Yahoo Finance Here’s What Happened to Latch (LTCH) in Q4
Tourlite Capital Management, an investment management firm, released its fourth quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class returned 1.1% for Q4 2023 and 8.8% for the year. Since its inception in April 2022, the fund returned 14.3% compared to 8.4%, and 0.5% returns for the S&P 500 and Russell 2000 indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital Management featured stocks such as Latch, Inc. (OTC:LTCH) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Latch, Inc. (OTC:LTCH) is an enterprise technology company. On February 14, 2024, Latch, Inc. (OTC:LTCH) stock closed at $0.81 per share. One-month return of Latch, Inc. (OTC:LTCH) was 8.00%, and its shares lost 13.94% of their value over the last 52 weeks. Latch, Inc. (OTC:LTCH) has a market capitalization of $141.23 million.
Tourlite Capital Management stated the following regarding Latch, Inc. (OTC:LTCH) in its fourth quarter 2023 investor letter:
"During Q1, we acquired a position in Latch, Inc. (OTC:LTCH) recognizing the value of Latch's technology that far exceeded its share price. Despite outstanding financials, our acquisition took place when shares were trading well below the $1.50 per share indicated on Latch's balance sheet. Our research unveiled a significant reduction in expenses and cash burn.
In May, Latch made a notable move by announcing its acquisition of Honest Day's Work for $22 million in stock. This acquisition brought Honest Day's Work founder, Jamie Siminoff, founder of Ring (acquired by Amazon), on as CEO. On June 21st, we published an overview of our thesis on our website, Tourlite Capital Management, and Twitter.
As of August 10th, Latch was delisted from the Nasdaq due to the Company's inability to file restated financials. As a result, Latch's shares fell over 50% and gave back a significant amount of our prior gains. While not impactful to the underlying business, this is expected to significantly reduce liquidity. Based on our conversations with management, we believe the company remains committed to restating its financial statements and eventually uplisting back to a major exchange.
Latch, and our undisclosed small-cap technology long, likely faced tax-loss selling towards the end of the year. This created downward pressure on the share prices while missing out on the end-of-year market rally with the absence of index buying."
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Latch, Inc. (OTC:LTCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held Latch, Inc. (OTC:LTCH) at the end of third quarter which was 21 in the previous quarter.
We discussed Latch, Inc. (OTC:LTCH) in another article and shared Chamath Palihapitiya's list of stocks he pumped in the last 10 years. In addition, please check out our hedge fund investor letters Q4 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.
