Diamond Hill Capital: “Hanesbrands (HBI) Continues to Trade at an Attractive Discount”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill All Cap Select Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, the Diamond Hill All Cap Select Fund held up meaningfully better than the Russell 3000 Index. After a strong rebound in 2021, global GDP growth is expected to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill All Cap Select Fund mentioned Hanesbrands Inc. (NYSE:HBI) and explained its insights for the company. Founded in 1901, Hanesbrands Inc. (NYSE:HBI) is a Winston-Salem, North Carolina-based multinational clothing company with a $3.6 billion market capitalization. Hanesbrands Inc. (NYSE:HBI) delivered a -37.62% return since the beginning of the year, while its 12-month returns are down by -40.13%. The stock closed at $10.43 per share on July 14, 2022.

Here is what Diamond Hill All Cap Select Fund Concentrated Fund has to say about Hanesbrands Inc. (NYSE:HBI) in its Q1 2022 investor letter:

“The share price of Hanesbrands pulled back in Q1 due to concerns around the impact cost inflation might have on future profitability despite solid quarterly results and increased longer-term financial targets. As with other apparel companies, the market is growing increasingly concerned with the potential of a consumer spending slowdown and a return of promotional activity. Hanesbrands continues to trade at an attractive discount to our estimate of intrinsic value based on the opportunity to grow its Champion brand and for the innerwear segment to consistently achieve modest growth.”

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Our calculations show that Hanesbrands Inc. (NYSE:HBI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Hanesbrands Inc. (NYSE:HBI) was in 23 hedge fund portfolios at the end of the first quarter of 2022, compared to 32 funds in the previous quarter. Hanesbrands Inc. (NYSE:HBI) delivered a -25.92% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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