Is IAC a Smart Long-Term Investment?

Arch Capital Management, an investment management firm, published its second-quarter 2021 investor letter – a copy of which can be downloaded here. As with most portfolios with no short exposure, the Arch Capital Fund has dipped into the red in 2022. The fund has a mix of both types of companies in our portfolio, given our agnosticism towards so-called “growth” or “value” stocks. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Arch Capital mentioned IAC Inc. (NASDAQ:IAC) and explained its insights for the company. Founded in 1995, IAC Inc. (NASDAQ:IAC) is a New York, New York-based media company with a $5.8 billion market capitalization. IAC Inc. (NASDAQ:IAC) delivered a -50.35% return since the beginning of the year, while its 12-month returns are down by -51.12%. The stock closed at $64.90 per share on August 26, 2022.

Here is what Arch Capital has to say about IAC Inc. (NASDAQ:IAC) in its Q2 2022 investor letter:

“The last few months have been fun, haven’t they? As with the vast majority of portfolios with no short exposure, the Arch Capital Fund has dipped into the red in 2022. While drawdowns are never enjoyable, we take solace in the fact our portfolio companies continue to create value for shareholders by either returning cash flow to us via dividends and share repurchases or reinvesting for future growth. We have a mix of both types of companies in our portfolio, given our agnosticism towards so-called “growth” or “value” stocks. We bought InterActiveCorp. Throughout 2022 we have been buying shares of InterActiveCorp (NASDAQ:IAC). At the end of this letter is our recent report on the stock, which you can also find on our website.”

Photo by Austin Distel on Unsplash

Our calculations show that IAC Inc. (NASDAQ:IAC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. IAC Inc. (NASDAQ:IAC) was in 39 hedge fund portfolios at the end of the second quarter of 2022, compared to 48 funds in the previous quarter. IAC Inc. (NASDAQ:IAC) delivered a -25.08% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on IAC Inc. (NASDAQ:IAC) 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.