Investment management company Vulcan Value Partners recently released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive absolute returns in the second quarter. The fund’s Large Cap Composite returned 10.0% net of fees and expenses, the Small Cap Composite returned 4.4% net, the Focus Composite returned 11.1% net, the Focus Plus composite returned 10.6%, and the All-Cap Composite returned 6.0% net. You can check the top 5 holdings of the fund to know its best picks in 2023.
Vulcan Value Partners highlighted stocks like PROG Holdings, Inc. (NYSE:PRG) in the second quarter 2023 investor letter. Based in Draper, Utah, PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company. On August 22, 2023, PROG Holdings, Inc. (NYSE:PRG) stock closed at $34.45 per share. One-month return of PROG Holdings, Inc. (NYSE:PRG) was -17.31%, and its shares gained 71.65% of their value over the last 52 weeks. PROG Holdings, Inc. (NYSE:PRG) has a market capitalization of $1.575 billion.
Vulcan Value Partners made the following comment about PROG Holdings, Inc. (NYSE:PRG) in its second quarter 2023 investor letter:
“PROG Holdings, Inc. (NYSE:PRG) provides lease-to-own financing to retailers and their non-prime customers. As the Federal Reserve raised interest rates in response to higher inflation levels, loan write-offs exceeded the company’s historical levels. In response, management tightened their underwriting standards, and write-offs have returned to their optimal range. While tightening credit has put pressure on revenues, it has been positive for both earnings and free cash flow. Progressive’s short-duration financing model generates significant free cash flow. We think their counter-cyclical business model is poised to take advantage of a weaker credit environment.”
Photo by Clay Banks on Unsplash
PROG Holdings, Inc. (NYSE:PRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held PROG Holdings, Inc. (NYSE:PRG) at the end of second quarter which was 14 in the previous quarter.
We discussed PROG Holdings, Inc. (NYSE:PRG) in another article and shared Diamond Hill Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 25 Countries with the Lowest Internet Penetration Rates in 2023
- Top 10 Stocks To Buy In 10 Different Sectors for the Next 3 Months
- 11 Best Weight Loss Stocks To Invest In
Disclosure: None. This article is originally published at Insider Monkey.
