Robert Karr's Joho Capital Starts Yelp Position ~ market folly

Tuesday, December 18, 2012

Robert Karr's Joho Capital Starts Yelp Position

Robert Karr's hedge fund Joho Capital filed a 13G with the SEC regarding shares of Yelp (YELP).  Per the filing, Joho has disclosed a 5.26% ownership stake in YELP with 894,795 shares.  Joho is one of the 'Tiger Cub' hedge funds as Karr previously worked at Julian Robertson's Tiger Management.

This is a brand new position for Joho Capital as they did not report a stake at the end of the third quarter on their most recent 13F filing with the SEC. The new 13G disclosure was required due to portfolio activity on December 7th.

Per Google Finance, Yelp is "operates a directory services and social networking website. Its online community provides information on urban city guide. The Company is based in the United States and its information helps people to find places to eat, shop, drink, relax, and play. It also operates a search engine for finding restaurants, dentists and hairstylists. It provides a space for feedbacks and reviews of people regarding their experiences with local businesses and services."

It's also worth pointing out that Yelp has recently been integrated into Apple's iOS platform via their maps application, allowing users to locate, rate, and review attractions. 

This integration could be a part of Joho's attraction to the name, in addition to the fact that shares have dropped from $23 down to $18 in recent months and have traded as low as $16.30.

For more on this hedge fund, we've also revealed one of Joho's short positions.

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