Is Adobe (ADBE) a Smart Long-Term Buy?

Andvari Associates, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the first six months of 2022 Andvari was down 30.9% net of fees while the SPDR S&P 500 ETF was down 20.0%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Andvari Associates mentioned Adobe Inc. (NASDAQ:ADBE) and explained its insights for the company. Founded in 1982, Adobe Inc. (NASDAQ:ADBE) is a San Jose, California-based multinational computer software company with a $188.0 billion market capitalization. Adobe Inc. (NASDAQ:ADBE) delivered a -29.13% return since the beginning of the year, while its 12-month returns are down by -35.79%. The stock closed at $401.90 per share on July 22, 2022.

Here is what Andvari Associates has to say about Adobe Inc. (NASDAQ:ADBE) in its Q2 2022 investor letter:

“We added to our positions in other current holdings and we also started a new position in a company we have known for decades: Adobe Inc. (NASDAQ:ADBE). Adobe is a software company that has been around for nearly 40 years. We are intimately familiar with the company. Andvari’s own founder and Chief Investment Officer started using Adobe products over 25 years ago. Adobe is also one of several companies featured in an Andvari white paper about business lessons learned from the evolution of the desktop publishing software industry.

There are many reasons why Adobe is a high quality company, but let’s first outline what the company does. The company divides its offerings into two groups: Digital Media and Digital Experience. The Digital Media segment contains the products with which most people are familiar, such as Photoshop for photo editing, Illustrator for digital illustrators, and Acrobat for creation, editing and signing of documents in Adobe’s own ubiquitous PDF file format…” (Click here to see the full text)

Adobe, software

Our calculations show that Adobe Inc. (NASDAQ:ADBE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Adobe Inc. (NASDAQ:ADBE) was in 93 hedge fund portfolios at the end of the second quarter of 2022, compared to 94 funds in the previous quarter. Adobe Inc. (NASDAQ:ADBE) delivered a -2.05% return in the past 3 months.

In June 2022, we also shared another hedge fund’s views on Adobe Inc. (NASDAQ:ADBE) 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.