FPA is Optimistic About TD SYNNEX Corporation (SNX)’s Ability to Increase Future Margins

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the quarter, the fund outperformed its benchmark index and returned -11.46% compared to a -15.28% return for the Russell 2000 Value 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, First Pacific Advisors discussed stocks like TD SYNNEX Corporation (NYSE:SNX). Headquartered in Fremont, California, TD SYNNEX Corporation (NYSE:SNX) is an information technology services providing company. On August 29, 2022, TD SYNNEX Corporation (NYSE:SNX) stock closed at $97.81 per share. One-month return of TD SYNNEX Corporation (NYSE:SNX) was -3.62%, and its shares lost 24.37% of their value over the last 52 weeks. TD SYNNEX Corporation (NYSE:SNX) has a market capitalization of $9.375 billion.

Here is what First Pacific Advisors specifically said about TD SYNNEX Corporation (NYSE:SNX):

“TD SYNNEX Corporation (NYSE:SNX), the largest electronics distributor globally, was formed last year from the merger of Tech Data and Synnex. With the merger, the valuable North American market consolidated from three to two and we are cautiously optimistic about the company’s ability to increase margins over time. The industry is relatively non-cyclical and is expected to grow slightly faster than GDP growth.”

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TD SYNNEX Corporation (NYSE:SNX) is not on the list of 30 Most Popular Stocks Among Hedge Funds. TD SYNNEX Corporation (NYSE:SNX) was held by 19 hedge fund portfolios at the end of the second quarter compared to 21 in the previous quarter.

We discussed TD SYNNEX Corporation (NYSE:SNX) in another article and shared Greenlight Capital’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.