Rowan Street’s Q3 Letter: Flat Quarter, 20% YTD Gain, Spotify Trim Fuels New Bets

Overview

• Rowan Street Capital reported a Q3 return of +0.22% and a +20.4% net gain year to date through September 30, outperforming the S&P 500’s +14.8%.
• Over the past three years, the firm said its capital compounded at roughly +54.2% annually (net), for a +266% cumulative return.
• Spotify, held for more than seven years, has been trimmed by about 85% to a 7.8% weight, with realized capital redirected to Adyen, Din Polska and Tesla.
• Netflix has been a five-plus-year holding compounding about 23% annually, which the firm credits to pricing power, global scale and improved content efficiency.
• As reported alongside the letter, publication snapshots showed end-Q2 counts of 111 hedge fund holders for Spotify and 133 for Netflix, and the firm said it currently sees superior risk‑reward in select AI opportunities.