In today’s briefing:
- Crowdstrike FY1Q23: Share Gains Will Lead to Share Gains
- Winia Aid IPO Valuation Analysis
- RiverPark Short Term High Yield Fund & RiverPark Strategic Income Fund Q1 2022 Letter
- Longleaf Partners International Fund Q1 2022 Commentary
- RiverPark Floating Rate CMBS Fund Q1 2022 Commentary
- Weibo (WB US): Ad Growth Clouded by Pandemic and Macro Slowdown
- Longleaf Partners Global Fund Q1 2022 Commentary
- Longleaf Partners Small-Cap Fund Q1 2022 Commentary
Crowdstrike FY1Q23: Share Gains Will Lead to Share Gains
- 61% revenue growth, 17% operating margins (up 720bps YoY) and 32% FCF margins. Best in class growth + profitability.
- ECommerce engine opening up from 4 modules to 12 means higher velocity sales on the come.
- VMWare’s Carbon Black will become a major share donator due to Broadcom acquisition.
Winia Aid IPO Valuation Analysis
- Our base case valuation of Winia Aid is target price of 21,724 won per share, which is 34% higher than the high end of the IPO price range.
- Winia Aid had ROE of 29% in 2021 which was much higher than the comps’ average of 9.6% in 2021.
- The company’s core businesses include after sales service and logistics for Winia Group electronics related products and Apple after sales service and support.
RiverPark Short Term High Yield Fund & RiverPark Strategic Income Fund Q1 2022 Letter
- Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
- Called and Tendered securities continue to be a significant component of our purchases. The supply of these bonds remained ample during most of the period.
- In an unpredictable market, RiverPark Strategic Income continues to stay conservative, with an effective maturity a fraction of the indices while maintaining comparative yields.
Longleaf Partners International Fund Q1 2022 Commentary
- Longleaf Partners Funds is a suite of mutual funds and UCITS funds that Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, created in 1987 as a way for Southeastern employees to invest alongside their clients.
- Longleaf Partners International Fund declined 12.04% in the first quarter, while the MSCI EAFE Index declined 5.91%.
- New investments have a high hurdle to qualify given our conviction in our current holdings and the steep discount of the portfolio.
- We believe our companies in Asia and Europe are well positioned to navigatethe challenges facing each region today.
RiverPark Floating Rate CMBS Fund Q1 2022 Commentary
- Founded in 2006 by Morty Schaja and Mitch Rubin, RiverPark manages research-driven, focused strategies in equities, fixed income and venture capital.
- For our portfolio, that technical downward price pressure is abating, as the new issuance has been absorbed and as higher coupons have attracted new buyers.
- While we face challenges at home and abroad, we believe this is an excellent time to invest in the Fund.
- Inflation is our number one concern for the year ahead and ourportfolio is ideally positioned for it to maximize returns and to minimize rate driven losses.
Weibo (WB US): Ad Growth Clouded by Pandemic and Macro Slowdown
- Weibo Corp (WB US) delivered robust 1Q22 results with ad revenue growing 10% year-over-year and outperforming other Chinese social networks, which underscores Weibo’s prominent position for advertisers.
- However, widespread lockdowns in China and economic slowdown could pressure Weibo in 2Q, and we expect a gradual recovery in 3Q-4Q with limited visibility.
- We like Weibo attractive valuation at 10x forward P/E; it has amassed MAU 582 million till March 2022 and user engagement has been improving.
Longleaf Partners Global Fund Q1 2022 Commentary
- Longleaf Partners Funds is a suite of mutual funds and UCITS funds that Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, created in 1987 as a way for Southeastern employees to invest alongside their clients.
- Longleaf Partners Global Fund declined 5.84% in the first quarter, roughly in line with the MSCI World’s 5.15% decline.
- In a volatile quarter for markets across the globe, we saw one of the largest disconnects between price and value per share performance that we have seen for our portfolio in a long time.
- We remain fully invested with less than 2% cash, and our on-deck list isgrowing longer amid market volatility.
- We believe our companies in Asia and Europe are well positioned to navigatethe challenges facing each region today.
Longleaf Partners Small-Cap Fund Q1 2022 Commentary
- Longleaf Partners Funds is a suite of mutual funds and UCITS funds that Southeastern Asset Management, the investment advisor to the Longleaf Partners Funds, created in 1987 as a way for Southeastern employees to invest alongside their clients.
- Longleaf Partners Small-Cap Fund added 0.76% in the first quarter, meaningfully outperforming the Russell 2000 Index, which declined 7.53%.
- We own companies that have pricing power that can price through cost increases and grow their profitability.
Before it’s here, it’s on Smartkarma
