Miller Value Partners, an investment management firm, published its “Miller Deep Value Strategy” fourth quarter 2021 investor letter – a copy of which can be seen here. For the fourth quarter, the Deep Value Strategy was down 8.3%, significantly more than the overall market and the S&P 1500 Value Index. For the year, the Deep Value Strategy was up 57.8%, well ahead of the Value Index and the overall market. 2021 marks the 3rd year in a row that the Strategy has generated investment returns greater than 50%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Miller Value Partners Deep Value Strategy, in its Q4 2021 investor letter, mentioned Chico’s FAS, Inc. (NYSE: CHS) and discussed its stance on the firm. Chico’s FAS, Inc. is a Fort Myers, Florida-based clothing retail company with a $553.8 million market capitalization. CHS delivered a -15.99% return since the beginning of the year, while its 12-month returns are up by 103.60%. The stock closed at $4.52 per share on February 2, 2022.
Here is what Miller Value Partners Deep Value Strategy has to say about Chico’s FAS, Inc. in its Q4 2021 investor letter:
“During the quarter, we had two main positive contributors, (which includes) Chico’s FAS, Inc. (CHS), where both holdings were up more than 10%. Chico’s FAS, Inc is a turnaround retail investment that operates three main banners (Chicos, White House Black Market, and Soma). New CEO, Molly Langenstein, has done a wonderful job repositioning the banners and dramatically enhancing each brand’s merchandise, which has been well received in the marketplace. The company has also rolled out new digital tools that are expanding its customer base and driving greater efficiencies in the business. We see significant growth over the coming years as Chicos returns to historical revenue and margins levels, and Soma executes on their growth plans to achieve $1B in revenue. In our opinion, Chico’s share price remains mispriced and has long-term upside potential more than 3x the current price.”
Photo by Keagan Henman on Unsplash
Our calculations show that Chico’s FAS, Inc. (NYSE: CHS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CHS was in 19 hedge fund portfolios at the end of the third quarter of 2021, compared to 22 funds in the previous quarter. Chico’s FAS, Inc. (NYSE: CHS) delivered a -25.17% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on CHS in another article. You can find other 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.
