- EMJ Capital – a one-man hedge fund- has gained 56% this year on well-placed technology companies benefiting amid the coronavirus crisis, Bloomberg’s Divya Balji reported Wednesday.
- The fund owns shares of Zoom,HelloFresh, and German food delivery app Delivery Hero. All three have boosted his returns this year.
- Outside of tech, he’s also watching healthcare for winners that will emerge from the coronavirus crisis.
- Read more on Business Insider.
EMJ Capital, run solely by Eric Jackson, has posted an outsized 56% return this year by betting on tech stocks that’ve benefited amid the coronavirus pandemic, Bloomberg’s Divya Balji reported Wednesday.
One of the biggest bets Jackson made that led to the market-beating performance was doubling down on shares of Zoom, the video conferencing application. Zoom shares have gained about 112% this year through Tuesday’s close.
In early February, Jackson noticed that Zoom downloads had spiked in China as the COVID-19 outbreak shut down major parts of the country. He then doubled his Zoom position, according to the report.
“They are a verb. You don’t see too many verbs in the tech space. When one comes along like Google, you would have been wise to plunk down an investment and stick with it and I think the same is going to be the case for Zoom,” he told Bloomberg.
Jackson’s solid year comes during a rough time for most hedge funds. Many were hit with client withdrawals following the March market rout, which sent global hedge fund assets below $US3 trillion for the first time in six years, according to the report.
But Jackson has fared well through the pandemic and has had to make few adjustments as he already worked from home, according to Bloomberg. Another bet that’s raised his returns this year is HelloFresh SE, a meal kit company that’s blossomed as consumers are asked to stay at home and practice social distancing. HelloFresh has roughly doubled for the year through Tuesday’s close.
Jackson also bought into Delivery Hero SE, a German food delivery application, which has gained 16% this year through Tuesday. And he’s betting that eBay will make a comeback soon – he bought shares last quarter, according to the report.
Since the long-short fund’s inception in 2017, it’s gained about 131% to $US61 million in assets at Tuesday’s close. The fund usually owns between 11 and 20 stocks, according to Bloomberg, and also uses options as a part of its strategy.
Jackson thinks that the pandemic will change healthcare and technology, he told Bloomberg. He holds DexCom Inc., a company that makes blood-sugar level monitoring devices for diabetic patients. The company has gained 67% this year through Tuesday.
He also owns shares of Livongo Health, a remote-health monitoring company that’s gained 75% this year.
“If I start to hear the same name come up over and over again, that’s usually a good sign that the company is just on the cusp of something great,” Jackson told Bloomberg. “So I’m getting behind those companies early, sticking with them, not just sort of selling out quickly.”