Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” August 2023 investor letter. A copy of the same can be downloaded here. August was a relatively busy month for the Fund and persisted the portfolio’s strong fundamental performance and operating leverage. The Fund returned -0.7% net of fees and expenses for the month compared to 1.1% for its benchmark, MSCI All Country World Index Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2023.
Lakehouse Global Growth Fund highlighted stocks like Adyen N.V. (OTC:ADYEY) in the August 2023 investor letter. Headquartered in Amsterdam, the Netherlands, Adyen N.V. (OTC:ADYEY) is a payments platform. On December 4, 2023, Adyen N.V. (OTC:ADYEY) stock closed at $12.14 per share. One-month return of Adyen N.V. (OTC:ADYEY) was 69.86%, and its shares lost 17.74% of their value over the last 52 weeks. Adyen N.V. (OTC:ADYEY) has a market capitalization of $37.658 billion.
Lakehouse Global Growth Fund made the following comment about Adyen N.V. (OTC:ADYEY) in its August 2023 investor letter:
“Amsterdam-based enterprise payments processor, Adyen N.V. (OTC:ADYEY), posted half-yearly results that were weaker than expected. The combination of a miss on top line growth and margins led to a meaningful decline in the share price. Revenue grew 21% year-on-year (vs expectations of 27%) to €739.1 million and EBITDA declined 10% to €320 million. Management attributed the miss on revenue to the decision by some US merchants to route e-commerce volumes towards more commoditised and lower cost payment providers as these merchants have become increasingly focused on cost outcomes due to the tough macro environment. Whilst this is clearly not a positive development, management believes (as do we) that it will only prove to be a temporary issue as it’s largely a function of the shifting economic environment. Ultimately, Adyen’s unified global platform provides the greatest functionality and outcomes for merchants, with superior authorization rates and insights, and management remains confident that volumes will return.
In addition to this, some investors were also displeased with the company’s intentional decision to reinvest back into the business and increase headcount. For our part, we aren’t overly concerned about near-term margins as management has proven to be very measured and disciplined in the past. Ramping up staff to access talent while other competitors are cutting their workforces seems like the right long term decision for the business and should position them well to outperform once the current period of uncertainty passes. Coming into the results, Adyen was a relatively small position for the Fund as it had been reduced overtime primarily on valuation grounds. Moving forward, we remain focused on Adyen’s long-term growth trajectory, not short term numbers, and remain bullish on the durability of its value proposition and note that the company continues to take market share. As such, we used the share price decline as an opportunity to modestly increase our position and believe the company will be able to navigate successfully through their short term challenges.”
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Adyen N.V. (OTC:ADYEY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held Adyen N.V. (OTC:ADYEY) at the end of third quarter which was 2 in the previous quarter. 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.
