Here’s Why Miller Value Partners Bought Some Mattel, Inc. (MAT) Stake

Investment management company Miller Value Partners recently released its Q2, 2022 investment letter, a copy of which can be downloaded here. The firm faced notable challenges due to continued volatility in the last couple of years. In the second quarter, Miller Opportunity fund was down by -29.3%, extending its first half return to -31.08% net of fees. Over the last 10 years, the fund generated an annualized return of 11.83%. Take a look at the fund’s top 5 holdings to have an idea about their best picks for 2022.

In the Q2 2022 investment letter, the firm analyzed and explained the reasons for the underperformance of the fund. The letter discussed stocks like Mattel, Inc. (NASDAQ:MAT), an American international children’s entertainment company headquartered in El Segundo, California, which has a market capitalization of $8.051 billion. The stock of Mattel, Inc. (NASDAQ:MAT) closed at $22.84 per share on July 27, 2022. Mattel, Inc. (NASDAQ:MAT) had a -0.48% return for the past month and it delivered a 6.04% return in a 12-month period.

Here is what Miller Value Partners specifically said about Mattel, Inc. (NASDAQ:MAT)  in its Q2 2022 investor’s letter:

“We own a couple of turnarounds. At Mattel (NASDAQ:MAT), CEO Ynon Kriez has led a stunning improvement in operations, margins, growth and returns on capital. At 11x next year’s earnings, the market isn’t yet crediting the company for the magnitude of improvement. For this reason, there’s been rumored private equity interest in the company. Later this year, we expect it too will get its balance sheet to a place where it can allocate capital in additional shareholder-friendly ways.”

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Our research shows that Mattel, Inc. (NASDAQ:MAT) stock is not on the list of 30 Most Popular Stocks Among Hedge Funds. At the end of the first quarter, Mattel, Inc. (NASDAQ:MAT) was in 38 hedge fund portfolios, up from 29 in the previous quarter. Mattel, Inc. (NASDAQ:MAT) shares gained 11.20% over the last 52 weeks.

We published another article in February on Mattel, Inc. (NASDAQ:MAT) where another hedge fund shared its insights on the company. Please check out our hedge fund investor letters 2022 page for more investor letters from hedge funds and other leading investors.

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