Clark Street Value: “Luby’s (LUB) has Exceeded My Expectations”

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Luby’s, Inc. (NYSE: LUB) and discussed its stance on the firm. Luby’s, Inc. is a Houston, Texas-based cafeteria company with an $88.4 million market capitalization. LUB delivered a -0.35% return since the beginning of the year, while its 12-month returns are down by -1.38%. The stock closed at $2.85 per share on January 13, 2022.

Here is what Clark Street Value has to say about Luby’s, Inc. in its Q4 2021 investor letter:

“Now to a formal liquidation, Luby’s (LUB) has exceeded my expectations, shareholders received a $2.00 initial distribution on 11/1, which was most of my cost basis.  The most recent estimate of liquidation proceeds is $3.00/share, shares trade slightly below that estimate, others have suggested there’s a fair amount of juice left (this author thinks a base case of $3.30, which sounds reasonable), I’m willing to just let it play out as the company has indicated it should be mostly wrapped up by mid-2022.”

Photo by Clem Onojeghuo on Unsplash

Our calculations show that Luby’s, Inc. (NYSE: LUB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. LUB was in 4 hedge fund portfolios at the end of the third quarter of 2021, compared to 3 funds in the previous quarter. Luby’s, Inc. (NYSE: LUB) delivered a -41.36% return in the past 3 months.

In April 2021, we published an article that includes LUB in the Top 10 Restaurant Stocks Under $10. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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