L1 Capital, an investment management company, released its “L1 Long Short Fund” third quarter 2022 investor letter. – a copy of which can be downloaded here. A quarterly portfolio net return of -5.9% was recorded by the fund for the third quarter of 2022, underperforming the S&P ASX200 Index which had a 0.4% gain for the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Fiduciary Management Small Cap Strategy mentioned Genpact Limited (NYSE:G) and explained its insights for the company. Founded in 1997, Genpact Limited (NYSE:G) is a New York, New York-based business process management company with an $8.7 billion market capitalization. Genpact Limited (NYSE:G) delivered a -10.57% return since the beginning of the year, while its 12-month returns are down by -6.63%. The stock closed at $47.47 per share on October 25, 2022.
Here is what Fiduciary Management Small Cap Strategy has to say about Genpact Limited (NYSE:G) in its Q3 2022 investor letter:
“Genpact is a global business process management and outsourcing provider that works with clients to help them design, transform, and run business-critical operations. Genpact reports under two segments: Data-Tech-AI (~45% of revenue) and Digital Operations (~55% of revenue). Data-Tech-AI consists of client projects where Genpact is designing, building, and transforming businesses using technology. Digital Operations consists of more traditional business process outsourcing work such as operating and streamlining workflows and processes. The company has broad exposure across a number of industry verticals, employs over 114,000 professionals around the globe, and operates in over 30 countries.
Good Business
• Genpact is an industry-leading provider of business process outsourcing and digital transformational services and has experience running thousands of processes for hundreds of Fortune Global 500 clients. Its process excellence and proprietary methodologies of delivery have been developed and fine-tuned over its two decades+ of operations.
• The company estimates that more than 80% of its revenues are somewhat recurring in nature, with average deal length around 3 years and annual client retention in the high-90 percentage range.
• Over the trailing 3, 5, and 10-year periods, Genpact has grown revenue at an average rate of 10.1%, 9.5%, and 9.6%, respectively. The company expects organic growth to exceed 10% per year over the next several years, along with accelerated margin expansion through scale efficiencies.
• Genpact’s solutions provide customers with a tangible return on investment primarily by helping customers decrease costs, drive growth, and reduce risks.
• The company estimates its current total addressable market opportunity is approximately $750 billion and growing in the high single digit percent range annually.
• Over the trailing 5-year period, the company’s ROIC has averaged approximately 12%, which exceeds its cost of capital.
• Genpact has a good balance sheet with a net debt-to-EBITDA ratio of 1.7 times…” (Click here to see the full text)
Photo by Redd on Unsplash
Our calculations show that Genpact Limited (NYSE:G) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Genpact Limited (NYSE:G) was in 24 hedge fund portfolios at the end of the second quarter of 2022, compared to 28 funds in the previous quarter. Genpact Limited (NYSE:G) delivered a 3.90% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on Genpact Limited (NYSE:G) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
Suggested Articles:
- 5 Small-Cap Beverage Stocks To Buy
- 20 Cheapest States To Live in the US
- 10 Cheap Warren Buffett Stocks To Buy
Disclosure: None. This article is originally published at Insider Monkey.
