Black Bear Value Partner Expects Berkshire (BRK-A) to Compound at Above Average Returns

Black Bear Value Partners, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -2.4 was recorded by the fund for the third quarter of 2022 resulting in a year-to-date return of +0.7%. Meanwhile, its benchmarks, the  S&P 500 and HFRI Index delivered -8.0% and -5.7% returns respectively for the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Black Bear Value Fund mentioned Berkshire Hathaway Inc. (NYSE:BRK-A) and explained its insights for the company. Founded in 1839, Berkshire Hathaway Inc. (NYSE:BRK-A) is an Omaha, Nebraska-based multinational conglomerate company with a $583.5 billion market capitalization. Berkshire Hathaway Inc. (NYSE:BRK-A) delivered a -8.41% return since the beginning of the year, while its 12-month returns are down by -3.15%. The stock closed at $412,760.00 per share on October 14, 2022.

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-A) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.

Our calculations show that Berkshire Hathaway Inc. (NYSE:BRK-A) ranks 11th on our list of the 30 Most Popular Stocks Among Hedge Funds. Berkshire Hathaway Inc. (NYSE:BRK-A) was in 109 hedge fund portfolios at the end of the second quarter of 2022, compared to 104 funds in the previous quarter. Berkshire Hathaway Inc. (NYSE:BRK-A) delivered a -0.41% return in the past 3 months.

In October 2022, we also shared another hedge fund’s views on Berkshire Hathaway Inc. (NYSE:BRK-A) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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