Vulcan Value Partners, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. All five of the fund’s strategies trailed their respective benchmarks during the quarter. According to the fund, they ‘place no weight on short-term results, good or bad, and neither should you’. Vulcan Value Partners have made and will continue to make decisions that negatively impact short-term performance when it thinks it can improve its long-term returns and lower risk. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Vulcan Value Partners mentioned PROG Holdings, Inc. (NYSE:PRG) and explained its insights for the company. Founded in 1955, PROG Holdings, Inc. (NYSE:PRG) is a Salt Lake City, Utah-based furniture store company with a $1.4 billion market capitalization. PROG Holdings, Inc. (NYSE:PRG) delivered a -41.48% return since the beginning of the year, while its 12-month returns are down by -50.70%. The stock closed at $26.40 per share on May 19, 2022.
Here is what Vulcan Value Partners has to say about PROG Holdings, Inc. (NYSE:PRG) in its Q1 2022 investor letter:
“PROG Holdings Inc. is a financial technology company whose main business provides customers with a virtual lease or rent to own a financing solution for large purchases, such furniture, electronics, or appliances. Progressive has partnership relationships with leading retailers, such as Best Buy, Lowe’s, Ashley Furniture, Mattress Firm and Big Lots. Progressive creates a win-win for both the retailer and the consumer. During the fourth quarter of 2021, the company’s gross merchandise volume and revenue increased. The company also repurchased more than $400 million worth of stock in the fourth quarter and $579 million for the year. We believe the company’s long-term opportunities are strong due to its product offerings, high returns on capital, and its ability to grow while producing robust free cash flow.”
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Our calculations show that PROG Holdings, Inc. (NYSE:PRG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. PROG Holdings, Inc. (NYSE:PRG) was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 27 funds in the previous quarter. PROG Holdings, Inc. (NYSE:PRG) delivered a -27.67% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on PROG Holdings, Inc. (NYSE:PRG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
