We are pleased to report Luke's Global Fund achieved a return of 9% (in constant currency) return over the month of July. The top three contributors to the performance over the month were:
Stone Co, which contributed 30% of the returns this month. Brazil has suffered enormously from COVID-19, however, there are signs of recovery, and the Brazilian Real has stabilised, following steep falls against the US dollar in the first half of the year.
Crowdstrike Holdings, which contributed 30% of the returns this month. Crowdstrike has been a beneficiary of the working from home disruption to the way we work, and continue to expand their market leading platform. .
Traddesk, which contributed 20% of the returns this month. Despite slowing revenue and falling profits, Tradedesk continued to rally, with the market seemingly besotted with CEO Jeff Green.
There were no detractors for the month.
Notable changes to the portfolio included:
We trimmed Alteryx, Tradedesk, and Crowdstrike positions, based on valuation grounds. Alteryz and Tradedesk in particular appeared to be overvalued.
We sold out of Elastic, as we were concerned about negative cashflow in the business, with no signs of improvement over the past year in this metric. It was also questionable as to it's market leadership, which it clearly was not the leader in observability, and endpoint security.
We opened a small position in Blue Prism, a leader in the Robotic Process Automation field. We note however, it is not the market leader, but appears to be the best investment opportunity available on public markets. UiPath is the market leader, and we will be watching with interest its pathway to an IPO next year.
If you have nay opinions on the companies we hold, or what like to know more, we would love to hear your feedback.
Regards,
Sean