Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain 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.
Miller Value Partners Opportunity Equity, in its Q4 2021 investor letter, mentioned Farfetch Limited (NYSE: FTCH) and discussed its stance on the firm. Farfetch Limited is a London, United Kingdom-based online luxury fashion retail company with a $7.0 billion market capitalization. FTCH delivered a -43.46% return since the beginning of the year, while its 12-month returns are down by -71.85%. The stock closed at $18.90 per share on February 3, 2022.
Here is what Miller Value Partners Opportunity Equity has to say about Farfetch Limited in its Q4 2021 investor letter:
“The market reacted very negatively to fundamental headwinds from normalization, especially for unprofitable companies. With the percentage of unprofitable companies near record-high levels, many names could continue to see pressure. It will be interesting to see which companies successfully drive actual profits.
Last year, we also cut back other pandemic winners that had surged, like Farfetch. We maintained positions where we had long-term conviction in the upside, but at lower weights. While Farfetch faced topline headwinds from tough comparables amidst normalization, it’s continued to make steady progress towards profitability. It’s expected to be EBITDA profitable in 2021 and we expect positive free cash flow in 2022. Still, Farfetch currently trades ($27.20 at close on 1/14/22) more than 60% lower than its highs.
As Ben Graham says, in the short term the market is a voting machine, but in the long term, it’s a weighing machine. We remain focused on the long term and have conviction the names we own are attractive on a 5-year time horizon.”
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Our calculations show that Farfetch Limited (NYSE: FTCH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FTCH was in 51 hedge fund portfolios at the end of the third quarter of 2021, compared to 63 funds in the previous quarter. Farfetch Limited (NYSE: FTCH) delivered a -51.05% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on FTCH 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.
