Massachusetts-based TFJ Management just added 116,490 shares of GitLab (GTLB 0.18%) to its portfolio. Let me be clear: this isn’t a typo. It’s a calculated bet that GitLab’s stock-currently down 70% from its 2021 highs-might one day stop resembling a deflated balloon.
What Happened
On November 13, TFJ Management filed with the SEC that it now owns 221,259 shares of GitLab, valued at $9.97 million as of Q3’s end. For context, that’s like buying a house in a market where the previous owner left the mortgage note on the fridge. The fund’s holding now accounts for 6.72% of its 13F AUM, which is notable but not obsessive-thankfully. Obsession is what got me into that cryptocurrency pyramid scheme I still can’t uninvest in.
What Else to Know
TFJ’s top holdings post-filing? AppLovin ($39.15M), Coupang ($25.14M), Karat ($17.80M), and others. All volatile, all high-risk, all the kind of investments that make your therapist charge you extra. GitLab sits outside the top five but feels like a close friend who’s always borrowing money and never paying it back.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $906.25 million |
| Net Income (TTM) | ($46.47 million) |
| Market Capitalization | $6.40 billion |
| Price (as of market close Friday) | $38.00 |
Company Snapshot
- GitLab offers a DevOps platform that’s basically the Swiss Army knife of software development. It also sells training sessions-because nothing says “enterprise solution” like a $500 Zoom class on code ethics.
- Their customer base includes companies desperate to streamline software delivery. Which is everyone, really, except the ones that still use floppy disks.
- Founded in 2011 and headquartered in San Francisco, GitLab operates in a sector where the word “disruption” is used so often it’s lost all meaning. Like “synergy” in the 90s.
GitLab’s subscription model is supposed to guarantee recurring revenue. Which is great, unless your subscribers are companies that went bankrupt last year. But the numbers tell a story: 25% YoY revenue growth, 18% non-GAAP operating margin, and 119% dollar-based net retention. So technically, the ship is still floating-it’s just leaking a lot of water and the captain keeps arguing with the GPS.
Foolish Take
This isn’t about timing. It’s about tolerance for chaos. GitLab’s stock has been a rollercoaster since 2021, and TFJ is basically saying, “Let’s ride this thing even though the safety harness is frayed.” The company’s fundamentals are solid-$244.4M in Q3 revenue, $27.2M adjusted free cash flow-but the market seems to have forgotten that. Or maybe it just decided to punish the stock for existing in 2024.
For patient investors, GitLab is a paradox: fundamentals improving, stock price deteriorating. It’s the investment equivalent of dating someone who texts you back with a 3-hour delay but somehow still makes you feel seen. The gap between the two is where opportunity lives, if you can stomach the emotional whiplash. And let’s be real, if you can’t stomach that, you probably shouldn’t be investing in tech stocks anyway.
Glossary
AUM (Assets Under Management): The total value of investments a fund manages. Think of it as the financial equivalent of a trust fund, but with more spreadsheets.
13F: A quarterly report for institutional investors to disclose their holdings. It’s like filing your taxes, but with fewer moral dilemmas and more spreadsheets.
Reportable assets: Investments that must be disclosed to the SEC. Because transparency is overrated and paperwork is sacred.
Stake: Your ownership in a company. If you own 1% of GitLab, you’re still not entitled to a seat on the board. Sorry.
DevOps: A set of practices that combine software development and IT operations. It’s like a group project, but with more acronyms and less group chat drama.
Subscription-based model: A business model where customers pay recurring fees. It’s how Netflix keeps charging you for that show you haven’t watched in three years.
Professional services: Consulting services to help clients use your product. Because sometimes, even the user manual isn’t enough to prevent you from crying into your keyboard.
TTM: The 12 months ending with the latest quarterly report. It’s like a financial report card, but with more decimal places and fewer hugs.
And there you have it. A stock that’s down 70%, a fund that’s up 6.7%, and a market that’s either clueless or cruel. Pick your poison-and hope it doesn’t come back to haunt you. 😉
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2025-12-21 03:19