Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Tuesday, June 2, 2020

Q2.2020 - HelloFresh: Testament To The Viability Of Meal-Prep Business


  • HelloFresh is an attractive growth story with international exposure in the meal-prep sector
  • The US segment makes up over half of the HelloFresh business, where it grew ~82% in Q1 2020 despite the +€1 billion of annual revenue there last year.
  • It added over 1 million customers globally in Q1, a stark contrast to Blue Apron's accelerated decline in customer base in the US alone.
  • Management's strong profitable growth execution and the global market leadership serve as long-term catalysts for the business.
  • Brand awareness has kicked in. In 2019, marketing expenses were reduced by over 22% while still maintaining a staggering +40% YoY growth in Group Revenue.

HelloFresh (OTC:HLFFF) (FRA: HFG), a Berlin-based meal-prep company, presents an interesting investment opportunity. Since its IPO in Frankfurt Stock Exchange in 2017, its share price has more than tripled to reflect its strong moat and fundamentals. The management's execution has been strong as the business has become a global meal-prep market leader, including the US, in less than 5 years from its founding.

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