Here’s Why Alphabet (GOOG) Detracted in the Third Quarter

Merion Road Capital, an investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned -11.5% compared to 2.1% return for the Russell 2000 Index, and its Long Only Large Cap returned -6.4% compared to -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.

Merion Road Capital discussed stocks like Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter. Alphabet Inc. (NASDAQ:GOOG) is a multinational technology company headquartered in Mountain View, California. On October 13, 2022, Alphabet Inc. (NASDAQ:GOOG) stock closed at $99.71 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -3.78% and its shares lost 29.62% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.295 trillion.

Here is what Merion Road Capital specifically said about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:

“Portfolio returns continued to get dragged down by some of our core holdings in large-cap technology like Alphabet Inc. (NASDAQ:GOOG). The market positioning and long-term opportunity set for these companies has not changed. Current prices obviously reflect increased macroeconomic risks and risk-free rates/premium. But it’s hard to argue that these risks are not reflected in the price or that GOOG should be disproportionately hurt by rising rates when it is trading at a mid-teen multiple of free cash flow. In any case, GOOG is a secular winner when we look beyond a few months or years.”

Pixabay/Public Domain

Alphabet Inc. (NASDAQ:GOOG) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 153 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter which was 160 in the previous quarter.

We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared the list of the most valuable companies in history. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

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