Here’s Why Ave Maria Added RH to its Portfolio

Investment management company Ave Maria recently released its “Ave Maria Rising Dividend Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -11.73% compared to -11.27% for the S&P 500 Value Index.  Consumer Discretionary and Technology sectors performed poorly; however, Energy, Consumer Staples, and Industrials sectors were strong contributors. You can check the top 5 holdings of the fund to know its best picks in 2022.

Ave Maria discussed stocks like RH (NYSE:RH) in the second quarter investor letter. Headquartered in Corte Madera, California, RH (NYSE:RH) is a home furnishing retailer. On August 24, 2022, RH (NYSE:RH) stock closed at $292.77 per share. One-month return of RH (NYSE:RH) rose to 7.96% and its shares lost 58.74% of their value over the last 52 weeks. RH (NYSE:RH) has a market capitalization of $7.226 billion.

Here is what Ave Maria specifically said about RH (NYSE:RH):

“During the first half of the year, two new companies were added to the Fund: Thor Industries, Inc. (THO, recreational vehicles) and RH (NYSE:RH), home products store). Both were beneficiaries of COVID lockdowns and stimulus payments to consumers. Shares of both companies sold off from their highs and are currently out of favor with most investors, which we believe make them deeply undervalued.”

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RH (NYSE:RH) is not on the list of 30 Most Popular Stocks Among Hedge Funds. RH (NYSE:RH) was held by 59 hedge fund portfolios at the end of the second quarter compared to 63 in the previous quarter.

We discussed RH (NYSE:RH) in another article and shared the list of stocks that will benefit from China’s economic slowdown. 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.