Altron Capital: “We Remain Bullish on SKT”

Altron Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The S&P500 had a return of 11.0% in the fourth quarter, bringing the total return for 2021 to 28.7%. The firm’s portfolios have underperformed this quarter, but are taking this opportunity to buy more into some of its current positions. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Altron Capital Management, in its Q4 2021 investor letter, mentioned Tanger Factory Outlet Centers, Inc. (NYSE:SKT) and discussed its stance on the firm. Founded in 1981, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) is a Greensboro, North Carolina-based real estate investment trust company with a $1.8 billion market capitalization, and is currently spearheaded by its CEO, Stephen J. Yalof. Tanger Factory Outlet Centers, Inc. (NYSE:SKT) delivered a -11.57% return since the beginning of the year, while its 12-month returns are up by 1.37%. The stock closed at $17.05 per share on April 08, 2022.

Here is what Altron Capital Management has to say about Tanger Factory Outlet Centers, Inc. (NYSE:SKT) in its Q4 2021 investor letter:

“SKT’s business has recovered nicely from its pandemic lows, although the effect of the Omicron variant is yet to be determined. Otherwise, it appears that SKT still sees strong demand from consumers with foot traffic having largely returned to pre-pandemic levels. Rent spreads have finally started ticking upward, increasing 240 basis points in the third quarter. Occupancy has also rebounded to 94.3%. While most metrics are up, it seems that retailers’ willingness to expand and open new stores remains muted due to uncertainty surrounding COVID and the broader economy. In the meantime, management is making some strategic shifts to better position the company’s outlets in this type of environment. One such change in direction involves increasing the presence of food & beverage services across its outlets. We think this is a positive strategic decision that allows SKT more options in bringing in strong, long-term tenants to replace short-term popups and tenants lost to the pandemic. We remain bullish on SKT’s recovery and management’s ability to execute.”

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Our calculations show that Tanger Factory Outlet Centers, Inc. (NYSE:SKT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Tanger Factory Outlet Centers, Inc. (NYSE:SKT) was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 11 funds in the previous quarter. Tanger Factory Outlet Centers, Inc. (NYSE:SKT) delivered a -13.54% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.