“We will look to get bigger in these names when we have a clear line of sight to earnings and cash flow that lead to superior investment returns relative to our core holdings,” the pair told clients. .
“The timing is always difficult to consider, but we plan to exit some of our major long positions as they reach our target values over the next few years. Coursera and Udemy will likely be at the top of the candidate list as we redeploy this capital.
In the meantime, Caledonia said it would review the management teams of both companies and take a closer look at the online education industry.
Who knows if Caledonia punters are still taking advice on updates – perhaps Coursera and Udemy stock prices in the coming weeks will tell.
Customers have had a tough time lately; Caledonia’s global fund was down 54.4% in the 12 months to Sept. 30, according to an investor update accompanying the letter, and down 3.6% on a five-year CAGR basis.
For many customers it is even more painful as they double Caledonia bets on their personal accounts. So Just Eat Takeaway’s negative 80% return over the past 12 months and Zillow’s minus 70% are personal.