Investment management company GoodHaven Capital Management released its second-quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the first half of the year 2022, the fund outperformed the S&P 500 index declining by 3.86% compared to a drop of 8.85% for the S&P 500 Index. The fund has been performing well over the last 2 semi-annual fiscal years. You can check the top 5 holdings of the fund to know its best picks in 2022.
GoodHaven Capital Management 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 25, 2022, RH (NYSE:RH) stock closed at $294.64 per share. One-month return of RH (NYSE:RH) rose to 5.44% and its shares lost 58.30% of their value over the last 52 weeks. RH (NYSE:RH) has a market capitalization of $7.272 billion.
Here is what GoodHaven Capital Management specifically said about RH (NYSE:RH):
“Other activity in the period included eliminating our holding in PG&E and adding a few new holdings – the luxury furniture and lifestyle company RH (NYSE:RH) (formerly Restoration Hardware) and Goldman Sachs. A few important developments changed at PG&E including higher future capex plans and changes in long-term guidance, and so we changed our mind and sold. Purchases were made on a handful of occasions in 2020 and mid-2021 at an approximate average price of $9.20 and fully sold during February 2022 at an approximate average price of $11.42, earning approximately 24%. We have for some time admired what RH’s unique leader Gary Friedman and his team have built at RH and what we think the future holds. After the shares declined more than 30% from the early December 2021 high, we established a position and have increased our holdings more recently. Referring to RH as a furniture company is technically accurate, but a very incomplete description of where the company is headed. Gary has a unique blend of management skills and we look forward to writing about this holding and potentially materially increasing the position opportunistically, cognizant that the coming housing market slowdown will likely negatively impact results at RH as well.”
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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.
