Tourlite Capital Management, an investment management firm, released its second quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class gained -1.2% for Q2 2023 and -0.2% year to date. Since its inception in April 2022, the fund returned 4.9% compared to 0.3% and -7.1% for the S&P 500 and the Russell 2000, respectively. The portfolio is mainly concentrated on industrials, consumer, and technology sectors. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital Management highlighted stocks like Kyndryl Holdings, Inc. (NYSE:KD) in the second quarter 2023 investor letter. Headquartered in New York, New York, Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. On September 25, 2023, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $15.53 per share. One-month return of Kyndryl Holdings, Inc. (NYSE:KD) was -2.82%, and its shares gained 79.63% of their value over the last 52 weeks. Kyndryl Holdings, Inc. (NYSE:KD) has a market capitalization of $3.532 billion.
Tourlite Capital Management made the following comment about Kyndryl Holdings, Inc. (NYSE:KD) in its Q2 2023 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD) spun out of IBM in 2021. Spin-offs by nature reflect management’s intention to unlock shareholder value which may present an asymmetric set-up. Kyndryl’s value lies in management’s ability to work through their focused contracts – infrastructure services that, on average, generate 0% gross margin as a result of reckless bundling under IBM. More importantly, management has demonstrated their confidence in doing so by purchasing shares in the open market. Kyndryl’s latest quarter reflects solid progress; gross margins have expanded by over 200 bps sequentially and more than 300 bps year-over-year. Pre-tax margins on recent signings are in the high single digits. We expect both gross and pre-tax margins to expand as post-signings get recognized from Kyndryl’s backlog. Kyndryl continues to present compelling upside.”
Photo by Jefferson Santos on Unsplash
Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of second quarter which was 27 in the previous quarter.
We discussed Kyndryl Holdings, Inc. (NYSE:KD) in another article and shared stock picks of David Einhorn’s 2023 portfolio. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
