Here’s Why VGI Partners Sold its Otis Worldwide Corp. (OTIS) Stake

VGI Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the twelve months ended 31 December 2021 (CY21), VGI Partners Global Investments Limited (ASX:VG1) generated a net return of -2.5%. VG1’s post-tax Net Tangible Assets (NTA) per share stood at $2.34 as of 31 December 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

VGI Partners, in its Q4 2021 investor letter, mentioned Otis Worldwide Corporation (NYSE: OTIS) and discussed its stance on the firm. Otis Worldwide Corporation is a Virginia Beach, Virginia-based transport company with a $35.4 billion market capitalization. OTIS delivered a -4.03% return since the beginning of the year, while its 12-month returns are up by 29.27%. The stock closed at $83.56 per share on January 31, 2022.

Here is what VGI Partners has to say about Otis Worldwide Corporation in its Q4 2021 investor letter:

“We also exited some core holdings during the year. We sold our OTIS position, which has been a strong performer but decided to exit based on valuation coupled with a deteriorating outlook for construction in China. China represents almost 20% of OTIS revenue but an even higher proportion of future growth; in recent months we have started to see some of these concerns play out with multiple signs pointing to a prolonged slowdown in China property construction.”

Our calculations show that Otis Worldwide Corporation (NYSE: OTIS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. OTIS was in 46 hedge fund portfolios at the end of the third quarter of 2021, compared to 45 funds in the previous quarter. Otis Worldwide Corporation (NYSE: OTIS) delivered a 3.02% return in the past 3 months.

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.