Distillate Capital, an investment management firm, released its fourth quarter 2022 investor letter, a copy of the same can be downloaded here. At the end of the fourth quarter, Distillate’s U.S. FSV strategy declined 10.58% on a total return basis net of fees compared to a decline of 18.11% for the S&P 500 benchmark. Better relative performance for Distillate’s SMID QV strategy continued into 2022 with a decline of 8.64% on a total return net-of-fee basis, significantly ahead of a comparable decline of 20.49% for the Russell 2000 ETF and -14.67% for the Russell 2000 Value ETF. On the other hand, Distillate’s Intl. FSV strategy again lagged its MSCI ACWI Ex-US benchmark in 2022, while the Distillate’s U.S. FSV strategy’s free cash flow to market cap yield valuation of 7.2% compares very favorably to 5.1% for the same measure for the S&P 500. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
In its Q3 2022 investor letter, Distillate Capital mentioned Apple Inc. (NASDAQ:AAPL) and explained its insights for the company. Founded in 1976, Apple Inc. (NASDAQ:AAPL) is a Cupertino, California-based multinational technology company with a $2.4 trillion market capitalization. Apple Inc. (NASDAQ:AAPL) delivered an 18.70% return since the beginning of the year, while its 12-month returns are down by -11.78%. The stock closed at $151.73 per share on February 6, 2023.
Here is what Distillate Capital has to say about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:
“The largest new purchase was Apple Inc. (NASDAQ:AAPL), which after underperforming saw its valuation improve significantly. Over the course of the last year, Apple’s consensus estimated forward free cash flows rose modestly, while its enterprise value fell by around 30%. Apple ranks below the 25th most attractive name in the portfolio and so its weight is capped at 4% vs. 6% for names in the top quartile.”
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Our calculations show that Apple Inc. (NASDAQ:AAPL) ranks 9th on our list of the 30 Most Popular Stocks Among Hedge Funds. Apple Inc. (NASDAQ:AAPL) was in 140 hedge fund portfolios at the end of the second quarter of 2022, compared to 128 funds in the previous quarter. Apple Inc. (NASDAQ:AAPL) delivered a 10.56% return in the past 3 months.
In January 2023, we also shared another hedge fund’s views on Apple Inc. (NASDAQ:AAPL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.
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Disclosure: None. This article is originally published at Insider Monkey.
