Greenhaven Road Capital just published its second quarter 2017 investor letter.
The letters discusses the strategy of owning companies that are "platforms" and benefit from network effects:
...but for our purposes, “software is eating the world” is now “platforms are eating the world.” I have intuitively understood the advantages of network effects and the attractive economics of the incremental customer on platforms, which has led us to currently own four of them within our portfolio: Etsy, Interactive Brokers, Gaia, and TripAdvisor.
The fund's largest positions are also covered: FCA, EVI, ETSY, LMB, and TRIP. The fund also established a new position in Yatra Online (YTRA).
TripAdvisor (TRIP) is covered in detail:
TripAdvisor has a platform designed for transactions and has built an ecosystem that includes apps, rich content users access for free, and free advertising both in-app (via reviews) and in the real world (those recognizable stickers posted in restaurant windows). When you step back, for a reasonable valuation we are getting the best product with excellent owners in an enormous market. As temporary Instant Booking issues subside, we could see revenue growth, margin expansion, and multiple expansion over time.
Greenhaven Road is also launching a new "Partners" fund:
The Greenhaven Road Partners Fund will be a “fund of funds,” investing in emerging managers focused on small niches of the market. This vehicle will take advantage of my relationships with fellow portfolio managers as well as the relationships the Royce Family Office has developed over decades
You can find the full letter here:
More letters here: Hedge Fund Second Quarter 2017 Investor Letters