New York City-based Totem Point Management established a new position in BILL Holdings (BILL +0.34%), acquiring 71,225 shares valued at approximately $3.77 million, according to a November 14 SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission dated November 14, Totem Point Management initiated a new position in BILL Holdings (BILL +0.34%) during the third quarter. The firm reported ownership of 71,225 shares, with the position valued at $3.77 million as of September 30. This marks the fund's first reported stake in the company.
What Else to Know
The new BILL position represents 3.36% of Totem Point’s total reportable U.S. equity assets under management as of September 30.
Top holdings after the filing:
- NASDAQ: NVDA: $14.28 million (12.7% of AUM)
- NYSE: TSM: $12.10 million (10.8% of AUM)
- NASDAQ: TTWO: $11.10 million (9.9% of AUM)
- NYSE: SPOT: $10.17 million (9.1% of AUM)
- NASDAQ: MU: $9.79 million (8.7% of AUM)
As of Friday, shares of BILL were priced at $55.23, down a staggering 38% over the past year and well underperforming the S&P 500, which is up 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.50 billion |
| Net Income (TTM) | $11.93 million |
| Price (as of Friday) | $55.23 |
| One-Year Price Change | (38%) |
Company Snapshot
- BILL offers cloud-based software solutions for automating accounts payable, accounts receivable, spend management, and payment workflows for small and midsize businesses.
- The company generates revenue primarily through a software-as-a-service (SaaS) subscription model, complemented by transaction-based fees from payment processing and value-added services.
- It serves accounting firms, financial institutions, software companies, and a broad base of small and midsize business clients worldwide.
BILL operates at scale, leveraging its cloud platform to streamline financial operations for small and midsize enterprises. The company’s SaaS business model provides recurring revenue, while its payment network facilitates efficient business-to-business transactions. Its focus is on automating back-office financial processes for small and midsize businesses.
Foolish Take
BILL’s stock is down nearly 40% over the past year, yet the underlying business hasn’t stalled in the way the chart might suggest. For long-term investors, moments like this tend to separate cyclical disappointment from structural decline. In its most recent quarter, BILL posted total revenue of $395.7 million, up 10% year over year, with core revenue growing 14% as transaction volume and subscriptions continued to expand. The platform processed $89 billion in payment volume during the quarter, while serving just under 500,000 businesses, underscoring that adoption has remained steady even as investor sentiment cooled.
This new position also fits cleanly alongside a portfolio that already leans into durable growth franchises like Nvidia, Taiwan Semiconductor, and Spotify. In that context, BILL reads less like a speculative rebound trade and more like a discounted compounder whose near-term margins and growth profile are being repriced too aggressively.
Ultimately, the stock’s drawdown has compressed expectations, but the business itself is still scaling. That gap is where long-term opportunity tends to emerge.
Glossary
13F AUM: The total value of U.S. equity securities a fund reports quarterly to the SEC on Form 13F.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or investment a fund or individual holds in a company.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Trailing Twelve Months (TTM): The 12-month period ending with the most recent quarterly report.
Compound Annual Rate: The yearly growth rate of an investment over a specified period, accounting for compounding.
Software-as-a-Service (SaaS): A business model where software is provided via subscription and accessed online, not installed locally.
Transaction-based fees: Charges earned by a company each time a customer completes a payment or transaction using its platform.
Back-office financial processes: Administrative and support tasks like invoicing, payments, and bookkeeping that keep business operations running.
Payment network: A digital infrastructure enabling businesses to send and receive payments electronically.
