Asset Manager Investing in Global Technology Sector

We're an asset manager allocating 100% of our capital into public companies and cryptocurrency assets driving disruptive innovation globally. We serve as a family office of an Asia-based HNW family whose key members have made their fortune in the technology industry and are believers in technology as the key enabler of disruptive innovation. We seek to continue the family's legacy in creating and preserving wealth through technology investing.

Our small investment team is made up of diverse professionals who researches, identifies, and executes relevant opportunities. While we are not accepting outside clients and investors at the moment, we occasionally share some of our internal investment memos, market commentaries, and analysis here.

Wednesday, June 17, 2020

Q2.2020 - Recruit Holdings: Exposure To Fast-Growing Glassdoor And Indeed


  • Two of the most well-known global HR sites, Indeed and Glassdoor, are subsidiaries of Recruit Holdings of Japan. Both are reported under the HR Technology business segment.
  • Both businesses have an impressive 30%-50% YoY revenue growth with a double-digit EBITDA margin.
  • Having made up 13% of Recruit's ¥2.3 trillion (~$20 billion) revenue in 2019, Indeed and Glassdoor increasingly look like the future of Recruit's business.


Founded in Japan over 55 years ago, Recruit Holdings (OTCMKTS: OTCPK:RCRUY) (JPX: 6098) is the largest HR (Human Resources) company in Japan. We believe the stock presents an attractive investment opportunity due to its strong growth and profitability, driven by its fast-growing HR technology and profitable staffing and media businesses. We believe that Recruit will continue to benefit from its ownership in Indeed.com and Glassdoor.com, two US-based HR technology companies with strong market share, growth, and brand presence. In our view, both companies are the future of Recruit's business. Furthermore, their resiliences have also helped Recruit weather the pandemic. The stock is currently trading at ¥3,818 (~$35) per share, down by ~15% from YTD-high, given the COVID-19 situation that has modestly impacted its core staffing and media businesses. We think that the current price level provides a good entry point, and as such, we will maintain our overweight rating on the stock.

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