Laughing Water Capital, an investment management company, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell approximately 11.6%, which makes YTD returns ~8.3% compared to the SP500TR and the R2000 returns of -3.3% and -5.1%, respectively, during the quarter and 13.1% and 2.5% YTD, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Laughing Water Capital highlighted stocks like Thryv Holdings, Inc. (NASDAQ:THRY) in the third quarter 2023 investor letter. Thryv Holdings, Inc. (NASDAQ:THRY) is a digital marketing solutions and cloud-based tools provider headquartered in DFW Airport, Texas. On October 23, 2023, Thryv Holdings, Inc. (NASDAQ:THRY) stock closed at $17.60 per share. One-month return of Thryv Holdings, Inc. (NASDAQ:THRY) was -3.08%, and its shares lost 15.71% of their value over the last 52 weeks. Thryv Holdings, Inc. (NASDAQ:THRY) has a market capitalization of $609.029 million.
Laughing Water Capital made the following comment about Thryv Holdings, Inc. (NASDAQ:THRY) in its Q3 2023 investor letter:
“In my view, the most important question is not what will happen next with interest rates or inflation or recession. The most important question for investment success is how able you are to take mark to market fluctuations. The headlines are scary, and with the exception of a few anointed mega cap stocks, fear has returned to the market. But in most cases I struggle to see impairment of the intrinsic value of our investments if you simply look past the horizon.
Another example is our investment in Thryv Holdings, Inc. (NASDAQ:THRY) which is using its legacy Yellow Pages and other marketing businesses as a base from which to build software that allows small and medium businesses to move their operations from a system of sticky notes and excel spread sheets into the modern era. Thryv recently raised guidance, announced that margins on the SaaS side jumped 10 percentage points, and announced the release of new “centers” that should accelerate growth further.
Shares traded down ~25% in the weeks following this news.
In my mind, it is hard to think of a better development than the margin improvement. This improvement was tied to a decision to cut back on paid customer recruitment, because more than 40% of new customers are coming through referral, which is essentially free. Combined with customers that come out of the Yellow Pages “zoo,” more than 80% of customers are coming with minimal acquisition costs. Why pay Google to help you find customers when you are getting so many for nearly free?…” (Click here to read the full text)
Copyright: melpomen / 123RF Stock Photo
Thryv Holdings, Inc. (NASDAQ:THRY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Thryv Holdings, Inc. (NASDAQ:THRY) at the end of second quarter which was 19 in the previous quarter.
We discussed Thryv Holdings, Inc. (NASDAQ:THRY) in another article and shared Laughing Water Capital’s views on the company 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.
Suggested Articles:
- Long Term Returns of ValueAct Capital’s Activist Targets
- 20 Most Geographically Diverse Countries In The World
- 12 Weapon Importing Countries in the World
Disclosure: None. This article is originally published at Insider Monkey.
