Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 3.27% compared to a 4.61% decline for the Russell 2000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Third Avenue Management discussed stocks like Encore Capital Group, Inc. (NASDAQ:ECPG) in the Q3 2022 investor letter. Headquartered in San Diego, California, Encore Capital Group, Inc. (NASDAQ:ECPG) is a specialty finance company. On October 19, 2022, Encore Capital Group, Inc. (NASDAQ:ECPG) stock closed at $46.19 per share. One-month return of Encore Capital Group, Inc. (NASDAQ:ECPG) was -6.08% and its shares lost 11.88% of their value over the last 52 weeks. Encore Capital Group, Inc. (NASDAQ:ECPG) has a market capitalization of $1.103 billion.
Here is what Third Avenue Management specifically said about Encore Capital Group, Inc. (NASDAQ:ECPG) in its Q3 2022 investor letter:
“Specialty finance company, Encore Capital Group, Inc. (NASDAQ:ECPG), was added to the Fund in the third quarter and the thesis will be described in detail later on. Auto supplier, Visteon Corp was eliminated from the portfolio this past quarter. It was a profitable investment for shareholders, yet did not live up to our expectations. The challenges of competing in the auto supplier industry often diluted Visteon’s robust product development successes. Given the volatility and elevated valuation, Fund Management decided to monetize the position and redeploy the proceeds into companies with more favorable risk/return attributes such as ECPG.
ECPG is the #1 market share participant2 in the U.S. and U.K. The company is focused on purchasing charged-off consumer receivable portfolios. It does so at an average purchase price of 12 cents on the dollar of face value. It complements collection efforts with the largest third-party consumer debt servicing business. A cursory review of the business description leaves the company susceptible to being misunderstood by the market and potential investors who are intimidated by the company’s diversified holdings of consumer credit receivables…” (Click here to read the full text)
Research, Investment, Finance
Encore Capital Group, Inc. (NASDAQ:ECPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Encore Capital Group, Inc. (NASDAQ:ECPG) at the end of the second quarter which was 20 in the previous quarter.
We discussed Encore Capital Group, Inc. (NASDAQ:ECPG) in another article and shared the list of best stocks to buy according to Jonathan Bloomberg’s BloombergSen. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
