Fairlight Capital, an investment management company, released the “Fairlight Alpha Fund” first-quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 9.9% net of fees compared to a 7.5% return for the S&P 500 Total Return index. Since inception, the fund returned 447.2% net of fees. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Fairlight Alpha Fund highlighted stocks like Opera Limited (NASDAQ:OPRA) in the first quarter 2023 investor letter. Headquartered in Oslo, Norway, Opera Limited (NASDAQ:OPRA) is a mobile and PC web browser provider. On May 26, 2023, Opera Limited (NASDAQ:OPRA) stock closed at $15.42 per share. One-month return of Opera Limited (NASDAQ:OPRA) was 33.39%, and its shares gained 192.05% of their value over the last 52 weeks. Opera Limited (NASDAQ:OPRA) has a market capitalization of $1.385 billion.
Fairlight Alpha Fund made the following comment about Opera Limited (NASDAQ:OPRA) in its Q1 2023 investor letter:
“We mentioned in our previous quarterly letter that we had built a position in Opera Limited (NASDAQ:OPRA) and that it had just declared a dividend (along with a host of other positive business developments). We continue to hold this position after building a position at prices between $5 and $6; the stock trades as of the time of writing at $10.95. This is one of those ideas that has several elements to the investment thesis as well as a continually evolving business picture.
To summarize, the thesis is a combination of value, substantial cash and investee balances creating an attractive enterprise valuation combined with growth and business opportunities. As of the last quarter cash balances were $119 million. The company also owns a portion of several investee businesses and managed to move its investment in Nanobank4 to the more attractive OPay business at a good valuation. The cash plus investee balances total $436 million (depending on valuation assumptions that are likely conservative for OPay) giving the company an enterprise value of approximately $550 million at the time of writing. Performing a normalized earnings analysis, we estimate a level of net income of $119 million. This is then equivalent to an EVE of 4.6x. This is even after the share price doubled in the last two months…” (Click here to read the full text)
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Opera Limited (NASDAQ:OPRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Opera Limited (NASDAQ:OPRA) at the end of first quarter 2023 which was 6 in the previous quarter.
We discussed Opera Limited (NASDAQ:OPRA) in another article and shared the list of top performing European stocks so far in 2023. In addition, please check out our hedge fund investor letters Q1 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.
