Miller Value Partners, an investment management firm, published its “Miller Value Partners Income Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy lost 17.7% in the second quarter of 2022, underperforming the 10.0% decline for the ICE BofA US High Yield Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Income Strategy mentioned Home Point Capital Inc. (NASDAQ:HMPT) and explained its insights for the company. Founded in 2014, Home Point Capital Inc. (NASDAQ:HMPT) is an Ann Arbor, Michigan-based residential mortgage originating and servicing company with a $525.5 million market capitalization. Home Point Capital Inc. (NASDAQ:HMPT) delivered a -15.56% return since the beginning of the year, while its 12-month returns are down by -26.21%. The stock closed at $3.80 per share on August 01, 2022.
Here is what Miller Value Partners Income Strategy has to say about Home Point Capital Inc. (NASDAQ:HMPT) in its Q2 2022 investor letter:
“Home Point Capital Inc (NASDAQ:HMPT) advanced 27.4% during the quarter amidst a challenging operating environment, characterized by surging mortgage rates. Home Point reported 1Q22 net revenue of $158.2 million, down from $421.9 million in 1Q21 and $180.5 million in 4Q21, and EPS of $0.09, slightly down from $0.14 in 4Q21, ahead of analyst expectations for a net loss per share of -$0.02. The company reported 1Q22 funded origination volume of $12.6 billion, down from $20.5 billion in 4Q21 and $29.4 billion in 1Q21. During the quarter, the company repurchased 461,690 shares for ~$1.5 million, and currently has $6.5 million of remaining authorized stock repurchases available, representing 1.2% of the company’s market cap. The number of third-party broker partners for the company’s origination segment grew to 8,376 in 1Q22, +4.5% from 8,012 in 4Q21 and +39.1% from 6,023 in 1Q21. Home Point completed sales of mortgage servicing rights portfolios of single-family mortgage loans for a total purchase price of ~$434.5 million in the quarter.”
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Our calculations show that Home Point Capital Inc. (NASDAQ:HMPT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Home Point Capital Inc. (NASDAQ:HMPT) was in 3 hedge fund portfolios at the end of the second quarter of 2022, compared to 4 funds in the previous quarter. Home Point Capital Inc. (NASDAQ:HMPT) delivered a 32.87% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on Home Point Capital Inc. (NASDAQ:HMPT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
