Greenhaven Road Capital Prefers PAR Technology (PAR) Among its Competitors
Greenhaven Road Capital, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A spectacular net return of 105% was recorded by the fund for the year end 2020, outperforming its Russell 2000 benchmark that returned 9.4%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Greenhaven Road Capital, in their Q4 2020 Investor Letter said that they sold their positions in PAR Technology Corporation (NYSE: PAR) the company changed its head of digital initiatives. PAR Technology Corporation is a systems and service solutions provider that currently has a $1.3 billion market cap. For the past 3 months, PAR delivered a decent 59.52% return and settled at $62.26 per share at the closing of January 29th.
Here is what Greenhaven Road Capital has to say about PAR Technology Corporation in their investor letter:
"Par Technology (PAR) has been a top holding for two years. CEO Savneet Singh is one of the smartest executives – and one of the smartest people – I have come across. I believe he will be the smartest and most resourceful participant in most fights. PAR’s main competition, Micros and Aloha, are owned by Oracle and NCR, respectively – large, publicly traded companies with decades of experience and strong balance sheets. In one corner, we have Savneet Singh, who relocated his family to upstate New York, recruited team members, strengthened the balance sheet, put together an acquisition strategy to greatly improve functionality, and is introducing a payments processor to improve the economics. I will take Savneet and PAR in that match-up.
2021 should be an interesting year for PAR. They began the year announcing that CKE Restaurants, which operates Carl’s Jr. and Hardee’s, had selected their Brink POS (point of sale) system. CKE’s nearly 4,000 restaurants would represent a 30% increase in Brink’s store count. 2021 should see an acceleration of growth in installs, rising ARPU from pricing and payments, the sale of their legacy defense business, and a large acquisition utilizing the cash raised in October. There remains a very long runway for growth and the opportunity to leverage the strategic positioning of the POS as the spine of a restaurant to add adjacent software products for the hospitality space. PAR is our largest holding. "
Oleksiy Mark/Shutterstock.com
Last December 2020, we published an article telling that PAR Technology Corporation (NYSE: PAR) was in 12 hedge fund portfolios, its all time high statistics. PAR delivered a huge 82.05% return in the past 12 months.
Our calculations show that PAR Technology Corporation (NYSE: PAR) does not belong in our list of 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
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.
Disclosure: None. This article is originally published at Insider Monkey.
