Here’s Why Avis Budget Group (CAR) Landed in Broyhill’s Top Contributors List

Broyhill Asset Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the full year ending December 31, 2021, Broyhill generated low-to-mid-twenties returns on equities. Overall performance varied depending on individual account asset allocations, legacy positions, and capital flows. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Broyhill Asset Management, in its Q4 2021 investor letter, mentioned Avis Budget Group, Inc. (NASDAQ: CAR) and discussed its stance on the firm. Avis Budget Group, Inc. is a Parsippany-Troy Hills, New Jersey-based car rental company with a $9.0 billion market capitalization. CAR delivered a -22.63% return since the beginning of the year, while its 12-month returns are up by 229.13%. The stock closed at $160.45 per share on February 19, 2022.

Here is what Broyhill Asset Management has to say about Avis Budget Group, Inc. in its Q4 2021 investor letter:

“Avis surged 166% during the final two quarters of the year. The company hit a new record for quarterly EBITDA – third quarter EBITDA was higher than any full year in Avis history – while buying back nearly $1B of stock and announcing another $1B increase in their repurchase authorization. Shares hit an intra-day peak of $545 after reporting earnings, ultimately closing at $357, more than doubling the prior close. Frenzied retail trading, prompted by management commentary around electric vehicles adoption, prompted a dozen trading halts throughout the day. The mania grew so intense that TD Ameritrade stopped allowing short sales in Avis, as short interest represented ~ 30% of the float.”

Photo by Dean Brierley on Unsplash

Our calculations show that Avis Budget Group, Inc. (NASDAQ: CAR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CAR was in 27 hedge fund portfolios at the end of the third quarter of 2021, compared to 26 funds in the previous quarter. Avis Budget Group, Inc. (NASDAQ: CAR) delivered a -43.96% return in the past 3 months.

In November 2021, we published an article that includes CAR in the 10 Reddit Stocks that Tripled in 2021. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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