Diamond Hill Capital: “Near-Term Results for Unilever (UL) Will Be Challenging”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill International Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, the portfolio held up better than the Morningstar Global Markets ex-US Index by a decent margin. After a strong rebound in 2021, the fund expects the global GDP growth 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 International Fund mentioned Unilever PLC (NYSE:UL) and explained its insights for the company. Founded in 1929, Unilever PLC (NYSE:UL) is a London, United Kingdom-based multinational consumer goods company with a $117.1 billion market capitalization. Unilever PLC (NYSE:UL) delivered a -14.61% return since the beginning of the year, while its 12-month returns are down by -23.64%. The stock closed at $45.93 per share on July 14, 2022.

Here is what Diamond Hill International Fund Concentrated Fund has to say about Unilever PLC (NYSE:UL) in its Q1 2022 investor letter:

“Unilever’s recent results have been hampered by inflation, and the company guided to further margin pressure in 2022. In addition, the market was disappointed by Unilever’s failed attempt to acquire GSK’s consumer health business. The company announced a large reorganization which will reduce management overhead. While we expect Unilever to be able to successfully manage this inflationary environment, near-term results for the business will be challenging.

Photo by Jason Jarrach on Unsplash

Our calculations show that Unilever PLC (NYSE:UL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Unilever PLC (NYSE:UL) was in 23 hedge fund portfolios at the end of the first quarter of 2022, compared to 23 funds in the previous quarter. Unilever PLC (NYSE:UL) delivered a 2.84% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on Unilever PLC (NYSE:UL) in another article. 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.