GreenWood Investors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund’s fourth-quarter performance was impacted along with most other stocks, -12.3% for the Global Micro Fund and -10.9% for the euro-denominated Luxembourg Global Fund. Both funds were up 13.0% and 24.2% respectively for the year, highlighting the impact of our unhedged currency position that we believe is transitory. These returns frustratingly compare poorly to the MSCI ACWI benchmark returns of +6.0% in the quarter and +18.2% YTD (+16.6% and +27.2% respectively in euro-denominations). Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Greenwood Investors, in its Q4 2021 investor letter, mentioned Twitter, Inc. (NYSE:TWTR) and discussed its stance on the firm. Founded in 2006, Twitter, Inc. (NYSE:TWTR) is a San Francisco, California-based social network company with a $30.2 billion market capitalization, and is currently spearheaded by its CEO, Parag Agrawal. Twitter, Inc. (NYSE:TWTR) delivered a -12.61% return since the beginning of the year, while its 12-month returns are down by -42.97%. The stock closed at $37.77 per share on March 18, 2022.
Here is what Greenwood Investors has to say about Twitter, Inc. (NYSE:TWTR) in its Q4 2021 investor letter:
“The two other advertising challengers in our portfolio, including Twitter (TWTR), have experienced similar volatility while the business fundamentals keep humming along at or above their medium-term plans. At the opposite end of the spectrum, 37-year-old Parag Agrawal was recently named Twitter’s CEO. Parag will be instrumental in improving the notoriously slow execution at Twitter. This relatively unknown insider has only one shot to build a reputation. It is tied to the business plan unveiled a year ago, much to the surprise of a more skeptical audience. He has made swift changes to the leadership and management structure of Twitter in order to deliver on the accelerating user vision, while simultaneously improving the monetization potential of the platform through better targeting and direct-response (commerce-driven) ads.
Agrawal has played a fundamental role in the last decade in improving both timeline and ad relevance for users, and he is much less risk-averse than founder Jack Dorsey. He is keen on using the signal from user interests to better target ads and improve advertiser performance- something that Dorsey only committed to half heartedly. Although skepticism is significant, the re-affirmed commitment to double revenue in just over three years looks conservative to us. We are pleased to see the company doubling down on its commitment to make investments to accelerate user growth while also announcing an accelerated share repurchase plan in recent weeks. In short, he is moving quickly to ensure his reputation lasts longer than the “15 minutes of fame” typically afforded to such young executives.”
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Our calculations show that Twitter, Inc. (NYSE:TWTR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Twitter, Inc. (NYSE:TWTR) was in 83 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 94 funds in the previous quarter. Twitter, Inc. (NYSE:TWTR) delivered a -12.31% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Twitter, Inc. (NYSE:TWTR) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
