Bonhoeffer Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy that can be downloaded here. The Bonhoeffer Fund returned -4.4% net of fees in the first quarter of 2022. In the same time period, the MSCI World ex-US, a broad-based index, returned -6.0%, and the DFA International Small Cap Value Fund, its closest benchmark, returned -4.2%. As of March 31, 2022, the fund’s securities have a weighted average earnings/free cash flow yield of 18.5% and an average EV/EBITDA of 4.0. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Bonhoeffer Capital Management mentioned Gray Television, Inc. (NYSE:GTN) and explained its insights for the company. Founded in 1897, Gray Television, Inc. (NYSE:GTN) is an Atlanta, Georgia-based television broadcasting company with a $1.6 billion market capitalization. Gray Television, Inc. (NYSE:GTN) delivered a -16.27% return since the beginning of the year, while its 12-month returns are down by -21.12%. The stock closed at $16.88 per share on July 15, 2022.
Here is what Bonhoeffer Capital Management has to say about Gray Television, Inc. (NYSE:GTN) in its Q1 2022 investor letter:
“One category of leveraged firms you have in your portfolio is levered media firms. One example is Gray Television (NYSE:GTN), a local television firm with a primarily rural and suburban footprint nationwide (see my previous Gray Television writeup in the Q2 2019 letter). Gray has been adapting to the new media landscape. Gray has also rolled up local TV affiliates close to the FCC limit and has the six competitive advantages of local TV businesses outlined in previous letters, namely:
- cable and streaming retransmission fees (transitioning advertising revenue to recurring revenues);
- political advertising;
- economies of scale from vertical (content) and horizontal (other local station clusters) consolidation;
- owned spectrum that can be used as additional content distribution channels or leased to others;
- nonurban footprint leading to less competition; and
- ATSC 3.0 growth opportunities which are projected to be equal in size to retransmission fees (about 30% of Gray’s revenues) by 2030…” (Click here to see the full text)
Photo by Ashley Byrd on Unsplash
Our calculations show that Gray Television, Inc. (NYSE:GTN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Gray Television, Inc. (NYSE:GTN) was in 18 hedge fund portfolios at the end of the first quarter of 2022, compared to 19 funds in the previous quarter. Gray Television, Inc. (NYSE:GTN) delivered a -16.97% return in the past 3 months. 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.
