Nomadic Value Partners, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly net return of -6.5%% was recorded by the fund for the third quarter of 2021, versus the +0.6% total return for the S&P 500 Index. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Nomadic Value Partners, in its Q3 2021 investor letter, mentioned IAC/InterActiveCorp (NASDAQ: IAC) and discussed its stance on the firm. IAC/InterActiveCorp is a New York, New York-based media company with an $11.3 billion market capitalization. IAC delivered a 0.21% return since the beginning of the year, while its 12-month returns are up by 33.63%. The stock closed at $126.24 per share on November 26, 2021.
Here is what Nomadic Value Partners has to say about IAC/InterActiveCorp in its Q3 2021 investor letter:
“Our second largest detractor for the quarter became our largest position in early September, IAC Corp (IAC). The stock is a sector-focused holding company with four at-scale media and marketplace businesses, a growth/venture program, and two minority investments. We originally bought shares in IAC early this year after the company announced a spinoff of one of its fast-growing portfolio companies, Vimeo. We have since been increasing our exposure, doubling our position size in Q3. Something to note is that our “look through” exposures to IAC’s various segments are in-line with our position sizing framework.
Known on the street as the “anti-conglomerate”, investors still trade IAC around corporate events, even if the shares are trading at a significant discount to the sum-of-its-parts. Why hold the shares when one could wait for a deal announcement to quickly drive the price higher? This logic contributes to large swings in share price year in and year out. I have also fallen into this thinking. After closely following IAC for over a year we didn’t initially buy the shares until they announced the spin-off of Vimeo. In the six months prior to buying our first shares, we left close to a 100% gain on the table…” (Click here to see the full text)
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Based on our calculations, IAC/InterActiveCorp (NASDAQ: IAC) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. IAC was in 47 hedge fund portfolios at the end of the third quarter of 2021, compared to 50 funds in the previous quarter. IAC/InterActiveCorp (NASDAQ: IAC) delivered a -4.66% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
