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Robert Karr’s Joho Capital Makes First Increase to Yelp Stake

Joho Capital, founded by investing Guru Robert Karr, reported adding onto its stake in online search and review site, Yelp (YELP), on Jan. 18, according to GuruFocus Real Time Picks. Representing an 8.94 percent increase, this was the firm’s first time buying shares of Yelp since the stock joined Joho’s portfolio a month ago.

Increasing by 80,000 shares, the recent buy places Joho at 5.73 percent owner of Yelp’s outstanding shares.

Founded in 2004, San Francisco-based Yelp establishes online communities that actively review local businesses, serving as a word-of-mouth centered guide for users. The site has posted over 33 million local reviews, and had an average of 84 million monthly unique visitors reported in the third quarter of 2012.

When Joho first acquired Yelp, the stock traded around $18, and was down 0.85 percent. This morning, Yelp’s price is $20.30, and up 0.15 percent from the previous trade day. (See Joho Capital Acquires Yelp)

At the time, Yelp’s competition with other local discovery applications was particularly heightened. Facebook (FB) had just announced its new feature, the “Nearby” application, which enabled users to find local spots that their friends have recommended, checked into, or liked via Facebook. Additionally, large media operator Liberty Interactive Corp. (LINTA, LINTB, LVNTA, LVNTB) had just acquired Yelp competitor, TripAdvisor (TRIP), while fellow rival Foursquare continues to add to its discovery features.

Though Yelp faces growing competition, it has expanded drastically since its $15 initial public offering in March 2012. Besides soaring in market value, the company has launched operations in such locations as Denmark, Sweden, Finland, Singapore, Turkey and the UK.



Over the months, insiders have taken advantage of its growth, continuously selling shares from September through January.

Besides Joho Capital, other Gurus who have stake in the company include Steven Cohen and Tom Russo.

Out of Joho’s 11 stocks, its top holdings are Google Inc. (GOOG), Estee Lauder (EL), Mead Johnson Nutrition Company (MJN) and New Oriental Education & Technology Group (EDU).

To view Robert Karr’s recent trades, visit his latest stock picks. Also view his undervalued stocks, high-yield companies and top growth stocks.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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