Here’s Why Smead Capital Views Target Corp. (TGT) a Strong Long-Term Hold

Smead Capital Management, an investment management company, released its Smead Value Fund second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -13.33% compared to the S&P 500 Index which lost 16.10% and the Russell 1000 Value Index posted a loss of 12.21%. The bear market affected the performance of the fund in the second quarter and the fund believes that it will act as a blessing for the fund’s long-term performance. Please check the top five holdings of the fund to know more about its best picks in 2022.

In the letter, Smead Capital Management discussed stocks like Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US general merchandise retailer with a market capitalization of $78.675 billion. The stock of Target Corporation (NYSE:TGT)  closed at $169.67 per share on August 10, 2022. One-month return of Target Corporation (NYSE:TGT) rose to 15.98%, and its 12-month return dropped to -35.21%.

Here’s how Smead Capital Management mentioned Target Corporation (NYSE:TGT)  in the Q2, 2022 investor letter:

“Target Corporation (NYSE:TGT) got blistered by excess inventories as the consumers woke up from their COVID-19 hibernation and associated purchasing patterns. When we tell you that we hold winners to a fault, Target proves the downside of that practice. We view it as a very strong long-term hold.”

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Although Smead Capital Management invested in Target Corporation (NYSE:TGT), it is not on the list of  30 Most Popular Stocks Among Hedge Funds. At the end of the second quarter Target Corporation (NYSE:TGT)  was held by 50 hedge fund portfolios compared to 49 in the previous quarter.

We discussed Target Corporation (NYSE:TGT) in another article and shared the top high free cash flow divided stocks. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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