Andvari Associates, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For the full year of 2022, the fund was down 33.8% net of fees compared to the SPDR S&P 500 ETF, which was down 18.2%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Andvari Associates highlighted stocks like S&P Global Inc. (NYSE:SPGI) in the fourth quarter 2022 investor letter. Headquartered in New York, New York, S&P Global Inc. (NYSE:SPGI) is a ratings, benchmarks, analytics, and workflow solutions provider to capital and commodity markets. On January 31, 2023, S&P Global Inc. (NYSE:SPGI) stock closed at $374.94 per share. One-month return of S&P Global Inc. (NYSE:SPGI) was 9.75%, and its shares lost 11.17% of their value over the last 52 weeks. S&P Global Inc. (NYSE:SPGI) has a market capitalization of $122.155 billion.
Andvari Associates made the following comment about S&P Global Inc. (NYSE:SPGI) in its Q4 2022 investor letter:
“S&P Global Inc. (NYSE:SPGI) is another company we own that is part of a duopoly in the business of credit rating. S&P and Moody’s have roughly equal market shares and rate more than 90% of all bonds worldwide. The service provides high value for the cost. A company that chooses to issue debt without a rating will pay an interest rate that could be higher by half of a percent. The cost of a higher interest rate far exceeds any savings gained by not using the services of S&P.
We think of S&P as a toll road that earns fees from its customers in exchange for cost-effective access to capital. As such, the company has extraordinary margins and pricing power and requires little of its own capital to grow. Even after fully reinvesting in its business, S&P still has an excess of cash. In 2021, S&P produced $3.5 billion of free cash from $8.3 billion of revenues. The company returns the majority of its free cash to investors in the form of dividends and share repurchases.”
S&P Global Inc. (NYSE:SPGI) is in 27th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held S&P Global Inc. (NYSE:SPGI) at the end of the third quarter, which was 84 in the previous quarter.
We discussed S&P Global Inc. (NYSE:SPGI) in another article and shared the list of biggest dividend kings and dividend aristocrats. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 15 Biggest Neuroscience Companies in the World
- Dividend Kings and Artistocrats List
- 10 Recent Spinoff Companies Hedge Funds Are Buying
Disclosure: None. This article is originally published at Insider Monkey.
