Farrer Wealth Advisors, an investment management firm, published its “Farrer Wealth Managed Solution” first quarter 2022 investor letter – a copy of which can be downloaded here. This quarter was tough on the managed solution, and while the fund always expected its portfolio would suffer 30%+ drawdowns at some stage, they never thought it would be in the first nine months of launching. The benchmark bottomed on 8th March, and since then has returned 8.90% whereas our Managed Solution has returned 15.67% (the below in USD; 8th March to 1st April 2022). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Farrer Wealth Advisors mentioned Atento S.A. (NYSE:ATTO) and explained its insights for the company. Founded in 1999, Atento S.A. (NYSE:ATTO) is a Madrid, Spain-based business process outsourcing company with a $353.02 million market capitalization. Atento S.A. (NYSE:ATTO) delivered a -2.27% return since the beginning of the year, while its 12-month returns are up by 8.53%. The stock closed at $24.95 per share on April 28, 2022.
Here is what Farrer Wealth Advisors has to say about Atento S.A. (NYSE:ATTO) in its Q1 2022 investor letter:
“Atento is a bit out of left field for us with regards to the industry, and thus, is one of the most unique positions in our portfolio. Atento is a player in the BPO (business process outsourcing) space, and predominantly operates in Latin America. It used to originally be part of Telefónica (largest Spanish telecom company, also still their largest customer) to deal with customer relationship management (CRM). Atento was spun out of Telefónica and sold to Bain capital in 2012 for $1.3bn. This deal was backed by lenders, who in May 2020 (five years after IPO) were handed the share via a payment-in-kind note when Bain wanted out. The lenders (GIC, HPS, and Farallon) are now stuck with the shares until the middle of this year when their lockup expires. We think that to get an adequate return on their investment they would need to sell the shares for $55 (current share price is around $25). Considering the lenders own over 60% of the company and liquidity of the stock is quite poor, selling their share in the open market is out of the question, they must find a buyer for the company. Now the question becomes why anyone would want to buy Atento, so we’ll touch on the business fundamentals below…” (Click here to see the full text)
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Our calculations show that Atento S.A. (NYSE:ATTO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Atento S.A. (NYSE:ATTO) was in 6 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 5 funds in the previous quarter. Atento S.A. (NYSE:ATTO) delivered a 9.29% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
