Diamond Hill Believes the Market Undervalues the Enduring Fundamentals of ChannelAdvisor (ECOM)

Diamond Hill Capital Management, an investment advisor, released its “Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 2000 Index fell by more than 17%. The volatile market condition affected the fund’s portfolio performance; however, the fund performed better compared to the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Diamond Hill Capital Management discussed stocks like ChannelAdvisor Corporation (NYSE:ECOM). Headquartered in Morrisville, North Carolina, ChannelAdvisor Corporation (NYSE:ECOM) is a software-as-a-service solution-providing company. On September 2, 2022, ChannelAdvisor Corporation (NYSE:ECOM) stock closed at $14.70 per share. One-month return of ChannelAdvisor Corporation (NYSE:ECOM) was -2.20% and its shares lost 45.80% of their value over the last 52 weeks. ChannelAdvisor Corporation (NYSE:ECOM) has a market capitalization of $422.312 million.

Here is what Diamond Hill Capital Management specifically said about ChannelAdvisor Corporation (NYSE:ECOM):

“ChannelAdvisor Corporation (NYSE:ECOM) sells cloud-based software to the retail sector to manage online marketplace listings and support other e-commerce functions. The company has been successful in moving upmarket to target larger customers. Based on the notable discount ChannelAdvisor trades at relative to comparable software M&A transactions in recent years, we believe the market continues to undervalue its long-term fundamentals.”

ChannelAdvisor Corporation (NYSE:ECOM) is not on the list of 30 Most Popular Stocks Among Hedge Funds. ChannelAdvisor Corporation (NYSE:ECOM) was held by 13 hedge fund portfolios at the end of the second quarter compared to 14 in the previous quarter.

We discussed ChannelAdvisor Corporation (NYSE:ECOM) in another article and shared Artko Capital LP’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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