Rowan Street Capital, an investment management company, released its 2023 investor letter. A copy of the same can be downloaded here. The year 2023 proved to be a successful one for the fund as it recorded a net gain of +102.6%. In 2023, Meta Platforms (+194%), Spotify (+138%), Trade Desk (+60%), and Shopify (+124%) were the main contributors to the outperformance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Rowan Street Capital featured stocks such as Meta Platforms, Inc. (NASDAQ:META) in its 2023 annual investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On January 26, 2024, Meta Platforms, Inc. (NASDAQ:META) stock closed at $394.14 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 11.35%, and its shares gained 168.01% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.013 trillion.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its 2023 annual investor letter:
“Meta Platforms, Inc. (NASDAQ:META) has become our largest position in the fund, up +268% in just 14 months, aging very well from our November 2022 note. We gave a re-cap of this extraordinary move in our last letter in November and we encourage you to review. Our investment in Meta makes a great case to study. We first invested in the stock in 2018 and we just recently doubled our money on this investment in 2023. It took exactly 5 years and provided a very decent return of 15% per annum, however it hasn’t exactly been a smooth ride. Please take a look at the chart below:
As you can see, we first started buying the stock in April of 2018 at $150 and then added in December of 2018 when the price dropped to $135, adding further to our position when the stock eventually rose to mid-200s. In the first two years there was zero return from our investment. Covid took the stock to new highs of $372, and subsequently, in 2022, the stock dropped to new lows of $89 — a price not seen since 2015. When we wrote our note on Meta last year, we were sitting on a negative return for a 4 year time period. This can be pretty demoralizing and discouraging to investors. However, it is very crucial to be able to adopt the mentality of a business owner and to focus solely on the fundamentals of the business itself rather than the narrative around the stock. It’s interesting (and it happens very often in the world of investing) that you can have 3-4 years of zero to negative returns and then the stock can quickly skyrocket in just 6-12 months, paying handsomely for the wait. Staying invested when the stock experiences this kind of volatility can be emotionally difficult and there could be a lot of pressure to sell throughout the journey. However, if our investment thesis has not changed, management is executing well and the business continues to grow and make more money over time, we can afford to wait.”
Copyright: rvlsoft / 123RF Stock Photo
Meta Platforms, Inc. (NASDAQ:META) is in third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of third quarter which was 225 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared best tech stocks for the next 5 years. In addition, please check out our hedge fund investor letters Q4 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.
