A few weeks ago we discussed the stocks we recently bought and sold for the Spaceship Universe Portfolio.
Today, it’s time to discuss the stocks we bought and sold for the Spaceship Earth Portfolio.
Bought: Sea
In the Spaceship Earth Portfolio
Sea is a Singapore-based consumer internet company with three core products or services: Garena, a digital entertainment company whose most popular hit Free Fire was the most downloaded game globally in 2019-2021; Shopee, an ecommerce platform; and SeaMoney, a digital financial services company.
We believe Sea contributes to Goal 10 (Reduced Inequalities) of the UN Sustainable Development Goals agenda.
Its mission is to better the lives of consumers and small businesses through technology. Sea focuses on serving the under-served, connecting communities, enabling consumers, and empowering small businesses, especially those who traditionally lack access to tech platforms and the opportunities they bring.
We like Sea in part because it is tackling high-growth, underpenetrated ecommerce markets predominately in South East Asia and South America. While its loss-leading customer acquisition strategy is risky (as it sells its product at prices that are not profitable, in order to attract new customers), its execution has been superb and Sea has been funding part of its growth with its cash-cow gaming business, Garena.
Sold: Etsy
From the Spaceship Earth Portfolio
Since we bought Etsy in 2020, we have watched as management has adopted a new ‘house of brands’ strategy by buying Depop and Elo7, among others.
As well as that, due to Apple’s app tracking changes, we expect Etsy will find it harder to target and advertise to potential customers, and therefore it may suffer from increased customer acquisition costs.
With these two concerns in mind, our investment thesis changed, so we decided to sell Etsy.
Other changes
In the Spaceship Earth Portfolio
We have also increased exposure to Affirm and Enphase Energy, and decreased our exposure to MercadoLibre and Siemens Gamesa Renewable Energy.
The Spaceship Voyager portfolios invest in Sea, Affirm, Enphase Energy, MercadoLibre, and Siemens Gamesa Renewable Energy at the time of writing. Please refer to the Spaceship app or our website for more information on what each portfolio invests in.
Important! We’re sharing with you our thoughts on the companies in which Spaceship Voyager invests for your informational purposes only. We think it’s important (and interesting!) to let you know what’s happening with Spaceship Voyager’s investments. However, we are not making recommendations to buy or sell holdings in a specific company. Past performance isn’t a reliable indicator or guarantee of future performance.
