Here’s What Makes Tapestry (TPR) A Great Long-Term Investment

Ariel Investments, an investment management firm, published its “Ariel International & Ariel Global Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. Ariel International Fund returned -4.55% in the third quarter, trailing the MSCI EAFE Net Index which lost -0.45%, and the MSCI ACWI ex-US Net Index which returned -2.99%. Meanwhile, Ariel Global Fund Investor Class returned -3.92% in the third quarter and Ariel Global Fund–Institutional Class delivered a -3.82% return, compared to the MSCI ACWI Index which lost -1.05% for the same quarter. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel International & Ariel Global Fund, in its Q3 2021 investor letter, mentioned Tapestry, Inc. (NYSE: TPR) and discussed its stance on the firm. Tapestry, Inc. is a New York, New York-based multinational luxury fashion holding company with an $11.3 billion market capitalization. TPR delivered a 32.75% return since the beginning of the year, while its 12-month returns are up by 42.97%. The stock closed at $41.26 per share on December 17, 2021.

Here is what Ariel International & Ariel Global Fund has to say about Tapestry, Inc.  in its Q3 2021 investor letter:

“Luxury accessory and lifestyle brand, Tapestry, Inc. was the top contributor to performance over the trailing one-year period. Revenue improvement across all three brands with a notable increase in consumer demand, particularly for the Coach business, triple-digit growth in e-commerce, and better than expected pricing, drove margins higher. Looking ahead, we expect Tapestry’s supply chain and SKU rationalization initiatives to continue to deliver margin expansion. Together, with early signs of improved receptivity for the Kate Spade brand, we believe a significant value creation opportunity lies ahead.”

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Based on our calculations, Tapestry, Inc. (NYSE: TPR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TPR was in 41 hedge fund portfolios at the end of the third quarter of 2021, compared to 41 funds in the previous quarter. Tapestry, Inc. (NYSE: TPR) delivered a 2.13% return in the past 3 months.

Last month, we published an article about TPR being included in the 5 Dividend Stocks to Buy According to Marc Majzner’s Clearline Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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