Here’s Why Hourglass Capital Exited its TEGNA (TGNA) Stake

Hourglass Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. During the first quarter, the Energy sector of the S&P 500 had a total return of 39.0% versus the broader Index of negative -4.6%. The fund’s thinking has proven correct in the shorter term both for the energy sector and the reallocation in technology-related names. The tech-heavy NASDAQ Index was down -19.6% at its low in mid-March before a significant rebound to finish the quarter -8.9%. Hourglass Capital’s structural thesis and overweight remain in place. 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, Hourglass Capital mentioned TEGNA Inc. (NYSE:TGNA) and explained its insights for the company. Founded in 2017, TEGNA Inc. (NYSE:TGNA) is a Tysons, Virginia-based publicly traded broadcast, digital media, and marketing services company with a $4.5 billion market capitalization. TEGNA Inc. (NYSE:TGNA) delivered a 10.45% return since the beginning of the year, while its 12-month returns are up by 8.41%. The stock closed at $20.50 per share on June 15, 2022.

Here is what Hourglass Capital has to say about TEGNA Inc. (NYSE:TGNA) in its Q1 2022 investor letter:

“At the portfolio level, clients fully invested at the start of the year saw an average return of 5.4% in the first quarter after all associated fees. I made three sales during the quarter, all for very different reasons. First, I sold the entirety of our position in TEGNA, Inc., a broadcasting and digital media business, after the company received a leveraged buyout offer by two joint-venture private equity investors, Standard General and Apollo.”

Photo by Roman Kraft on Unsplash

Our calculations show that TEGNA Inc. (NYSE:TGNA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. TEGNA Inc. (NYSE:TGNA) was in 44 hedge fund portfolios at the end of the first quarter of 2022, compared to 45 funds in the previous quarter. TEGNA Inc. (NYSE:TGNA) delivered a -8.56% 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.