Analyzing HMI Capital Management's Q3-Q4 2022 Holdings: Shift in Confidence in Tech Company Growth Prospects

HMI Capital Management, L.P. is a hedge fund that focuses on investing in high-growth tech companies. As with any fund, HMI must periodically disclose its holdings, which is known as a 13F filing. The most recent 13F filing by HMI Capital Management, L.P. compares its Q3 2022 holdings to its Q4 2022 holdings. In this blog post, we will analyze the changes in the fund's holdings and what it could mean for the companies in question.

Let's start by looking at the companies that experienced a decrease in the number of shares held by HMI Capital Management, L.P. The top two companies that experienced a decrease are NCINO Inc. and Roblox Corp. NCINO Inc. saw a decrease of 26.1% in the number of shares held by the fund. This decrease is significant and could signal that HMI is losing confidence in NCINO's growth prospects. Roblox Corp. saw a 27.9% decrease in the number of shares held by HMI. This could be attributed to the recent controversy surrounding Roblox and the possibility that HMI believes the company's growth prospects are not strong enough to justify continued investment.

Another company that saw a significant decrease in the number of shares held by HMI is Coupa Software Inc. The fund decreased its holdings in Coupa Software by a massive 69.9%. This decrease is notable because Coupa Software is a leading provider of business spend management solutions, and HMI's decision to reduce its holdings could signal a lack of confidence in the company's ability to grow.

On the other hand, some companies saw an increase in the number of shares held by HMI. Airbnb Inc. saw a massive 150.3% increase in shares held, which could be attributed to the company's recent strong financial performance. Toast Inc. also saw an increase of 7.5% in the number of shares held by HMI. Toast provides cloud-based restaurant management software and has been performing well in recent quarters.

Other companies that experienced an increase in the number of shares held by HMI include Ares Management Corporation (5.8%), Shopify Inc. (8.1%), and ZoomInfo Technologies Inc. (58.8%). These increases in holdings could indicate that HMI Capital Management, L.P. has increased confidence in the growth prospects of these companies.

It's worth noting that HMI completely sold off its position in Twilio Inc. In Q3 2022, HMI held 1.6 million shares of Twilio, but in Q4 2022, it sold all of its shares. This is a significant move and could indicate that HMI is no longer interested in investing in Twilio.

In summary, the changes in holdings by HMI Capital Management, L.P. are significant and could signal a shift in confidence in the growth prospects of the companies in question. The fund reduced its holdings in some companies, possibly indicating a lack of confidence in those companies' ability to continue growing. However, the fund increased its holdings in others, which could be interpreted as a bullish signal for those companies. Investors should keep a close eye on the developments surrounding these companies to see how their growth prospects play out in the coming months.