Here’s Why Olstein Capital Sold its Nautilus (NLS)Stake

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 Nautilus, Inc. (NYSE:NLS) and discussed its stance on the firm. Founded in 1986, Nautilus, Inc. (NYSE:NLS) is a Vancouver, Washington-based home fitness solutions provider with a $125.9 million market capitalization, and is currently spearheaded by its CEO, Jim Barr. Nautilus, Inc. (NYSE:NLS) delivered a -34.26% return since the beginning of the year, while its 12-month returns are down by -73.36%. The stock closed at $4.03 per share on March 25, 2022.

Here is what Olstein Funds has to say about Nautilus, Inc. (NYSE:NLS) in its Q4 2021 investor letter:

“During the reporting period, the Fund initiated and eliminated its position in multi-brand fitness company, Nautilus Inc. (NYSE:NLS). The Fund sold its position in Nautilus as supply chain constraints and inflationary pressures in a highly competitive environment changed our near- and medium-term cash flow projections for the company, undercutting our original investment thesis and valuation.

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Our calculations show that Nautilus, Inc. (NYSE:NLS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Nautilus, Inc. (NYSE:NLS) was in 13 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Nautilus, Inc. (NYSE:NLS) delivered a -35.62% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on Nautilus, Inc. (NYSE:NLS) in another article. You can find other 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.