Voss Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.7% and +1.3%, respectively, in the third quarter compared to a -2.2% return for the Russell 2000 index, -4.6% return for the Russell 2000 Value Index, and -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Voss Capital highlighted stocks like Crocs, Inc. (NASDAQ:CROX) in the Q3 2022 investor letter. Headquartered in Broomfield, Colorado, Crocs, Inc. (NASDAQ:CROX) engages in the footwear and accessories business. On December 7, 2022, Crocs, Inc. (NASDAQ:CROX) stock closed at $96.93 per share. One-month return of Crocs, Inc. (NASDAQ:CROX) was 4.95%, and its shares lost 40.06% of their value over the last 52 weeks. Crocs, Inc. (NASDAQ:CROX) has a market capitalization of $5.985 billion.
Voss Capital made the following comment about Crocs, Inc. (NASDAQ:CROX) in its Q3 2022 investor letter:
“Crocs, Inc. (NASDAQ:CROX) is a new long position. While the shoes are often perceived as a fad, it might surprise many of you that the Crox brand has not only endured for 20 years but is still growing by >20% organically (on top of 73% revenue growth in Q3 last year) with mid-to-high 20% operating margins.
Aside from being a consumer discretionary company and perceived Covid lockdown beneficiary at peak earnings, why did the market offer up the opportunity recently to buy CROX at its lowest earnings multiple ever? The company levered up to buy a relatively unknown shoe brand HEYDUDE for $2.5 billion in an auction process that was at first looked at with great skepticism. With the passage of time (and initial results), we think the market is coming around to the idea that the acquisition was a good one as the shoes will grow to become even more wildly popular. Academy Sports (ASO) recently called them out on their September 7th earnings call, saying, “We’re also excited to launch HEYDUDE in all stores in July just in time for back-to-school. We’re seeing strong early results and expect HEYDUDE to be a sales driver versus the remainder of the year.” (Click here to read the full text)
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Crocs, Inc. (NASDAQ:CROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Crocs, Inc. (NASDAQ:CROX) at the end of the third quarter which was 29 in the previous quarter.
We discussed Crocs, Inc. (NASDAQ:CROX) in another article and shared the list of world-class shoe stocks. In addition, please check out our hedge fund investor letters Q3 2022 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.
