Third Point Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A portfolio return of -5.3% was delivered by the flagship Offshore Fund for the final quarter of 2021, bringing its year-to-date returns to 22.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Third Point Management, in its Q4 2021 investor letter, mentioned Intel Corporation (NASDAQ: INTC) and discussed its stance on the firm. Intel Corporation is a Santa Clara, California-based semiconductor company with a $183.4 billion market capitalization. INTC delivered a -12.54% return since the beginning of the year, while its 12-month returns are down by -28.52%. The stock closed at $45.04 per share on February 21, 2022.
Here is what fourth Point Management has to say about Intel Corporation in its Q4 2021 investor letter:
“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.
Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”
Photo by Slejven Djurakovic on Unsplash
Our calculations show that Intel Corporation (NASDAQ: INTC) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. INTC was in 72 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 66 funds in the previous quarter. Intel Corporation (NASDAQ: INTC) delivered a -9.05% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on INTC 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.
