Selling Coupa and CAO

I sold Coupa and China Aviation Oil this week to streamline my portfolio and to focus on the highest conviction stocks in my portfolio which includes iFAST and Datadog.

Revenue growth at Coupa has been decelerating while losses have been mounting. I think Coupa is a great company with impressive network effects and high switching costs but I’m concerned that procurement software is just too difficult to displace which could explain why revenue growth has been sluggish in the last few quarters. Loss on the investment amounted to 73% but this was a small starter position so there was only a limited impact on my portfolio.

I decided to sell my China Aviation Oil shares. Outbound travel from China has been hurt by the global pandemic and I’m not sure when China will transition away from their zero-COVID policy. Loss on this starter position amounted to 33%.

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