Opera Limited (OPRA) Benefited from Surge of Interest in AI
Fairlight Capital, an investment management company, released the “Fairlight Alpha Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 7.3% net of fees compared to an 8.7% return for the S&P 500 Total Return index. Since inception, the fund returned 487.0% net of fees and 50.4% on an annualized basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Fairlight Alpha Fund highlighted stocks like Opera Limited (NASDAQ:OPRA) in the second quarter 2023 investor letter. Headquartered in Oslo, Norway, Opera Limited (NASDAQ:OPRA) is a mobile and PC web browser provider. On August 1, 2023, Opera Limited (NASDAQ:OPRA) stock closed at $17.85 per share. One-month return of Opera Limited (NASDAQ:OPRA) was -23.91%, and its shares gained 253.47% of their value over the last 52 weeks. Opera Limited (NASDAQ:OPRA) has a market capitalization of $1.605 billion.
Fairlight Alpha Fund made the following comment about Opera Limited (NASDAQ:OPRA) in its second quarter 2023 investor letter:
"We own businesses that span IT services, electronic equipment, instruments and components, and software. All of these are categorized as technology, and there are elements of many of our other businesses that have significant technological aspects to their products and services. In particular this year, our position in Opera Limited (NASDAQ:OPRA) has benefitted from the surge of interest in AI. We originally purchased Opera because of their overlooked move towards higher ARPU users in the browser market, cash and investee balances, unique product offerings and ability to quickly develop, enhance and release new software. They demonstrated this by releasing new functionality within their browsers called Aria2 to allow users to access OpenAI’s GPT LLMs. These allow the user to obtain summaries of web pages, ask questions on any topic, get assistance with writing in a variety of forms and obtain recommendations across a range of products and services.
The interest in AI has helped drive additional gains in our Opera position. We reduced our holding somewhat but have kept a meaningful position because we believe that there is still a lot of business runway ahead for Opera and a large TAM. Their current share of the browser market is still only estimated to be 3.2%. This share is growing, and there is still a lot of potential market share left and Opera’s unique business model comprising specific types of browsers such as Opera GX is giving them a lot of browser user hours. The value of the real estate of young gamers and other users being in front of the Opera browsers for many hours each day is likely undervalued by the market."
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Opera Limited (NASDAQ:OPRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Opera Limited (NASDAQ:OPRA) at the end of first quarter 2023 which was 6 in the previous quarter.
We discussed Opera Limited (NASDAQ:OPRA) in another article and shared the list of best booming stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
