.0% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). As of the end of April, the Fund’s largest sector allocations were to consumer discretionary (19.3%), information technology (22.6%), and communication services (27.0%). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Lakehouse Global Growth Fund highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in the April 2024 investor letter. ServiceNow, Inc. (NYSE:NOW) offers end-to-end intelligent workflow automation platform solutions for digital businesses. ServiceNow, Inc. (NYSE:NOW) one-month return was -7.46%, and its shares gained 18.77% of their value over the last 52 weeks. On June 3, 2024, ServiceNow, Inc. (NYSE:NOW) stock closed at $660.11 per share with a market capitalization of $135.575 billion.
Lakehouse Global Growth Fund stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its April 2024 investor letter:
“US-based software company,ServiceNow, Inc. (NYSE:NOW), provided another strong result, continuing its long and consistent track record of 20%-plus revenue growth combined with healthy profitability. Subscription revenues grew 25% year-on-year to $2.5 billion and free cash flow grew 47% year-on-year to $1.2 billion. The company’s core operating metrics were also impressive with remaining performance obligations growing 26% year-on-year to $17.7 billion (i.e. roughly 2x 2023 revenue) and renewal rates holding steady at 98%. Performance was evenly spread across segments, products, and geographies, with notable strength in the US federal government. The company now boasts 1,933 customers generating in excess of $1 million in Annual Contract Value (ACV), which is pleasing to see as it implies multiple solutions are involved and that the company’s platform model is increasingly resonating with customers. In our view, ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”
A computer engineer developing a secure cloud infrastructure solution.
ServiceNow, Inc. (NYSE:NOW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the first quarter which was 91 in the previous quarter. ServiceNow, Inc. (NYSE:NOW) delivered a strong performance in the quarter, subscription revenues were $2.523 billion, up 24.5% year-over-year in constant currency. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed ServiceNow, Inc. (NYSE:NOW) and shared Jim Cramer’s latest stock picks in May 2024. Polen Focus Growth Strategy mentioned ServiceNow, Inc. (NYSE:NOW) in its first quarter 2024 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 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.
