Slack (WORK) is a ‘New Paradigm for Decades to Come’ Says RV Capital
Jose Karlo Mari Tottoc
4 min read
RV Capital, a hedge fund management company, published its fourth-quarter 2020 investor letter – a copy of which can be seen here. A return of 17.3% was recorded by the fund for the Q4 of 2020, above its DAX Performance benchmark that returned 3.5%. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
RV Capital, in their Q4 2020 investor letter said that they saw a spectacular value in Slack Technologies, Inc. (NYSE: WORK) and acquired a position in the company. Slack Technologies, Inc. is a proprietary business communication platform that currently has a $24.5 billion market cap. For the past 3 months, WORK delivered a 48.30% return and settled at $42.65 per share at the closing of January 22nd.
Here is what RV Capital has to say about Slack Technologies, Inc. in their investor letter:
"We became co-owners in Slack, a channels-based communication service for businesses. In an unexpected twist, a few months later it was acquired by Salesforce.com at roughly a 50% premium to what we had paid.
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Last December 2020, we published an article telling that Slack Technologies, Inc. (NYSE: WORK) was in 20 hedge fund portfolios. Its all time high statistics is 37. WORK delivered a huge 107.14% return in the past 12 months.
As of September 2020, RV Capital had a 557K share position in WORK that amounted to $14.9 million. However, our calculations showed that Slack Technologies, Inc. (NYSE: WORK) does not belong to the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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