Worm Capital Q2 2020 Investor Letter

Worm Capital is an investment management firm with a focus on equity-oriented strategies. The fund strategies are designed around the concept of technological disruption and how cutting-edge innovation has the potential to reshape entire industry verticals.

Worm Capital’s long/short equity strategy generated net returns of 131.29% and long-only equity growth strategy generated 78.51%, verses -3.08% for the S&P 500 TR for YTD.

Since that publication last year, Tesla’s share price has now increased more than 5X as of this writing in early July. The “rubber band” did indeed snap back and many shorts were forced to capitulate.

As the real economy imploded downward in April and May (i.e.historic levels of job losses, bankruptcies, loan defaults, etc.) the market rocketed back upward from its March lows.

The next industry vertical that I believe is entering into a state of chaos and disruption could be the biggest one yet. I believe it’s bigger than transportation or even retail or media.

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