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Should You Consider Investing in Coinbase (COIN)?

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Rowan Street Capital LLC, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. Over many years, the fund concluded that its sole focus should be on identifying and partnering with visionary CEOs and the best entrepreneurs in the world, preferably in the earlier-to-mid stages of their careers. Rowan Street Capital believes in playing the long-term game with long-term people. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Rowan Street mentioned Coinbase Global, Inc. (NASDAQ:COIN) and explained its insights for the company. Founded in 2012, Coinbase Global, Inc. (NASDAQ:COIN) is a cryptocurrency company with a $19.3 billion market capitalization. Coinbase Global, Inc. (NASDAQ:COIN) delivered a -70.69% return since the beginning of the year, while its 12-month returns are down by -67.28%. The stock closed at $73.98 per share on July 21, 2022.

Here is what Rowan Street has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:

"The mentality of a passionate Founder/CEO drives a completely different thought process and decision-making that makes all the difference. This is a quote by Brian Armstrong, Founder and CEO of Coinbase (NASDAQ:COIN):

'I can speak with some authority and say we are not going to do that because this is not why I started the company - I don't have to give any other justification. Rather than the professional CEO that comes in that is accountable to Wall Street and quarterly earnings may start thinking about the company differently. One of the most scarce things in companies today is risk tolerance. For example, take Tesla vs. Waymo. Tesla launched self-driving cars while Google didn't. The reason is the founder-CEO (Elon Musk) said that I care enough about the mission that we are ready and we are gonna go for it. Whether a professional CEO is thinking about his/her career trajectory, the founder CEO doesn't care about the next job and only cares about the mission.'"

Photo by Nick Chong on Unsplash

Our calculations show that Coinbase Global, Inc. (NASDAQ:COIN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Coinbase Global, Inc. (NASDAQ:COIN) was in 46 hedge fund portfolios at the end of the second quarter of 2022, compared to 57 funds in the previous quarter. Coinbase Global, Inc. (NASDAQ:COIN) delivered a -46.13% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Coinbase Global, Inc. (NASDAQ:COIN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.