Is British Tobacco (BTI) A Smart Investment Choice?

Motiwala Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. In 2021, the fund’s core US capital appreciation gained +26.5% net of fees. US markets continued their winning ways with the S&P 500 index returning 28.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Motiwala Capital, in its Q4 2021 investor letter, mentioned British American Tobacco p.l.c. (NYSE:BTI) and discussed its stance on the firm. Founded in 1902, British American Tobacco p.l.c. (NYSE:BTI) is a London, United Kingdom-based cigarette manufacturing company with a $96.8 billion market capitalization, and is currently spearheaded by its CEO, Jack Bowles. British American Tobacco p.l.c. (NYSE:BTI) delivered a 12.32% return since the beginning of the year, while its 12-month returns are up by 8.72%. The stock closed at $42.02 per share on April 05, 2022.

Here is what Motiwala Capital has to say about British American Tobacco p.l.c. (NYSE:BTI) in its Q4 2021 investor letter:

British Tobacco (NYSE:BTI) is one of the largest tobacco companies in the world. In 2021, BTI should have generated $37B in revenues and $10B in net income. The company is paying down debt while continuing to invest in new categories. BTI pays a high dividend payout that is well covered by free cash flow. BTI traded at 10 PE and 8% yield at purchase. The shares should appreciate as EPS grows, company pays down debt and continues to increase dividends.”

Our calculations show that British American Tobacco p.l.c. (NYSE:BTI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. British American Tobacco p.l.c. (NYSE:BTI) was in 18 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 9 funds in the previous quarter. British American Tobacco p.l.c. (NYSE:BTI) delivered a 9.46% return in the past 3 months.

In April 2022, we published an article that includes British American Tobacco p.l.c. (NYSE:BTI) in the 10 Undervalued Dividend Stocks to Buy in 2022. You can find more than 100 investor 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.