Is Booking Holdings (BKNG) a Smart Long-Term Buy?

L1 Capital, an investment management firm, released its “L1 Capital International Fund” fourth quarter 2022 investor letter, a copy of the same can be downloaded here. In the fourth quarter, the L1 Capital International Fund returned 1.7% compared to its benchmark which had a 4.4% return for the same period. 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, L1 Capital International Fund mentioned Booking Holdings Inc. (NASDAQ:BKNG) and explained its insights for the company. Founded in 1996, Booking Holdings Inc. (NASDAQ:BKNG) is a Norwalk, Connecticut-based travel technology company with a $93.1 billion market capitalization. Booking Holdings Inc. (NASDAQ:BKNG) delivered a 19.17% return since the beginning of the year, while its 12-month returns are up by 2.21%. The stock closed at $2,401.58 per share on January 23, 2023.

Here is what L1 Capital International Fund has to say about Booking Holdings Inc. (NASDAQ:BKNG) in its Q3 2022 investor letter:

“During the December 2022 Quarter over 50% of the Fund’s holdings’ share prices increased by more than 10% in local currency with a number of them increasing by more than 20%. Five companies positively contributed over 0.5% (in AUD) to the Fund’s returns for the quarter. We added to our investment in Booking Holdings Inc. (NASDAQ:BKNG) prior to Q3 2022 results due to the share price overly discounting concerns about near term travel activity. Booking’s quarterly results were a standout, with the recovery in the travel industry following COVID-19 disruptions running well ahead of our expectations. Booking’s share price subsequently increased 23% in the December 2022 Quarter and has increased a further 14% so far in 2023 (in USD).”

Image by Edeltravel_ from Pixabay

Our calculations show that Booking Holdings Inc. (NASDAQ:BKNG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Booking Holdings Inc. (NASDAQ:BKNG) was in 92 hedge fund portfolios at the end of the second quarter of 2022, compared to 93 funds in the previous quarter. Booking Holdings Inc. (NASDAQ:BKNG) delivered a 32.79% return in the past 3 months.

In December 2022, we also shared another hedge fund’s views on Booking Holdings Inc. (NASDAQ:BKNG) 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.