Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio gained 1.3% net of fees and expenses in 2022 compared to a -18% return for the MSCI World Index. The portfolio compounded at 12.3% annually net of fees and expenses, since inception. In addition, check the fund’s top five holdings to know its best picks in 2022.
Broyhill Asset Management highlighted stocks like McKesson Corporation (NYSE:MCK) in the Q4 2022 investor letter. Headquartered in Irving, Texas, McKesson Corporation (NYSE:MCK) is a healthcare services provider. On March 17, 2023, McKesson Corporation (NYSE:MCK) stock closed at $339.35 per share. One-month return of McKesson Corporation (NYSE:MCK) was -7.50%, and its shares gained 13.14% of their value over the last 52 weeks. McKesson Corporation (NYSE:MCK) has a market capitalization of $46.548 billion.
Broyhill Asset Management made the following comment about McKesson Corporation (NYSE:MCK) in its Q4 2022 investor letter:
“Shares of McKesson Corporation (NYSE:MCK) gained 50% for the twelve months ending December 2022, as opioid-related litigation concerns, which weighed on the stock for years, took a back seat to strong operating performance. When we first established the position in 2018, we explained that, “Although headlines remind us daily of growing threats to the business, the actual probability of this business dramatically changing in the next five years is much lower than the perceived probability. We are simply betting that the future might not be as bad as the price suggests.”
Consensus FY22 and FY23 EPS estimates at the time were around $17 – $18 per share. The company reported ~ $24 in earnings in FY22, and is on pace for $26 in FY23, even as consensus estimates for the broader market were repeatedly revised lower. We continued to trim our position throughout the year as shares rerated higher from ~ 8x earnings in FY18 to ~ 16x earnings at recent highs.”
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McKesson Corporation (NYSE:MCK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the fourth quarter which was 51 in the previous quarter.
We discussed McKesson Corporation (NYSE:MCK) in another article and shared the list of Jim Cramer’s top stock picks for 2023. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
