Arch Capital: “The Best Time to Buy IAC Was Yesterday. The Next Best Time is Now”

Arch Capital Management, an investment management firm, published its second-quarter 2021 investor letter – a copy of which can be downloaded here. As with most portfolios with no short exposure, the Arch Capital Fund has dipped into the red in 2022. The fund has a mix of both types of companies in our portfolio, given our agnosticism towards so-called “growth” or “value” stocks. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Arch Capital mentioned IAC Inc. (NASDAQ:IAC) and explained its insights for the company. Founded in 1995, IAC Inc. (NASDAQ:IAC) is a New York, New York-based media company with a $6.0 billion market capitalization. IAC Inc. (NASDAQ:IAC) delivered a -48.80% return since the beginning of the year, while its 12-month returns are down by -49.35%. The stock closed at $66.93 per share on August 24, 2022.

Here is what Arch Capital has to say about IAC Inc. (NASDAQ:IAC) in its Q2 2022 investor letter:

“Throughout 2022 we have been buying shares of InterActiveCorp (NASDAQ:IAC). At the end of this letter is our recent report on the stock, which you can also find on our website.

The Best Time to Buy IAC Was Yesterday. The Next Best Time is Now

Our goal for investors in the Arch Capital Fund is to compound capital at 15% annually while taking on as little risk as possible. This does not mean risk in the form of short-term stock price movements but does mean in the form of durability and future earnings power of the businesses we own. At $71 a share, we believe InterActiveCorp is one of the lowest-risk bets to have market-beating returns over the next 1, 3, and 5 years. The long-running acquirer and builder of internet brands has a fantastic track record since its inception in 1995 (13% total return CAGR vs. 10% in the S&P500), even with its shares plummeting 44% so far in 2022…” (Click here to see the full text)

Our calculations show that IAC Inc. (NASDAQ:IAC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC Inc. (NASDAQ:IAC) was in 39 hedge fund portfolios at the end of the second quarter of 2022, compared to 48 funds in the previous quarter. IAC Inc. (NASDAQ:IAC) delivered a -17.58% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on IAC Inc. (NASDAQ:IAC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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