Rowan Street Capital, an investment management company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund gained +78.5% in the first half compared to a +16.8% gain for the S&P 500 Index. The fund’s portfolio is dominated by digital platform businesses. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Rowan Street Capital highlighted stocks like Chipotle Mexican Grill, Inc. (NYSE:CMG) in the second quarter 2023 investor letter. Headquartered in Newport Beach, California, Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. On July 12, 2023, Chipotle Mexican Grill, Inc. (NYSE:CMG) stock closed at $2,076.00 per share. One-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 1.19%, and its shares gained 64.00% of their value over the last 52 weeks. Chipotle Mexican Grill, Inc. (NYSE:CMG) has a market capitalization of $57.276 billion.
Rowan Street Capital made the following comment about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its second quarter 2023 investor letter:
“Our current portfolio is made up of just 10 companies — we are very focused! We described our ‘10-Player All-Star Team’ philosophy in our Q1 2018 Letter (we encourage you to review it). We have been building this portfolio since our founding in 2015. In total, over the past 8 years, we bought stock in 47 different companies (that’s ~6 per year), and obviously, for anyone who is good at arithmetic, we sold 37 of them (~4.6 per year). We are constantly trying to learn from every decision (good or bad) that we make. We went through every position that we’ve sold since 2015 and analyzed how we would have done had we held on to those positions. The top 3 performing positions would have been: Chipotle Mexican Grill, Inc. (NYSE:CMG) +630%, Tractor Supply (TSCO) +315% and Novo Nordisk (NVO) +387%. Your managers are at fault here because we sold all of these (in 2017-18) for non-fundamental reasons. All of these continued to be great businesses and management has executed at very high levels. In all three cases, we made a decision to sell because we thought the stock price got way ahead of itself.
Our main take-away lesson has to be Do NOT sell your winners and avoid adding more to your losers. Or as Peter Lynch once famously put it: “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.”…” (Click here to read the full text)
Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of first quarter which was 42 in the previous quarter.
We discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in another article and shared the list of big companies that don’t drug test employees. In addition, please check out our hedge fund investor letters Q2 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.
