Long Cast Advisers, LLC, an independent registered investment adviser investing on behalf of individuals, family offices and endowments, published its first quarter 2022 investor letter – a copy of which can be downloaded here. The fund is concentrated on long-term investing, focused on small-cap companies. For the 1st quarter of 2022, its cumulative net returns declined by 13%. There is tangible rationale why equities have declined but chief among them is rising interest rates. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Long Cast Advisers mentioned Data I/O Corporation (NASDAQ:DAIO) and explained its insights for the company. Founded in 1969, Data I/O Corporation (NASDAQ:DAIO) is a Redmond, Washington-based manual and automated data programming and security provisioning systems provider with a $27.1 million market capitalization. Data I/O Corporation (NASDAQ:DAIO) delivered a -31.67% return since the beginning of the year, while its 12-month returns are down by -40.57%. The stock closed at $3.16 per share on May 10, 2022.
Here is what Long Cast Advisers has to say about Data I/O Corporation (NASDAQ:DAIO)) in its Q1 2022 investor letter:
“Also at the end of the quarter, DAIO announced that as a result of COVID quarantines and shutdowns in China, “revenue shipments of approximately $1 million are held up and delayed until the second quarter … We have not received any requests to cancel orders to date and expect to deliver finished systems and other products as soon as the limitations are lifted.” The company recently reported 1Q22 earnings with strong bookings and a solid balance sheet, albeit with revenues depressed by delayed shipments.
The company is cyclical and will likely be impacted by any potential recessionary pressures notably due to exposure to two other cyclical industries; semiconductors and automobiles. However, the company has the balance sheet to sustain itself over the cycle and continues to improve its traction on sales of its “secure chip” platform called SentriX. Growing success in this area of the market could yield tremendous results over time.”
Our calculations show that Data I/O Corporation (NASDAQ:DAIO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Data I/O Corporation (NASDAQ:DAIO) was in 3 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 3 funds in the previous quarter. Data I/O Corporation (NASDAQ:DAIO) delivered a -34.10% return in the past 3 months.
In June 2021, we also shared another hedge fund’s views on Data I/O Corporation (NASDAQ:DAIO) 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.
