Here’s Why Olstein Capital Disposed its KornFerry (KFY) Position

Olstein Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The market leader for the last three years has emphasized fundamentals and valuation. The recent market correction has resulted in many more free cash flow companies falling into the fundamentally undervalued category. The All Cap Value Fund had an approximately 18% cash position at the top of the recent pandemic rally is now down to approximately 5%, as the fund has restocked the portfolio with what they believe are high-quality free cash flow fundamental value plays that moved into our price range during the recent correction. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Olstein Funds, in its Q4 2021 investor letter, mentioned Korn Ferry (NYSE:KFY) and discussed its stance on the firm. Founded in 1969, Korn Ferry (NYSE:KFY) is a Los Angeles, California-based management consulting company with a $3.4 billion market capitalization, and is currently spearheaded by its CEO, Gary D. Burnison. Korn Ferry (NYSE:KFY) delivered a -15.49% return since the beginning of the year, while its 12-month returns are up by 4.90%. The stock closed at $64.12 per share on March 24, 2022.

Here is what Olstein Funds has to say about Korn Ferry (NYSE:KFY) in its Q4 2021 investor letter:

“As of December 31, 2021, the Olstein Strategic Opportunities Fund portfolio consisted of 40 holdings with an average weighted market capitalization of $6.40 billion. During the reporting period the Fund eliminated its holdings in KornFerry (NYSE:KFY) as the price of each company’s stock reach our valuation level.”

Our calculations show that Korn Ferry (NYSE:KFY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Korn Ferry (NYSE:KFY) was in 30 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 25 funds in the previous quarter. Korn Ferry (NYSE:KFY) delivered a -15.24% return in the past 3 months.

In December 2021, we published an article that includes Korn Ferry (NYSE:KFY) in the 10 Stocks Drawing Attention Post Quarterly Results. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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